Cap-Ex steps out at Northwest zone of Block 103

Vancouver – Cap-Ex Ventures (CEV-V) has released positive step-out holes from the Northwest Zone of its Block 103 iron ore project that show the zone is open to the north, west, and south.

The results included hole 17 that hit 148.4 metres grading 30.6% iron from 48.2 metres depth and ended in mineralization, hole 16 that cut 118.9 metres averaging 31% iron from 29.6 metres downhole, and hole 12 cut 91.4 metres carrying 31.5% iron from 4.9 metres depth.

Hole 17 was the most southerly hole on the Northwest Zone, with the whole zone sitting 2 km west of the Greenbush zone that the company is also actively exploring. Hole 16 was drilled a little over 2 km northwest of hole 17, and hole 12 close to 3 km further northwest.

Cap-Ex has already released results from hole 11 that hit 108 metres grading 32% iron, hole 13 that cut 92 metres averaging 32% iron and hole 15 that returned 95 metres carrying 31% iron, all of which were drilled near hole 12 in the northwest corner of the company’s land package.

The 2011 six-hole drill program on the zone tested 5.3 km of strike length with all holes intersecting mineralization. The average grade of the holes came in at 31% iron.

On news of the results Cap-Ex’s share price climbed 14¢ or 14.1% to close at $1.13 with 1.5 million shares traded. After a strong debut on the Venture in early 2011 the company’s stock price plunged to a low of 25¢ in early October before making a strong recovery by the end of 2011.

In late January the company also released results from its Greenbush zone, including 204.2 metres grading 30.9% iron from 5.2 metres depth, 194.2 metres carrying 29.9% iron from 3 metres depth, 128 metres grading 30.3% iron from 17.4 metres depth, and 152.4 metres carrying 30.1% iron from 29.6 metres depth. All four drill results, spread over more than 6 km, ended in mineralization.

The company expects more results from the zone shortly, but so far interprets the zone as hosting strong magnetite mineralization over at least 20 sq. km. The area featuring strong, coincident magnetic and gravimetric airborne anomalies that have so far led to positive drill results. The 26 holes so far drilled into the target have all hit mineralization from 45 to 265 metres in thickness, averaging 30.5% iron.

The 103 Block project sits 30 km northwest of Schefferville, Quebec.

Cap-Ex closed a $10.2-million financing in mid-January, selling the 12 million units at 85¢ each. The units contained one share and one purchase warrant, with the warrant exercisable at 95¢ for two years. The company now has 56.8 million shares outstanding.