Canex Metals (CANX) - Advancing Oxide Bulk Gold in Arizona

February 11 2021, 14:41 GMT

CanEx Metals

  • Shares Outstanding: 55.5M
  • Share price C$0.13 (08.02.2021)
  • Market Cap: C$7.2M

CanEx Metals is a Canadian Junior Exploration Company with an experienced exploration team focussed on identifying, acquiring and developing high potential exploration projects. CanEx is focused on a new gold discovery at the Gold Range Project in Arizona where ongoing work has identified a 5km long fault zone containing numerous mineralized zones and exploration targets. 

We caught up with Shane Ebert, President of CanEx Metals following a few recent press releases from the company. Last time we spoke, we ran through the  business plan, the strategy, the team and the assets of the company.

Company Overview 

CanEx Metals is an early stage Gold exploration company focused in Northern Arizona at their Gold Range property.  They have recently identified some brand new bulk tonnage opportunities with their maiden drill programme and now added to that potential with the property next door at Excelsior.  Altius Minerals is one of their major backers and they’re excited to move the project forward.  

Canex Metals (CANX) - Advancing Oxide Bulk Gold in Arizona

Potential in Arizona: Acquiring the Excelsior Mine  

The geology in Arizona is excellent and there is a lot of really good Gold potential and new opportunities. CanEx is situated right between Northern Mexico and Nevada to the North which is a great jurisdiction geologically.   

CanEx has added some key claims to their portfolio with a zone at Excelsior that’s seen historic underground mining and then some more recent open pit mining.  It’s got an exposed high-grade vein with a halo 20m to 50m wide of veining and good alteration and mineralisation that could have some bulk tonnage potential, as well as that high-grade element.  It’s an exciting target for the company and is well defined and drill ready. 

Canex Metals (CANX) - Advancing Oxide Bulk Gold in Arizona

CanEx has spent some money there and had some results back which show a high-grade vein but also some bulk. The drill programme helped to put things in perspective and see what they have overall.  There are lots of high-grade veins and a very flat line mineralised structure that seems to be fairly continuous.  They have found a new zone just off that pit, drilled a couple of holes into high grade in the pit extension zone and have hit 10g/t over 1.5m.  South of there they made a new discovery at the Eldorado zone which looks like it’s flat dipping.  The team learnt a lot from that drill programme, and have made a couple of interesting realisations and discoveries with the drill.  

Canex Metals (CANX) - Advancing Oxide Bulk Gold in Arizona

Big Picture: Understanding the Opportunity at Gold Range

CanEx has confirmed the mineralised zones and refined their understanding of the project.   They need to convey their message to the average investor that these bulk deposits can be amenable to really low-cost heap leach operations. They’re very cheap to build and to set up and there's a lot of companies in the area, in Northern Mexico into Nevada that operate these low-cost operations at a very high margin.  These deposits can add a lot of value and CanEx thinks that as with a bit of expansion, the general market will understand that they’re not just a high-grade target, but also a high value, heap leach type, low-cost mining target.

Canex Metals (CANX) - Advancing Oxide Bulk Gold in Arizona

Financing it All: Too Cautious of an Approach?

The company has raised about CAD$1.7M and has just over CAD$2M in the bank.  They expect to receive about 150,000 shares of Canada Nickel Company at around CAD$2.60 as the price today.  They’re starting with another CAD$500,000 programme to take it to the next step which they will take systematically.  They have a couple of good zones and plan to drill some holes at the new Excelsior zone which is well exposed and 15 holes into their new discovery at Eldorado. 

The aim is to prove that the zone is flat dipping and continuous and after that they will start to expand it outwards.  They plan to take it step by step which they hope will lead to an efficient exploration programme but it seems they have been very cautious with their approach in this Gold bull market when a lot of other companies are rushing to get funding to get going immediately. 

CanEx wants to build value for their shareholders so don’t want to raise too much money at discount prices and they think they have raised enough at about CAD$1.7M recently.  They have brought in some quality shareholders into that deal and hope that they will be patient to give them time to exercise their game plan. They’re focused on per share growth, not growing their market cap so they aim to be measured in their plans and understand what they’re doing to be successful.  

Share Price from 27 to 15, What's Happened?

The share price has gone down to CAD$0.15 from CAD$0.27 where it was when we last spoke in September which suggests the market is not seeing the CanEx story. As far as the market is concerned, CanEx has put out a lot of news recently so they hope to see some reflection of that in their share price soon. They’re excited by their project and have raised some money, so are looking forward to drilling to move this project forward.

Canex Metals (CANX) - Advancing Oxide Bulk Gold in Arizona

Exciting the Market: Time, Plans, Goals

CanEx is excited but the markets are not at the moment. The company needs time to get it right, but how much time? The plan is to have a couple of drill programmes. The first one they’re on now, costing about CAD$500,000, will probably drill 35 holes to confirm and understand the zones and their new targets.  They have some other existing targets, but are planning for 15 holes into the Eldorado bulk tonnage target and 15 holes into the new Excelsior acquisition, where they can see mineralisation. At Excelsior, they need to understand how wide the halos are and how continuous the high-grade core is and how they fit together in the 3km belt between the two.  

The first programme will take 3 weeks to drill, a month and a half for assays, then the team needs to evaluate and understand what they have.  Then they plan to lead into a much bigger definition drilling programme where they will start to drill test the 3km to strike mines. 

On the new discovery at Eldorado, they have found a 27m horizon that’s almost 1g/t.  The holes go down to 150m+ with anomalous to low-grade mineralisation all the way through that 150m.  There’s a lot of 0.1g/t, 0.2g/t material which may not be that interesting but shows that there is a big system and with more understanding and more drilling there could be a lot of upside for a much bigger system.

Business Model: Validity of Opportunity

CanEx is open to options as to what happens next with the project and whether it will be up for sale at some point. But their focus right now is to explore what they have. They have a big area with some very significant mineralised zones on their ground, so will take it step by step and look at opportunities as they come.  They are convinced they will add value to the project and make some good discoveries in the near term and that’s what they’re focused on going forward.

We look forward to hearing more news from CanEx and await some drill results which could be a couple of months away due to delays at the assay labs.

To find out more, go to Canex Metals' Website. 

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