QMX Gold Corporation
TSX : QMX
OTCQX : AXSMD

July 23, 2012 08:00 ET

QMX Gold Reports Results From the Birch Zone Including 5.35 g/t Au Over 6.4 Metres

TORONTO, ONTARIO--(Marketwire - July 23, 2012) - QMX GOLD CORPORATION (TSX:QMX)(OTCQX:AXSMD) ("QMX Gold" or the "Company") is pleased to announce results from a 7,194 metre surface drill program on the Birch Zone at the Snow Lake Mine in Snow Lake, Manitoba. The Birch Zone is located 3 km by road from the Main Mine and Mill (see Figure 1) and lies on a mineral lease 100% owned by QMX Gold.

The Birch Zone is known to host NI 43-101 compliant Inferred Resources of 569,000 tonnes grading 4.42 g/t Au, representing approximately 81,000 ounces gold*. These mineral resources are not included in the most recent Feasibility Study dated December 10, 2010 and are not currently included in the Development and Production plans for the Snow Lake Mine. A new Resource model and estimate is in preparation.

The 2011 drill program was completed to define areas of Inferred Resources to convert part of these into an Indicated Resource for the purpose of detailed mine modeling and to explore the area for additional mineralization and zone extensions. Drilling initially focused on confirming the continuity of mineralization and defining structural controls. Current and historical hole locations are shown in Figure 2. Results from the program are encouraging and are shown in Table 1.

Highlighted Results include:

  • 3.30 g/t over 0.5 metres in Hole BIR11-05
  • 5.35 g/t over 6.4 metres in Hole BIR11-08
  • 4.89 g/t over 4.6 metres in Hole BIR11-18

Recent modeling shows that mineralization in the Birch zone demonstrates good grade continuity within several structurally-controlled lenses. The lenses plunge to the east-northeast, similar to the Main Mine and No.3 Zone. Drilling confirms their down-plunge extension. Approximately 50% of the Resource is contained in one near-surface zone which was test-mined by open pit in 1996, producing 31,353 tons (28,437 metric tonnes) at a grade of 0.104 oz/t Au (3.23g/t Au)*. Four additional structures are present in the footwall to this zone and there is minor mineralization in the hanging wall. Mineralization has an average, true thickness of about 3 to 4 metres, varying between 1.5 to 8 metres. Overall, the bulk of the Birch exploration effort has focused on the area 200 metres from surface, with additional testing required to test multiple mineralized structures at depth.

These results have the potential to enhance the Snow Lake Mine start-up plan and could extend the mine life as described in Feasibility Study.

Francois Perron, President and CEO of QMX Gold, commented, "I am very pleased with the drill results from the Birch Zone which should grow the resource there and confirm the continuity of the mineralization in the zone. From the information that was uncovered by our Exploration Team, more work will be required to assess the potential of deepening the small existing pit and the potential for a new ramp analogous to the one already planned for the No. 3 zone. The Birch Zone is rapidly evolving into a near term priority to complement our current mine plan by increasing mine life and providing an additional source of mine feed. Overall we expect that as we know more about this zone results should positively impact the economic aspects of the project."

