Max Resource Corp.: Gold Bearing Conglomerate Discovery Expands the Mineralized Zone
TSX VENTURE: MXR
Vancouver, British Columbia--(Newsfile Corp. - February 6, 2019) - Max Resource Corp. ("MAX" or the "Company") (TSXV: MXR) (OTC Pink: MXROF) (FSE: M1D1) is pleased to announce exploration results from the Company's 1,757 sq. km gold bearing conglomerate "Choco Precious Metals Project", located 100km SW of Medellin, Colombia.
- On-going exploration by the Choco team has located gold bearing conglomerate, designated Outcrop 2, a further 7.5km to the south;
- The area of our on-going exploration now covers 36 sq. km;
- Processing of the gold bearing conglomerate from the six 2m by 2m by 30cm trial pits and the two outcrops continues and results will be reported as received and verified;
- Field exploration continues, with the objective of increasing the lateral extent of the conglomerates and gold mineralization of the Company's Choco Precious Metals district area.
Brett Matich, Max's President and CEO commented: "The continuing exploration success suggests Max may well be on the cusp of a new gold discovery. The results of this exploration program will provide an indication of the scale of this project."
Exploration to date:
- sinking of six 2m by 2m by 30cm trial pits and sampling of two outcrop exposures over a 36 sq. km area;
- processing 25kg to 50kg random samples from the + 2,000 kg of conglomerate produced from each of the six test pits to confirm the presence of free gold;
- processing 25kg to 50kg of chip samples from the two outcrop exposures to confirm the presence of free gold;
- free gold was observed in the first sample from each of the first five trial pits;
- confirmation of a vertical thickness of 12m from outcrop 1 in near the centre of the 36 sq. km area.
As shown in the above Exploration Strategy Schematic, the Company is working on an exploration model where the gold bearing conglomerates have formed at the base of the western slopes of the mountains to the east.
The Company considers systematic bulk sampling at surface to be the most practical means of determining grade, processing characteristics and the lateral extent of the flat-lying gold bearing mineralized system. Sampling exposed faces of outcrops will provide initial assessment of thickness, depth and vertical continuity of the gold through the system.
The six 2m by 2m by 30cm deep trial pits are excavated from surface by pneumatic hammer. A measured specific gravity of 2.2 indicates + 2,000 kg of hard rock conglomerate is collected from each pit.
The on-going exploration in the central part of the mineralized area indicates a vertical thickness of 12metres. Samples were taken down the face of the outcrop to determine gold distribution vertically through the conglomerate. Analytical results are pending.
Choco Precious Metals Project
MAX has 100% ownership of 82 and 50% of 7 mineral license applications, totaling over 1,757 sq. km located within Choco Department approximately 100km SW of the city of Medellin, Colombia.
Compania Minera del Choco Pacifico ("Choco Pacific") produced 1.5 million ounces of surface gold and 1.0 million ounces of surface platinum from the "Choco District" between 1906 to 1990, largely limited to an average depth of 8 meters or less.
MAX's Choco Precious Metals Project covers or is adjacent to much of Choco Pacific's historic exploration and production areas. Choco Pacific historic reports indicate the hard rock conglomerates underlying the surface production areas are gold-bearing, extensive, shallow and generally flat lying with thicknesses from a few metres to 20 metres.
Source: R.J. Fletcher and Associates (2011) Review of Gold and Platinum Exploration and Production in Choco Province Colombia Part 3. Private Report for Condoto Platinum Ltd.)
MAX cautions investors it has yet to verify the historic information.
Sampling and Analysis Methodology
Sampling integrity is essential. The conglomerate (hard rock) surface is cleaned and a 2m by 2m square is marked. A pneumatic hammer then chips and breaks the conglomerate outcrop to a depth of 30cm. The broken conglomerate is collected in pre-numbered rice bags; approximately 25kg per bag. Each pre-numbered bag is sealed by the geologist and transported to secure, locked storage at the Novita Camp, in Choco. Two bags per pit are then transported by Company personnel to the town of Istmina, where the bags are transported to Medellin for processing at Actlabs Medellin and the CIMEX Mineral Institute at the Medellin Mines Faculty of the National University of Colombia.
Each approximate 50kg sample is first crushed to 2 millimeters (2mm). The -2mm and +2mm fractions are separated by sieving with each fraction subsequently pulverized. The -2mm fractions are concentrated by gravity pan and visually examined for free gold by MAX technical personnel. There has been no analysis conducted on the +2mm fraction.
As previously announced (see Max press release January 28, 2019), Max continues to pursue the acquisition of mineral rights and concessions in and around the Novita Project from Condoto Platinum Ltd., a wholly-owned subsidiary of Noble Metals Limited. Because Max proposes to issue 26,665,896 common shares to Noble Metals on the closing of this transaction (constituting approximately 32.7% of the issued and outstanding shares of Max after adjusting for the transaction), the transaction would constitute Noble Metals as a new 'control person' of Max and requires both TSX Venture and shareholder approval. Max has been working with TSX Venture in an effort to obtain conditional approval while simultaneously adjusting the transaction structure to remediate concerns developed over the course of its due diligence. Max anticipates that it should be in a position to request shareholder approval in the near future. The transaction remains subject to TSX Venture approval.
About Max Resource Corp.
Max Resource Corp.'s focus is to explore and consolidate gold and platinum group mineral assets in the richly endowed Choco mineral district of Colombia and to explore the Gachala sedimentary copper hosted mineral belt of Colombia.
ON BEHALF OF THE BOARD OF MAX RESOURCE CORP.
Brett Matich, CEO and President
Tim Henneberry, P. Geo (British Columbia), a member of the Max Resource Corp. Advisory Board, is the qualified person who has reviewed and approved the technical content of this news release on behalf of the Company.
For more information contact:
Tel: (+1) 604 365-1522
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.
This news release includes certain statements that may be deemed as "forward-looking statements" within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical facts, are forward-looking statements, including, without limitation, statements pertaining to completion of the Transaction and any approvals required in connection with the Acquisition. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of commodities (particularly copper), unanticipated changes in key management personnel and general social, economic or geo-political conditions. Mining exploration and development is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be from time to time by the Company or on its behalf, except in accordance with applicable securities laws. We seek safe harbor.