CAJ - tsx venture - Canasia Industries - Clone Gold

Canasia Industries Corporation TSX-V:CAJ

Potash Reed Lake Coal Clone Gold Debut Gold Lithium Brine Mexico Gold

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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.

To date, 3 million dollars has been spent on exploration of the Clone. In November 2005 Canasia Industries Corp entered into an option agreement with Teuton Resources Corp and Silver Grail Resources Corp, the owners of the Clone Property. Terms of the option require Canasia to spend a total of $1,800,000 over five years to vest a 50% interest in the property. Teuton-Silver Grail will act as operator during the term of the option.

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 staked in 1994 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.

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.

Graeme Sewell, a director of Canasia stated, "The initial results attained here are very exciting for management. Not only did we achieve the highest grades drilled by Canasia on the Clone Prospect to date, but it also appears that we may have encountered a new zone as witnessed by the significant gold values intercepted in holes 18 and 20 at deeper depths to the rest of the drilling. We look forward to the next set of results as some of those holes appear to contain even more visible gold than the holes reported today."

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 has been notified by its partner that the application has been completed for an initial bulk sample operation on the Clone Gold Prospect. Approximately ten tons of samples have been gathered to date and have been shipped for processing.

2008 Drill Program

Canasia Industries has received all results from the 2008 drilling on the Clone property. Holes CL08-1 to CL08-4 targeted the H-1 (hematite) zone, holes CL08-5 to CL08-8 targeted the S-2A zone, while holes CL08-9 and CL08-10 were drilled to test a new copper zone found earlier in the program.

SIGNIFICANT RESULTS
Hole No.	From (feet)	To (feet)	Interval (feet)	Gold (ounce per ton)

CL08-5	64	77	13	0.124
	87	93	6	0.360
	103	104	1	0.696
	221	223	2	1.157
CL08-8	192	207	15	0.080

All of the holes targeting the H-1 zone are interpreted as having passed through a faulted-off block. The upper two intersections of hole CL08-5 appear to be from the S2A and S2B zones, and the third intersection is likely from the S1 zone.

The final high-grade gold zone which ran 1.157 ounces per ton (as well as 0.64 per cent cobalt) appears to be from an unknown structure, possibly related to similar gold-cobalt structures found in trenching at lower elevations 200 metres to the east-southeast.

Neither of the last two holes targeting the new copper zone intersected significant gold values. They did, however, contain long intervals of anomalous copper mineralization (200 parts per million to 600 parts per million). True width of the intersections is not certain at this time.

2006 Drill Program

The first half of Canasia' 2006 drilling program was completed mid-September and the drill cores sent in for assaying. Pending results, Canasia intends to complete the second half of the Clone 2006 drilling program in late October.

Significantly, all 7 holes of the 3,240 foot, 2006 drill program cut gold-bearing intercepts, varying in length from 3 to 35.5 feet, as follows:

Hole #	From (feet)	To (feet)	Interval (feet)	Gold (oz/ton)
CL06-1 ...including	392.5 409.0	409.0 405.0	16.5 3.0	0.125 0.303
CL06-2	233.0	236.0	3.0	0.153
CL06-3 ...including	32.0 42.0	52.0 48.5	20.0 6.5	0.178 0.390
CL06-4 ...including	33.5 39.5	49.5 42.5	16.0 3.0	0.114 0.300
CL06-5 ...including and	40.5 50.0 107.0	76.0 73.0 110.5	35.5 23.0 3.5	0.178 0.232 0.579
CL06-6	113.0 157.0	116.0 162.0	3.0 5.0	0.629 0.448
CL06-7	113.0 151.0	116.0 156.5	3.0 5.5	0.332 0.824

In 1995 high-grade gold-bearing shear zones were discovered by Teuton Res. Corp prospectors at the head of the melting Sutton Glacier. Trenching of these shears returned Gold values ranging up to 3.59 oz/t over 5.5m (18 feet). These discoveries triggered a staking rush within the area eventually leading to a $2.6 million cash infusion by Prime Resources-Homestake Canada, at that time the companies which controlled the rich Eskay Creek mine.

Between 1995 and 1998 approximately 3 million dollars were spent on the Clone in exploration. Drilling during this period was confined to the 500 m long 'Main Zone' which overlapped the original discovery area. The most promising results were Hole #18 with contained a 19.7 foot intercept grading 1.53 oz/t gold and 0.33% cobalt, and Hole #110 which contained a 32.9 foot intercept grading 1.28 oz/t gold.

Between 1998 and 2002, due to the weakness in gold prices, little work was done on the Clone.

In June 2003, upon the resurgence in gold values, the Clone Property again became attractive for exploration. A $300,000 exploration program was undertaken in which 4 of the 5 holes drilled into the Main Zone intersected gold values, the best of which was Hole #2 containing a 27.8 foot intercept grading 2.357 oz/t gold.

1995 Results

TABLE A TRENCH RESULTS
Trench #	Structure	Width (feet)	Gold (oz/ton)
4	H-1	18.0	3.59
7	S-1	9.5	1.65
10	S-2B	14.8	2.08
11	H-1	8.9	0.71
12	H-1	22.0	0.56
14	H-1	24.0	1.50
15	H-1	24.6	0.76
16	H-2	4.9	7.18
25	S-2A	9.8	1.03
28	S-2A	6.6	1.15
29	S-2A	8.7	0.96
64	S	11.0	0.52
78	H-1	26.3	0.90
81	H-1/S-2A	29.5	0.24

Intercepts on the Clone between 1995-1998

TABLE B
Drill Hole	Interval (feet)	Gold (oz/ton)
4	16.4	0.61
8	9.8	1.67
10	26.2	1.85
11	30.0	0.64
11	13.1	0.89
18	19.7	1.53
25	12.0	0.64
68	8.9	1.29
72	27.5	0.38
74	12.9	0.63
84	11.5	0.90
91	50.9	0.22
110	32.9	1.28
124	23.0	0.43

Intercepts on the Clone from 2003

TABLE C
Drill Hole	Interval (feet)	Gold (oz/ton)
CLO3-1	5.0	0.769
CLO3-2	27.8	2.357
CLO3-3	5.0	0.159
CLO3-4	5.0	3.023