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Canadian Mining Company Inc. (TSX-V: CNG)

       Canadian Mining Company Inc. is a Canadian-based mineral exploration mining company listed on the TSX Venture Exchange (ticker symbol CNG) (US Listing: CNGCF). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as CNG.V is advancing their 100% owned Bullard Pass Gold Project with the goal of eventually milling product at their nearby 100% owned mill.

Canadian Mining Company has imminent catalysts on two fronts;

1) Canadian Mining Company’s 10 proposed drill pad locations at their Bullard Pass Gold Project are positioned to reveal assays from three highly anomalous zones that fit their detachment fault model and have yielded high values from enzyme leach protocols. The indicators are highly prospective for a significant gold find as has already been suggested to be found in the area in an Arizona Geological Report on Mineral Deposits. [See overview of Bullard Pass Gold Project, Arizona below]

2) On their past producing Mexican project the JV partner has a planned $1.4M three phase drill program to be performed starting in areas with very prominent IP signatures. The property has a significant historic (non NI 43-101) possible mineral resource remaining from when Penoles was mining it and shareholders have a huge opportunity on being able to take this past producer, redefine it, and then be able to be in a position to either develop it further or package it up to be presented to a major. [See overview of San Bernardo (Silver, Lead, Zinc, Copper) Project, Mexico further below]

Bullard Pass Gold Project & Gold Mill, Arizona - 100% Owned

Past Producing Mine • Gold, Silver, Copper • Fully Operational Precious Metals Processing Plant

Canadian Mining Company’s Bullard Pass property consists of 4000 acres surrounding the past producing Bullard Mine.

Following the 43-101 technical report and comprehensive gold exploration program the Company is now proceeding with the recommended 5000’ – 10 hole drill program. Adding significant value to the Bullard Pass gold project is the Company’s 100% owned, revenue producing precious metals processing plant located in the vicinity.

Orientation surveys at the Bullard Pass property have successfully demonstrated that gold, copper and pathfinder elements using the Enzyme Leach protocol generate geochemical anomalies associated with known mineralized shear zones in outcrop and in projected mineralized shear zones under gravels. These anomalies correlate well with previously drilled gold intercepts, and geophysical EM anomalies using VLF-EM and CS-AMT techniques. Large-sized anomalies found under the gravels, suggest that large mineralized shear zones hosting gold mineralization may well be present. The exploration model based on the detachment fault mineralization model indicates that there is potential for large tonnage disseminated mineralization associated with upper plate pre-mineralization faults.

Figure 3. Cross-sectional view of the detachment fault model showing precious and base metal mineralization applied to the geology at the Bullard Pass Property illustrating potential sites for mineral deposition:

Bullard Pass Gold Project Receives Visit from Noteworthy Geologist, Mr. John Livermore

Mr. John Livermore, an American geologist who discovered or helped to discover four major gold deposits in northern Nevada visited the Bullard in May with Canadian Mining Company's CEO Mr. Ray Paquette and senior consulting geologist Dr. O'Hara. The Carlin deposit, from which the current Nevada gold-mining industry grew, was Mr. Livermore's first discovery. Mr. Livermore reviewed several phases of the enzyme leach mapping overlays on-site with Dr. O'Hara and the Company has extended an invitation to Mr. Livermore to return to the property for drilling.

Detachment fault-associated deposits, most recently recognized by the Arizona Department of Mines and Mineral Resources, rate with well-known models such as epithermal veins, porphyry copper, and volcanogenic massive sulfide in importance. A number of economic detachment fault deposits have already been identified in the State of Arizona and Dr. O'Hara feels there is significant potential for Canadian Mining Company's property to be part of another new major regional gold trend.
 
While a range of minerals may be present in detachment faults, Canadian Mining Company Inc. has elected to concentrate on gold-copper oxide mineralization, particularly in and around the Company's Bullard Pass property and surrounding area. Canadian Mining Company Inc. aims to discover large-tonnage gold deposits along upper plate structures, or at intersections between these structures using the detachment fault mineralization model.
 
Drill targets for the upcoming 5000’ – 10 hole drill program were defined based on geological mapping and cross sections that identify the location of favorable upper plate faults using chemical indicators, alteration-associated mineral packages, and geophysical techniques to target potential mineralized zones along these faults. Detachment faults occur as large, low angle faults with greater than ten kilometer displacements. In combination with upper plate faults, detachment faults provide pathways for hydrothermal fluid flow and mineral deposition.

Enzyme Leach Mapping Offers Very Compelling Data at Bullard - 30% of the sampled areas are gold anomalous

Over the past couple years CNG.V has done an extensive amount of exploration which has included a new technique called 'enzyme leach protocol' on this particular property to define what is below the gravel. In the reports you can quite clearly see that of all the samples that were taken under this particular technique 30% of the areas are gold anomalous. Gold is what CNG.V will be looking for in this deposit; after two years of enzyme leach protocols and other research Canadian Mining Company's program is advanced to the point they are now going to drill (drilling is set for February 22, 2010). See January 5, 2010 release "Canadian Mining Moves Forward With Drilling Bids at Bullard Pass Gold Project"; Canadian Mining has now received the necessary permits from the Arizona State Land Department and the United States Department of the Interior Bureau of Land Management to move forward with its planned 5000' drill program at its Bullard Pass Gold Project in Arizona.

