ExGen Resources Announces 2018 Empire Channel Sampling Programme Assay Results Show High-Grade Copper, Gold and Silver on Surface in Exposed Outcroppings and Road Cuts
TSX VENTURE: EXG
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VANCOUVER, British Columbia, Oct. 02, 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 the results from the Company’s ongoing channel sampling program at the Empire Copper Mine in Idaho, USA (the ‘Empire Mine’).
- Significant copper grades exhibited in outcroppings and road cuts. Channel samples will be tied to near surface drill hole intercepts and included in the next Empire resource update. 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.
|CH18-02||7.6 metres (“m”) of 5.08% copper equivalent on surface|
|CH18-09||24.4 m of 0.86% copper equivalent on surface|
|including||11.0 m of 1.21% copper equivalent on surface|
|CH18-12||21.3 m of 0.73% copper equivalent on surface|
|CH18-16||6.1 m of 6.34% copper equivalent on surface,|
|including||1.5 m of 9.26% copper equivalent on surface|
|CH18-21||21.3 m of 4.19% copper equivalent on surface,|
|including||3.0 m of 6.70% copper equivalent on surface|
|and||1.5 m of 10.78% copper equivalent on surface|
|CH18-22||32.0 m of 2.19% copper equivalent on surface,|
|including||15.2 m of 2.89% copper equivalent on surface|
|and||1.5 m of 10.33% copper equivalent on surface|
|CH18-23||9.1 m of 1.42% copper equivalent on surface|
- Elevated gold and silver values are associated with the copper intersections. Grades of up to 9.45% copper, 7.63 grams per tonne (“g/t”) gold, 100 g/t silver.
- Assay results from a further 19 drill holes and 25 surface channel samples from the newly discovered Red Star zone are pending and will be reported shortly.
Dennis Thomas, Chief Executive Officer, said, “It is our pleasure to present the assay results from the initial phase of the Empire surface channel sampling programme. The copper skarn comprises a significant portion of the exposed rock at the Empire Mine so these surface results were expected. Moreover, we are pleased with the overall grades that we are seeing at the surface in the latest assay results. The extended intervals of 21.3 metres of 2.73% copper in CH18-21 and 32.0 metres of 1.60% copper in CH18-22, along with the extremely high-grade 1.5 metre intervals of 8.97% copper (CH18-21) and 9.45% copper (CH18-22) are just a few examples of the exceptional grades exhibited at the surface. The copper grades in the channel samples are consistent with near surface drilling results around the property. We have also reported material gold and silver grades in the channel sample results.
“…. We are now more encouraged than ever to see the grades associated with the surface outcroppings and the consistency of these grades compared with near surface drill hole intercepts elsewhere on the property.
“Thus far, the infill drilling programme and channel sampling programme results are encouraging and will be used to update the resource model, in which the current average grade of the “measured and indicated” resource is 0.52% copper. Our hope is that continued results, similar to those reported here and previously, both drilling and channel sampling, will have a positive effect on the overall grade and tonnage, which will materially enhance the economics of the project. We look forward to keeping the market updated on our progress.”
Mr. Jason Riley, CEO of ExGen commented: “We are very pleased with this first round of assays from the 2018 surface channel sampling program. The assay results continue to deliver impressive grades of copper and gold. We eagerly await the next drilling and sampling results and look forward to the follow up work at the numerous additional possible mineralized extensions, including Red Star before year end.”
23 channel samples composed of 298 1.5 metre samples were collected from outcroppings and road cuts on the Empire property and inside the current resource. The channels ranged from 6.1 metres to 51.8 metres in length with the individual samples connected end-to-end. Only those outcroppings and road cuts orientated perpendicular to the dip of the skarn body were sampled to mimic the interception of a drill hole oriented perpendicular to the dip of the skarn, providing a better indication of true thickness. Of the 23 channels, 14 contained composite intervals greater than 0.20% copper, and 19 of the 23 contained composite intervals of greater than 0.20% copper equivalent. Additional channel samples will be collected as new road cuts and outcroppings of skarn present themselves.
The samples comprising each channel were composited and are presented in the following table. Copper equivalent grades (“CuEquiv”) were calculated based on metal prices as follows – copper $6,000/tonne, zinc $2,325/tonne, gold $1,200/oz and silver $14.00/oz.
All channel samples are within the current resource.
Reported lengths are sample lengths, 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 inserts at least 2 blanks, duplicates, or standards for every 20 samples submitted to the ALS assay laboratory in Nevada. Core samples are saw cut in half and stored in a secure facility. RC chips and channel samples are stored in the same secure facility. All samples are delivered to the laboratory under chain of custody protocol and submitted using sub-form sample numbers.
OTHER RESULTS PENDING ANALYSIS
There are currently 5 RC holes and 14 diamond drill holes awaiting assay results, as well as 25 surface channel samples from the new Red Star trend at Empire. The samples are at the ALS assay laboratory in Nevada. Red Star is 330 metres north-west of the northern end of the current resource and is a 20 metre-wide surface outcrop across the structure and is a mix of copper oxides and sulphide. These results will be announced following the receipt of assay certificates and QA/QC sign-off. The Company also plans additional drilling and surface channel sampling over the next several months. Assay results from this late 2018 work are anticipated to be available in October, November, and December.
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.
8020 Connect is the first social media platform directly connecting existing and potential investors to the Executive Management teams of the savviest publicly traded companies.
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.