VANCOUVER, BC--(Marketwired - July 06, 2017) - ExGen Resources Inc. (TSX VENTURE: EXG) ("ExGen") is pleased to provide an update in respect of Phoenix Global Mining Ltd.'s ("Phoenix") initial public offering (the "Phoenix IPO") and Alternative Investment Market of the London Stock Exchange ("AIM") listing. ExGen understands that Phoenix has completed the Phoenix IPO of £4.6 million at a price of £0.04/common share and that the entire issued share capital of Phoenix was admitted to trade on AIM as of June 29, 2017 under the symbol "PGM".
EMPIRE UPDATE -- HIGHLIGHTS
- 28 hole (2,200 metre) drilling program underway within the Anderson Pit area
- First drill assay results expected in 3 to 6 weeks
- Metallurgical studies and Preliminary Feasibility Study ("PFS") underway
- Phase 1 initially focused on oxide mineralization within the Anderson Pit vicinity
- Phase 2 exploration focused on deeper, higher grade sulphide zone, with historical intercepts of up to 11.4% copper ('Cu') and additional metal credits including gold (drill results inc. 1.5m @26.4g/t Au), silver (drill results inc. 9m @ 126.6g/t Ag) and tungsten (grab samples as high as 4.3%W03)
Further to press releases dated July 21, 2015 and November 14, 2016, ExGen, Phoenix, a private British Virgin Islands based mining company focused on base metals development, and Konnex Resources, Inc. ("Konnex"), which holds the leases to ExGen's Empire Mine Project ("Empire Mine Project"), have entered into an Option Agreement, as amended, on ExGen's Empire Mine Project, pursuant to which Phoenix acquired 80% of the common shares of Konnex (the "Option") and the remaining 20% are continued to be held by ExGen. As part of the consideration under the Option, ExGen was issued 11,300,000 common shares of Phoenix, which represents just under 5% of the currently outstanding shares of Phoenix after the Phoenix IPO. For further information on the Option, including the circumstances pursuant to which the Konnex common shares would be transferred back to ExGen, please see the November 14, 2016 news release.
As stated in Phoenix's June 29, 2017 news release, Phoenix's strategy to develop the Empire Mine Project can be split into two phases, as detailed below, which will run concurrently. Phoenix announced that the immediate focus is Phase 1, which is to fast track the copper oxide mineralization in the Anderson Pit through a Pre-Feasibility Study over the next 12 months. The longer-term Phase 2 strategy, is to complete a thorough exploration program of the copper sulphide system at depth and the associated gold, silver, zinc, cobalt and tungsten mineralisation evidenced in historic exploration programs. Should the economic viability and technical feasibility of the project be established by a Feasibility Study, Phase 1 will focus on the development of a mine at the shallow copper oxide mineralization. Phoenix has commenced mineralization drilling and expects to complete the Pre-Feasibility Study within 12 months. Assuming positive results, it is anticipated that Phoenix will then commence a Feasibility Study which will take up to a further twelve months to complete, before arranging project finance to begin construction of the mine. Phase 2 is focused on the wider exploration potential of the Empire Mine Project and anticipates commencing an initial exploration program to evaluate the copper sulphides, which lie underneath the Anderson Pit and along strike. The exploration program will assay for gold, silver and zinc, which was mined historically and will evaluate the potential by-products including cobalt, tungsten and molybdenum. An independent technical report will be completed following the initial exploration program.
Phase 1: Anderson Pit Drilling
The current drill program has already commenced and will focus on identifying further oxide mineralization within the Anderson Pit area. Also, a number of drill holes will be used for the purposes of new metallurgical studies to build on the historic knowledge from prior studies.
Phoenix has initially committed to a 28-hole, 2,200 metres, drilling program consisting of 21 RC drill holes for a total of 1,600 metres designed to infill and augment the historical drilling within the Anderson Pit area. This includes 300 metres HQ diameter core in 4 holes and 300 metres large PQ diameter in 3 holes, which will provide samples for bulk metallurgical test work.
As of 4 July 2017, 5 of the 21 RC holes had been completed to a total of 317 metres, and 2 of the 4 HQ core holes have been completed for a total of 169 metres. The PQ core drilling program is anticipated to begin the week commencing 10 July 2017.
Phase 2: Sulphide Exploration
Phoenix is now completing the necessary planning for regaining underground access for mapping, sampling and drilling in the sulphide zone beneath the oxides.
Pre-Feasibility Study: Inviting Proposals
Phoenix is currently inviting and evaluating proposals from engineering firms with a successful track record of designing open pit oxide copper heap leach projects for the position of lead consultant responsible for the Preliminary Feasibility Study (PFS) for the Anderson Pit.
Mr. Jason Riley, CEO of ExGen commented: "We wish to congratulate the entire Phoenix team on a successful IPO. Phoenix's plans to complete a pre-feasibility study at Empire over the next 12 months should provide ExGen with improved visibility on our potential path to cash flow. We are also encouraged by Phoenix's 2 Phase approach to exploration and development of both the oxide and sulphide potential at Empire. The sulphide zone has long been of interest to ExGen, with significant historical results, but has remained largely untested. The Phoenix IPO, and significant raising of funds, marks a new chapter in ExGen's strategic repositioning towards building a portfolio of joint ventures and royalty interests."
The reader is referred to ExGen's November 14, 2016 and January 30, 2017 news releases for additional technical information on the Empire Mine Project.
Phil van Angeren, P. Geo., a Qualified Person as defined by National Instrument 43-101, and less than 1% shareholder of Phoenix Global Mining, has reviewed and verified the technical mining information provided in this release.
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 visit our website at http://exgresources.com or contact ExGen Resources Inc.
