November 6, 2012
Can-Cal Resources Ltd. (“Can-Cal” or the “Company”) Trading Symbol: NASDAQ OTCBB – “CCRE” is pleased to report continued progress on the Company’s ongoing strategic projects especially in the following areas:
In the Spring of this year, the Company partnered with the University of Nevada, Las Vegas (“UNLV”) to explore and evaluate Can-Cal’s Wikieup, Arizona properties (the “Wikieup/UNLV Project” or the “Project”). The main objectives of the Project were twofold:
- 1. To assess geological trends on current Can-Cal claims and determine the potential of the surrounding claims for future holdings; and
- 2. To study and measure the properties geological trends for base and precious metals with an emphasis on defining the porphyry copper mineralization for subsequent drilling targets.
Team Management of the Project’s field work is being conducted by Head Professor of UNLV’s Geology Department, Dr. Jean Cline and Mr. Kevin Meazell, a
fourth year UNVL Master’s student (whose role is to define and subsequently collect samples for analytic purposes), and Can-Cal’s consulting geologist, Mr. Luis Vega.
To date, the Project Team completed and achieved the following initiatives:
- 1. Completion of initial field work in mid-October;
- 2. A total of 300 samples were collected from both Can-Cal's and adjacent property claims;
- 3. Results indicated thirty (30) samples of strong trace metal geochemistry and six (6) samples
- of whole rock geochemistry.
- 4. Samples are now being prepared into polished thin sections for microscopic examination at the UNLV’s Department of GeoSciences, Electon Microanalysis and Imaging Laboratory. This laboratory proclaims to have some of the most sophisticated mineral metallurgy analysis equipment in the U.S. The two main pieces of equipment that will be utilized for our samples are: i) a JOEL Electron Probe Microanalyser (“EPMA”). The EPMA gives quantitative, non-distructive chemical analysis of solid materials on the sub-micro scale; and ii) a JOEL Scanning Electron Microscope “SEM”), which determines microstructure and sub-micron scale topography in the magnification range of 40 times to 50,000 times. The SEM also contains a Oxford ISIS EDS system for x-ray mapping in a qualitative/pseudo-quantitative analysis of samples. Supporting these instruments is a state of the art sample preparation facility capable of preparing any sample for analysis/imaging.
- 5. Identification research zeroed in on the preeminent samples of the Company’s claims, with the initiative to proceed further with collecting of new samples of altered rock for detailed study.
Initiatives currently underway are as follows:
- 1. The new samples of altered rock collected from the defined targets since mid-October are being prepared at UNLV and will be sent to ALS Chemex for analysis. We expect the results will confirm moving forward to provide further examination on specific geochemical zoning.
- 2. Completion of the geologic map (currently at 80%) showing the geology, alteration, and mineralization of Can-Cal's claims. When completed the
entire area will be fully examined to identify potential drill sites.
The Company's previously announced Mineral Lease Agreement with GoodCorp Inc. (GoodCorp) on Can-Cal’s Pisgah property has been unfortunately delayed due to lack of availability of specialized equipment GoodCorp required to process the material. The Company will notify the Shareholders of the near-
As previously discussed, the Company has spoken to several third party mining companies about a potential joint venture. Interest has been expressed to process the tailing dumps, which were left over from the previous eight gold mines that operated on the Company’s now patented claims. Additionally, Mr. Luis Vega, Can-Cal’s consulting geologist, is meeting with potential investors who are interested in setting up a small production gold mine on the Cerbat claims. The Company will keep you informed as proceedings unfold.
The previously announced October 19, 2012 US$500,000 Convertible Debenture (the “Issue”) is underway. The majority of the use of proceeds is
earmarked to support the aforementioned Wikieup/UNLV Project and its related future costs. The Issue is only being made available to accredited
investors (the “Accredited Investors”). The Debentures offered to the Accredited Investors are unsecured and mature three years after the date of issuance.
The principal amount of the Debentures shall accrue interest at a rate of 12% per annum, compounded and payable quarterly. Can-Cal may redeem the Debentures
at any time following the date that is 18 months from issuance until the maturity date. Worth noting on this Issue is the 12% interest rate. To put this rate
into perspective, the current Canadian yield is 1.00% with the U.S. pegged at 0.25%. Also interesting is if the interest payments were reinvested by the holder
in say, AAA Corporate Paper at 5%, the total return would equal a compound ROI of approximately 13% annually. Notwithstanding that, this is a very good return,
the potential future upside for capital appreciation gain on an increased value of the common shares is also potentially very good. The debenture holder can
convert to common shares the principal amount (excluding interest) in whole or in part at any time at the option of the holder until the maturity date at a
conversion price of US$0.20 per common share in year one, US$0.35 in year two and US$0.50 in year three. Please note, the Issue is being sold on a first come,
first serve basis. For more details or assistance on the Issue, contact Christine Donovan or myself, Michael Hogan at email@example.com
In conclusion, Management continues to be optimistic that the current projects are strategically moving in a positive direction. We will
continue to keep you informed on the progress of the Company, especially the Wikieup/UNLV Project. As always, we confirm our promise and
commitment of focusing on providing all Shareholders with an above average return on their investment.
Can-Cal Resources Ltd.
G. Michael Hogan
President and CEO
Phone: (702) 243-1849
Can-Cal is an emerging precious metals exploration and chemical extraction company actively engaged in identifying commercial mining opportunities. Can-Cal is currently focusing its
efforts on three main properties: PISGAH, California; WIKIEUP, Arizona; and CERBAT, Arizona.
This document may contain “forward-looking statements” with the meaning of Canadian securities legislation and the United State private Securities litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect management of the Company’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the capital expenditures, success of exploration activities, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words 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 statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statetments. Such factors
include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration activities; as well as those factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com
. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements 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 statements.