SOURCE: Minfocus Exploration Corp.

Minfocus Exploration Corp.

April 16, 2015 08:00 ET

Minfocus Announces Closing of First Tranche of Private Placement Financing, Initiation of 2015 Exploration Program at Coral Zinc Project in British Columbia and Extension of Seagull Option Agreement to September 2016 at Nipigon Reefs PGE Project

TORONTO, ON--(Marketwired - April 16, 2015) - Minfocus Exploration Corp. (TSX VENTURE: MFX)("Minfocus") is pleased to announce that it has closed the first tranche of a private placement of Units at $0.05 each, which comprise one common share in the capital of Minfocus and one-half of a non-transferable share purchase warrant with each full warrant entitling the holder to purchase one common share in the capital of the Corporation at a price of $0.10 for a period of 18 months. If the full offering of 10,000,000 Units is completed the gross proceeds will be $500,000, of which half may be flow through units. The first tranche comprises $46,000 of which $25,000 is flow through. Proceeds of the private placement will be used for Minfocus' exploration programmes, trade payable, debt and general working capital.

Exploration to Begin at Coral Zinc Project in B.C.

The first target for exploration will be the recently optioned Coral Zinc prospect which was discovered in the early 1970's, when there was intense exploration in the area of the central Rocky Mountains, north of MacKenzie, B.C., resulting in the discovery of the Robb Lake zinc deposit which has strong similarities to the Pine Point zinc deposits in the North West Territories. The Coral Zinc prospect area was discovered by prospecting above treeline but only in the 1980's, later prospecting, mapping and geochemical surveys below the treeline revealed a highly elevated soil geochemical anomaly for zinc, silver and lead covering a large area on a hillside above a creek in which two outcrops of carbonate-hosted zinc mineralisation are exposed.

The 1980s exploration work, which was conducted by two of the Vendors, includes the following results:

  • A large soil geochemical anomaly containing highly elevated zinc analyses of up to 6680 ppm Zn against a baseline average of about 120 ppm Zn which is open ended in two directions within a grid of 600 metres by 800 metres. Within the zinc anomalous area there are contiguous elevated lead and silver values.
  • A hand trench was excavated for 9 metres extending the showing either side of the creek and revealed gossan with zinc assaying from 0.4% Zn to 2.1% Zn in 1 and 2 metre long samples.
  • Six short "packsack" type drill holes were drilled close to the creek and four of which intersected significant zinc values immediately below the overburden as shown in the table below.

These four mineralized holes and the mineralization exposed in the trench are 50 - 100 metres from the edge of the zinc soil anomaly. The zinc anomaly is open-ended in at least two directions and has an aerial extent of 600 x 300 metres across an area of hillside with no exposure. Prospecting southwest of the soil anomaly across the hillside did locate one outcrop of mineralized dolostone breccia, 600 metres beyond the sampled limit of the soil anomaly from which two grab samples gave 2.36% Zn and 2.29% Zn.

Logging roads access areas within 15 kilometres of the Coral Zinc prospect anomaly area and a high-voltage power line is planned to pass within 25 kilometres to access an advanced mining development.

Coral Zinc Project Historic Drilling Results (1988)

Hole C-88-2  C-88-3  C-88-4  C-88-6  
          
Overburden 0 - 2.80m  0 - 1.78m  0 - 4.10m  0 - 5.40m  
          
Recrystallized Dolostone Breccia 2.80 - 4.25m  1.78 - 7.40m  4.10 - 10.60m  5.40 - 13.20m  
  3.12m to 4.12m  4.25m to 5.25m  4.10m to 5.10m  8.40m to 9.40m  
%Zn in Intervals @ 2.54 %@ 7.67 %@ 0.87 %@ 1.28 %
     5.25m to 6.25m  5.10m to 6.10m  9.40m to 10.40m  
     @ 1.03 %@ 4.29 %@ 0.54 %
     6.25m to 7.25m  6.10m to 8.10m     
     @ 1.61 %@3.04 %   
        8.10m to 9.10m     
        @ 3.63 %   
%Zn in Overall Interval 1.0m @ 2.54 %3.0m @ 3.44 %5.0m @ 2.97 %2.0m @ 0.91 %

