SOURCE: Minfocus Exploration Corp.

Minfocus Exploration Corp.

October 19, 2015 08:00 ET

Minfocus Confirms Further Significant Zinc Mineralization and the Issuance of a 2-Year Mines Act Permit to Drill at the Coral Zinc Project in British Columbia

TORONTO, ON--(Marketwired - October 19, 2015) - Minfocus Exploration Corp. (TSX VENTURE: MFX) ("Minfocus" or the "Company") is pleased to report further significant zinc and lead assay results from the extended trench sampling at the Coral Zinc prospect and has recently received a mineral exploration permit from the B.C. Ministry of Energy and Mines to allow a diamond drilling program which is planned to be undertaken in early summer of 2016.

  • In September 2015, extension of the Hound Dog Creek Trench No. 1 at the Coral Zinc prospect to a total length of 12.9 metres yielded recent samples with an average grade of 3.21% zinc, 0.70% lead over 9.5 metres as compared with 3.22% zinc, 0.72% lead over 9.0 metres from the June 2015 sampling program, both as measured from the south end of the trench.*
  • Compilation and replotting of several separate historical zinc geochemical surveys has extended the previously reported zinc geochemical soil anomaly (up to 6680 ppm Zn) to a continuous length exceeding 1.0 kilometres and a width of up to 400 metres, which is open-ended in at least two directions.
  • B.C. Ministry of Energy and Mines has issued a 2-year Mines Act permit to Minfocus to allow a drill program of up to ten drill hole sites, which is proposed for early summer 2016 to drill the large untested zinc geochemical soil anomaly.

In addition, Minfocus relocated and surveyed with hand-held GPSs the drill collars for the eight holes drilled in 1988 adjacent to the extended Hound Dog Creek trench. A new more accurate plotting of the main mineralized features and sections through the area can be examined on the Minfocus website (www.minfocus.com). The drill holes from the 1988 program (assays up to 7.67% Zn) and Hound Dog Creek trench No. 1 are located just 50-100 metres outside the edge of this large untested zinc geochemical anomaly.

*Activation Laboratories Ltd. of Kamloops, BC, an SCC accredited laboratory analyzed all trench samples using a four-acid total digestion followed by ICP-OES.

Exploration History of Coral Zinc Project

The Coral Zinc prospect was discovered in the early 1970s, in the central Rocky Mountains, north of Mackenzie, B.C. Logging roads now reach within 15 kilometres of the Coral Zinc prospect area and a high-voltage power line is planned to pass within 25 kilometres to deliver power for another advanced mine development project.

Coral Zinc has strong similarities to the Pine Point zinc deposits in the Northwest Territories. 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.

The Coral Zinc project option agreement provides for Minfocus 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 of the option term. Two of the vendors are insiders of Minfocus. Upon earning its minimum 60% interest, Minfocus will grant a 3% NSR Royalty to the vendors, of which up to 2% may be bought back by Minfocus upon certain terms and conditions. (see January 26, 2015 News Release). Minfocus has advised the Vendors that it has completed the first year work requirements due by September 30, 2015.

Results of 2015 Annual and Special Meeting

Minfocus is also pleased to announce that all matters set out in the management information circular dated July 31, 2015 for the 2015 Annual and Special Meeting of Shareholders held on October 14, 2015 (the "Meeting") were approved by shareholders.

The following four nominees were elected as directors of the Company. The detailed results of the vote for the election of directors are set out below:

Director Nominee Votes For % For Votes Withheld % Withheld
Gerald Harper 17,843,051 100 0 0
Kenneth B. de Graaf 17,843,051 100 0 0
Roger Walsh 17,843,051 100 0 0
Graham C. Wilson 17,843,051 100 0 0

Shares for Debt and Creation of New Control Person

The Company reports that it obtained disinterested shareholder approval at the Meeting for the creation of a new Control Person of the Company (as that term is defined in the policies of the TSX Venture Exchange).

Dr. Gerald Harper (the "Lender") has agreed to convert an aggregate of $175,000 of indebtedness, representing the entire principal debt and interest due and owing under a credit agreement between the Company and the Lender, through the issuance of an aggregate of 3,500,000 common shares of the Company (the "Common Shares") at a price of $0.05 per Common Share (the "Debt Settlement"). As a result of the Debt Settlement, Dr. Harper will hold, directly and indirectly, 23.68 % of the issued and outstanding Common Shares (on a non-diluted basis) and become a Control Person. Completion of the Debt Settlement will be conditional upon the Company obtaining TSX Venture Exchange approval and the securities issued thereunder will be subject to a four month hold period.

About Minfocus Exploration Corp.

Minfocus Exploration Corp. is a Canadian company currently advancing a portfolio of base metal projects including a zinc and a nickel project in British Columbia and a Platinum Group Element ("PGE") rich nickel project in N.W. 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. Minfocus is strongly committed to safe and environmentally responsible exploration practises and to building transparent and meaningful relationships with First Nation and community stakeholders related to our projects.

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

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