VANCOUVER, British Columbia, Sept. 13, 2017 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX.V:EXG) (OTC:BXXRF) (“ExGen”) 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 to the Empire Mine Project. ExGen further has a 2.5% NSR royalty on the Empire Mine Project and owns 11,300,000 Phoenix common shares. ExGen understands that Phoenix has completed its 28-hole drill program on the Empire Mine Project which is intended to fill-in gaps in the existing historical drill-hole block. The drill-hole block is intended to be used as the foundation for a potential NI 43-101 resource calculation and a potential pre-feasibility study, which ExGen understand is currently a goal of the exploration and development activities currently being conducted by Phoenix.
EMPIRE UPDATE - HIGHLIGHTS
- 28 drill holes completed as part of the 28-hole “infill” drilling program at the Anderson Pit.
- Phoenix reports drill assays from 14 holes; reported total-copper, gold and silver values and intervals are similar or better than values/intervals from adjacent holes.
- Additional assay results are expected in the coming weeks.
- Phoenix also reports that it is on target for completing a maiden NI 43-101 resource calculation on the Empire Mine Project in Q4 2017.
- Furthermore, Phoenix states that consultants for the Preliminary Feasibility Study (“PFS”) on the Empire Mine Project have now been selected and are aiming to complete studies by early Q2 2018.
- A mining contractor has been appointed to re-open the 700 and 1100 Level portals and refurbish and ventilate the old workings to allow a safe environment for sampling, mapping and drilling in order to carry out a systematic evaluation of the deeper sulphide mineralization below the Anderson Pit.
As stated in Phoenix’s June 29, 2017 news release, Phoenix’s strategy to develop the Empire Mine Project can be split into two concurrently-running phases. Phase 1 is to advance the near-surface copper oxide mineralization in the Anderson Pit through a Pre-Feasibility Study over the next 12 months. Phase 1 is focused on proving the commercial viability of the oxides and recovering copper cathode by heap leaching, solvent extraction and electrowinning (SX-EW). 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 mineralization evidenced in historic exploration programs.
Phase 1: Anderson Pit Drilling
Phoenix reports that it has completed the initial 28 drill hole program. This consisted of 21 reverse circulation drill holes (1,595 metres) and 4 PQ and 3 HQ diamond drill holes (537 metres). The PQ holes are being treated as metallurgical holes.
Results for KX17-1 to 5 were previously announced by the ExGen in its news release dated August 3, 2017.
To date, samples from all 28 drill holes have been shipped to the ALS Global’s laboratory in Nevada, USA for assaying. Significant assay results from the 14 drill holes reported by Phoenix are summarised in the table and paragraph below:
| Hole | Intersection Metres | % | gms / tonne | |||||
| Number | From | To | Intercept | Total Cu | Zn | Ag | Au | |
| KX17-2* | 0.0 | 29.0 | 29.0 | 0.46 | 7.72 | 0.17 | ||
| KX17-3* | 0.0 | 22.9 | 22.9 | 0.66 | 0.10 | 40.76 | 0.15 | |
| including | 16.8 | 21.3 | 4.6 | 2.06 | 92.88 | 0.17 | ||
| 29.0 | 36.6 | 7.6 | 0.37 | 0.10 | 15.99 | 0.10 | ||
| 41.2 | 62.5 | 21.3 | 0.86 | 1.22 | 13.03 | 0.14 | ||
| 56.4 | 61.0 | 4.6 | 1.65 | 2.30 | 3.37 | 0.04 | ||
| KX17-4* | 0.0 | 16.8 | 16.8 | 0.07 | 7.92 | 0.60 | ||
| 39.6 | 86.9 | 47.3 | 0.23 | 0.11 | 6.64 | 0.10 | ||
| KX17-6 | 13.7 | 65.5 | 51.8 | 0.42 | 9.16 | 0.24 | ||
| including | 13.7 | 19.8 | 6.1 | 1.13 | 13.20 | 0.04 | ||
| KX17-7 | 0.0 | 35.1 | 35.1 | 0.29 | 0.70 | 12.56 | 0.70 | |
| including | 29.0 | 35.1 | 6.1 | 1.10 | 1.05 | 30.40 | 0.07 | |
| 77.7 | 85.4 | 7.7 | 0.07 | 1.12 | 2.06 | 1.02 | ||
| KX17-8 | 10.7 | 18.3 | 7.6 | 0.40 | 12.34 | 0.04 | ||
