Recent Exploration Results Indicate Potential Enlarged Opportunity in the Empire Mine Vicinity and Continued Strong Results From Ongoing Drilling at the Empire Mine
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VANCOUVER, British Columbia, Nov. 08, 2018 (GLOBE NEWSWIRE) — ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) (“ExGen”, the “Company”) is pleased to provide an update in respect of Phoenix Global Mining Ltd.’s (“Phoenix”) exploration and development activities at the Empire Mine Project in Idaho, USA. Further to previous ExGen news releases, ExGen owns 20% and Phoenix owns 80% of Konnex Resources, Inc. (“Konnex”), which holds the leases and claims to the Empire Mine Project. ExGen further has a 2.5% NSR royalty on the Empire Mine Project and is one of Phoenix’s largest shareholders, owning 1,330,000 common shares (4.18% of Phoenix).
ExGen is pleased to announce the results from the Company’s ongoing surface sampling and drilling programs at the Empire Copper Project in Idaho, USA (the ‘Empire Mine’). The results of the 2018 drilling program, to date, were published in September and early October, and can be found under the Company’s filings on the SEDAR web site at http://www.sedar.com/.
- Mineralisation now demonstrated along a 3.5 kilometre (“km”) strike within the expanded 1,837-acre property.
- The current resource (shallow oxide deposit) exists along a 1km of strike length.
- Phoenix will now fast track further exploration work alongside completing the Feasibility Study on the current resource.
- Drilling in and around the current resource returned high grade copper and silver assays, and confirmation of the presence of sulphides
Dennis Thomas, CEO of Phoenix, said, “The results of the current program suggest we have [an enlarged potential] opportunity along a 3.5km strike. We have only really begun to understand the scale of the opportunity following the mapping, sampling and drilling work outside the [current resource] which has been the focus of our attention to-date. We have always believed that the area had strong potential. We needed to increase the property holdings to incorporate these potential areas which we have now done. We have increased the holding from 813 acres to 1,837 acres.
“The newly discovered Red Star zone is located 330m north west along strike from the present northern limit of the Empire [current resource] and appears to be a continuation of the Empire [deposit’s] mineralisation trend which, in turn, continues on into the Horseshoe block of claims towards the old Horseshoe Mine approximately 1.3km along strike from Empire… Three reverse circulation (“RC”) drill holes have already been completed in the Red Star zone.
“We believe we can add considerable value by continuing exploration along the whole 3,500m zone within the property boundary and investigating the mineralised showings and old workings within this [potentially] vast mineralised system.
“Finally, the drilling program around the [current resource] at Empire continues to return robust results which will [hopefully] enhance the new resource estimate scheduled for completion in January next year. High-grade copper and silver assays, consistent with results reported in the last two months, provides more evidence of a deeper-rooted, high-grade sulphide system. Assay results for those holes are anticipated in November and early December. We look forward to keeping the market updated on our progress.”
Mr. Jason Riley, CEO of ExGen commented: “We are very pleased with this latest round of assay results from Red Star and now the Horseshoe block that indicate the potential of a larger scale area play at Empire. Additionally, the ongoing infill and stepout drilling continues to deliver impressive grades of copper, which should benefit the current resource update expected in Q1 next year. We eagerly await the next drilling results from Red Star before year end.”
Red Star Channel Sampling
One continuous channel, comprised of 12 1.5m samples, were collected from the exposed outcropping at the Red Star zone. The results of these samples were composited as a single sample. Individual 1.5m samples ranged in grade from 0.15% copper to 1.69% copper and were all included in the grand composite.
The channel samples were composited and are presented in the following table. Copper equivalent grades (“CuEqu”) were calculated based on metal prices as follows – copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.00/oz.
The Red Star zone is 330m outside of the current resource area to the northwest on the edge of the Horseshoe claims Block.
Reported lengths are sample lengths, true widths have not been determined
Horseshoe Exploration Rock Chip Samples
20 rock chip samples were collected as part of the initial exploration effort on the Horseshoe Claims Block from various outcroppings and exposures with at least some visually identifiable mineralisation. The sampling represents a small portion of the proposed exploration program for the area in 2019. A Notice of Intent (“NOI”) is currently under review by the US Forest Service for drilling on the Horseshoe claims Block.
