Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

September 20, 2005 09:00 ET

Maxy Gold Corp.: Results Confirm New Copper Discovery on the LUCHUN Gold Project, Yunnan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) - MAXY GOLD CORP. ("Maxy") (TSX VENTURE:MXD) is pleased to announce that rock sample results confirm the presence of significant copper mineralization on its Niujaozai exploration permit within the Luchun Gold joint venture area in southern Yunnan Province, China. As announced August 10, 2005, the Niujaozai was found to host an extensive mineralized zone running for 3km in a northwest-southeast direction and approximately 1 km wide. The anomaly is open to the south-southeast.

32 representative rock samples (see Table 1) were collected during preliminary reconnaissance work on 2 sections, 1km apart covering part of the soil anomaly. Most samples came back at least anomalous. The samples are representative of the overall alteration and mineralization system, and average a little less than 0.2% copper (Cu) and 0.2 grams per tonne (g/t) gold (Au) with some values reaching 0.65% Cu and 0.5g/t Au in representative chip samples. One selected sample returned 3.1% Cu and 1.0g/t Au. The sampling confirms the kilometric extent of the mineralization as indicated by the soil survey.

NIUJAOZAI PROPERTY

As a result of the Copper mineralization discovery new staking has enlarged the Niujaozai property a further 30km2 to 80km2. The property is located in Yuanyang County, Honghe Prefecture, 300km south of Kunming. Access is excellent by a surfaced all weather road to the town of Niujiaozai located in the centre of the claim group.

GEOLOGICAL CONTEXT

The area is underlain by gneiss with very minor gabbro. The gneiss consists of banded biotite-quartz-feldspar gneiss and interlayered granite gneiss. Minor leucogneiss in the eastern part of the project area hosts narrow bands of marble. The foliated gneiss generally dips 10-30 degrees to the north except in some mineralized zones were they strike roughly 240/50-80NW. Dark medium grained undeformed gabbro boulders were noted in several areas although no outcrop of gabbro was found. Some weathered monzonite was identified with no post-deformational intermediate intrusive rocks located.

MINERALIZATION

The mineralized zone consists of a large area of strong red biotite-quartz-(k feldspar?) alteration localized within the banded biotite gneiss. This rock hosts from trace to 3% combined disseminated pyrite, pyrrhotite and chalcopyrite. The altered rock is commonly cut by numerous thin subparallel veinlets of chalcopyrite. These inlets are marked by haloes of chlorite and a white alteration (albite) extending several mm beyond the veinlets. Quartz veins up to 60cm wide with abundant coarse grained pyrrhotite and chalcopyrite are present in several areas. Boulders of strong silica-(kspar?)-pyrite(10-30%)-chalcopyrite were found within the altered and mineralized areas and both float and outcrop of massive pyrrhotite (70%)-chlorite(10%)-quartz(15%)-chalcopyrite (5%) up to 20cm wide were found in the eastern part of the project area. The massive sulphide zones and minor quartz-sulphide veins strike 100-110 degrees, while the narrow fracture fillings of chalcopyrite strike 10-30 and dip steeply north to subvertical.

The mineralized zone is preferentially hosted by the banded biotite-quartz-feldspar gneiss and the granite gneiss tends to lack Cu and be marked by weak to strong limonite (after pyrite?). Strong Cu mineralization is locally hosted in the granite gneiss as veins and in areas were the granite gneiss occurs as smaller lenses within biotite gneiss.

FUTURE WORK

Maxy will systematically evaluate the anomaly by completing an extensive exploration program including:

- Detailed geochemical survey of the property (200 meters line spacing)

- Detailed geological mapping of the property (200 meters line spacing)

- Complete a magnetic and induced polarization (IP) geophysical survey over the property (200 meter line spacing)

- Trenching of best anomalies

- Stream sediment survey covering a 5km radius

This work should help in the understanding of the mineralization and alteration patterns and will be complemented by detailed chip sampling and petrographic studies. The detailed work should also help to define areas of high grade and /or oxide mineralization potential.

