Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

September 27, 2005 09:00 ET

Maxy Gold Corp.: New Gold Mineralization Encountered on the Qingmulin Property of the MIDU Gold Project, Yunnan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 27, 2005) - Maxy Gold Corp. (TSX VENTURE:MXD): Maxy is pleased to announce that new gold mineralization has been discovered on the QINGMULIN permit area of the MIDU Gold Project, in northwestern Yunnan Province, China.

Follow up exploration work over the Qingmulin sector has identified a new gold mineralization zone (split into east and west sections) consisting of altered siliceous sediments and/or shear zone intersections associated with major fault contacts between sedimentary units and some altered brecciated intrusive porphyry. The follow-up work concentrated on the 3.5 km long soil geochemical exploration test profile completed in early 2004 and 2005 where previous trenching returned very anomalous gold results - Trench TC 1, returned 7.4 meters grading 3.8 grams per tonne (g/t) Au and 5.5 meters grading 2.8 g/t Au.

West Zone

The west zone Gold anomalies are associated with a Northeast-Southwest trending low angle dipping contact belt of conglomerate/limestone and sandstone.

Partial results from the 126 rock samples taken to date include:



TRENCH GRADE (g/t Au) WIDTH (meters)

QMTC2 0.73 5.8
QMTC3 3.0 2.0


Full results are expected shortly.

Some isolated grab samples in the same zone have returned anomalous gold values reaching up to 3.8 g/t Au.



GRAB GRADE (g/t Au) GRADE (g/t Ag)

TC2 1.1
MD-38 (TC1) 2.8 2.8
MD-39 3.8


East Zone

In the East zone, a few high grade samples returned anomalous gold values reaching up to 6.2 g/t Au and 29.3 g/t Ag, and 2.7 g/t Au and 392.1 g/t Ag. These samples are associated with altered and fractured sandstones. The mineralization and structural trend is Northwest-Southeast. Systematic trenching in the anomalous samples were being completed in August, with results expected shortly.



GRAB GRADE (g/t Au) GRADE (g/t Ag)

QS-5 2.7 392.1

QS-10 1.2 1.1

MD-48 6.3 29.3


Future Exploration Work

Maxy will initiate an IP survey over both zones in the next two weeks and the work will be performed by our Chinese partner's geophysical team. At the same time trenching is underway in the region of the anomalous grab samples.
Following up the limited trenching and IP survey a small Auger drilling program is being commenced to expedite rapid access through thick overburden covered areas.

MIDU GOLD PROJECT

The Midu Gold Properties consist of three exploration permits, the Nuijie, Baicaoshan and Qingmulin, covering a total of 189.07 square kilometers (km), situated 190 km SE of Dali City, Yunnan Province, P.R. China. The project has excellent logistics with an ample supply of power and local access to a rail line and a national highway located about 60 km to the north.

The project area is positioned at the northern section within the prolific northwest trending Ailoshan polymetallic metallogenic belt in which there are many gold deposits. The gold mineralization at the Midu project is hosted by Permian, Paleozoic and Tertiary (or Neogene) sedimentary rocks, which have been deformed and altered or metamorphosed, and intruded by a series of unsubdivided ultramafic intrusive bodies, diabase dykes and granitic plutons.

The property also offers significant potential for Sedimentary hosted gold deposits as well as other type of deposits such as the Dalongtong-type gold deposit consisting of Neogene gravel with disseminated gold. This deposit is located adjacent to Maxy's Baicoashan property.

Quality control

The quality control program for the 2005 program is under the supervision of Zhu Chengwei and Andre Gauthier, president of Maxy. Sample preparation was carried out at the certified Team 209 Lab or Lab of the Gold Division of the Armed Police in Kunming.Approximately 5% of the coarse rejects samples are sent to ALS Chemex from Vancouver. Assaying is performed at the certified (ISO 9001) Institute of Geophysical and Geochemical Exploration (IGGE) at Langfang in Hebei Province, China with approximately 10% of samples checked at IGGE and another 10% sent to an independent - ALS Chemex Laboratory in Vancouver. Stream sediment samples and some rock samples were analyzed at ALS Chemex Laboratory in Vancouver.


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