Margaux Resources Ltd.
TSX VENTURE : MRL

Margaux Resources Ltd.

March 02, 2015 08:00 ET

Margaux Resources Ltd. Significantly Increases Tungsten Resources on the Jersey-Emerald Property

CALGARY, ALBERTA--(Marketwired - March 2, 2015) - Margaux Resources Ltd. (TSX VENTURE:MRL) ("Margaux" or the "Company") is pleased to release the results of an updated resource estimate for tungsten on the Company's Jersey-Emerald property (the "Property"), located near Salmo, British Columbia.

The global tungsten (WO3) resource for the Property has increased 6% in the measured plus indicated (M+I) category, and 84% in the inferred category.

The new tungsten resource estimate for the Property, using a 0.15% WO3 cut-off grade, yields a total M+I resource of 3.071 million tons (Mt) averaging 0.341% WO3, and an inferred resource of 5.480 Mt averaging 0.273% WO3.

During 2014, Margaux completed a drilling program that tested the East Emerald zone on the Property in order to expand the global tungsten resources on the Property. Thirty-five drillholes produced 6,318.6 metres (m) of core. The drill program was successful in defining a series of east-dipping mineralized tungsten bodies, which expanded the strike length of the East Emerald zone to 1,300 m.

Highlights from the 2014 drill program include*:

  • 0.23% WO3 over a drilled length of 8.65 m in E1402**
  • 0.49% WO3 over a drilled length of 2.75 m in E1404
  • 0.50% WO3 over a drilled length of 4.50 m in E1409
  • 0.52% WO3 over a drilled length of 3.35 m in E1410 including 2.19 grams per tonne Au
  • 0.59% WO3 over a drilled length of 2.65 m in E1412
  • 0.22% WO3 over a drilled length of 6.71 m in E1413
  • 0.35% WO3 over a drilled length of 4.00 m in E1414
  • 0.33% WO3 over a drilled length of 6.45 m in E1419 including 0.65 grams per tonne Au
  • 0.14% WO3 over a drilled length of 1.40 m in E1422 including 1.32 grams per tonne Au
  • 0.27% WO3 over a drilled length of 6.45 m in E1423
  • 0.47% WO3 over a drilled length of 5.15 m in E1432
*Refer to news releases dated Nov 5, 2014, December 2, 2014, December 15, 2014, and January 15, 2015 for details.
**The true widths of the mineralized intercepts may be less than the drilled lengths reported. Further interpretation using all drilling results is required to determine the true widths. WO3 is calculated as W x 1.2611

Margaux contracted Mr. Gary Giroux, P. Eng., of Giroux Consultants Ltd., in Vancouver, BC, to update the global tungsten resource estimate for the Property by adding the new information from the East Emerald zone. The tungsten resources for all other zones remain unchanged.

The East Emerald tungsten mineralization was constrained using a set of three-dimensional wireframes. The data for 32 of the 2014 drillholes and 70 of the historic drillholes, representing 15,263 m of drilling, were used for the estimation. Downhole composites of 3.05 m length were produced for segments of drillholes that fell within the wireframe boundaries. Five WO3 values were capped at 1.6%. Ordinary kriging was used for the estimation.

The tungsten resource estimate for the East Emerald zone, using a 0.15% WO3 cut-off grade, yields an indicated resource of 0.561 Mt averaging 0.201% WO3, and an inferred resource of 3.560 Mt averaging 0.217% WO3.

Table 1 summarizes the results at a series of WO3 cut-off grades.

