Press release from TheNewswire.ca
CANADA GAS IDENTIFIES 2 HIGH PRIORITY SECTORS FOR DIAMOND DRILLING IN ITS 100% OWNED GOELAND PROPERTY
Friday, February 18, 2011
CANADA GAS IDENTIFIES 2 HIGH PRIORITY SECTORS FOR DIAMOND DRILLING IN ITS 100% OWNED GOELAND PROPERTY08:22 EST Friday, February 18, 2011(via Thenewswire.ca) Vancouver, British Columbia, Canada - Vancouver, February 18th, 2011 - Canada Gas Corp. (TSXv: CJC; OTC-BB: CJCFF; FSE: YXEN) ("Canada Gas" or the "Company") has received new data previously unknown to the Company, sourced from Quebec's Ministère des Ressources naturelles et Faune (MRNF) Examine database, and 2 priority sectors of interest have now been identified in the west block of its Goéland Property in the Montviel Carbonatite complex, Quebec. The first sector is located to the north within the west block and comprises the historical diamond drill hole 93-MO-03 completed by Diabex Inc. while exploring for diamonds in the 1990's. The hole 93-MO-03 (azimuth 360°, dip -45°) was drilled to a total depth of 99.0 meters and was stopped in carbonatite. It was collared near a small magnetic high and intersected 71.6 m of white carbonatite with minor ijolitic dykes starting directly underneath the overburden. The true width is unknown and the carbonatite unit remains open at depth. At the time, the magnetic anomaly was explained by the presence of magnetite crystals and/or thin horizons of magnetite throughout the hole length. The second area of interest is located farther south in the west block. It includes the historical diamond drill hole 93-MO-02 also completed by Diabex Inc. The hole 93-MO-02 (azimuth 180°, dip -45°) was drilled to a total depth of 96.9 meters and was stopped while still in the carbonatite megabreccia. It was collared near a small magnetic high and intersected 63.4 m of carbonatite megabreccia interbedded with pegmatite and volcanic horizons. The carbonatite sections are between 0.6 and 1.5 m wide and contain ubiquitous magnetite crystals and/or thin horizons of magnetite. The true width is unknown and the carbonatite megabreccia is still open at depth. The historical drilling ended premature of testing the total depth of carbonatite mineralization at these locations. It is also unclear whether any drill core is available or if the drill core was tested for rare earth elements ("REEs"). The Company will continue to investigate these findings. At this time, the Company is not aware of any REE assays that were reported from either hole. Holes 93-MO-03 and 93-MO-02 were drilled approximately 1.5 kilometers apart, as shown on the property map available for viewing at www.facebook.com/canadagas. It should be noted that this work was performed prior to the implementation of National Instrument 43-101 Standards of Disclosure for Mineral Projects policy and cannot be verified at this time. President & CEO, Chad McMillan comments, "As we continue to evaluate the Goeland property, this new information enhances the potential of a near surface REE deposit on our claims. While this information is not 43-101 compliant, I feel our findings are important to disclose in light of recent events surrounding Geomega Resources, their REE discovery at Montviel, and the potential of our adjoining claims." The road accessible Goéland Property is located approximately 200 km northeast of Val-D'Or in the Abitibi area of Quebec and consists of 47 mining claims within and adjacent to the Montviel Carbonatite complex. Historic exploration at Montviel has revealed strong potential for rare earth element ("REE"), niobium and phosphate mineralization. The Property consists of two claim groups; one on the west side of the complex and one on the east side. The western group consists of 23 claims (1,265 hectares) and covers one of the two main areas within the complex underlain by unit Pmtv 5. Geomega Resources Inc. (TSXv: GMA) is currently drilling a 10,000 metre drill program to test mineralization associated with Pmtv 5 within the central part of the complex along with other satellite targets. The eastern claim group consists of 22 claims (1,210 hectares) and is covered with thick overburden. The Montviel Carbonatite Complex encompasses six main geological units: Pmtv 1 through 6. To date, almost all of the anomalous REE, niobium and phosphate values have been encountered within Pmtv 5, which is composed of ferrocarbonatite, apatite-bearing ferrocarbonatite, silicocarbonatite, and pyrrhotite-bearing calciocarbonatite. Benoit Moreau, P.Eng., is a qualified person as defined under NI 43-101 guidelines and has approved the technical information contained in this press release. For reference, Mr. Moreau is a geologist, a mining engineer, the founding former President of Geomega Resources Inc. (tsx.v: GMA) and is intricately familiar with the Montviel Carbonatite Complex and Canada Gas' Goeland property. Meanwhile, Canada Gas continues to proceed with the Company's proposed name change to "Canada Rare Earths Inc." and expects to conclude this transition as soon as possible. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. On Behalf of the Board, CANADA GAS CORP. "Chad McMillan" President & CEO This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Copyright (c) 2011 Thenewswire.ca - All rights reserved.