Maxy Gold Corp.

Maxy Gold Corp.

January 12, 2006 09:00 ET

Maxy Gold Corp.: Initial Drill Report on the Luchun Project, Niujaozhai Copper Target Extended

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 12, 2006) - Maxy Gold Corp. (TSX VENTURE:MXD) is pleased to provide an update on ongoing drilling and exploration on the Luchun Gold Project located in southern Yunnan Province, China. The Luchun Regional Gold Joint Venture is comprised of the Niukong Gold Project, Niubo-Dichu Gold project, Niujaozhai copper project and 15 other separate project areas. Drill programs are underway on the Dichu and Niukong projects. Assays from the extensive soil sample survey on the Niujaozhai Copper project have also been received and show an extension of the copper/gold anomaly onto the new ground staked by Maxy. Maxy has also arranged to have assays completed at a different lab with faster result turnaround promised. Maxy has earned its 80% interest in the joint venture company holding the Luchun Gold Project, and with current expenditures is approaching the maximum 90% interest provided in the joint venture agreement.


On the Niubo-Dichu Property, 5 diamond drill holes totaling 698 meters (m) have been completed in the Dichu zone which has been the main target of underground and surface exploration work to date. Drilling is designed to test the surface mineralization zone which has been established between 50m and 100m from surface. Drill core has been split and sent out. Assay results will be reported in due course. The 1,500m drill program is continuing with one rig.

Significant work has been done refitting and extending adits into the mineralized zone. 324m of tunneling has been completed so far in the new campaign that started in October 2005. Small scale test leaching has also been carried out on the higher grade materials. As announced December 13, sales of gold recovered to date amounts to approximately CDN$100,000. Dependent upon completion of metallurgical testing, Maxy intends to commence small scale mining under the existing small scale mining licence in order to provide cash flow for further development.


On the Niukong Property 2 diamond drill holes totaling 380m have been completed in the drilling campaign announced December 13, 2005. Assays are expected in the coming weeks. Drilling is continuing with a total of 1000m planned to test and extend the known mineralization. A detailed geological and structural study has also been completed over the main mineralized area at a scale of 1:2500 which will help to better understand the mineralization controls. Sampling of the illegal mining operations recently closed down has also been completed with results to be reported in due course.


On the Niujaozai copper prospect, the assay results of 1400 soil samples taken in follow up work have been received and show an extension of the original oval-shaped copper (over 500 ppm) and gold (over 50 ppb) anomalies to 4 km long NW-SE by 2 km wide NE-SW. Silver, which was not previously assayed, has appeared as a low level (200 ppb) anomaly coincident with the gold and copper anomaly.

The anomalous area is evidenced by over 358 samples which exceeded 500 ppm Cu and over 118 samples exceeding 1000 ppm Cu in three distinct higher grade zones within the greater anomaly. The gold anomalous zone overlaps the copper zone, with over 95 samples exceeding 50 ppb Au and over 24 samples exceeding 100 ppb Au.

A 20 km induced polarization (IP) program will be commenced shortly over the best anomalous sector with 400m line spacing. A diamond drill program will follow up on the best geochemical and geophysical targets.


The Luchun 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 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.

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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