CANTEX

The June 2nd press release reported positive results from preliminary metallurgical flotation testwork conducted at ALS Kamloops Metallurgy.  Highlights are as follows:

• All sulphide and oxide composites successfully exceeded the critical commercial benchmark of >45% metal purity for both final lead and zinc concentrates.
• High-Grade (HG) sulphide composites achieved 85.1% lead recovery (at 53.6% Pb grade) and 80.6% zinc recovery (at a 61.8% Zn grade).
• Low-Grade (LG) sulphide composites demonstrated exceptional metallurgic resilience, yielding 91.1% lead recovery (at 51.0% Pb grade) and 88.4% zinc recovery (at 51.0% Zn grade).
• Silver reports predominantly to the lead concentrate, delivering grades of 960 g/t Ag (HG), 532 g/t Ag (LG) and 410 g/t Ag (Ox) representing a high-margin revenue driver.
• Testwork confirms an optimized primary grind size of 75 microns ensures maximum mineral liberation which allows the use of industry standard plant designs.
• Total mass pull is small, ranging from 2.1% for the lead concentrate for the oxide mineralization to 7.9% for each of the low-grade lead and zinc concentrates.

The strong results from flotation tests on the high-grade sulphide composites were likely expected but the high quality  lead and zinc concentrates produced from the low-grade sulphide mineralization as well as a high quality lead concentrate from the near surface oxidized mineralization is very positive for the potential economics of the project.  No data is provided for germanium but it likely occurs in sphalerite and would be recovered during the smelting process.