Symbol: KCR: TSX
MONTREAL, June 12 /CNW Telbec/ - Cancor Mines is pleased to announce that
the Company has been awarded a prospection permit for a significant copper
-gold base metal project in Algeria. The Tan Chaffao project is for gold and
copper exploration in a massive sulphide environment. The Tan Chaffao project
is 100% owned by the Algerian State and the prospection permit has been
auctioned by the Agence Nationale du Patrimoine Minier (ANPM), the sole
government agency authorized to deliver such permits in Algeria. The project
is located in the Hoggar, 250 km north of the Town of Tamanrasset. The Tan
Chaffao project covers an area of 44,580 hectares (44.5 km(2)). It is situated
45 km to the northwest of the copper - gold deposit known as Tan Chaffao East
which is found in the same geological context. This latter deposit is
currently being explored by a British junior exploration company listed on AIM
in London. The area is easily accessible by both light and heavy vehicles on
paved roads and tracks.
As a result of the previous surface exploration conducted within the area
covered by the permit, several sulphide lenses with copper and gold were
discovered at surface where they form gossans (zones of oxidation). The only
known drilling consists of 3 shallow holes during the 1970's.
The mineralization is typical of Cu, Zn, Pb, Au, Ag polymetallic
volcanogenic felsic environments. The mineralized marker horizons extend over
more than 20 km. Sulphide lenses and associated stringers open both laterally
and at depth extend for lengths of 300 to 500 meters and are up to 55 meters
thick. In these areas, one observes between 20 to 50% of sulphides,
essentially pyrite and copper, lead sulphides and magnetite. All prospection
work was carried out in the visible oxidized zones. Five sectors were
investigated in more detail where values of 1 to 10 grams gold per tonne, and
0.5% to 3% copper are reported. Visible gold has been observed locally.
The current exploration model is that of a volcanic massive sulphide
deposit with copper and gold. The potential for the discovery of a deposit of
significant size is excellent; yet the area remains little explored. A
complete review of the available data on the project together with an
evaluation report in accordance with NI 43-101 will be carried out in the
coming months and a program of exploration will be elaborated. Canada is an
example where large deposits of this type have been found such as the Horne,
Bousquet 2, La Ronde 1 and the La Ronde-Penna deposits.
Cancor has also tendered for another gold exploration permit and has been
retained to present a financial offer in 45 days. This additional permit is of
interest due to its strategic location along a gold structure which hosts two
gold deposits (Tirek and Amessmessa) and numerous vein structures and which
extends nearly 400 km. There is evidence of several vein swarms. This permit
is adjacent to the south of the Amessmessa gold deposit currently under
development by an Australian company (listed on the London Stock Exchange
Alternative Investment Market). According to the Geological and Mining
Research Office of Algeria, the estimated resources (non compliant with NI
43- 101) of this deposit are 1,066,472 ounces of gold with a grade of 15.8 g
Au/t. ENOR expects the gold production to increase to 100,000 ounces/year
starting January 2007 for the development of this project on the basis of
estimated mineable resources of 543,000 ounces.
Mr. Kamil Khobzi, eng., President of the Company, is of Algerian origin
and is knowledgeable about the geology and the mining potential of this
country. His background and involvement in the project are key to a successful
undertaking of this new challenge for Cancor. In addition, Mr. René Dufour, a
mining engineer and a director of Cancor, completed many years ago a project
for the Canadian International Development Agency, which consisted of
evaluating the mining potential of Algeria, including the Hoggar region where
the Tan Chaffao permit is located.
Cancor Mines Inc. is a Canadian mining company engaged in the exploration
and development of properties with gold and base metal potential in
established mining camps.
All Cancor Mines Inc. press releases are available at the Company's
Website: www.cancor.ca. This press release has been read and approved by Mr.
Khobzi, an engineer and qualified person for purposes of NI 43-101.
Caution concerning forward-looking statements
This press release contains certain "forward-looking statements",
including, but not limited to, the statement regarding exploration work and
the emphasis on looking for a certain type of deposit. Forward-looking
statements involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate. Actual results and
future events could differ materially from those anticipated in such
statements. Risks and uncertainties that could cause results or future events
to differ materially from current expectations expressed or implied by the
forward-looking statements include, among other things, those set forth in
Cancor's 2006 Annual Information Form, a copy of which can be obtained on the
SEDAR website at www.sedar.com.
For further information:
For further information: Mr. David Crevier, Chairman, in Montreal, (514)