| ||September 09, 2008|
Canasia and Kinross Gold Enter into Mineral Agreement
| ||Canasia Industries Corporation ("Canasia") wishes to announce that it has signed a Mineral Lease-Letter of Agreement ("Agreement") with Kinross Gold USA ("Kinross") covering Canasia's recently acquired 100% owned Debut Gold Property, located in Elko County, Nevada (announced July 29, 2008) . The Agreement calls for Kinross to make advance royalty payments of $40,000 US on signing a formal Mineral Lease Agreement on or before September 18, 2008, $25,000 US on or before December 31, 2009, $50,000 US on or before December 31, 2010 and 2011 and $100,000 US annually thereafter during the term of the agreement, which shall be for fifteen (15) years with the option to renew for a further fifteen (15) years . Kinross shall pay Canasia a 2.0% Net Smelter Return royalty on all ores and minerals mined and produced from the property. Kinross shall spend a minimum of $3,000,000 US in exploration expenditures on, or within 1 mile of the property, during the first six years of the agreement.|
Graeme Sewell, Director of Canasia stated, "This is a major step forward for Canasia. Having a New York listed gold company as a partner is a significant milestone for any junior company. Not only do we have this new development with Kinross, but we are actively working on multiple other prospects including gold, copper, coal and potash."
Reed and Snow Lake Copper/Gold Property
Recently Canasia has received preliminary data in regards to the Reed and Snow Lake gold/copper prospect in Manitoba. This data indicated 8 anomalies identified by the VTEM data. Final data is expected within the next few weeks. Once the final data is received specific drill targets will then be analyzed with the goal of drilling in the fourth quarter 2008.
Eyehill Creek Potash Prospect
Management is awaiting a 43-101 report on the Eyehill Creek Potash Prospect, which covers 453,000 Acres on the border of Saskatchewan and Alberta. This report will assist management in determining a clear plan to move forward and will assist in formulating a drill program to test the potential mineralization. Upon receipt of the report management anticipates implementing the reports exploration recommendations. This potash prospect was one of the first that received Alberta government approval. This prospect has historic drill data indicating Potash and is in close proximity to Unity, Saskatchewan, and site of the first potash mine in Saskatchewan.
Coal Lease Applications
Final documentation has been forwarded to the Saskatchewan Government regarding the coal applications made by Canasia. It is anticipated that the final acceptance will be granted shortly, provided all documentation is acceptable, which management is confident will be acceptable.
Clone Gold Prospect
The operator has sent core samples from the first nine (9) of ten (10) holes drilled on the Clone property, located 20 kilometres southeast of Stewart, B.C., in for assay. Pioneer Laboratories of Richmond, B.C., will be performing the analyses.
The 2008 drill program consisted of four holes to test the H zone, four holes to test the S zone and two holes to test a newly discovered copper-bearing vein. Drilling is now complete and has covered approximately 3,000 feet. Assays will be announced when received.
Approximately $3.5-million has been spent on the Clone property since 1995. It is currently under option to Canasia.
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Canasia Industries Corporation
Disclaimer for Forward-Looking Information
Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration, (3) a decreased demand for minerals, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, (8) inability to obtain all necessary environmental and regulatory approvals, (9) an increase in the number of competitors with larger resources, (10) other factors beyond the Company's control); and (11) the ability of the Company to acquire the services of contract trades to perform work programs in a timely manner. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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