CAJ - tsx venture - Canasia Industries - Clone Gold

Canasia Industries Corporation TSX-V:CAJ

Reed Lake Clone Gold Debut Gold Rare Earth Murdochville East Aluminous Clay / Rare Earth Prospect:

click to view slideshow

Clone Gold

Project Summary

The Clone Gold property is located in the prodigious Eskay Creek/Stewart Region of NW British Columbia and is approximately 20 kilometers (12 miles) SE of the town of Stewart B.C. and the Canadian-Alaskan border. The Eskay Creek/Stewart Region is 160 km by 50 km (99 miles by 31 miles) and to date has produced 15 million ounces of gold, 270 million ounces of silver, 4 billion pounds of copper and 782 million pounds of Molybdenum. At current market value the region has thus far produced over 46 billion dollars in precious minerals. Canasia has achieved significant drill results that returned grades of 12.80 m (42ft) of 44.75g/t (1.305oz/t) gold values including 4.87m (16 ft) of 76.80g/t (2.240oz/t) and last year season completed a 102 tonne bulk sample that returned grades 4 oz/t or 139.2 g/t gold over the 102 individually tested tonne samples. A much more substantial work program for 2012 is now being planned and management is optimistic about the growth prospects the clone will have on Canasia in 2012.

The Eskay Creek/Stewart Region is 160 km by 50 km (99 miles by 31 miles) and to date has produced 15 million ounces of gold, 270 million ounces of silver, 4 billion pounds of copper and 782 million pounds of Molybdenum. At current market value the region has thus far produced over 46 billion dollars in precious minerals.

Much of the Clone property was initially staked in as part of a regional effort aimed at exploring virgin ground made newly viable by receding glaciers. The process of glacial melt, known as ablation, has progressed at a striking rate over the course of the last decades. As far as mineral exploration is concerned such environmental change greatly increases the ease at which previously difficult or unreachable ground is made available. The Clone property is one such example.

Drilling Highlights to Date:

2011 Work Program:

Due to poor weather a very small amount of time was able to be implemented to recover the bulk sample. However 102 tonnes were recovered and tested. The average gold returned on the 102 individually sampled tonnes was a significant 4 oz/t or 139.2 g/t gold. After receiving these grades, management immediately started to plan for a much larger bulk sample to take place in 2012 season.

2010 Work Program

Canasia announced that the final grade for 34 one ton samples returned an average of 68.65 g/t Gold (December 8, 2010).

2009 Drill Program

20 holes were drilled in the first Phase, testing a variety of targets along the shear zones that have been traced for over a kilometer in strike length.

Holes #15 to 21 are from the Trench 4 and 14 areas. The major lithology is observed to be light grey to green andesitic pyroclastics intercalated with fine grained to aphanitic andesite.

Clasts are subangular to angular, matrix supported, and range in size from 1-3cm. Quartz-calcite stockwork pervades the unit in moderate abundance. The mineralization is localized within highly silicified semi-massive to massive hematite-specularite and gold occurs as fine disseminations and is associated with the oxide mineralization.

Most of these holes cut high-grade intersections as follows:

Hole #	From (m)	To (m)	Interval (m)	Au (g/t)
15	14.63	17.07	2.44	14.05
16	13.72	21.64	7.92	20.22
18	22.56	31.09	8.53	3.61
	46.33	50.60	4.27	26.23
19	6.10	12.19	6.09	2.09
20	4.57	24.69	20.12	7.11
Incl.	16.76	24.69	7.93	15.28
	34.44	46.94	12.50	7.39
21	11.89	19.81	7.92	30.37
Incl.	11.89	13.72	1.83	115.80

Holes #16, #20 and #21 were particularly impressive. Hole #16 intersected 7.92m grading 20.22 g/t , Hole #20 intersected two zones, the first 20.12m grading 7.11 g/t and the second 12.5m grading 7.39 g/t. Hole #21, the first hole of the second phase, returned bonanza values 7.93m of 30.37 g/t. Because snow cover obscured the surface trace of the zone, true widths could not be calculated at this time.

Holes #6 to #12 were drilled in the vicinity of Trench 81, approximately 160m to the southeast of Holes 15-21. They were successful in intersecting sheared mineralized sections displaying local auto-brecciation, intense hematite alteration, chlorite stringers, and the cobalt containing mineral, erythrite.

Results are as follows:

Hole #	From (m)	To (m)	Interval (m)	TW Coefficient	Au (g/t)
6	17.98	22.25	4.27	0.940	2.00
7	19.51	24.38	4.87	0.867	3.00
8	14.94	24.69	9.75	0.745	2.05
9	14.63	22.86	8.23	0.985	8.07
11	35.36	42.37	7.01	0.500	3.82

Phase 2 (2009 Drill Program)

The second phase of drilling called for 15 additional holes. Highlights of the second phase of this drill program include Hole 28 that returned grades of 12.80 m (42ft) of 44.75g/t (1.305oz/t) gold values including 4.87m (16 ft) of 76.80g/t (2.240oz/t).

Data from Holes 21 to 35 are presented in the following table:

Drill Hole #	From (m)	From (ft.)	To (m)	To (ft.)	Interval (m)	Interval (ft.)	True Width Coeff.	Gold (g/t)	Gold (oz/t)
21* incl.*	11.89 11.89	39 39	19.81 13.72	65 45	7.92 1.83	26 6	0.94 0.94	30.37 115.80	0.886 3.377
22	15.85	52	19.81	65	3.96	13	0.87	26.23	0.765
24	20.42	67	23.47	77	3.05	10	0.77	4.04	0.118
25	12.50	41	16.15	53	3.65	12	0.85	3.68	0.107
26	12.19 21.03	40 69	16.46 26.21	54 86	4.27 5.18	14 17	0.78 0.78	26.39 15.83	0.770 0.462
27	15.85	52	17.98	59	2.13	7	0.85	10.81	0.315
28 incl.	10.67 10.67	35 35	23.47 15.54	77 51	12.80 4.87	42 16	0.92 0.92	44.75 76.80	1.305 2.240
29	20.12	66	26.21	86	6.09	20	0.69	4.81	0.140
30	13.41	44	23.77	78	10.36	34	0.92	6.40	0.187
31	18.29	60	20.12	66	1.83	6	0.85	42.07	1.227
32	19.51	64	24.08	79	4.57	15	0.75	3.96	0.115
33	18.29	60	24.99	82	6.70	22	0.85	11.04	0.322
34	25.30	83	27.43	90	2.13	7	0.78	60.31	1.759
35	24.99	82	29.88	98	4.87	16	0.69	3.81	0.111

These holes were drilled between Trenches 4, 14 and 15 on the H-1 structure and were designed to guide a planned upcoming bulk sampling effort which will concentrate on the same area.

Canasia entered in an option agreement that requires Canasia to spend a total of $1,800,000 over five years to vest a 50% interest in the property.