Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.

current exploration begun in August of 2011 under the direction of H. Harada of MINDECOon behalf of Gold Canyon.24(b) Mineralized zones, rock types, controls, length, width, depth and continuity ofmineralization. Description of type, character, and distribution of mineralization.The REE mineralization in the Chambe Basin is so far known only from a very smallnumber (total 25) of soil and rock samples collected on several days of reconnaissancesampling, mostly from road cuts along old forestry tracks. The controls on mineralizationand the vertical and horizontal extent of the mineralization are therefore unknown atpresent, and the principal objectives of the current exploration program of systematicdrilling and detailed sampling being carried out by MINDECO are to document the REEmineralizedmaterial and investigate the distribution of the REE in the soil profile, the sizeand grade of any resource, and the recoverability of the REE.An indication of the size of the soil mantle over the central syenite plug in ChambeBasin is given by the work of Garson and Walshaw (1969, Plate X), who mapped the basinand described the soils from 69 pits ranging in depth from 5 feet to 50 feet (1.5 to 15.2 m).A contoured map of thickness of the soils from the pit data reported by Garson andWalshaw (1969) is shown as Figure 10. Garson and Walshaw described the deposits asmainly kaolinitic, with bauxite only in small patches, and the following summary of the soilprofiles is derived from their account (with inferred standard soil horizons A to C added).Weathered rock (C soil horizon?) immediately above the bedrock syenite plug maypreserve the texture of the parent syenite, may also contain fragments of feldspar,amphibole and biotite and is mainly white, with pink, yellow and black mottling. The mottlingincreases upward and red, pink and purple colours predominate, and in the upper parts (Bsoil horizon?) the soil is red-brown and only quartz from the weathered syenite survives. Ayellowish-brown subsoil is locally present and the uppermost soil (A soil horizon?) containshumus and is dark grey to black and rooty.The possibility that the Mulanje Mountain area might contain REE deposits of theion-adsorption type was proposed by Ishikawa (2010), a geologist from the JapanInternational Cooperation Agency currently working with the Geological Survey of Malawi inZomba. Ishikawa collected 8 samples (Table 2) from Chambe Basin in September of 2010.