ExGen Resources Announces Maiden NI43-101 Resource at Empire Mine Project
TSX VENTURE: EXG
VANCOUVER, British Columbia, Aug. 13, 2018 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) (“ExGen”, the “Company”) 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 and claims to the Empire Mine Project. ExGen further has a 2.5% NSR royalty on the Empire Mine Project and is Phoenix’s largest shareholder, owning 13,300,000 common shares.
ExGen is pleased to report a maiden independent NI 43-101 compliant resource estimate for its Empire Mine Project, in Custer County, Idaho, USA (the “Empire Mine”).
- Total measured mineral resource of 3,296,532 tonnes at an average grade of 0.53% Cu, which equates to a contained 17,472 tonnes of Cu.
- Total indicated mineral resource of 7,122,951 tonnes at an average grade of 0.51% Cu, which equates to a contained 36,327 tonnes of Cu.
- Total inferred mineral resource of 8,963,08 tonnes at an average grade of 0.41% Cu, which equates to a contained 36,749 tonnes of Cu.
Mr. Jason Riley, CEO of ExGen commented: “We are very pleased that the initial resource estimate for the Empire Mine oxide deposit has exceeded our expectations with over 53% of our maiden 43-101 resource categorized as measured and indicated. We look forward to the results from Phoenix’s aggressive 12,200 metre drilling program this summer and work towards a feasibility study by Q2 2019.”
Empire Mine Resource Estimate
The maiden NI 43-101 Mineral Resource estimate for the Empire Mine deposit was prepared by Zachary J. Black, SME-RM of Hard Rock Consulting, LLC, (“HRC”) a Qualified Person under NI 43-101. The mineral resource estimate relies on data from 26,666 metres of drilling in 285 holes. A full technical report co-authored by Jeff Choquette, P.E., J. J. Brown, P.G., SME-RM, and Zachary J. Black, SME-RM will be filed on SEDAR within the next 45 days.
Table 1-1 Mineral Resource Statement for the Copper Oxide Empire Mine, Custer County, Idaho, U.S.A., Hard Rock Consulting, LLC, November 7, 2017
|Measured + Indicated||11,485.50||0.52||118,510||0.14||31,470||0.007||79||0.310||3,560|
(1) Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are that part of the mineral resource for which quantity and grade or quality are estimated on the basis of limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred mineral resources may not be converted to mineral reserves. It is reasonably expected, though not guaranteed, that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.
(2) The Mineral Resources captured within optimized pit shell meet the test of reasonable prospect for economic extraction and can be declared a Mineral Resource. Open Pit Resources are reported at a 0.184% total copper cutoff based on a $3.25/lb Cu price. No value was given to the gold, silver and zinc in determining the reasonable prospect for economic extraction of the resource.
Parameters in Resource Estimate
The mineral resource estimate relies on data from 26,666 metres of drilling in 285 drillholes. Nine discrete lithologic units were modeled in 3D based on available geologic data and information including public documents, historic and modern project reports, and geological logging and interpretation by Konnex geology staff. The geologic model was grouped into 6 estimation domains based on geostatisitical and lithologic interpretations. Raw assays were composited down hole into 6 metre intervals and coded by estimation domain. Log scale cumulative frequency plots of the composited assay data for each element and by estimation domain were used to identify and cap the grade of statistical outliers. A block model with 6 m x 6 m x 6 m blocks was created and each block classified based on the estimation domains. Cu, Ag, Au and Zn grades were interpolated into blocks by ordinary kriging. The estimate was completed in 3 passes with the maximum search volume set to 137.2 m, using an anisotropic ratio of 2:1:1. The search ellipse was oriented using dynamic anisotropy based on the structural trends modeled in 3D. The first pass had a maximum search distance of 45.7 m, with a minimum of 4 and a maximum of 9 composites, with no more than 2 composites from a single drillhole, used to interpolate grade. Blocks within 13.7 m x 6.9 m x 6.9 m of the first pass are classified as measured. The remaining blocks of the first pass are classified as indicated. The second estimation pass had a maximum search distance of 91.4 m, with a minimum of 3 and a maximum of 16 composites, with no more than 2 composites from a single drillhole, used to interpolate grade. The third estimation pass had a maximum search distance of 137.2 m, with a minimum of 1 and a maximum of 16 composites, with no more than 2 composites from a single drillhole, used to interpolate grade. Blocks estimated in the second and third pass are classified as inferred. Densities were assigned to blocks based on lithology and oxidation state based on a total of 99 density measurements as well as published density data for unoxidized material. Final grade-tonnage estimates were confined to an optimized pit shell using a total copper cutoff 0.184% and a copper price of $3.25/lb
The mineral resources are classified according to Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council on May 10, 2014. The mineral resource estimate is based on all available technical data and information as of November 7, 2017.
CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definitions were followed for mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.
The maiden NI 43-101 Mineral Resource estimate for the Empire Mine deposit was prepared under the direction of Zachary J. Black, SME-RM of HRC, a Qualified Person under NI 43-101, who has reviewed and consented to the information in this news release that relates to the reported resources.
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 contact ExGen Resources Inc.
Chief Financial Officer
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.
Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Empire Mine Project and the exploration and development of the Empire Mine Project; the earning of the Option by Phoenix and the potential transfer back to ExGen of the Konnex shares; the exploration and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, completion of a potential feasibility study in compliance with NI 43-101, and the timing for completion of these events; the timing for the completion of exploration drilling and the receipt of exploration information and drill assays; the potential of the underground sulphide mineralization and the potential re-opening of the 700 and 1100 level portals to assist in the analysis of the potential sulphide mineralization. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Empire Mine Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen to raise future equity financing, if needed, at prices acceptable to ExGen; ExGen's current and initial understanding and analysis of the Empire Mine Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Empire Mine Project; the ability of Phoenix to explore and develop the Empire Mine Project; the cost of exploration, including sampling, drilling and assaying, on the Empire Mine Project, the costs of developing the Empire Mine Project and the costs and the ability of Phoenix to produce a feasibility study in compliance with NI 43-101; the costs and work required to re-open the 700 and 1100 level portals; and ExGen's general and administrative costs remaining sustainable. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Empire Mine Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices, in particular copper, gold, silver, and zinc prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.