The Horseshoe Block is comprised of 944 acres of unpatented claims contiguous to the Empire property and staked by Phoenix in 2017 and 2018. The historic Horseshoe Mine is located approximately 1,000m north of Red Star and approximately 1,300m north-northwest of the Empire’s North Pit.
|Horseshoe Rock Chip Samples|
*Readers are cautioned that rock chip samples are selected samples and are not necessarily representative of the mineralization hosted on the property.
DRILLING UPDATE – EMPIRE MINE
ExGen has completed a total of 8,604m of drilling at Empire. To date this consists of 6,328m of reverse circulation (RC) drilling and 2276m of diamond drilling. Drill samples are being delivered to the ALS Global laboratory in Nevada for assay with a turnaround time of approximately six weeks. The drill hole results received to date from diamond drill holes KXD18-14A through to KXD18-19 and RC holes KX18-48 through to KX18-52 are shown below. The results from the previous ExGen drilling programs in 2017 and the 2018 results for 47 RC holes and 13 diamond drill holes, published in September and October, can be found under the Company’s filings on the SEDAR web site at http://www.sedar.com/.
The copper equivalent grade (“Cu Equ”) is calculated based on metal prices as follows – copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.0/oz.
|Drill Hole||Intersection Metres||%||g/t||%|
Reported lengths are core lengths as true widths have not yet been determined. We anticipate the true width calculations to be available in the coming weeks.
QUALITY ASSURANCE AND QUALITY CONTROL PROTOCOLS
Copper, zinc and silver were determined by the ICP method. Copper and zinc >1%ICP are assayed using four-acid digestion and silver >100ppm by four acid digestion, whereas gold was determined by a 30gm fire assay followed by atomic absorption. The QP for this news release notes that Phoenix inserts at least 2 blanks, duplicates, or standards for every 20 samples submitted to the ALS assay laboratory in Nevada. Core samples are saw cut in half and stored in a secure facility. RC chips and channel samples are stored in the same secure facility. All samples are delivered to the laboratory under chain of custody protocol and submitted using sub-form sample numbers.
Other Results Pending Analysis
There are currently 11 RC holes and 7 diamond drill holes awaiting assay results which should be received in November and December and will be reported as soon as possible. The samples are at the ALS assay laboratory in Nevada. These results will be announced following the receipt of assay certificates and QA/QC sign-off.
Roger Turner A.C.S.M., M.Sc., M.I.M.M.M., C.Eng., a Qualified Person as defined by National Instrument 43-101, and Chief Technical Officer and Director of Phoenix Global Mining, has reviewed and verified the technical mining information provided in this release. Mr. Turner is a graduate mining engineer from the Camborne School of Mines with an MSc in Economic Geology from Leicester University with more than 40 years’ experience in mine development, construction and operation.
As previously announced, ExGen also became a member of the 8020 Connect Inc., (“8020 Connect”), investor community.
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Connect here http://bit.ly/8020exgen
About ExGen Resources Inc.
ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.
For more information on ExGen please contact ExGen Resources Inc.
Chief Financial Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Empire Mine Project and the exploration and development of the Empire Mine Project; the earning of the Option by Phoenix and the potential transfer back to ExGen of the Konnex shares; the exploration and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, completion of a potential feasibility study in compliance with NI 43-101, and the timing for completion of these events; the timing for the completion of exploration drilling and the receipt of exploration information and drill assays; the potential of the underground sulphide mineralization and the potential re-opening of the 700 and 1100 level portals to assist in the analysis of the potential sulphide mineralization. The expanded 3.5 km strike length of the Empire Mine property and the potential for a larger district style opportunity. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Empire Mine Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen to raise future equity financing, if needed, at prices acceptable to ExGen; ExGen’s current and initial understanding and analysis of the Empire Mine Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Empire Mine Project; the ability of Phoenix to explore and develop the Empire Mine Project; the cost of exploration, including sampling, drilling and assaying, on the Empire Mine Project, the costs of developing the Empire Mine Project and the costs and the ability of Phoenix to produce a feasibility study in compliance with NI 43-101; the costs and work required to re-open the 700 and 1100 level portals; and ExGen’s general and administrative costs remaining sustainable. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen’s observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant or successful exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Empire Mine Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices, in particular copper, gold, silver, and zinc prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen’s disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.