Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

November 01, 2005 09:00 ET

Maxy Gold Corp Announces Positive Drill Results from the Second Drill Program on Niukong Property, Yunnan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2005) - Maxy Gold Corp. (TSX VENTURE:MXD): is pleased to announce results from the first seven holes (NK 09 - NK 15) of the second drill program on the Niukong property of the Luchun Joint Venture area in southern Yunnan Province, China. Seven diamond drill holes totaling 1,410 meters were completed in June, July and August 2005. Drilling will recommence in November. The best intersections obtained from the second drilling campaign include:

- 9.17 meters (m) grading 1.93 grams per tonne (g/t) Gold (Au) in Hole NK-14

- 8.85m grading 1.07 g/t Au in Hole NK-14

- 10.9m grading 0.7 g/t Au in Hole NK-12

A small underground tunneling program into parts of the mineralization zone was also completed which intersected 20.5m grading 1.05 g/t Au from tunnel NKT-04; 14.5m grading 0.6 g/t Au; and 18m grading 0.6 g/t Au from NKT-06. Follow-up detailed geology and soil geochemistry was also completed on the northwest and southeast extensions of the main Niukong anomalous area and included a significant gold in soil anomaly on the Niukong North area about 5 km to the northwest.

2005 DRILL PROGRAM

The 2005 Niukong drill program was designed to extend the gold mineralization identified during previous exploration work and the first drill campaign in 2004. The program consisted of 7 diamond drill holes (ddh) to depths between 200m and 230m aimed at testing the surface geological interpretation of four known mineralized zones, oriented in a NW-SE direction (Holes # NK-09 TO NK-15) with two cross sections.

Preliminary surface mapping, soil geochemistry, trenching and the nine drill holes completed in 2004 defined a broad 1200m by 800m corridor of gold mineralization. The corridor consists of discrete mineralized zones with greater than 1 g/t gold hosted by a wide low grade halo of 0.5 to 0.8 g/t gold. This zone extends northwest into an area occupied by a small scale gold leaching operation that, according to the local government, has produced 70 kg of gold in 2004 and in excess of 70 kg to date in 2005. The mineralized zones are all deeply weathered and consist of broken limonitic to manganese stained sandstone and conglomerate adjacent and including wide zones of clay gouge. Only very minor quartz is present as deformed and broken veins associated with fault structures. Strong limonite and Mn are the main indicators of ore grades.

Drilling to date has defined 7 interpreted low grade gold mineralized zones within the NW-SE mineralized corridor. These zones are part of the mineralized corridor already defined in 2004 and that can be followed for at least 1.1 km along strike and each over a width of between 75 to 100m dipping moderately to the north. The mineralized zones consist of narrow higher grade intervals (1.0 -2.0 g/t Au) included in a broader low grade mineralized zone that averages between 0.5 to 0.8 g/t Au. Local miners have carried out small scale mining operations along the western border of this mineralized zone. The mineralization continues to the west, and appears to continue as far as the Niukong North area, across a small river valley 5 km to the northwest. The best grades obtained in drilling appear to be spatially associated with biotite potassium feldspar porphyry dykes.

Drilling will resume in the first half of November in order to test the known zones along strike, as well as some parallel mineralized structures. Drilling on the main corridor will try to define higher grade, near surface mineralization amenable to heap leaching.

RESULTS

Core assay results from the diamond drill holes from the 2004 campaign on the main Niukong zone were very positive. As reported November 9, 2004, hole DDH-NK01 intersected a mineralized zone at a depth between 106.5 metres (m) and 132.0 m, returning a 25.95 m interval that assayed 1.65 grams per tonne (g/t) gold (Au), including 2m of 16.29 g/t Au. Hole DDH-05 intersected a broad zone of mineralization with significant intercepts in three sections, separated by gold anomalous gaps with the most significant assays for the core zones returning: 12.50 g/t Au over 8.40m, which includes an interval of 48.86 g/t Au over 1.55m; and 4.00 g/t Au over 15.50m, including 31.46 g/t Au over 1.66m. The results from the first phase of the 2005 campaign continue to be encouraging, and indicative of a large gold mineralization system. The assay results of the holes completed to date in 2005 are:



Hole No Intersection Interval Assay gold
From (m) To (m) (m) (g/t)
DDH-NK14 in Oxide Zone

0.00 1.90 1.90 0.36
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11.50 20.35 8.85 1.07
Including 11.50 12.60 1.10 2.98
16.05 18.45 2.40 1.65
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32.40 36.59 4.19 0.65
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112.20 121.37 9.17 1.93
Including 112.20 113.95 1.75 6.06
128.52 129.55 1.03 0.71
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DDH-NK13 in Oxide Zone

