ExGen Resources Announces Empire Drilling Program Intercepts Copper Sulphide Mineralisation; Mineralised Extension Recognised to the North and at Depth
TSX VENTURE: EXG
VANCOUVER, British Columbia, Sept. 20, 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 one of Phoenix’s largest shareholders, owning 1,330,000 common shares (4.18% of Phoenix).
ExGen is pleased to announce a further set of results from the Company’s ongoing 2018 drilling program at the Empire Copper Mine in Idaho, USA (the ‘Empire Mine’). These results follow those announced in the September 13th press release.
- Extensive evidence of copper sulphides found below the Empire mine and to the north-west, east and south.
- Significant high-grade copper drill intersections to upgrade the inferred resources inside the current resource including:
|° Hole KXD18-10:||24.7 m of 3.33% copper equivalent from 7.3 m depth|
|° including||1.5 m of 10.13% copper equivalent from 11.9 m depth|
|° including||2.9 m of 9.11% copper equivalent from 26.5 m depth|
|° Hole KX18-44:||19.8 m of 2.98% copper equivalent from 164.6 m depth|
|° including||7.6 m of 6.38% copper equivalent from 166.1 m depth|
|° including||1.6 m of 12.88% copper equivalent from 168 m depth|
- Stepout drilling outside the current resource intersects high grade copper sulphide mineralisation, including:
|° Hole KX18-36:||3.0 m of 3.03% copper equivalent from 94.5 m depth|
|° Hole KX18-39:||7.6 m of 1.22% copper equivalent from 6.1 m depth|
|° Hole KX18-47:||18.3 m of 1.72% copper equivalent from 54.9 m depth|
|° and||4.6 m of 4.83% copper equivalent from 77.7 m depth|
|° Hole KXD18-9:||2.7 m of 5.46% copper equivalent from 26.4 m depth|
|° Hole KXD18-12:||4 m of 0.71% copper equivalent from 88.4 m depth|
- A new zone of mineralisation to be called “Red Star” has been discovered 330 metres north-west of the current resource towards the old Horseshoe Mine. The outcrop is 20 metres wide and contains heavy oxide/sulphide mineralisation. Trench samples have been sent for assaying.
- Five drill hole intercepts contain predominantly chalcopyrite & bornite copper sulphide mineralisation.
- Hole KX18-47 confirms the presence of higher-grade sulphide mineralisation beneath the current resource.
- Elevated zinc, gold and silver values are associated with the copper intersections. Grades of up to 8.82% zinc, 7.93 grammes per tonne (“g/t”) gold, 256 g/t silver.
- Assay results from a further 19 drill holes and 298 surface channel samples are pending and will be reported shortly.
Dennis Thomas, Chief Executive Officer of Phoenix, said, “It is our pleasure to present the latest assay results from the ongoing 2018 Empire drill programme. These results are “game changing” for the Company given they provide extensive evidence that a high-grade feeder system exists below the Empire oxide resource and demonstrate the existence of such a sulphide system within the Empire Mine.
“To date, we have focused on the oxides at surface but these results will inevitably require following up with further exploration of the sulphide system. We now have five drill holes that have intercepted predominantly chalcopyrite and bornite copper sulphide mineralisation in high-grade vein structures. This batch of results has given us renewed confidence to explore the sulphides in more detail. Also, quite significantly we have reported material gold and silver grades that would boost project economics.
“In addition, we are pleased to report the discovery of a new zone of surface mineralisation in the Empire block, now referred to as Red Star. Red Star is located approximately 330 metres north-west of the northern end of the Empire resource area and is a 20 metre-wide surface outcrop across the structure. The mineralisation is a mix of oxides and sulphides, with strong chrysocolla and bornite showings, exposed in a heavily timbered canyon. Weather permitting, we plan to drill Red Star before the year end. I look forward to reporting the channel sampling results from Red Star when they become available.
