July 12, 2012
Cap-Ex Ventures Ltd (TSX-V: CEV) (Frankfurt: X0V) (OTCQX: CPXVF) ("Cap-Ex" or the "Company") is pleased to announce that it continues to intersect significant intervals of iron mineralization during its ongoing drill program within the Greenbush Zone, located on its wholly-owned Block 103 property in western Labrador. Based on visual inspection of the drill core, mineralized intersections ranging from 92 to 290 metres in thickness were encountered in 12 of the 13 holes completed on its second drill line. This second (B to B') drill line trends northeast/southwest and is located parallel to and 600 metres south of the first (A to A') drill line, details of which were presented in a news release dated June 18, 2012. Assay results for the first set of holes are expected in approximately 4 weeks.
Location maps and a cross section are posted on the Cap-Ex website at: http://www.cap-ex.ca/projects/block-103
Highlights of the mineralized intersections include:
|End of Hole
|and||231||298||298||67 -- open at depth|
|and||292||356||356||64 -- open at depth|
|and||214||338||338||124 -- open at depth|
"We are extremely pleased with the results from this latest round of drilling as we continue to encounter iron mineralization intervals of 100 to almost 300 metres in thickness," stated Francois Laurin, President and CEO of Cap-Ex. "Our stated goal with this drill program is to outline approximately 800 million to 1 billion tonnes with an average grade between 29% and 32% iron and with our consistent thicknesses of mineralization, we are on our way to achieving this goal."
The potential tonnage and grade are conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. These figures are reported as exploration targets based on the presence of mineralized drill holes, mineralized zones which are open in most directions, and geophysical anomalies from data received by Cap-Ex.
Detailed logging of all drill core collected to date is interpreted to indicate continuity of mineralization between the first (A to A') drill line and the second (B to B') drill line. Drill hole spacing along the second drill line range from 150 to 270 metres, averaging approximately 200 metres. Drilling has already begun on the third drill line, located approximately 600 metres south of and parallel to the second drill line.
True widths of the reported intercepts above vary depending on the angle of the individual drill holes and are estimated to be between 70% and 100% of the core interval as reported. All samples were prepared from sawn BTW-sized half-core sections on-site in Labrador. Split drill core samples have been sent to independent contractor Acme Analytical Laboratories in Vancouver, BC for analyses; results are pending.
To date, Cap-Ex has four diamond drill rigs operating on the Block 103 property, which have now completed approximately 8,000 metres of a minimum 15,000 metres of drilling planned for this year.
The results of the current drill program will be used for an initial National Instrument (NI) 43-101 mineral resource estimate on a portion of the Greenbush Zone located within the Block 103 property, planned to be released by the end of 2012. The Company intends to follow the completion of the NI 43-101 mineral resource estimate with a Preliminary Economic Assessment, planned for release in the first quarter of 2013.
Cap-Ex also announces that it has entered into a $350,000 credit facility with the Royal Bank of Canada, which the Company intends to use to finance the acquisition of equipment. The credit facility carries an interest rate of prime plus three percent, has a five year amortization and term, is secured by all of the assets of the Company and can be prepaid by the Company at any time without penalty.
About the Block 103 Project
The Block 103 Iron Ore Project is located in western Labrador and covers roughly 20,000 hectares within the Labrador Trough, approximately 30 km northwest of Schefferville Quebec. Two distinct zones of magnetite mineralization, the Greenbush Zone and the Northwest Zone, were identified on the property as a result of a 6,000 metre drilling campaign conducted in 2011. Mineralization was consistently encountered at shallow depths with thicknesses of up to 260 metres. Laboratory analysis of the samples collected during this 2011 program revealed very consistent grades of mineralization ranging from 28.5% to 34.6 % Total Fe. Sample processing and assaying was executed by SGS Canada Labs in Lakefield, ON, using XRF, Satmagan and Davis tube techniques.
Alex Walus, P. Geo., an employee of the Company and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release.
About CAP-EX Ventures Ltd.
Cap-Ex Ventures Ltd. is a Canadian listed company, focused on the development of its Block 103 Iron Ore Project in the Labrador Trough, near the mining town of Schefferville, Quebec. The Block 103 property is strategically located close to an existing railway, which can provide a direct link to a shipping port, and is adjacent to New Millennium Iron Corp-Tata Steel LabMag and KeMag deposits and the New Millennium-Tata oxide deposits to the east.
For additional information please visit the Company's website at www.cap-ex.ca.
CAP-EX VENTURES LTD.
On behalf of the Board
President and CEO
For Investor Relations, please contact:
1-866-683-8030 ext. 232
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company's Block 103 iron ore property, future exploration plans and the expected timing for completion of an NI 43-101 mineral resource estimate and a preliminary economic assessment. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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