Table 1: Indicated and inferred WO3 resources within wireframes

Indicated WO3 Resource Inferred WO3 Resource
Cut-off Tonnage >
Cut-off
Grade >
Cut-off
Pounds WO3 Tonnage >
Cut-off
Grade >
Cut-off
Pounds WO3
(% WO3) (tons) (% WO3) (lb) (tons) (% WO3) (lb)
0.02 3,103,000 0.099 6,143,940 18,690,000 0.108 40,370,400
0.04 2,664,000 0.111 5,914,080 16,630,000 0.118 39,246,800
0.06 2,143,000 0.126 5,400,360 14,260,000 0.129 36,790,800
0.08 1,736,000 0.139 4,826,080 11,480,000 0.144 33,062,400
0.1 1,259,000 0.157 3,953,260 8,640,000 0.161 27,820,800
0.12 903,000 0.176 3,178,560 6,350,000 0.18 22,860,000
0.14 672,000 0.192 2,580,480 4,310,000 0.204 17,584,800
0.15 561,000 0.201 2,255,220 3,560,000 0.217 15,450,400
0.16 495,000 0.207 2,049,300 2,980,000 0.229 13,648,400
0.18 349,000 0.223 1,556,540 1,980,000 0.26 10,296,000
0.2 230,000 0.24 1,104,000 1,330,000 0.294 7,820,400
0.22 124,000 0.266 659,680 916,000 0.333 6,100,560
0.24 70,000 0.295 413,000 783,000 0.35 5,481,000
0.26 51,000 0.312 318,240 693,000 0.363 5,031,180
0.28 36,000 0.33 237,600 617,000 0.375 4,627,500
0.3 25,000 0.347 173,500 519,000 0.391 4,058,580

Ongoing economic evaluation suggests that the operating cost for the East Emerald deposit will be significantly lower than for the other deposits, resulting in a lower cut-off grade than highlighted above.

Giroux also estimated grades for molybdenum (MoS2, calculated as Mo x 1.67) and gold (Au) within the East Emerald tungsten zone. Using the cut-off of 0.15% WO3, the indicated resource includes average grades of 0.014% MoS2 and 0.05 grams per tonne (g/t) Au, and the inferred resource has average grades of 0.018 MoS2 and 0.10 g/t Au. Many of the historic records lacked results for Mo or Au; however, the results from the East Emerald zone suggest that these elements could be important to the economic assessment of the Property.

During 2014, Margaux's drilling intersected a significant Au intercept from bismuthinite-bearing granite in drillhole E1411, which was followed up by three more drillholes.

Highlights include***:

  • 24.98 g/t Au over a drilled length of 10.20 m in E1411**
  • 68.30 g/t Au over a drilled length of 0.65 m in E1433
  • 3.43 g/t Au over a drilled length of 1.00 m in E1435
***Refer to news releases dated Nov 6, 2014 and January 15, 2015 for details.
**The true widths of the mineralized intercepts may be less than the drilled lengths reported. Further interpretation using all drilling results is required to determine the true widths.

Anomalous gold values returned from skarn samples in drillholes E1410, E1419, and E1422 continue to support the gold potential of the Property.

Qualified Person

Mr. Gary Giroux is the qualified person responsible for the resource estimate. Mr. Giroux is a qualified person by virtue of education, experience and membership in a professional association. He is independent of the company applying all of the tests in section 1.5 of National Instrument 43-101.

Mr. Perry Grunenberg is the qualified person for the Company and has reviewed the contents of this news release.

Quality Assurance and Quality Control ("QA/QC") Procedures

Drill core was logged and photographed at a secure building on the Property. Mineralized intervals were halved using a manual core splitter, and sampled at site. The remainder of the core was kept in the box as a permanent record. Samples were placed into sealed bags that were delivered by a commercial trucking company to the AcmeLabs facility in North Vancouver or the ALS Global preparation facility in Kamloops.

The samples were assayed for tungsten and other elements using aqua regia digestion with an ICP-MS finish. Over-grade tungsten was analyzed using a phosphoric acid leach with an ICP-ES finish, and over-grade molybdenum, lead, and zinc were analyzed using a four acid digestion with an ICP-ES finish. Over-grade gold was analyzed using a 30 g fire assay with gravimetric finish or acid leach with a ICP-ES finish on a 25 g sample.

Margaux has implemented a rigorous industry-standard QA/QC program that includes the blind insertion of certified reference materials, duplicates, and blanks into the sample stream.

About Margaux Resources Ltd.

Margaux is based in Calgary, AB and a publicly traded resource company with oil and gas exploration and production and an option on the Jersey Emerald Tungsten-Zinc Property near Salmo, BC.

Cautionary Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the economic viability of the Property and the nature and extent of the resource potential of the Property.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Margaux which have been used to develop such statements and information but which may prove to be incorrect.

Although Margaux believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Margaux can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements contained in this press release are made as of the date hereof and Margaux undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither 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.

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