Vale commits to spend additional $1 million at Suwar

KELOWNA, BC, Nov. 17 /CNW/ - Cantex Mine Development Corp. (CD : TSXV) ("Cantex" or the "Company") is pleased to update the progress on its Suwar nickel - copper - cobalt project in Yemen .

Vale International S.A ("Vale"), a wholly owned subsidiary of Vale S.A., formerly Companhia Vale do Rio Doce has optioned Cantex's nickel - copper - cobalt +/- platinum group element properties in Yemen .

In the release dated November 4, 2009 Cantex announced that it has extended the period for Vale to commit to spending an additional US$1 million on the Suwar project. Vale has now made this commitment and will spend a minimum of US$1 million in 2010 on the project.

The results to date have shown that the Suwar project has the potential to host a significant nickel - copper - cobalt +/- platinum group element mine. Drilling conducted at the project has returned promising intercepts such as those 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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    Y99-02      47.95      70.00       22.05      1.41       0.91       0.07
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    Y00-05       7.62      50.83       43.21      0.86       0.46       0.05
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               179.01     197.50       18.49      0.67       0.27       0.03
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    Y07-08      44.20      55.50       11.30      1.13       0.50       0.06
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    Y07-18      54.20      76.00       21.80      1.45       0.78       0.06
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Since optioning the property on November 18, 2008 Vale has spent in excess of US$2 million exploring the Suwar nickel - copper - cobalt project. Building upon work already completed by Cantex Vale completed a soil sampling program, detailed geological mapping, magnetic, gravity, induced polarization and down hole electromagnetic surveys to assist in the understanding of the mineralization. Five holes totaling 2125 meters were completed using two drills prior to the Ramadan holiday in September.

Since Ramadan drilling has continued with one drill. One hole testing a geochemical anomaly coincident with the western induced polarization anomaly did not reach target depth due to drilling difficulties and was terminated at 61.5 meters. Up to 25% sulphides was intersected from 44.77 to 51.60 meters, but oxidation of the sulphides prevents accurate determination of sulphide type. A second hole testing a geochemical anomaly to the south west of the main mineralization trend is currently being drilled. The hole is presently at 109.2 meters and is planned to extend to over 200 meters. So far this hole has intersected a broad zone of 10 - 15% disseminated sulphide mineralization from 59.47 to 97.00 meters and a second zone of sulphides from 102.17 to the current hole depth of 109.2 meters. The sulphides are predominantly pyrrhotite and pyrite with minor chalcopyrite.

In addition to the ongoing drilling, planned work for the Suwar deposit includes metallurgical testing of the sulphide mineralization intersected to date. In 2010 an electromagnetic geophysical survey is to be completed. Anomalies generated by this survey will be drill tested.

Cantex believes that the Suwar project has the potential to host a significant nickel - copper - cobalt +/- platinum group element mine and is pleased that Vale has committed to spending an additional US$1 million on the project.

Management looks forward to the results of this work.

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.

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