Cole Lake Precious/Base Metals Project Expanded
Trading Symbol CIN-TSX.V
VANCOUVER, July 6, 2012 /CNW/ - Canadian International Minerals Inc (CIN-TSX.V) is pleased to announce that it has expanded its Cole Lake property by staking 2 claims covering 346.78 hectares for a total of 16 claims with 6967.22 hectares areal extent in the Cole Lake area of west central British Columbia.
The claims cover Bulkley Intrusive Suite units, as well as Hazelton and Bowser Lake sediments and volcanic rocks, that are favorable hosts for significant base and precious metal mineralization in B.C. The property includes several B.C. MINFILE occurrences of precious and base metals mineralization.
Silicification and carbonatization with associated pyrite, pyrrhotite and chalcopyrite were identified by Cominco in 1945 on the property. (GSC Memoir 299).
No further work appears to have been done in the area until 1980, when Welcome North Mines conducted geological mapping, rock and soil sampling. A summary of work completed in 1980 (Holland, R. 1981) states: "Showing 'C' occurs within the northern fault zone and consists of brecciated bornite, chalcopyrite, chalcocite and lesser pyrite in a rusty quartz-carbonate matrix. The vein, where best exposed, appears to be 0.5 metres in width. A second exposure up the hill provides evidence for a strike length of at least 100 metres. A selected specimen of high grade material assayed 17.6% copper and 12.45 oz/ton silver, while a specimen of representative grade ran 0.626% copper and 0.38 oz/ton silver."
Follow up work in 1983 produced samples which assayed up to 6.35 g/t gold over narrow widths (Richards, T., 1983). In 1987 the GSC/BCGS released regional geochemical survey data for an area including the present Cole claims which contained anomalous base and precious metals, as well as indicator elements (Open File 1360). Follow up programs in 1987/88, which included prospecting and silt sampling, reported samples grading up to 3.7g/t gold (Richards, T., 1988). No further work has been recorded in the area since the late 1980's.
The north boundary of the Cole property is approximately 15 km south of Imperial Metals Corporation's (III-TSX) producing Huckleberry mine. The mine has been in production since 1997 and by January 1, 2011 had produced 870 million pounds of copper, 105,000 ounces of gold, 3.4 million ounces of silver and is also recovering molybdenum in concentrates (Christensen, Connaughton, Ogryzlo, 2011). Huckleberry's mine life has recently been extended to 2021.
Eleven kilometers north of the Cole property and south of the Huckleberry mine is Gold Reach Resources Ltd's (GRV-TSX.V) Seel deposit. GRV has recently announced intercepts up to 556.7 meters of 0.51% copper equivalent and 571.9m of 0.38% copper equivalent at Seel (GRV news release 6/12/12). The ongoing diamond drilling program has been expanded to a minimum 25,000 meters (GRV news release 6/26/12).
The Cole claims are in an area traditionally explored for porphyry copper type (bulk tonnage, low grade) targets, but a recent exploration program by Callinex Mines Inc. (CNX-TSX.V) has identified significant higher grade gold, silver, lead, zinc mineralization on a property which directly adjoins CIN's claims to the east. CNX has recently announced an 11.70 metre diamond drill intersection grading 175.00 grams per tonne silver, 0.19 g/t gold, 2.11 % zinc and 1.52 % lead. This hole was drilled 94 metres away from CNX hole Cole 28, which included 21.3 metres grading 3.37 g/t gold, 15.33 g/t silver and 2.04 % zinc (CNX news release 11/25/11). CNX`s drilling was conducted approximately 7 km from CIN's property boundary. An expanded CNX drill program to follow up last year's work has been announced (CNX news release 7/5/12).
CIN is planning a property scale airborne geophysical program for the 2012 exploration season with follow up on the ground.
The Company also announces that it has closed its private placement of 2,094,000 non flow-through units (the "NFT Units") at $0.05 per NFT Unit for total gross proceeds of $104,700 and 790,000 flow-through units (the "FT Units") at $0.07 per FT unit for total gross proceeds of $55,300.
Each NFT unit consists of one common share and one transferable share purchase warrant, each warrant entitling the holder to purchase one additional common share for a period of two years at a price of $0.10 per share in the first year and $0.15 per share in the second year of the term of the warrant.
Each FT unit consists of one flow-through common share and one transferable share purchase warrant, each warrant entitling the holder to purchase one non flow-through common share for a period of two years at a price of $0.10 per share in the first year and $0.15 per share in the second year of the term of the warrant.
The Company issued 49,000 units in payment of finder's fees under the placement, each unit consisting of one common share and one non-transferable share purchase warrant authorizing the purchase of one additional common share for a period of two years at a price of $0.10 per share in the first year and $0.15 per share in the second year of the term of the warrant.
All securities issued under the placement are subject to hold periods expiring on October 20, 2012.
Proceeds of the placement will be used for Qualified Exploration Expenditures on the Company's mineral properties and for general working capital.
The Company has arranged, subject to the acceptance of the TSX Venture Exchange, to reprice and extend the expiry date of warrants issued on July 15, 2011, originally set to expire on July 15, 2012. There are currently 1,448,056 warrants outstanding, each warrant exercisable into one common share of the Company at a price of $0.25 per share. The new expiry date of the warrants will be July 15, 2016. The exercise price of the warrants will be $0.10 per share and will now include an acceleration provision, being that if the common shares of the Company trade on the TSX Venture Exchange at a price of $0.125 or more for 10 consecutive trading days, then the warrants will expire on the earlier of 4:30 p.m. (Vancouver time) 30 calendar days after the 10th trading day and expiry date of the warrants.
Mr. Thomas Hasek, P.Geo., M.Sc., is a Qualified Person pursuant to NI 43-101 and has read and approved the technical disclosure contained in this news release.
Michael E. Schuss
President and Chief Executive Officer
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.
CANADIAN INTERNATIONAL MINERALS INC.
Suite 1130 - 789 West Pender Street
Vancouver, BC, V6C 1H2
Tel: 604-241-2254 Fax: 604-669-9335
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