| 36.6 | 42.7 | 6.1 | 0.30 | 0.22 | 28.70 | 0.10 | ||
| 89.9 | 93.0 | 3.1 | 1.16 | 0.20 | 38.40 | 0.35 | ||
| KX17-9 | 0.0 | 70.1 | 70.1 | 0.34 | 5.85 | 0.38 | ||
| including | 0.0 | 16.8 | 16.8 | 0.82 | 11.91 | 0.12 | ||
| including | 39.6 | 48.8 | 9.2 | 0.55 | 0.12 | 10.28 | 1.06 | |
| KX17-10 | 0.0 | 44.2 | 44.2 | 0.36 | 0.13 | 10.77 | 0.05 | |
| including | 9.1 | 12.2 | 3.1 | 1.02 | 25.30 | 0.05 | ||
| KX17-11 | 12.2 | 64.0 | 51.8 | 0.51 | 0.11 | 16.09 | 0.07 | |
| including | 12.2 | 29.0 | 16.8 | 1.02 | 33.99 | 0.03 | ||
| KX17-12 | 24.4 | 32.0 | 7.6 | 0.60 | 17.84 | 0.09 | ||
| KX17-13 | 7.6 | 13.7 | 6.1 | 0.22 | 5.33 | 0.08 | ||
| 48.8 | 54.9 | 6.1 | 0.20 | 17.95 | 0.10 | |||
| KXd17-1 | 24.4 | 64.0 | 39.6 | 0.30 | 0.36 | 8.20 | 0.08 | |
| including | 24.4 | 30.5 | 6.1 | 1.31 | 0.52 | 24.90 | 0.06 | |
| including | 57.9 | 64.0 | 6.1 | 0.52 | 0.63 | 16.05 | 0.18 | |
*As announced by ExGen in its news release dated August 3, 2017.
Drill holes KX17-1 and KX17-5 contained 15.2 metres averaging 9.6g/t Ag, and 4.6 metres averaging 0.17% Total Cu, respectively. ExGen understands that the above intercepts are not considered to be true widths. Copper, zinc and silver were determined by the ICP method after 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 inserted industry standards, blanks and duplicates into their sample stream, as standard QA/QC protocol.
Phase 1: PFS Program
A key component of the planned PFS program is the publishing of an NI 43-101 compliant resource report which Phoenix announces is on track to be issued in Q4 2017. The PFS itself is slated for Q2 2018, according to Phoenix.
With a wealth of experience in designing and commissioning copper SX-EW plants in the United States and around the world, M3 Engineering & Technology Corp of Tucson Arizona (“M3”) have been appointed as lead consultant for the PFS Program. Alongside M3, Hard Rock Consulting Inc of Lakewood, Colorado have been appointed to lead the “Reserves & Mining” studies, Minerals Technology LLC of Tucson, Arizona will undertake the Metallurgical test work, and Cascade Earth Sciences of Pocatello, Idaho will complete the environmental and permitting studies.
The PFS work program will consist of the following:
- Update Anderson pit oxide resource study
- Mine plan, production schedule and capital and operating cost estimates
- Updated metallurgical test work
- Crush and stack design, heap leach pads, ponds and SX-EW plant design and capital and operating cost estimates
- Infrastructure design and costs
- Water, soil, wildlife and vegetation environmental base line study
- Project financial analysis and sensitivity analysis
Phase 2: Sulphide Exploration
As previously announced, Phoenix is seeking to commence exploration work on the deeper sulphide mineralization in Q4 2017. Phoenix has now appointed a mining contractor to reopen the 700 and 1100 Level portals to allow access to the underground workings for the purposes of evaluating and sampling the sulphide mineralization below the oxide mineralization. The condition of the old workings, once into solid rock, will dictate the extent of the underground sampling program.
Mr. Jason Riley, CEO of ExGen commented: “ExGen is pleased to see confirmation of the copper grades from the first 14 holes of the Phase 1 in-fill drilling program in the Anderson Pit at Empire. We look forward to the assay results from the remaining 14 holes to be released in the next few weeks along with updates on the potential sulphide zone exploration plans for this year.”
The reader is referred to ExGen’s November 14, 2016, January 30, 2017, July 6, 2017 and August 3, 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. A fully partner funded PFS is currently underway for ExGen’s flagship asset, the Empire Mine in Idaho. ExGen 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.
