ExGen Resources Inc. (TSXV: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.
ExGen Resources Inc. (TSXV: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 a free carried 20% interest through to start of construction 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 that it has received the next set of assay results from the continuing drill program conducted by its Joint Venture partner, Phoenix, at the Empire Copper Project in Idaho, USA (the ‘Empire Mine’). The results of the 2018 drilling program, to date, were published in September, early October, and November and can be found under the Company’s filings on the SEDAR web site at http://www.sedar.com/.
- RedStar zone
— Located 330 metres (“m”) north-northwest of the Empire open pit resource shows a transition to a high-grade silver and lead system
— The old Horseshoe Mine, 1,200 m to the northwest of RedStar within the 1,837-acre property, operated from 1916 to 1928 with reported grades of 20% lead and over 100 ounces (“oz”) of silver per tonne (Source: U.S. Bureau Of Mines Open-File Report MLA 6-91; and Mitchell Victoria E., 1997, History of Selected Mines in the Alder Creek District, Custer County, Idaho, Idaho Geological Survey.)
— Three drill holes in October returned assays of 1,111 grams per tonne (“g/t”) (35.7 oz) silver and 20% lead over a 1.5 m intersection at RedStar (Reported lengths are core lengths as true widths have not yet been determined.)
- Empire Mine zone
— Drilling in and around the Empire Mine oxidation resource envelope, which covers a 1 kilometer (“km”) strike length and is the subject of the ongoing feasibility study, returned high grade copper and silver assay results and continued to confirm the presence of the underlying sulphide mineralisation
- Mineralisation is now confirmed to extend along a continuous 3.5 km strike length within the property indicating the presence of a larger mineralised system
Dennis Thomas, CEO of Phoenix, said, “The drilling results from the recently discovered RedStar Zone, together with the surface sampling results reported on [November 8, 2018], help confirm that the Empire mineralised system extends well beyond the near surface copper-oxide resource which is currently the subject of our Empire Mine Feasibility Study. The 1,837-acre property is developing into a [larger-scale] opportunity. Assay results of 360 g/t silver and 9.92% lead over 9.1 m, along with a 1.5 m intercept of 1,111 g/t silver and 20% lead, confirm the Company’s original hypothesis that the Empire Mine’s mineralisation zone is part of a considerably larger mineralised system which includes the RedStar Zone and the Horseshoe Block. [Reported lengths are core lengths as true widths have not yet been determined].
“The RedStar Zone and the Horseshoe Block to the north appear to be the “upper” portion of the whole mineralised system with an underlying zone of Empire Mine style copper, zinc, gold and silver mineralisation. The RedStar Zone drilling results, coupled with the precious and base metal production history in the Horseshoe Mine itself, are further evidence of the [enlarged mineralization] potential along the 3.5 km strike. We have only now begun to understand the full scale of the opportunity.
“Systematic mapping, sampling and drilling work outside the oxide resource envelope will certainly continue and we will build on the latest information from the RedStar Zone to confirm the continuity of the mineralisation to the north-northwest from the Empire Mine.
“We believed we would find evidence of additional mineralisation by continuing exploration along the whole 3,500 m length of known mineralisation within the property boundary and investigating the mineralised outcroppings and old workings within this large mineralised system. The recent RedStar Zone results appear to have justified our decision.
“Finally, the drilling program around the oxide resource envelope at Empire Mine zone continues to return robust results from both the infill holes and stepout drill holes. Infill holes are targeted to upgrade and increase [the current resource], while step out holes are designed to [potentially] expand the [current] resource outline. This drilling will [hopefully] enhance the new resource estimate scheduled for completion in the first quarter of next year. High-grade copper and silver assays, most notably 1.30 m grading 12.05% copper and 444 g/t silver and 37 m of 0.57% copper with 11.74 g/t silver, continue to demonstrate the continuity of the oxide resource and provide additional evidence for high grade sulphides at depth. [Reported lengths are true widths].
“We look forward to keeping shareholders updated on our progress.”
