Canamex Resources Corp.: Clarification of Technical Disclosures as a Result of a Review by the British Columbia Securities Commission
Vancouver, June 16, 2016 - Canamex Resources Corp. (TSXV: CSQ) (OTCQX: CNMXF) (FSE: CX6) ("Canamex") is issuing this news release to clarify our disclosure on the Bruner gold project in Nye County, Nevada as a result of a review by the British Columbia Securities Commission. Non-Compliant Disclosure of Mineral Resources and Preliminary Economic Assessment (PEA)
The Company has occasionally reported mineral resources for the Bruner property that are not compliant with sections 2.2(c) and 3.4 of NI-43-101.
MD&A for Three Months Ended March 31, 2016
The Company disclosed tonnage and contained metal quantities that sum indicated and inferred resource, where these two classes of resources should not be summed and should be reported separately.
Corporate Presentation
The Company's website and corporate presentation disclosed contained metal quantities that sum indicated and inferred resource, where these two classes of resources should not be summed and should be reported only separately.
Cautionary Language Regarding the PEA
The MD&A dated March 31, 2016 failed to include the following cautionary language and disclosures required under NI-43-101, and applicable to all disclosure of the Company's PEA* results:
"Mineral resources are not mineral reserves and do not have demonstrated economic viability".
"The Preliminary Economic Assessment is preliminary in nature, and includes inferred resources that are considered too speculative geologically to have the economic consideration applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized."
* See the Company's PEA Technical Report dated April 5, 2016 (on SEDAR) for detailed results of the PEA. The summary economic parameters contained in the MD&A dated March 31, 2016 failed to disclose prominently that mineral resources that are not mineral reserves do not have demonstrated economic viability and the PEA is preliminary in nature.
In order to rectify these oversights regarding the disclosure of mineral resources, the Company is re-iterating the breakdown of indicated and inferred resources as referenced in both the PEA and the press releases summarizing the results of the PEA (March 3, 2016 and April 6, 2016) as follows:
| RESOURCE ABOVE EXTERNAL BREAKEVEN CUTOFF | |||||||||||
| Indicated > 0.192 gpt Au Equiv | Inferred > 0.192 gpt Au Equiv | ||||||||||
| Zone | K-tonnes | Au grade gpt | Ag grade gpt | Cont'd Au k oz | Cont'd Ag k oz | K-tonnes | Au grade gpt | Ag grade gpt | Cont'd Au k oz | Cont'd Ag k oz | |
| HRA | 4050 | 0.67 | 7.81 | 87 | 1017 | 400 | 0.34 | 3.57 | 4 | 46 | |
| Penelas | 7850 | 0.64 | 4.94 | 162 | 1247 | 1550 | 0.68 | 2.76 | 34 | 138 | |
| Paymaster | - | - | - | - | - | 650 | 1.08 | 3.11 | 23 | 65 | |
| Sub Total | 11900 | 0.65 | 5.92 | 249 | 2264 | 2600 | 0.73 | 2.97 | 61 | 249 | |
| RESOURCE ABOVE INTERNAL BREAKEVEN CUTOFF AND BELOW EXTERNAL CUTOFF | |||||||||||
| Indicated between 0.117 and .192 gpt Au Equiv | Inferred between 0.117 and 0.192 gpt Au Equiv | ||||||||||
| Zone | K-tonnes | Au grade gpt | Ag grade gpt | Cont'd Au k oz | Cont'd Ag k oz | K-tonnes | Au grade gpt | Ag grade gpt | Cont'd Au k oz | Cont'd Ag k oz | |
| HRA | 1450 | 0.16 | 3.91 | 7 | 182 | 200 | 0.17 | 2.12 | 1 | 14 | |
| Penelas | 700 | 0.16 | 3.09 | 4 | 70 | 150 | 0.16 | 2.00 | 1 | 10 | |
| Paymaster | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | |
| Sub Total | 2150 | 0.16 | 3.64 | 11 | 252 | 350 | 0.17 | 2.07 | 2 | 24 | |
| TOTAL RESOURCE ABOVE INTERNAL BREAKEVEN CUTOFF | |||||||||||
| Indicated > 0.117 gpt Au Equiv | Inferred > 0.117 gpt Au Equiv | ||||||||||
| K-tonnes | Au grade gpt | Ag grade gpt | Cont'd Au k oz | Cont'd Ag k oz | K-tonnes | Au grade gpt | Ag grade gpt | Cont'd Au k oz | Cont'd Ag k oz | ||
| Total | 14050 | 0.58 | 5.57 | 260 | 2516 | 2950 | 0.66 | 2.86 | 63 | 273 | |
Mineral Resources that are not mineral resource do not have demonstrated economic viability.
The Company is in the process of updating both its website and its corporate presentation to be compliant with the disclosure requirements and clarifications referenced above.
Greg Hahn, President and COO and a Certified Professional Geologist (#7122) is the Qualified Person under NI43-101 responsible for preparing and reviewing the data contained in this press release.
ON BEHALF OF THE BOARD
SIGNED: "Mark Billings"
Mark Billings, Chairman and CEO
Contact:
(514) 296-1641
mark@marengomgt.com
Neither the 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.
