VANCOUVER, British Columbia, Oct. 10, 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 was 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 (PFS). To date, results from 17 of the 28 holes have been reported in recent news releases (August 2nd, September 13th, 2017).
EMPIRE UPDATE - HIGHLIGHTS
- Phoenix reports drill assays from 5 additional holes, with results from the final six holes expected in the coming weeks. Highlights include 32m grading 1.43% copper, 46.28 g/t silver and 1.36 g/t gold in hole KXd17-3 (core), and 6.1m grading 2.10% copper and 132.02 g/t silver in KX17-16 (RC).
- Phoenix also reports that it is still on target for completing an NI 43-101-compliant resource calculation in Q4 2017.
- Furthermore, Phoenix states that a Preliminary Feasibility Study is still slated for completion by early Q2 2018, subject to completion of the NI 43-101 resource calculation.
- In addition, the first of two diamond drill holes targeting the higher grade sulphide mineralization which underlies the near-surface oxide mineralization is underway. The results of these holes targeting the sulphide mineralization are expected by the end of November.
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 AP Pit through a Pre-Feasibility Study (PFS), with a targeted completion date of early Q2-2018. 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, and tungsten mineralization evidenced in historic exploration programs.
Phase 1: AP Drilling
Phoenix previously reported that its initial 28-hole drill program consisted of 21 reverse circulation 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 13 were previously announced by the Company in its news releases dated August 2nd, and September 13th, 2017. All drill hole samples have been shipped to ALS Global’s laboratory in Nevada, USA for assaying. Significant assay results from the 5 latest drill holes reported by Phoenix are summarised as follows:
| Hole | Intersection Metres | % | g / tonne | |||||||
| Number | From | To | Interval | T Cu | Zn | Ag | Au | |||
| 13 | KXd17-3 | 18.3 | 25.9 | 7.6 | 0.76 | 0.11 | 28.20 | 0.17 | ||
| 38.1 | 70.1 | 32.0 | 1.43 | 0.01 | 46.28 | 1.36 | ||||
| including | 38.1 | 50.3 | 12.2 | 1.30 | 0.01 | 69.00 | 1.99 | |||
| including | 53.3 | 62.5 | 9.2 | 2.28 | 44.78 | 1.95 | ||||
| including | 62.5 | 70.1 | 7.6 | 1.09 | 37.36 | 0.41 | ||||
| 14 | KX17-15 | 61.0 | 62.5 | 1.5 | 0.60 | 36.2 | 0.30 | |||
| 15 | KX17-16 | 16.8 | 25.9 | 9.1 | 0.47 | 0.06 | 19.45 | 0.03 | ||
| 44.2 | 50.3 | 6.1 | 2.10 | 0.15 | 132.03 | 0.11 | ||||
| 16 | KX17-17 | 0.0 | 6.1 | 6.1 | 1.06 | 0.48 | 50.48 | 0.87 | ||
| 10.7 | 22.9 | 12.2 | 0.37 | 0.10 | 13.94 | 0.93 | ||||
| including | 12.2 | 15.3 | 3.1 | 0.83 | 0.15 | 40.35 | 1.12 | |||
| 17 | KX17-18 | 0.0 | 6.1 | 6.1 | 0.58 | 0.11 | 12.37 | 0.32 | ||
| including | 3.1 | 4.6 | 1.6 | 1.25 | 0.15 | 20.40 | 0.67 | |||
| KX17 | Reverse Circulation Holes (RC) | |||||||||
| KXd17 | Diamond Drill Holes (PQ & HQ size) | |||||||||
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: Resource report and PFS
A key component of the PFS program is the NI 43-101 compliant resource report which Phoenix confirms is on track to be issued in Q4 2017. Results from the current 28-hole drill program (including metallurgy from the four PQ-sized holes) are to be incorporated into the NI 43-101 resource report.
Phoenix reports that the PFS itself is slated for Q2 2018. As disclosed in a news release dated September 13th, 2017, Phoenix has chosen M3 Engineering & Technology Corp of Tucson Arizona as lead consultant for the PFS.
Phase 2: Sulphide Exploration
In addition to the appointment of a mining contractor to re-open the old portals to allow for sampling and drilling of the sulphide mineralization which underlies the near-surface oxide mineralization (see news September 13th, 2017), Phoenix reports that it has commenced the surface exploration programme on the deeper sulphide mineralization, where grades of up to 11.4% copper were recorded during the underground mining operations. The first of two diamond drill hole to be drilled from surface, targeting the sulphide zone below the old workings, is underway. This first hole is scheduled to be 315 metres in depth.
The reader is referred to ExGen’s November 14, 2016, January 30, 2017, July 6, 2017, August 2, 2017, and September 13, 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 in both Phoenix Global Mining and ExGen Resources, has reviewed and verified the technical mining information provided in this release.
Mr. Jason Riley, CEO of ExGen commented: “ExGen is pleased to see the latest results of the Phase 1 in-fill drilling program. Significant copper intersections including 32m of 1.43% Cu, plus significant gold and silver by products were certainly beyond historical results from the AP Pit. Phoenix continues to make rapid progress and we are encouraged by their decision to fast track exploration on the deeper sulphide zone with the commencement of the two holes from surface. We are looking forward to the significant news cycle for Empire over the next few months as we receive the final results from the AP Pit drilling, assay results from the initial holes into the sulphide zone, and the potential NI 43-101 Resource towards the end of the year.”
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.