Canadian Mining Company's Senior Consulting Geologist, Dr. Patrick F. O’Hara, Ph.D., Certified Professional Geologist, has used this type of technology in other areas before. This technology has been improved and refined over the last few decades to the point where specialized laboratories such as Skyline Laboratories in Tucson Arizona are consistently experiencing tremendous success with this enzyme leach protocol method of being able to determine what is below the surface. An IP line on its own may indicate something is down there, but it doesn’t tell you what is down there – the enzyme leach technique tells the geologist what is below the ground as the indicators (gold, silver, copper, magnesium, etc.) essentially breath up to the surface. Each reading CNG.V performs is forwarded on to Skyline Labs whereby they do all their mixes and computer analysis, the lab then provides a schematic showing the shoots of what is in the ground.

Bullard Pass Prior Wrok

•1987 -Freeport McMoran drilled 10 exploratory holes; one hole intercepted 5’ of 0.09 opt Au at 45’ depth
•1989 –90 -Cominco drilled 42 holes in two separate areas on the Bullard
•Ore-grade drill hole intercepts with assays up to 0.25 opt Au up to depths of 200’ found in North Hill vein (Berridge, June 30, 2000)

Note: The prior drill work was performed before the understanding of the detachment fault model in areas different than what geologists now believe to be highly conducive to the open pit mineable gold CNG is targeting and enzyme leach protocols indicate to be.

CNG’s Progress on Bullard Pass Project

Near Term Open Pit Gold Mine Potential and Plan to Process at Nearby (11 miles distance) 100% Owned Mill

CNG.V only needs to drill 5000ft in its upcoming drill program since detachment faults are very shallow deposits that are open pit mineable. The strategy is to drill the areas that encompass the good values found to date and prove something economical that CNG.V can mine. A realistic target would be to look at other regional successes such as the Copperstone Mine with 335,000 Ounces of Gold Measured and Indicated resources - at a 10.7 grams per ton gold grade. Considering the history of the area and strength of the enzyme leach data correlated to mapping and geologists understanding of the detachment fault model, it is conceivable for CNG.V be targeting 300K - 1M ounces indicated.

Figure 10. Precious Metals Processing Plant

Permitted for leaching, milling (currently at 50 TPD & readily upgradeable), stockpiling, assaying, loading and shipping by rail & transport trucks

 When the time is appropriate, Canadian Mining Company is looking to process material at its nearby 100% owned precious metals processing plant. The facility is an exceptional asset for a small junior to have as it is permitted with a grandfathered license and is  very important in terms of cost savings. CNG.V has the ability to move the ore, once they establish the ore body, into an area where the Company can expand its operations from 50 TPD to 500 TPD if the ore body demands that type of volume.

The facility encompasses 12 acres of rail and highway-accessible industrial property which is permitted, serviced, and has water capacity to meet production requirements. The 50TPD mill on site would be used by CNG.V in small scale production. The fenced and secured property contains four building structures totaling 5,850 sq.ft. of which the processing plant building is 3,500 sq.ft. and the caretaker's building is 1,000 sq.ft. In addition, there is a 750 sq.ft. laboratory and a 600 sq.ft. industrial materials storage building.
 
The Maricopa County Department of Planning and Development have established the non conforming use of the property for the following industrial uses for the property:
      - Assaying and testing ores and minerals.
      - General offices for records keeping, sales/marketing and shipping functions.
      - Stockpiling, leaching, milling and shipping of ores and minerals.
      - Repairing and fabricating mining and processing equipment, supplies and vehicles.
      - Loading and shipping by rail and transport trucks.
      - Storing, dismantling, cleaning and repairing all mining related equipment and vehicles.

CNG.V rents the facility to a tenant and receives net revenue of $60,000 per annum. The tenant maintains the property and has been performing contract milling for entities in the area that have small ore bodies and will accommodate Canadian Mining’s needs as it moves forward.

San Bernardo Silver, Lead, Zinc, Copper Project, Mexico - Owned by CNG & now optioned out to JV partner

This is a highly valuable project that alone justifies a market cap now of CNG.V several times its current

Canadian Mining’s 43-101 compliant 27,000 acre San Bernardo silver, copper, zinc project is located in the prolific Alamos mining district of Sonora which is widely recognized as the number one mining state in Mexico. This district is of great mineral tradition and has a wide range of mineral resources. San Bernardo is in elephant country for world class resource mines, below is a list of other notable projects in this prolific region:

The San Bernardo property hosts a past producing (silver, lead, zinc, copper) operation with large infrastructure value that will be significantly advanced at no cost to the shareholders. CNG.V recently signed a $1,400,000 deal whereby a new trading entity (Mayen Minerals Ltd.) using this property as its qualifying transaction will be completing a three phase exploration and drill program over the area which was formally mined by Industrias Penoles in the 1980s in return for a 60% interest in this property. Canadian Mining has a huge opportunity on being able to take this past producer, redefine it, and then be able to be in a position to either develop it further or package it up to be presented to a major.

