Maxy Gold Corp.

Maxy Gold Corp.

May 15, 2006 09:00 ET

Maxy Gold: High Grade Gold Continues to be Intersected in Surface sampling at NIUBO Property-Drill Program Ongoing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 15, 2006) - MAXY GOLD CORP. ("Maxy")(TSX VENTURE:MXD) is pleased to report that additional high grade gold (Au) has been intersected in surface sampling in the NIUBO sector of the NIUBO-DICHU property, some 2.5 km southeast of the DICHU prospect of the Luchun Gold Joint Venture in southern Yunnan Province, China. Assays of chip sampling in trench included:

Sampling of the South West zone returned: 7 meters (m) grading 33.6
Grams per tonne (g/t) Au
Including 1.7 m. @ 97.6 g/t Au and
1.7 m. @ 39.3 g/t Au

Sampling of the North East zone returned: 9.2 m grading 9.1 g/t Au
Including 1.5 m. @ 26.5 g/t Au
1.7 m. @ 13.5 g/t Au

The newly sampled zones are located approximately 100 meters south of previous works which reported 13.47m averaging 18.11 g/t Au. These former trenches are no longer accessible as the area has been hand-mined by a pit approximately 66m long and up to 30m wide and 20-30m deep. Due diligence sampling by B.J. Price, P.Geo, in the fall of 2003 of 1m chips from the zone at the base of the pit averaged 10.15 and 18.80 g/t gold, confirming the high grade gold values of the trenching.

A magnetometer survey also indicates the surface alteration to have much greater size beyond the area that has been the focus of surface exploration to date.

As announced March 23rd, Maxy initiated a small drilling campaign in mid April on this NIUBO sector, aimed at verifying the depth extension of these surface intersections as well as a prior intersection located some 100 meters away. The drilling program includes 4 holes totaling 700-800 meters.

Drilling and underground exploration results on the DICHU sector were announced March 23rd 2006. Additional detailed underground mapping and sampling programs are underway at DICHU. The Niubo-Dichu Property is covered by a mining licence held by the Luchun joint venture company in which Maxy has earned an 85% interest to date.


The Niubo-Dichu Property is approximately 35 km south of the Niukong Property, both of which are within Maxy's greater Luchun Regional Gold Joint Venture. Previous operators completed soil sampling between the Dichu and Niubo prospects and soil anomalies extend for over 2.5 km. Soil geochemical and trench results over the Dichu zone returned some excellent grades. Saprolitic mineralized zones were explored by 9 major trenches spaced at 20m intervals.
Trenching revealed good gold grades over a strike length of approximately 200m with widths up to 10.5m.

As previously announced, the main high-grade zone previously has been delineated in surface trenching by prior operators and returned values up to 10.55m averaging 4.43 g/t Au and 4m averaging 14.73 g/t Au. A 6m due diligence sample by B.J. Price in the fall of 2003 returned 20.82 g/t gold.

Mineralization at Dichu and Niubo is hosted by a thin unit of limestone and calcareous sediments within siliciclastic rocks, spatially associated with a dioritic intrusive. Gold mineralization shows a close spatial relationship with skarn (magnetite/diopside), development, and occurs in highly altered intrusive dykes cutting the stratigraphy and in structural zones cutting the skarn.


The quality control program is under the supervision of Dr. Xianda Wang (Phd, University of Salzburg, Austria), general manager of the Luchun Joint Venture, and Andre Gauthier M.Eng, BSc, President and CEO of Maxy, who serves as the Qualified Person under National Instrument 43-101.

All diamond drilling are performed using PQ, HQ and NQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Maxy geologists. Sampling is done generally on 1 or 2m intervals and samples are transported by company staff to the certified SGS Lab in Kunming and assayed at SGS Tianjin laboratory. All samples are dried, crushed and split and pulverize to greater than 90% over -200 # (75 um) All samples are assayed using fire assay, 30g charge with and AAS finish. Other elements (Ag, As Cu, Zn, Mo, Ni, Sb) are also assayed but results not received yet. Underground samples are taken approximately every 1 to 2m or according to the visual mineralized zone.

Channel sampling was carried out with chip channels cut 10 cm wide, 5 cm deep on the former producing area along mining walls. The length of the samples varied from 1 meters to 3.5 meters on average.

Part of the quality assurance program includes the insertion of a known standard prepared by SGS Tianjin. Approximately 20% of the core rejects and pulp samples are sent directly to ALS Chemex in Vancouver and re-assayed for gold. ALS Chemex is an ISO 9002 registered laboratory.

The Luchun Project comprises 21 exploration permits, including the Niubo-Dichu Property, and the Niujaozhai Property. Maxy recently agreed to sell the NIUKONG property, part of the same Joint Venture project for CDN$7.3 million. Maxy holds an 85% Interest in the Luchun Gold Joint Venture with a right to earn up to 90% and holds also a 75% interest in the Midu Gold Joint Venture, both located in Yunnan Province, China.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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