The Coral Zinc project option agreement is with a group of four individuals ("Vendors") to earn up to a minimum 60% interest in the Coral Zinc Project in east central British Columbia over five (5) years by spending a minimum of $2.0 million on exploration work and making payments to the Vendors totalling $160,000, in cash and/or shares, in Years 3 to 5. Two of the Vendors are insiders of Minfocus. Upon earning its minimum 60% interest, the Vendors will be granted a 3% NSR Royalty, of which up to 2% may be bought down by Minfocus upon certain terms and conditions. (see January 26, 2015 News Release). The Option agreement is still subject to approval by the TSX-V Exchange.

The Pine Point zinc deposits are examples of a class of zinc deposits known as Mississippi Valley Type ("MVT") which are hosted by dolomite sediments and occur in clusters along a bedding horizon. Cominco started mining Pine Point in 1964 with an initial reserve (historic figures) of 21.5 million tonnes grading 7.2% Zn and 4.0% Pb. When they finished mining in 1988 they had mined 64 million tonnes grading 7.0% Zn and 3.1% Pb from 48 deposits. Initially Cominco mined ore with grades above 20% combined lead and zinc and shipped it directly to their smelter at Trail, B.C.

Minfocus Extends Seagull Option Agreement to September 2016

Minfocus is pleased to announce that is has agreed with the Optionors of the Seagull property to extend the option agreement. Under the Seagull option agreement, which forms part of the Nipigon Reefs property, Minfocus was required to have incurred cumulative exploration expenditures of $1,000,000 by February 22, 2015. Minfocus has received approval from the Optionors to extend the time required to complete the work commitment to September 30, 2015 to earn the initial 55% joint venture interest in the Seagull claims. Furthermore, the Optionors have agreed to extend the Option Period to September 30, 2016 for Minfocus to earn up to 70% joint venture interest. Minfocus issued 1,000,000 shares to the Optionors for the extensions of time. As of the most recent work commitment anniversary on August 31, 2014, Minfocus had incurred exploration expenditures of approximately $769,000.

More information is available on Minfocus' website at www.minfocus.com

About Minfocus Exploration Corp.

Minfocus Exploration Corp. is a Canadian company currently focused on the advancement of a portfolio of base metal projects including zinc and nickel assets in British Columbia and Platinum Group Element ("PGE") rich nickel projects in Northwest Ontario, which are among the most stable mining districts in the world. Minfocus has a successful management group with a record of multiple discoveries of deposits worldwide, including gold and uranium deposits in Mongolia and PGE-rich resources in Ontario, including the discovery of the first Platinum-rich PGE deposit, the Current Lake deposit (+700,000 oz Pt-Eq). The Minfocus management group also has extensive strength and success in corporate development, M&A and project development, which together with its technical prowess is aimed at delivering growth in shareholder value through a balanced strategic approach.

The Qualified Person who has reviewed and approved the technical content contained in this release is Dr. Gerald Harper, P.Geo.(Ont).

Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This press release includes certain forward-looking statements concerning the future performance of the Company's business and operations as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are often identifiable by the use of words such as "may", "will", "might", "would", "plan", "believe", "expect", "anticipate", "intend", "estimate", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are based on the current opinions and expectations of management, and are subject to a number of risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those currently anticipated by such statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the possibility that future exploration results will not be consistent with the Company's expectations, fluctuating commodity prices, delays in commencing the Company's proposed drilling program, exploration costs varying significantly from estimates, the availability of financing, and other risks identified in the Company's documents filed with the Canadian securities regulatory authorities at www.sedar.com. Any forward-looking statement speaks only of the date on which it is made, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

Contact Information

  • For further information please contact:

    Gerald Harper
    President & Chief Executive Officer
    Phone: (416) 232-0025