Mining MarketWatch Journal confirms that records with the Ministry of Mines indicate Penoles had mined 540,000 tonnes, had experienced a nominal 2.7 year investment retirement with a net value on cash flow of US$62.41 per metric tonne. Records indicate Penoles mined down to 100m and there is still a historic (non NI 43-101) possible mineral resource left of some 1.4M tonnes within 100m. By geologists interpretation the resource well exceeds the 350m level, however this deposit appears dwarfed by the satellite deposit developing 1km away where IP surveys indicate large anomalous zones.

Positive results of the second-phase IP survey on the San Bernard project were achieved in June 2009. This brings the Company another step closer to defining a resource for the project.

Drill targets have been established and permitting by the joint venture partner, Mayen Minerals Ltd., is under way. Click the following image to see 3D IP Geophysical report:

The benefits of acquiring a past producer are such that CNG.V has inherited what would otherwise cost millions of dollars in expenditures including power transmission lines, several kilometers of quality road access, and building structures.

Industrial Minerals, BC, Canada

The Company’s Bromley Creek Zeolite Mine has a 30 year mine lease. The mine is currently optioned to Heemskirk Canada who supplies micronized zeolite to Halliburton Canada. CNG has several other large zeolite and pozzolan properties in the area for future development. CNG.V is to be recipient of $1,350,000 cash payment from Heemskirk (due July 1, 2010) as part of their option agreement.

Mr. Paquette was elected to the board of directors of The Canadian Mining Company Inc. in 1994 and was appointed President of the Corporation in February, 1999. He has over 35 years of entrepreneurial business management experience. His strong managerial skills are focused on the development and growth of the Company and he is recognized as a business builder. Mr. Paquette's key responsibilities include project management, company development and financing. He takes a hands-on approach and was instrumental in the Company's industrial mineral mine development. His experience and managerial skills are now focused on the further development and growth of the Company's industrial mineral properties in British Columbia, Canada and its Arizona gold exploration project in the Bullard Pass area. He has assembled a highly capable and dynamic team, anxious to move the company forward.
 

Mr. Dave Kepkay, Director
Mr. Kepkay has over 20 years experience in sales, marketing and technical support of CADD (computer aided design & drafting) computer workstations and Local Area Network installations. He has a Diploma in Business Administration and Computer Sciences. Mr. Kepkay worked for 12 years with one of Western Canada's largest AutoCAD dealers in a sales and support capacity. Over the past six years he had built up his self-employed computer consulting services company with leading edge technicians to support and enhance administrative and operational computer processing systems. Mr. Kepkay brings to Canadian Mining Company strong organizational skills, and the ability to help develop new markets that will blend the use of technology and industrial minerals to create environmentally responsible solutions.

  
Mr. Edward Skoda, Director
Mr. Edward Skoda obtained a Diploma in Business Management from the British Columbia Institue of Technology in 1979 and a Diploma in Mining Engineering Technologhy from the Haileybury School of Mines in Ontario in 1971. Mr. Skoda has over 25 years experience in the mining industry in which time he has worked on many national and international projects. During the past 15 years, Mr. Skoda has worked as a consultant and in a supervisory capacity as a shift boss, superintendent, or project manager for various mining and exploration companies. Other projects include, two years employment as the Senior Tunnel Inspector on a hydro project for Bechtel Canada Inc. Mr. Skoda is presently a director of the Quinto Mining Company, a reporting company listed on the CDNX that is involved in developing an industrial minerals project.

Mark Groenewald - CFO
Mr. Groenewald brings over fifteen years experience in the commercial environment. Before moving to Canada in 2002, he was involved in his own business in South Africa. He graduated with a Bachelor of Accounting Science from the University of South Africa in 1987 and completed his articles with Ironside Greenwood, a firm of public accountants in Johannesburg. His focus more recently has been on providing accounting and management consulting services to several corporations in the lower mainland area of Vancouver.

Dianne Szigety - Corporate Secretary
Ms. Szigety has over 20 years experience in the securities industry and is the President of PubliCo Services Ltd., a private company offering expertise in all aspects of regulatory reporting and filing requirements, along with day to day management of public companies, since 1994. Previously, Ms. Szigety was a senior legal assistant in the corporate securities department of Campney & Murphy in Vancouver, B.C. Ms. Szigety has been and is currently a director and/or officer of several other TSX Venture / CNQ Exchange-listed companies.

Senior Consulting Geologist, Dr. Patrick F. O’Hara, Ph.D., Certified Professional Geologist
 

For more information contact Canadian Mining's head office at: Ph 604.684-3301
 

E-mail: info@CanadianMining.ca   Company's web site: www.canadianmining.ca

SEDAR Filings: URL