VANCOUVER, BC--(Marketwired - January 30, 2017) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
ExGen Resources Inc. (TSX VENTURE: EXG) (OTC PINK: BXXRF) ("ExGen") is pleased to announce today that Phoenix Global Mining Ltd, a private British Virgin Islands based mining company focused on base metals development ("Phoenix") has commissioned SRK Exploration Services Ltd. ("SRK") to prepare a JORC-compliant resource estimate on ExGen's copper, gold, silver Empire Mine Project in Idaho, USA. Phoenix intends for SRK to start immediately on the estimate.
Phoenix and ExGen recently amended their Option Agreement on the Empire Mine Project in order to facilitate Phoenix's current plans to IPO on the Alternative Investment Market of the London Stock Exchange ("AIM") during the second quarter of 2017. The Option Agreement was first announced by ExGen on July 21, 2015, with an amendment to the Option Agreement announced by ExGen on November 14, 2016. The Option Agreement, as amended, allows Phoenix to acquire 80% of Konnex Resources, Inc. ("Konnex") subject to the terms disclosed by ExGen in its news release dated November 14, 2016. Konnex is ExGen's wholly-owned subsidiary which holds the mining leases to the Empire Mine Project.
About The Empire Mine Project
The historic Empire Mine is reported to have produced 694,000 tonnes with recovered grades of 3.64% copper, 1.65 g/t gold and 53.9 g/t silver from underground workings during the period 1901 to 1942. US Bureau of Mines records show that the head grades were between 6% and 8% copper. Review of more recent documents shows that the Empire Mine produced an additional 115,500 tonnes from 1943 intermittently to 1973, with recovery grades of 2.27% copper, 1.11 g/t gold and 23.76 g/t silver. The property is classified as a polymetallic copper skarn. The mineralization is represented by a near-vertical zone of copper-gold-silver sulphide mineralization located within and below a larger zone of lower-grade copper-oxide mineralization. Previous work on the property has encountered oxide and sulphide copper mineralization over a strike length of 1,200m, a width of 6 to 70m and to a depth of more than 300m.
Sporadic surface exploration on the property by several companies between 1962 and 2011 resulted in the drilling of 290 holes, many within the area referred to as the Atlantic-Pacific (AP) Pit from which an unknown amount of acid-soluble copper-oxide material was excavated in the mid-1970's. The AP pit is currently the focus of exploration and development by Phoenix as a potential low-strip-ratio open pit with production of solvent-extraction -- electro-winning cathode copper (SX-EW).
Cambior Exploration USA Inc., who explored the property from 1995 to 1997, generated a copper resource estimate, mostly for the AP pit, in 1997. Their estimate was based on 220 drill holes. Cambior reported a "drill-indicated", near surface, oxide copper estimate of 18.23 million tons grading 0.49% copper, 0.19% zinc, 13.5 g/t silver (0.44 oz/t) and 0.51g/t gold (0.015 oz/t) with an additional 9.65 million tons of material grading 0.29% copper and 0.31% zinc with no precious metals. However, subsequent to this estimate, an additional 67 core and reverse circulation holes were drilled by Trio Gold Corp. and Musgrove Minerals Corp. (between 2004 and 2011) as an in-fill drilling program to complement Cambior's drill effort.
The work completed by Cambior is historical in nature and does not comply with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101"). A Qualified Person has not done sufficient work to classify the historical estimate as a current resource estimate under NI 43-101, the work completed by Cambior has not been verified by ExGen and ExGen is not treating the historical estimate as a current resource estimate. The "drill indicated oxide resource" terminology used by Cambior does not follow the terminology outlined in Section 1.2 and Section 1.3 of NI 43-101 and can therefore not be categorized under NI 43-101 guidelines. In order to either upgrade or to verify the historical estimate as a current mineral resource that complies with NI 43-101, a certain amount of additional diamond drilling, assay reviews, confirmation of the extent and grade of the mineralization reported in the core holes used in the historical estimate, density measurements, updated metal prices and additional metallurgical testwork may be required.
Exgen understands that Phoenix intends to update the resource estimate for the Empire Mine by incorporating all of the historical and recent drill holes, metallurgy, assays, confirmatory work, density studies, and current commodity prices into one study, and to modernize the estimate to NI 43-101 standards. For this purpose, Phoenix has chosen SRK, renowned internationally for their mine evaluation services, as lead resource consultant.
The reader is referred to ExGen's November 14, 2016 news release for additional technical information on the Empire Mine Project.
Phil van Angeren, P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical mining information provided in this release.
Mr. Jason Riley, CEO of ExGen commented: "We are pleased to have such an experienced group like SRK working with Phoenix and ExGen on the development of the Empire Mine Project. We look forward to the completion of the JORC compliant resource estimate and are excited that Phoenix has decided to fast track this important milestone for the project."
About ExGen Resources Inc.
ExGen, formerly Boxxer Gold Corp, is a mineral property aggregator whose focus is on identifying select mineral assets for acquisition and then funding exploration 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 a portfolio of 6 projects in Canada and the US.
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 potential 80% ownership by Phoenix of Konnex upon the transfer of the 80% of the Konnex common shares to Phoenix pursuant to the terms of the Option Agreement, as amended; the preparation of a JORC compliant resource estimate, and an NI 43-101 compliant resource report, by SRK for Phoenix, and the timing for completion of such estimate and report, respectively; the Phoenix IPO and listing on AIM including the completion and the timing for completion of the Phoenix IPO and the listing on AIM; the development of the Empire Mine Project and the impact of such development on ExGen; the additional exploration, assaying, confirmation, metallurgical, and other work required to upgrade or verify the historical work on the Empire Mine Project; future exploration and development plans on the Empire Mine Project; and the timeframe within which the Empire Mine Project can be advanced. 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 assurances that the option, as amended, will result in the exploration of the Empire Mine Project or that the development of the Empire Mine Project will occur, and if development occurs, 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 and SRK to produce a JORC compliant estimate and a NI 43-101 compliant report; the ability of Phoenix to complete the Phoenix IPO and listing in a timely manner; and ExGen's general and administrative costs remaining constant. 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; there is no certainty that SRK's work will result in an NI 43-101 compliant resource on the Empire Mine Project; 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; 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.