Yukon

OVERVIEW

Cantex has 100% ownership of several projects in Canada’s mining friendly Yukon Territory.

These projects were generated from the Company’s 30,000 square kilometre regional heavy mineral sampling program over an area favourable for Carlin style mineralization following ATAC Resources Ltd discovery of the Osiris deposit in 2010. This work identified areas which contained highly anomalous gold and pathfinder elements for Carlin-style and base metal mineralization. These areas were staked in 2012 and exploration is currently focused on the North Rackla claim block.

Exploration of the North Rackla block commenced with detailed heavy mineral sampling to define portions of the drainages which hosted mineralization. These watersheds were then evaluated using composite soil-talus samples collected at 25 metre intervals along 200 metre spaced lines. Where favourable results were obtained, infill lines were completed down to a 50 metre spacing to define the mineralization source. Over 20,000 composite soil-talus samples have been collected on the North Rackla block.

The soil-talus sampling has identified several mineralized zones within the 15km x 15km North Rackla claim block. The most advanced of these is the Massive Sulphide Zone.

Massive Sulphide Zone – Silver-Lead-Zinc

The Massive Sulphide Zone has so far been traced for almost 2.5 kilometres and hosts high silver, lead and zinc values.  The mineralization is hosted in Proterozoic aged rocks and has elevated manganese values similar to the Sedex style Sullivan and Mt Isa Mines.

Drilling in late 2016, 1.6 kilometres away at the southwestern end of the Massive Sulphide Zone encountered oxidized mineralization that increased in grade and width with depth.

In the summer 2018 program, Cantex drilled both the northeastern (€œDiscovery Zone€) and southwestern (€œExtension Zone€) portions of the Massive Sulphide Zone. At the northeastern end drilling from 3 pads tested the mineralization beneath the substantial widths encountered in trenching. At the Extension Zone drilling tested the mineralization to greater depth.

At the Extension Zone the deeper drilling intersected fresh mineralization which contained exceptional silver-lead-zinc values. Significant intercepts from the 2018 summer drill program are presented below:

Drilling for the 2019 program commenced in June, with three drills on site, and a helicopter-borne magnetic survey was carried out in July.  An infill soil-talus sampling program was also conducted adjacent to previous geochemical anomalies throughout the North Rackla property.  Results from the survey are shown below (Figure 1) and have provided valuable insight in terms of correlating mapped surface exposures and drill results with geophysical trends for the first time. The survey shows a linear anomaly that correlates well with the mapped surface trace of the massive sulphide Main Zone and intercepts of the zone in drill core. Based on this geophysical interpretation, the massive sulphide Main Zone trend has expanded by one kilometre, to 3.4 kilometres, of total strike length.

Maps and cross sections showing the above drilling are presented at the bottom of the page.

Northern Area – Polymetallic

In addition to the Massive Sulphide zone Cantex has discovered several other prospects within the North Rackla claim block. One of these is the Northern Area which contains polymetallic mineralization in a stromatolitic limestone which is capped by a sandy bedded dolomitic unit. Prospecting, rock sampling and trenching of the mineralization which outcrops over a 120m by 150m area have returned results as high as 15.75 g/t gold, 377 g/t silver, 11.0% lead and 32.5% zinc. Drilling was cut short during the 2018 summer season and the first hole on the area was curtailed prior to completion. Drilling on this was completed in spring 2019.

2019 Drilling Program

As of the beginning of September, 2019, 62 holes totalling over 14,000 metres have been completed on the Massive Sulphide Zone.  Heavy massive sulphides have been logged in two fans of five drill holes (all ten holes) from each of Pad MZ3 and Pad MZ4, as well as a fan of four holes from Pad MZ26. Pads are not drilled in numerical order and drilling is ongoing; both along strike (ENE and WSW) and down dip within the Main Zone where the zone has thus far been intersected down to 335 metres vertical depth. Additional drill pads are being built to support drilling further down dip. Drill pads with summer-only access are being prioritized while pads on flatter ground will be drilled later in the season.  Full assay data from the first 2,648 metres of assayed drill core is included below.

South Zone – New Massive Outcropping Gossan Zone Discovered

Prospecting and sampling carried out 1 kilometre south of the Main Zone has resulted in the discovery of a new exposure of outcropping massive gossan (weathered sulphides). This steeply dipping gossan has been traced for 1,200 metres along surface and down 320 metres of elevation, with exposed apparent widths at surface ranging from 2 to 20 metres.  The exposure of the zone correlates well with a linear feature that can be traced for over 1 kilometre of strike length on the recently interpreted magnetic survey. The geophysical character of this zone is comparable to that of the Main Zone.

Assays of grab samples taken from this gossan have returned significantly elevated zinc and manganese levels (up to 12.35% Zn and up to 5.82% Mn), which are also key geochemical markers seen at the Main Zone. The location of this new South Zone in relation to the Main Zone is shown in the map above.

CEO Chad Ulansky standing on the South Zone:

Click Here To View The Most Recent Version Of The Yukon Presentation

The locations of Cantex’s claim blocks are presented in the map

An overview of the Massive Sulphide project is presented in this map

Cross Section through the Extension Zone is presented below

North Rackla drill pad locations are presented in this map

Cross Section of Pad 5 (holes YKDD19-039, 040, 042, 043 and 046) is presented below

North Rackla River Claim Block Showing Anomalous Zones