“With regard to the ongoing … copper oxide exploration, we are highly encouraged by the infill drilling results in and around the Empire pit. Notable results are 19.8 metres of 1.88% copper including 1.6 metres of 8.85%, and 24.7 metres of 1.58% copper which include 0.9 metres of 7.72% copper in hole KX18-10. Not only do we believe that these results will have a positive effect on the overall grade and tonnage in the existing resource, but the 19.8 metre intercept sits entirely below the [current resource], which should have a positive effect on the expansion of the resource in that area. “We would also point out that the 7.72% (KXD18-10) and 8.85% copper (KX18-44) intercepts present as copper oxides in the core and reverse circulation (“RC”) chips appear to be associated with high-angle structures continuing at depth. The Empire team will use these higher-grade intervals to continue defining the deeper sulphide system. Drill hole KX18-44 (8.85% copper) was a follow-up to last season’s drill hole KXD17-10 (4.6 metres of 1.34% copper, including 1.5 metres of 2.45% copper), which was part of a 2017 deep sulphide drilling programme, the results of which were reported by the Company in January 2018.
“Finally, we are now targeting additional drilling to be completed in the next two months that will follow up on the previously reported eastern and western mineralised extensions, as well as the newly recognised north-western extension, and follow up on the sulphide mineralisation reported here. Our infill drilling programme will also continue into the autumn, which is designed to upgrade the inferred resources to the measured and indicated category. Thus far, the infill drilling programme results are robust and will be used to update the resource model in which the average grade of the “measured and indicated” resource is 0.52% copper. Our hope is that continued drilling results similar to those reported here and previously will have a positive effect on the overall grade and tonnage, which will materially enhance the economics of the project.
“We will continue to report new assay results over the next few months as the drilling progresses and the results are received from the ALS Global laboratory in Nevada.”
Mr. Jason Riley, CEO of ExGen commented: “We are very pleased with this second round of assays in September. The drilling has encountered impressive grades of copper, zinc, and gold which we believe provides compelling evidence that a high-grade feeder system exists below the Empire oxide resource. We are excited to see what the next drill results will deliver and look forward to the follow up work at the numerous additional possible mineralized extensions, including Red Star before year end.”
Of the planned 12,200 metre drill programme scheduled for completion in 2018, Phoenix has completed a total of 7,604 metres of drilling at Empire. To date this consists of 5,328 metres of RC drilling, 1,573 metres of HQ core drilling, and 703 metres of PQ core drilling. Drill samples are being delivered to the ALS Global laboratory in Nevada for assay with a turnaround time of approximately six weeks. The drill hole results received to date from core holes KXD18-7 through to KXD18-13 and RC holes KX18-35 through to KX18-47 are shown below. The copper equivalent grade (“Cu Equ”) is calculated on the basis of metal prices as follows – copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.0/oz.
|Reported widths are drill widths, true widths have not been determined|
Copper, zinc and silver were determined by the ICP method. Copper and zinc >1%ICP are assayed using four-acid digestion and silver >100ppm by 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.
There are currently 5 RC holes and 14 diamond drill holes, along with 298 surface channel samples, awaiting assay results. These results will be announced following the receipt of assay certificates and QA/QC sign-off.
Roger Turner A.C.S.M., M.Sc., M.I.M.M.M., C.Eng., a Qualified Person as defined by National Instrument 43-101, and Chief Technical Officer and Director of Phoenix Global Mining, has reviewed and verified the technical mining information provided in this release. Mr. Turner is a graduate mining engineer from the Camborne School of Mines with an MSc in Economic Geology from Leicester University with more than 40 years’ experience in mine development, construction and operation.
ExGen is also pleased to announce that it recently became a member of the 8020 Connect Inc., ("8020 Connect"), investor community.
We invite all shareholders and stakeholders to join the ExGen Resources Inc. portal on 8020 Connect.
Connect here http://bit.ly/8020exgen
Through the 8020 platform, ExGen will engage with open lines of communication to ensure each shareholder and interested investor can stay up to date with corporate developments as well as have an opportunity to be engaged through a social media portal. The interactive structure of the portal provides for an opportunity for shareholders to become a part of the communication process and support the development of the Company's investor audience. 8020 Connect actively ensures timely and regulatory compliant information dissemination while providing one-stop access to company executives, news, and educational materials.
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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.