TAN CHAFFAO WEST (Au, Cu)

Location:

Located in the southern region of Algeria, Tan Chaffao West is 270 km north west of the town of Tamanrasset and is approximately 2,000 km south of the town of Algiers in the Saharan desert.

Access:

Accessible by road in all seasons with the use of 4 by 4 vehicles.

Land: 44,580 ha

Title:

A prospection permit under exclusive right was granted in 2007 for a period of one year. The permit is renewable. The property was acquired from the Algerian government through a transparent bidding process.

Geology:

The permit lies on the western flank of the In Rabir syncline, a 20-km long structure that is north southerly oriented and occupies an assemblage of volcano-sedimentary rocks dominated by rhyolites probably belonging to the proterozoic formations. Strong alteration zones in volcano-sedimentary rocks are found in association with the faults.

The polymetallic deposit of Tan Chaffao East that contains 6,600,000 tonnes of mineral inventory grading 0.55% Cu, 1.65% Zn and 1.62 g/t Au† is located on the eastern flank of the In Rabir syncline within similar formations at 45 km to the SE. At Tan Chaffao East, the mineralization is associated with disseminations and veinlets of sulphides (pyrite, chalcopyrite and galena) in altered silicified volcanites that are crossed by a network of quartz and barite veinlets. Visible gold has been observed locally.

Work:

Exploration work conducted in the 1970’s by Russian geologists for Sonarem, an agency of the Algerian government, comprised geophysical surveys (magnetic, gravimetric and electrical), geological surveys, prospection, extensive trenching and three short diamond drill holes.

Throughout 2007-2008, Cancor conducted a geological survey, cut a grid of picket lines, sampled quartz veins for metallics as well as sampling different rock types for major, trace and rare earth elements.

Mineralizations and potential:

Russian geologists discovered five mineralized zones (zones I to V) with base metal and gold values. The length of each zone varies between 200 and 400 meters with a maximum width of 50 meters. They form two separate lineaments extending more than 10 km. The mineralization is present in altered volcano-sediments in association with quartz vein and faulting. It consists of malachite, chalcopyrite, sphalerite, galena and native gold with pyrite, pyrrhotite, magnetite and barite. The principal alterations are sericitisation, chloritisation, silicification and kaolinitisation.

Positive results for base metals were reported in trench 12 in zone I which has assayed up to 7.60% Zn over 3.20 m and 2.30% Cu over 1.50 m with an average of 1.98% Zn, 038% Cu and 0.23% Pb on 25.3 m and in Trench 16 in zone III which has assayed 2.92% Zn, 0.23% Cu and 0.75% Pb over a length of 8.6 m. Visible gold in quartz-barite veins and veinlets are reported mainly in zone II and in its northern extension, zone IIN, and in zone III. The best results for gold were obtained in zone II where two channel samples, 2.0 meters in length, have given 2.80 and 4.60g/t Au respectively. One channel sample in Trench 25 has shown 3.60 g/t Au over 1.70 m. Gold is also present in Trench 18 in zone III where assays have averaged 2.15 g/t Au over 8.1 m with a maximum of 4.60 g/t Au over 1.70 m.
Assaying of samples collected in old trenches by Cancor has confirmed the results reported by Russian geologists who explored the property in the 1970s.

The potential to find a polymetallic deposit similar to the Tan Chaffao East deposit is excellent.

†This estimate is not compliant with National Instrument 43-101. Cancor has not undertaken any independent investigation of this estimate and therefore this estimate should not be relied upon.