VANCOUVER, British Columbia, Nov. 02, 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 is pleased to report the final 6 holes of the 28-hole drill program recently completed by Phoenix on the Empire Mine Project. The updated 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 22 of the 28 holes have been reported in recent news releases (August 2nd, September 13th, 2017, and October 10, 2017).
EMPIRE UPDATE – HIGHLIGHTS
- Final batch of drilling results include the following from the AP Pit oxide zone:
– 6.1m @ 2.08% copper (‘Cu’), 79.18 g/t silver (‘Ag’) and 2.48 g/t gold (‘Au’) (Cu equivalent grade 4.35%)
– 24.4m @ 1.06% Cu, 34.82 g/t Ag and 0.17 g/t Au (Cu equivalent grade 1.84%)
– 29.0m @ 0.88% Cu, 46.84 g/t Ag and 0.29 g/t Au (Cu equivalent grade 1.64%) - The second of two diamond drill holes targeting the higher grade and deeper sulphide mineralisation is underway. The final depth of the first hole was 314m. Assay results for the two holes are expected in December 2017.
- Completion of the NI 43-101 resource calculation expected within the next 4 weeks.
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.
The following is the summary of results from the last 6 of these 28 holes which are PQ and HQ diamond drill holes. The results for all other holes were included in the Company’s October 10th 2017 press release. These results, together with all of the historic drilling results, will now be used by the Preliminary Feasibility Study (PFS) consultant to complete the NI 43-101 resource calculation on the AP Pit oxide zone.
| Hole | Intersection Metres | % | gms / tonne | ||||
| Number | From | To | Interval | T Cu | Zn | Ag | Au |
| KXd17-2 | 0.0 | 39.6 | 39.6 | 0.85 | 0.60 | 25.89 | 0.18 |
| including | 7.6 | 33.5 | 24.4 | 1.06 | 0.84 | 34.82 | 0.17 |
| including | 10.7 | 13.7 | 3.0 | 2.57 | 0.12 | 162.50 | 0.59 |
| KXd17-4 | 0.0 | 15.2 | 15.2 | 1.00 | 0.07 | 9.73 | 0.07 |
| including | 12.2 | 15.2 | 3.0 | 1.51 | 0.13 | 4.65 | 0.01 |
| and | 36.6 | 79.2 | 42.7 | 0.62 | 0.11 | 15.56 | 0.21 |
| including | 53.3 | 73.2 | 19.8 | 0.86 | 0.12 | 23.52 | 0.32 |
| KXd17-5 | 0.0 | 29.0 | 29.0 | 0.88 | 0.39 | 46.84 | 0.29 |
| including | 25.9 | 27.4 | 1.5 | 6.26 | 1.13 | 338.00 | 0.93 |
| KXd17-5A | 6.1 | 9.1 | 3.0 | 0.98 | 0.61 | 75.60 | 0.37 |
| and | 27.4 | 30.5 | 3.0 | 1.31 | 0.19 | 78.75 | 0.43 |
| KXd17-6 | 15.2 | 18.3 | 3.0 | 0.66 | 0.07 | 784.70 | 0.07 |
| KXd17-7 | 9.1 | 15.2 | 6.1 | 2.08 | 0.09 | 79.18 | 2.48 |
| including | 10.7 | 12.2 | 1.5 | 4.19 | 0.06 | 195.00 | 6.04 |
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 within the next 4 weeks. 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. With current zinc, gold and silver prices there is the potential for significant value in these by-product metals. The potential for recovering the gold and silver from the same heaps when copper recovery is completed will be investigated.
PFS Program
The consultancy team who are managing the PFS continue to make good progress with completion of the PFS on track for Q2 2018:
The study consists of the following:
- Complete NI 43-101 resource calculation on the AP Pit oxide zone
- 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
Sulphide Exploration
The Company has commenced the exploration program on the deeper sulphide potential resources, where grades of up to 11.4% copper were recorded during historical underground mining operations. The first of two diamond drill holes targeting the sulphide zone below the old workings has been completed from surface to a depth of 314 metres. A second deep sulphide hole has been started. All assays from these holes are expected in December. In the meantime, the opening of two of the adits to gain access to the old underground workings is progressing. Once completed, an underground mapping, sampling and drilling campaign will begin.
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 another round of excellent results from the Phase 1 in-fill drilling program. The final batch of assays have again returned significant copper intersections including longer intervals of 24.4m of 1.06% and 29.0m of 0.88% with numerous shorter intervals as high as 6.26% together with significant gold and silver. These results continue to surpass the historical grades from the AP Pit and ExGen is eagerly awaiting the NI 43-101 resource calculation targeted for completion by the end of November.”
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.
