Cantex updates Vale progress on Suwar project

KELOWNA, BC, Nov. 4 /CNW/ - Cantex Mine Development Corp. (CD : TSXV) ("Cantex") is pleased to update the progress on the Suwar nickel - copper - cobalt project.

The Suwar project is optioned to Vale International S.A ("Vale"), a wholly owned subsidiary of Vale S.A., formerly Companhia Vale do Rio Doce.

Vale has undertaken an aggressive exploration program at Suwar since optioning the project in November 2008 . Vale has met and exceeded its US $2 million work commitment. Initially work focused on developing drill targets in the vicinity of the mineralization previously discovered by Cantex. 1894 soil samples were collected, a satellite image was acquired and detailed geological mapping was conducted over the Suwar area. Ground geophysical surveys included 32 line kilometers of ground magnetics, 15 kilometers of ground gravity and a ground induced polarization (IP) survey covering a 2.5 km by 2.5 km area.

The results of this work identified several drill targets. The most significant of these were two IP anomalies. The eastern IP anomaly was modeled to be approximately 800 meters long and between 130 and 250 meters wide. The western anomaly was modeled to be 600 meters long and between 150 and 300 meters wide.

Logan drilling was contracted to test the deeper targets and the first planned hole for this drill was designed to test the depth extent of the mineralization discovered at Suwar Hill. Although the hole was planned to reach 1,000 meters difficult drilling conditions prevented the hole from reaching target depth; the hole was terminated at 598.48 meters. The second and third holes were designed to test the eastern IP anomaly. Both holes reached target depths of 599 meters. Only the second hole intersected significant mineralization.

One of Cantex's small man portable drills was used to test shallow drill targets in areas inaccessible to the larger drill. Prior to the Ramadan holiday two holes were completed; the first was drilled to 172.14 meters and the second was drilled to 156.12 meters. No significant mineralization was intersected.

Due to a limited drilling budget only five holes were drilled totaling 2,125 meters. Down hole electromagnetic surveys were completed on two of the 2009 drill holes to provide a better understanding of the mineralization at depth. All mineralized sections were sent for assay.

Core from the 2005 and 2007 drill programs which had been held for the Vale geologists to review has also been assayed. These holes tested the Suwar Hill mineralization and the extension of this mineralization to the northeast and southwest. Significant mineralization was intercepted over a significant strike length. In the northeast hole Y05-07 intersected 8.23 meters of significant mineralization which contained 1.39% nickel and 0.55% copper while over 740 meters to the southwest hole Y07-08 intersected a 11.30 meter section containing 1.13% nickel and 0.50% copper. Significantly mineralized sections from the 2005, 2007 and 2009 drilling are contained in the following table:

    
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    Hole                            Significant Mineralization
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                From (m)    To (m)   Length (m)    Ni (%)    Cu (%)    Co (%)
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    Y05-02        48.30     53.34        5.04       0.97      0.20      0.04
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    Y05-03*     36.90     38.10        1.20       1.10      0.28      0.08
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                  52.59     53.30        0.71       0.84      0.99      0.05
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    Y05-06*     78.72     79.80        1.08       1.93      0.23      0.13
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    Y05-07        51.25     54.20        2.95       0.71      0.29      0.05
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          *    124.36    132.59        8.23       1.39      0.55      0.09
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    Y07-02        39.20     42.40        3.20       0.92      0.19      0.05
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                  51.00     56.40        5.40       1.20      0.96      0.06
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                  63.13     63.97        0.84       1.00      0.53      0.04
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    Y07-05       156.18    156.68        0.50       0.70      0.09      0.11
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    Y07-07        41.70     43.70        2.00       0.66      0.21      0.05
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                  79.00     81.60        2.60       1.15      0.42      0.08
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                  91.20     95.14        3.94       1.00      0.54      0.07
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    Y07-08        44.20     55.50       11.30       1.13      0.50      0.06
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    Y07-10        42.20     43.40        1.20       0.52      0.27      0.03
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    Y07-18        54.20     76.00       21.80       1.45      0.78      0.06
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    Y09-02       555.35    557.50        2.15       0.45      0.31      0.02
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    * Denotes previously disclosed results
    

The drilling conducted to date has not discovered continuous mineralization worthy of a prefeasibility study. Further work is required to define such mineralization and Cantex is working with Vale to modify the timelines contained within the original agreement to allow this work to occur. Cantex has granted Vale an extension of up until December 31, 2009 to decide whether to commit an additional US $1 million on exploration as required under the option agreement.

The deadline to complete the prefeasibility study on the Suwar project has been extended by the Geological Survey and Mineral Resource Board of Yemen to July 31, 2012 and the exploration license containing both the Suwar nickel-copper-cobalt and Al Hariqah gold projects has been renewed until August 6th, 2011 .

Currently Vale geologists are on site and Cantex's man portable core drill is testing additional targets at Suwar.

This press release has been prepared by Chad Ulansky, a Qualified Person.

    
    Signed,

    Charles Fipke

    Charles Fipke
    Chairman and Geologist

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

%SEDAR: 00010333E

For further information: Cantex Mine Development Corp., 203-1634 Harvey Ave., Kelowna, BC, V1Y 6G2, Tel [phone], Fax [phone], Email [email protected]