35.30 37.35 2.05 0.50
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45.40 46.40 1.00 0.76
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73.00 74.15 1.15 0.40
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79.95 85.65 5.70 0.42
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106.55 108.40 1.85 0.33
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127.55 129.05 1.50 0.42
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153.20 155.95 2.75 0.54
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159.05 160.70 1.65 0.35
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180.35 182.20 1.85 0.42
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194.44 197.45 3.01 0.64
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202.80 204.62 1.82 0.46
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207.85 208.85 1.00 1.78
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DDH-NK12 in Oxide Zone

25.05 34.50 9.45 0.33
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38.10 41.70 3.60 1.20
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117.95 128.90 10.95 0.67
Including 121.70 123.70 2.00 1.69
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145.95 147.40 1.45 0.31
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189.55 193.17 3.62 0.31
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DDH-NK11 in Oxide Zone

28.20 30.20 2.00 0.32
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47.10 48.90 1.80 0.51
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96.60 100.40 3.80 0.43
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DDH-NK10 in Oxide Zone

28.30 31.69 3.39 0.64
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48.70 51.35 2.65 0.31
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151.35 161.35 10.00 0.32
Including 151.35 156.75 5.40 0.43
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185.50 186.55 1.05 0.45
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198.05 200.15 2.10 0.45
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DDH-NK09 in Oxide Zone

0.00 1.00 1.00 1.80
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8.30 10.25 1.95 0.56
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30.35 34.40 4.05 1.13
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39.10 48.60 9.50 0.31
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161.42 163.40 1.98 0.39
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DDH-NK15 in Oxide Zone

No significant value
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TUNNELS

3 Tunnels: NKT-04, 06 and 07, totaling 313m were completed in the mineralized corridor and intersected significant mineralization. The best intersection includes 20.5m grading 1.05 g/t Au from NKT-04; 14.5m grading 0.6 g/t Au; and 18m grading 0.6g/t Au from NKT-06

Tunnel # NKT-07 was completed in the southeastern sector of the same zone and did not intersected any significant mineralization.



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ASSAY RESULTS OF ADITS
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Work ID Intersection Interval Assay gold
Begin with portal
From (m) To (m) (m) (g/t)
---------------------------------------------------------------------
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KD-NKT04 in Oxide Zone

8 10 2 0.42
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87 92 5 0.85
Including 87 88 1 2.52
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99.9 103.5 3.6 0.33
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99.5 101 1.5 0.37
---------------------------------------------------------------------
104.5 125 20.5 1.05
Including 107.5 109.5 2 4.58
---------------------------------------------------------------------
139.5 141 1.5 0.92
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156 173 17 0.64
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KD-NKT06 in Oxide Zone

4.7 19.2 14.5 0.60
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28.5 31.5 3 0.32
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39.2 45 5.8 0.31
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Crosscut of KD-NKT06 in Oxide Zone

4.5 22.5 18 0.58


NIUKONG NORTH

Maxy is pleased that a systematic soil sampling program over a limited area in the northern sector of the Niukong property 5 km northwest of the main mineralized zone has revealed a significant soil anomaly over 100 ppb Au measuring over 2,000m long and 700m wide, oriented Northwest-Southeast. The zone is also anomalous in other epithermal elements. The geological context looks similar to the main Niukong mineralized zone. Maxy will drill test this new anomaly before year end.

QUALITY CONTROL PROGRAM AND QUALIFIED PERSON

The drilling program is supervised by Dr. Xianda Wang (PhD. University of Salzburg, Austria), the general manager of the Luchun joint Venture. Andre Gauthier, president of Maxy is the qualified person under National Instrument 43-101.

The core samples were split in half and transported to the Geology Nuclear Group Team 209 preparation laboratory in Kunming where samples were pulverized to 200 mesh and sent for analysis to Langfang Institute of Geochemical and Geophysical Exploration (certification ISO 9001) a well regarded analytical laboratory in Langfang, Hebei Province, located some 60 km south of Beijing.

As part of the quality assurance program, systematic core rejects and pulp samples and standards (approximately 20%) are shipped directly to ALS Chemex in Vancouver and reassayed. ALS Chemex is an ISO 9002 registered laboratory.

Maxy's Qualified Person has inspected the Team 209 preparation laboratory facility and the Langfang laboratory facility and found their procedures to meet industry standards.

Maxy holds the rights to acquire an 80% Interest in the Luchun Gold joint venture and 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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