Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

May 31, 2005 09:00 ET

Maxy Gold Corp. Initiates Second Drill Program on Niukong Property, Yunnan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2005) - Maxy Gold Corp. (TSX VENTURE:MXD): is pleased to announce the initiation of a second drill program on the Niukong property of the Luchun Joint Venture, southern Yunnan Province, China.

The initial exploration drill program on the Niukong property, completed in 2004 and early 2005, included 8 holes drilled by Maxy's own rig to depths between 200 and 300 meters (m). This drill program was followed up by additional detailed geology and soil geochemistry on the northwest and southeast extensions of the former anomalous area.

DRILL PROGRAM

The 2005 drill program at Niukong is designed to extend on gold mineralization previously identified by Maxy and its Chinese partner, Maite, during previous exploration work. The program consists of approximately 1600 m and will test all four known mineralized zones.

A new soil geochemical survey completed to the northwest and southeast of the main mineralized zone revealed an extension of the zone to the southeast; the northwestern extension corresponds to an illegal artisanal gold leaching operation. The mineralized zones are all deeply weathered and consist of broken limonitic to manganese (Mn) stained rocks 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 keys to ore grades. The mineralized zones consist of narrow higher grade intervals (48.9 g/t over 1.55 m., 31.6 g/t Au over 1.6 m and 16.3 g/t Au over 2.0 m) surrounded by a broad halo of 100 ppb-1.0 g/t Au in broken and altered sandstone. While mudstone and conglomerate both host alteration and mineralization, most of the wider disseminated zones are hosted by sandstone below the mudstone rich sequence or in sandy layers in the underlying conglomerate rich section. Brittle faults are the dominant structural feature of the area, accounting for 20-80% of some drill holes. Some mineralized porphyry mineralization has been intersected in some adits (7.5 meters grading 0.8 g/t Au in adit #6).

Significant gold mineralization has been encountered to date from all four zones. Surface trenches on Zone 1 yielded up to 6.7m @ 24 g/t Au and 12.0m @ 1.0 g/t Au. Drill holes NK-01 and NK-02 tested this zone. Results from NK-02 are anomalous and NK-01 cut 26m @1.6 g/t Au.

Zone 2 has some good grades on surface in two areas (3.0m @ 28.3 g/t Au; 13.5m @ 1.8 g/t Au) and drilling beneath the latter cut good grades (NK-05: 8.4m @ 12.5 g/t Au and 15.5m @ 4.0 g/t Au). Hole NK-08 targeted the other good surface results from Zone 2 but was drilled down dip from the footwall side and probably remained in the footwall of the zone along its entire length.

Zone 3 also has some good grades on surface in informal workings (4.9m @7.1 g/t Au). This zone has been tested by one drill hole NK-06. The hole cut 1.1 g/t Au over 5.8m within 63m @ 0.26 g/t Au. This hole was also collared on the footwall side of the structure and drilled downdip. The core ends with some anomalous gold values near the end of the hole and it may not have cut the entire mineralized zone.

Zone 4 is based solely on a trench done by the joint venture partner that reports values up to 3 g/t Au and drill hole NK-07 that cut 14.7m @ 1.2 g/t Au. Adit Nk-04 should end in or cut zone 2 at 170 m. Adit Nk-06a was collared in the hanging wall of zone 3 and could have intercept zone 4 at 160-180 m. However Adit Nk-06b runs along zone 3 with a single crosscut into the zone. An interesting porphyry like mineralization zone was intersected and best assay results includes a 7.5 meters section averaging 0.8 g-t.

DRILLING EQUIPMENT

As with the initial program, the drill program will utilize the Company's Hydracore 2000 drill rig operated by Huafeng, an experienced Chinese drilling company.

QUALITY CONTROL PROGRAM AND QUALIFIED PERSON

The drilling program is supervised by Dr. Xianda Wang (PhD. University of Salzburg, Austria), the general manager Luchun joint Venture. Andre Gauthier, president of Maxy Gold Corp is the qualified person under National Instrument 43-101. The core samples will be split in half and transported to the Geology Nuclear Group Team 209 preparation laboratory in Kunming where samples will be pulverized to 200 mesh and sent on 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%) will be 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.

Contact Information