Mr. Jason Riley, CEO of ExGen commented: “We are very pleased with this latest round of drill results from RedStar that continue to indicate the possibility of a larger scale area play at Empire. Once again, the ongoing infill and stepout drilling continues to deliver impressive grades of copper, and we are excited to see the impact these will have on the current resource update expected in Q1 next year. We look forward to the next round of drilling results before year end.”
DRILLING HIGHLIGHTS – REDSTAR
Silver and Lead Intercepts
The RedStar Zone is located approximately 330 m north-northwest of the Empire pit constrained resource area within the Empire patented claim boundary. This boundary is contiguous with the Horseshoe Block to the north and west. The RedStar Zone was discovered during field mapping and reconnaissance of the northern patented claim boundary and adjacent Horseshoe Block. Channel samples were collected from the RedStar outcrop itself and results reported by the ExGen on November 8, 2018. Three reverse circulation (“RC”) drill holes targeting the area at depth were completed and assay results are presented below. The presence of high-grade lead and silver is consistent with the mineralisation expected at the “top” of similar systems that have not been subject to significant erosion. The RedStar Zone and the Horseshoe Block appear to be in a down-dropped block of material similar to the Empire Mine zone but it has resisted erosion due to the topography. In this scenario, copper mineralisation similar to that in the Empire Block may exist below the lead and silver system in the Horseshoe Block and RedStar Zone.
The Horseshoe Block comprises 944 acres of unpatented claims contiguous to the Empire property which were staked by Phoenix in 2017 and 2018. The historic Horseshoe Mine is located approximately 1,000 m north of RedStar and approximately 1,330 m north-northwest of the Empire’s North Pit.
Historical production from numerous adits and shafts in the Horseshoe Block, including the former Horseshoe Mine, Blue Bird Mine, and White Knob Mine, was predominantly from skarnified limestone in contact with porphyritic intrusive bodies. Documented production was predominantly high-grade silver, lead, and zinc occurring as galena and sphalerite. The White Knob and Blue Bird Mines produced in excess of 12 million pounds of lead and 300,000 oz of silver prior to WWII with reported average grades of 10 oz per tonne (“oz/t”) of silver and 17% lead. (Source: Nelson, W. H., And Ross, C. P., 1968, Geology Of Part Of The Alder Creek Mining District, Custer County, Idaho: USGS Bulletin 1252-A, 30 P.) Grades at the Horseshoe Mine are reported as 20% lead and over 100 oz of silver per tonne. (Source: Mitchell, Victoria E., 1997, History of Selected Mines in the Alder Creek District, Custer County, Idaho, Idaho Geological Survey.)
RED STAR DRILLING RESULTS
Phoenix has now completed a total of 8,604 m of drilling at Empire, consisting of 6,328 m of RC drilling and 2276 m of diamond drilling. All drill samples have been delivered to the ALS Global laboratory in Nevada for assay. The drill hole results received to date from diamond drill holes KXD18-20 through to KXD18-26 and RC holes KX18-53 through to KX18-57 are shown below. The results from the Phoenix drilling program in 2017 and the 2018 results for 47 RC holes and 13 diamond drill holes, published in September, October, and November can be found under the Company’s filings on the SEDAR web site at http://www.sedar.com/
The copper equivalent grade (“CuEqu”) is calculated based on metal prices as follows – copper $6,000 per tonne, zinc $2,325 per tonne, gold $1,200 per oz and silver $14.0 per oz.
EMPIRE DRILLING RESULTS
OTHER RESULTS PENDING ANALYSIS
There are currently seven RC holes awaiting assay results which should be received later this month and will be reported as soon as possible. The samples are at the ALS assay laboratory in Nevada. These results will be announced following the receipt of assay certificates and QA/QC sign-off.
QUALITY ASSURANCE AND QUALITY CONTROL PROTOCOLS
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.
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.
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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. The expanded 3.5 km strike length of the Empire Mine property and the potential for an enlarged scale opportunity. The potential for the RedStar Zone and the Horseshoe Block to host copper mineralisation similar to that in the Empire Block. The potential for the RedStar Zone and the Horseshoe Block to host further mineralization of a lead and silver system. 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 and its partners to raise future equity financing, if needed, at prices acceptable to ExGen or its partners; 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 or successful 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.