CANADA GAS IDENTIFIES 2 HIGH PRIORITY SECTORS FOR DIAMOND DRILLING
IN ITS 100% OWNED GO�LAND PROPERTY
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 Minist�re des Ressources naturelles et Faune (MRNF) Examine database, and 2 priority sectors
of interest have now been identified in the west block of its Go�land 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 Go�land
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.
For more information on Canada Gas, please visit www.canadagas.ca or call
604.685.5851.
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, B.A. (Cmns)
- President & Chief Executive Officer
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.
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