There is no obvious limit yet established to this large and well developed mineralized area.

QUALITY CONTROL PROGRAM

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

The samples were shipped, prepared and analyzed to ALS Chemex in Vancouver. ALS Chemex is an ISO 9002 registered laboratory and is preparing ISO 17025 certification.

LUCHUN GOLD JOINT VENTURE

The Luchun Gold Joint Venture consists of 21 exploration permits, including the Niubo-Dichu property and the Niukong property where Maxy is pursuing an aggressive exploration program including drilling, geophysical survey and underground mapping and sampling on those three properties as well as completing a preliminary investigation of 15 permits.



Table 1

SAMPLE TYPE DESCRIPTION Au ppb Cu ppm
HM002 Chip 2m Gneiss with disseminated chalcopyrite 52 1426
and quartz chalcopyrite veins
HM003 Select Select sample of gneiss with 720 13125
disseminated and vein chalcopyrite
HM004 Select Quartz vein with 30% chalcopyrite 20% 1063 31201
pyrrhotite
HM005 Chip 3m Rusty gneiss with quartz veins 2 545
HM006 Chip 3m Gneiss with minor quartz vein and 115 6505
some strong iron oxide
HM007 Select Select of boulder 15% pyrite and 2-3% 6 716
chalcopyrite
HM008 Select Select boulder. Breccia with matrix 59 2091
of black chalcocite and chalcopyrite
HM009 Chip 2m Rusty gneiss with fracture controlled 549 1968
chalcopyrite
HM010 Select Boulders of silicified gneiss with 15% 101 1697
pyrite and 3% chalcopyrite
HM011 Chip 1m Leucogneiss with strong iron oxide 2 95
HM012 Chip Large boulders of rusty quartz biotite 13 949
2.5m pyrite chalcopyrite
HM013 Select Boulders of quartz biotite pyrite with
strong fracture controlled chalcopyrite 81 2587
HM014 Select Boulders with quartz biotite pyrite 231 2553
chalcopyrite
HM015 Chip Quartz biotite with large quartz pyrite 37 1088
2.5m chalcopyrite veins
HM016 Chip Gneiss with disseminated chalcopyrite 109 2455
2.5m and malachite
HM017 Chip Gneiss with disseminated chalcopyrite 87 1251
2.5m and 1-3 cm quartz chalcopyrite veins
HM018 Chip 5m Rusty strong gneiss with strong pyrite 296 2362
chalcopyrite
HM019 Chip Gneiss with some biotite and late 6 620
1.5m chlorite chalcopyrite
HM020 Select Boulder of gabbro with pyrrhotite 10 147
chalcopyrite veinlets
HM021 Select Quartz vein boulder with 8% combined 3 491
pyrite chalcopyrite
HM022 Chip Narrow band of strong disseminated 3 28
0.2m pyrite
HM023 Select Boulder. Breccia with 80% pyrrhotite 4 1289
and chalcopyrite
HM024 Select Boulder with abundant fracture 7 3793
controlled chalcopyrite
HM025 Chip Gneiss with 1-2% pyrrhotite chalcopyrite 43 649
2.5m
HM026 Chip 3m Gneiss with disseminated and venlet 80 1010
pyrrhotite and chalcopyrite
HM027 Chip 2m Gneiss with disseminated and veinlet 117 1652
pyrrhotite and chalcopyrite
HM028 Chip Leucogneiss with disseminated and 145 415
2.5m veinlet pyrrhotite and chalcopyrite
HM029 Select Boulder of gneiss with pyrite and 128 5163
strong fracture controlled chalcopyrite
HM030 Chip Rusty gneiss with quartz veins and 21 1118
3.0m fracture controlled chalcopyrite
HM031 Chip Massive pyrrhotite chalcopyrite 12 2778
0.2m
HM032 Chip Boulders of gneiss with abundant pyrite 212 4076
1.5m and fracture controlled chalcopyrite
HM033 Chip 10m Gneiss with disseminated and fracture 198 1931
controlled chalcopyrite


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