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VANCOUVER, British Columbia, Feb. 28, 2019 (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 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 (3.45% of Phoenix).
ExGen is pleased to announce that its Joint Venture partner, Phoenix, at the Empire Copper Project in Idaho, USA (the ‘Empire Mine’) has staked 194 new claims resulting in a threefold increase in its Empire Mine land holding, to the north and west of the Horseshoe Claim Block at Windy Devil and at Navarre Creek. The Empire Mine land position has been increased by 3,880 acres, and now has a total land package of 5,717 acres (from 7.43 to 23.14 square kilometres) by staking and filing 194 new unpatented claims in two blocks.
ExGen further reports that it has regained 100% ownership of the Gordon Lake project as Phoenix has elected to withdraw from its option which was initiated in February 2018 (see ExGen Press Release dated March 1, 2018).
Mr. Jason Riley, CEO of ExGen commented: “We are certainly excited about the regional story that continues to develop at Empire and pleased to see Phoenix has been able to secure a significant increase in the land holding in advance of further drilling and the updated resource expected to be released by Q2 of this year. Exgen has always believed in the larger potential of Empire and that was the rational for our 30-mile area of interest, which ensures that both our 2.5% NSR royalty and our 20% interest will benefit from any further growth in the project size. Given the expanding land position and potential at Empire, we understand Phoenix lapsing the option on Gordon Lake to maintain their focus at Empire.”
NEW CLAIMS: HORSESHOE – WINDY DEVIL – NAVARRE CREEK
The Horseshoe, Windy Devil, and Navarre Creek Blocks are situated to the north and to the west of the Empire Mine property. Horseshoe and Windy Devil are contiguous with Empire, while the Navarre Creek Block sits approximately 2.0-kilometres west of Windy Devil.
Historical production from numerous adits and shafts in the Horseshoe Block, including the former Horseshoe Mine, was predominantly from quartz-carbonate veins in marbleized limestone near its contact with granite. Mineralisation is documented as predominantly galena and sphalerite, with minor chalcopyrite and pyrrhotite. Mining in the area dates back to the early 1900s and records indicate production as recently as 1979.
The Horseshoe Mine produced 13,916 tons of vein ore grading 15.0% lead, 10.7 oz/t silver, 1.6% zinc and 0.13% copper from 1916 to 1971. In 1979, the mine is reported to have sent 2,900 tons of ore to the Empire Mine mill. This ore is reported to have graded 3.8% copper and 12% zinc (Idaho Geol. Surv. Staff Report 97-2, 1997, and USGS Bulletin 2064-I, 1995).
This Horseshoe land package is an important addition to the Empire property because several outcrops of skarn have been reported by previous operators between the northern edge of the Empire claim block and the Horseshoe Mine. 2018 surface sampling results from Horseshoe are included below for reference (see ExGen Press Release dated November 8, 2018 for further details).
|Horseshoe Rock Chip Samples|
*Readers are cautioned that rock chip samples are selected samples and are not necessarily representative of the mineralization hosted on the property.
The Windy Devil claim block hosts more than 30 historical shafts, adits and prospects to be investigated and sampled.
The Navarre Creek Block covers an area of secondary alteration thought to be epithermal in nature and includes over 2.5-kilometres of highly brecciated, west-trending jasperoid intersecting of argillically and silicically altered Eocene Challis volcanics. The altered volcanic rocks are similar to the mineralised rocks in northern Nevada such as those found in the Carlin Trend.
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.
As previously announced, ExGen also 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.
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 claim package and strike length of the Empire Mine property and the potential for the new claims to host mineralization. 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 Horseshoe Block, Windy Devil, and Navarre Creek to host further 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 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.