TAN CHAFFAO EAST (Au, Cu)

Location:

Located in the southern region of Algeria, Tan Chaffao East is 220 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: 20 000 ha

Title:

An exploration permit under exclusive right was granted in June 2008 for a period of three years. The permit is renewable. The property was acquired from the Algerian government through a transparent bidding process.

Geology:

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

Work:

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

In 2006, Maghreb Minerals in partnership with Goldim, an Algerian company, conducted geophysical surveys, trenching and 5 new drill holes totaling 823 meters. Their results are not available, but the core is still on site.

Mineral inventory:

Based on the extensive trenches and the 9 drill holes explored by the Russian geologists, the polymetallic deposit of Tan Chaffao East is estimated to contain 6,600,000 tonnes of mineral inventory in three zones grading 0.55% Cu, 1.65% Zn and 1.62 g/t Au†. The mineralization is associated with disseminations and veinlets of sulphides (pyrite, chalcopyrite and galena) in altered silicified felsic volcanics that are crossed by a network of quartz and barite veinlets locally containing visible gold.

Potential:

The potential to confirm and extend the mineral resources of the Tan Chaffao East deposit is excellent.
A 43-101 compliant geological evaluation report is currently being produced and will be released once completed.

†This estimate is historical in nature and is not compliant with National Instrument 43-101. Cancor has not undertaken any independent investigation of this estimate and therefore this historical estimate should not be relied upon. However, the Company believes that this estimate provide a conceptual indication of the potential of the property and are relevant to ongoing exploration.