CANTEX Mine Development Corporation, Kelowna, BC., TSX.V : CD

The Company's principal business activity is the acquisition and exploration of mineral properties for commercial mineral deposits.

EXPLORATION PROJECTS

The Company’s primary project is located in the northwestern part of the Republic of Yemen where it owns an exclusive exploration license of 698 square kilometers aerial extent. Nickel, Copper, Cobalt and Platinum have been discovered on three of the Company’s licenses at Suwar, Wadi Qutabah and Al Masna, while a gold deposit has been discovered on its Al Hariqah project.

In November 2008, the Company signed a letter agreement with Vale International SA (“Vale”), a wholly-owned subsidiary of Companhia Vale do Rio Doce (NYSE: RIO, Vale), for the Company’s Suwar, Wadi Qutabah nickel, copper, cobalt and platinum group element projects in Yemen.

The second project is in Nevada, USA where the Company has a 100% interest in 7 gold exploration prospects secured with 267 claims.

Yukon

In February 2011, the Company staked two claim blocks in the Yukon Territory, Canada.

A new belt of gold mineralization has been discovered by ATAC Resources Ltd. (“ATAC”) in the Yukon: a 175 kilometer east – west trending zone located 100 kilometers northeast of Mayo.

The belt was discovered principally by follow up prospecting and drilling of arsenic anomalies that were detected by a government sponsored stream sediment survey.

The gold mineralization appears geologically similar to Carlin style mineralization in Nevada, which is the second largest gold district in the world. Recent drilling by ATAC has discovered Carlin type gold intersections of up to 65.2 meters of 4.65 g/t gold near the eastern extremity of the east – west trending zone.

Consequently, Cantex has staked an approximately 1,045 hectare claim block adjacent to the eastern extremity of ATAC’s claim block which is on strike with the recent Carlin style mineralization discovered by ATAC. In addition, an approximately 1,000 hectare claim block has been staked over the source area of several arsenic anomalies as reported on the government stream sediment maps located 15 km southeast of ATAC’s Rau gold deposit which is situated towards the western end of their staked zone.

VALE OPTION AGREEMENT

On November 20, 2008, the Company announced that Vale International SA, a wholly-owned subsidiary of Companhia Vale do Rio Doce., NYSE: RIO., had signed a letter agreement for the Company’s Suwar, Wadi Qutabah nickel, copper, cobalt and platinum group element projects in Yemen, TSX Venture Exchange approval received December 2, 2008. READ MORE

Vale currently has both geologists and a geophysicist on-site at Suwar.

The Company has 4 significant projects operating in the area: Suwar (Copper, Cobalt, Platinum); Al Hariqah (Gold); Wadi Qutabah (Nickel, Copper, Cobalt, Platinum); and Al Masna (Nickel, Copper, Cobalt).

In November 2008, the Company signed a letter agreement with Vale International SA (“Vale”), a wholly-owned subsidiary of Companhia Vale do Rio Doce (NYSE: RIO, Vale), for the Company’s Suwar, Wadi Qutabah nickel, copper, cobalt and platinum group element projects in Yemen.

Vale may earn a 40% participating interest in the Suwar project if a pre-feasibility study is completed on or before July 31, 2012, US $3 million is spent on the Suwar project and a US $1 million option payment is made to Cantex. An additional 11% can be earned by completing a feasibility study and a further 9% interest can be earned by financing mine development and achieving commercial production. If Cantex’s share of mine development costs are carried through to production by Vale, they are recovered by Vale as a development loan from 80% of Cantex’s share of profits.

Vale has met their US$2 million exploration expenditure commitment for 2009 to the Suwar project and has committed to spending an additional US$1 million in 2010.

The agreement also allows Vale to enter into a joint venture with Cantex on any other nickel, copper or cobalt bearing property, including the Company’s Wadi Qutabah and Al Masna’a deposit, in Yemen. The obligations are similar for each individual property.

About Yemen:

Cantex has been working in Yemen continuously since 1996 and, in that time, massive improvements have been seen in the country. When our geological team first arrived, the country was recently amalgamated (north Yemen and communist south Yemen joined in 1990) and, although the country was reportedly politically unified, the central government exerted little if any control over much of the countryside. Much of the country was divided into small enclaves which were each ruled by a local sheik. The sheik was the head of authority – he did not report to the government. The country was actually more of a series of loose knit alliances of these sheiks. When Cantex started its initial exploration our license covered in excess of 40,000 km2 – and worked predominantly in these small enclaves.

Back in the 1990’s Yemen was a pretty wild place. Upon arrival it was literally like stepping back in time – and not by only a couple of years. It was like moving back through time 1,000 years. The only sign that we weren’t in historic times was the ubiquitous presence of AK-47 assault rifles. These were on the back of every male over the age of 10. Though our team have not seen a gun brandished in a threatening manner, they were everywhere. After the initial shock, it became apparent that carrying an assault rifle in Yemen was similar to the average North American businessman wearing a tie to work – though they look impressive they really have little practical function. In Yemen, carrying a gun was sign that you’d come of age and were a man.

In the past 10 years Yemen has changed dramatically – and for the better. The government has heavily invested to better the lives of its citizens.

The country is now connected with a modern road network, a national power grid and a cell tower network that puts Canada’s to shame. New schools are now found in even the smallest village and the kids are attending classes. Hospitals, established with the assistance of foreign partnerships are now prevalent through the larger cities. To top it off, carrying a weapon is now illegal. It’s difficult to even recognize the Yemen that existed when Cantex first started exploring there.

In the media Yemen has (at best) a tarnished image. It seems every week of late one hears of the conflict in the northern reaches of the country, separatist movements in the south, Al Queda training centers… Whilst these events are factual they present a very skewed image of what is actually happening on the ground.

All expatriate staff/visitors that have been to our sites always comment that the Yemeni people are some of the friendliest people anywhere in the world and at no time they feel threatened. Most of Cantex’s expatriate staff, having been there once, are always asking to be posted back to Yemen!

Yes, not all areas of Yemen are as safe as our projects; however, it is important to know that the country as a whole is making great progress in uplifting the standard of living for the average Yemeni. We believe that this improvement in the lot of the average citizen will result in Yemen continuing to stabilize.

Nevada Project

Cantex has a 100% interest in seven mineral properties in Nevada and has identified 13 drill-ready gold targets. These targets are the end result of an extensive exploration program. Initially, sampling surveys were conducted over known gold mines in Nevada to assess their geochemical signatures. A distinctive suite of pathfinder elements was found to accompany many of the mines.

With this knowledge a regional geochemical survey was conducted over the significant gold mine trends in Nevada. Numerous similar geochemical signatures were found and claims were then acquired over these areas. Once the lands were staked focused exploration was undertaken; the anomalies were followed up with geological mapping, soil sampling, rock sampling, trenching and geophysics. Seven of the properties yielded drill worthy targets. A 46 hole drill program totaling 9,000 meters has been planned to test the 13 targets on these seven properties.

See also:

Metalex Ventures Ltd.

http://agoracom.com/ir/Metalex