In late April 2011, Cangold Ltd. TSX.V – CLD, signed a letter of intent to acquire a 75% interest in the Ixhuatan
advanced stage gold project in the north-western part of Chiapas State, southern Mexico.
The Ixhuatan property comprises 4,176 hectares and is host to the Campamento
Au-Ag deposit (carbonate base metal Au mineralization) and the Cerro La Mina Porphyry Cu-Au-Mo prospect.
Several other Au and Au-Ag mineralized zones and exploration targets have been identified - The San Isidro,
Laguna Chica, Central, Caracol and Cacate prospects, are all located in a one to two kilometer wide, four km
long corridor between the Campamento and Cerro la Mina deposits.
The Campamento deposit contains a NI43-101 compliant resource estimate, using a using a 0.50 gram per
tonne (g/t) gold cut-off, of:
Measured and Indicated - 1.041 million oz of gold and 4.4m oz of silver within 17.6 million tonnes (Mt) at an average gold grade of 1.84 grams per tonne and average silver grade of 7.79 g/t.
Inferred - 0.703m oz of gold and 2.26m oz of silver within 21.8 Mt at average grades of 1.01 g/t gold and 3.23 g/t silver.
Since the Campamento resource is already so well defined Cangold will concentrate on the engineering studies needed to move the deposit as fast as possible down the development path towards a full feasibility study. Metallurgical sampling has been initiated to facilitate initial flow sheet development and ascertain potential gold and silver recoveries. This work provides the critical information necessary for the completion of a scoping study. The next step would be starting a prefeasibility study in the second half of 2012
Cangold Ltd. is extending the expiry date of 2.18 million Series P share purchase warrants that are set to expire on Dec. 20, 2013, to Dec. 20, 2014. These warrants were originally issued on Dec. 21, 2009.
The company is also extending the expiry date of 2,596,000 Series Q share purchase warrants originally issued on July 13, 2011, and 2,404,000 Series R share purchase warrants originally issued on Aug. 25, 2011, both set to expire on Dec. 31, 2013, to Dec. 31, 2014.
There is no change in the exercise price of any of the warrants, which remains at 20 cents (50 cents for 342,000 P warrants held by insiders).
The expiry date extensions are subject to the approval of the TSX Venture Exchange.