Table 1: Results of 2011 Birch Zone Information gained from the 2011 drill program
Table 1
Birch Zone
Hole Number From
(m)
To
(m)
Composite
Core
Length
(m)
Au
g/t
Comments
BIR11-01 Hole was stopped at 35 metres due to excessive deviation
BIR11-02 No significant intersections, drilled outside of known mineralization
BIR11-03 Hole was stopped at 71 metres due to excessive deviation
BIR11-04 No significant intersections, drilled outside of known mineralization
BIR11-05 260.95 261.47 0.5 3.30 Drilled outside of known mineralization, continuity of structure shown
BIR11-06 235.78 236.89 1.1 2.03 Intersection on FW structure. Drilled outside of known mineralization, continuity of structure shown
BIR11-07 26.60 33.43 6.8 5.91 Intersection on main structure below pit
BIR11-08 30.63 37.00 6.4 5.35 Definition of main structure east of pit
BIR11-09 65.90 68.35 2.4 3.68 Definition of main structure east of pit
BIR11-10 No significant intersections, several zone composites showing structure continuity, best 1.24g/t/1.2m
BIR11-11 No significant intersections, several zone assays, best 6.65 g/t/0.4m
BIR11-12 205.85 209 3.2 4.37 Footwall mineralization composite
BIR11-12 239.25 239.66 0.4 61.83 Footwall mineralization
BIR11-13 No significant intersections, mineralization fringe, several zone composites, indicating structure continuity, best 1.25 g/t/1.0m
BIR11-14 No significant intersections, mineralization fringe, structure continuity shown by single assay grading 2.85 g/t/0.7m
BIR11-15 No significant intersections, structure continuity exhibited in several composite intersections, best 2.32 g/t/1.6m
BIR11-16 193.50 196.04 2.5 4.75 Main structure, additional assay in FW (209.80 to 210.18m of 9.05 g/t/0.4m
BIR11-17 231.51 232.24 0.7 7.44 Main structure mineralization
BIR11-18 148.47 153.03 4.6 4.89 HW mineralized zone
BIR11-18 166.56 166.92 0.4 18.59 Main structure in table, several FW structures, best 4.06 g/t/1.3m
BIR11-19 216.38 218.39 2.0 4.68 Mid structure in table, assay on HW structure of 6.93 g/t/0.7m
BIR11-20 177.52 178.13 0.6 22.60 Main structure in table, HW structure 2.89 g/t/0.6m, several FW structures best grading 3.91 g/t/0.6m
BIR11-21 Drilled outside of known resource in east Birch area, to test down plunge of Birch zone at to the depth of 717m. Best intersection 0.320 g/t/0.83m
BIR11-22 136.13 141.83 5.7 3.94 Main structure
BIR11-23 118.07 119.50 1.4 3.72 Main structure, up dip
BIR11-24 109.58 113.78 4.2 3.90 Main Zone
BIR11-24 179.23 180.41 1.2 5.23 FW mineralization in table, next best 8.44 g/t/0.3m
BIR11-25 110.88 11.89 1.0 18.26 HW structure, additional HW zones 2.26 g/t/4.3m, and 2.52 g/t/1.2m
BIR11-25 143.39 145.32 1.9 7.10 Main structure
BIR11-25 197.81 198.60 0.8 4.76 FW structure, additional FW structure (204.24-204.79m, grading 7.27 g/t/0.5m
BIR11-26 Drilled outside known mineralization area, best HW structure hit 1.55 g/t/1.6m, and main zone 2.57 g/t/0.5m
BIR11-27 Down-plunge of known mineralization, no significant results on main structure, best results on FW 4.08 g/t/0.7m
BIR11-28 149.00 151.00 2.0 3.46 FW structure, no significant assays on main structure
BIR11-29 No significant mineralized intersections, best HW intersection 5.35 g/t/0.5m, and 1.28 g/t/0.8m
BIR11-30 101.77 105.68 3.9 6.69 Main structure
BIR11-30 127.52 131.06 3.5 3.69 One of several FW structures, next best, 2.83 g/t/1.3m
BIR11-31 105.05 105.57 0.5 7.05 Main zone down-plunge, best FW intercept 2.81 g/t/0.5m
BIR11-32 112.60 114.75 2.2 4.83 HW structure, another HW zone grading 2.80 g/t/2.8m
BIR11-32 127.60 132.17 4.6 5.54 Main Structure
BIR11-32 194.08 195.23 1.1 3.30 FW structure, another FW structure grading 3.77 g/t/0.6m
Note: Every reasonable effort was made to drill at right angles to the perceived angle of the Birch zone structures. Intercept lengths are indicated since true thickness is not known.

Qualified Person

The technical and scientific content of this press release has been reviewed by Earl Masarsky, P. Geo., Chief Mine Geologist, Manitoba Division, QMX Gold and Qualified Person as defined under NI 43-101 guidelines. Mr. Masarsky is also the Qualified Person who directly supervised the drill program and all technical work conducted at the Snow Lake Mine, as summarized herein. Diamond drill core is logged and sampled by company personnel at the Snow Lake Mine. Core (NQ) is cut in half using a diamond saw with one half bagged and submitted for assay and the remaining half sample retained and archived in a secure facility. A strict QA/QC program is followed that includes mineralized standards, blank and field duplicate for each batch of samples. Samples are shipped by secure truck to TSL Laboratories Inc. (TSL) Saskatoon, Saskatchewan, an ISO/IEC 17025 accredited assay facility established in 1981. The Laboratory is certified by the Standards Council of Canada for gold analyses utilizing instrumental or gravimetric finish.

About QMX Gold

QMX Gold Corporation is a Canadian publicly traded mining company focusing on mine development and exploration in Quebec and Manitoba. The Company is listed on the Toronto Stock Exchange ("TSX") and effective July 5, 2012, will trade under the symbol "QMX", and trades in the United States on the Over the Counter QX International ("OTCQX") platform under the symbol "AXSMD". QMX Gold continues to be a dynamic and aggressive mining company operating in Canada's richest mining regions: Val-d'Or, Quebec, and Snow Lake, Manitoba. QMX Gold continues to operate in the mineral rich Val-d'Or area with production estimated at 18,000-20,000 ounces of gold per year. The Company has also begun to ramp-up pre-production activities at its property at the Snow Lake Mining Camp which has a Measured and Indicated Mineral Resources of over 720,000 oz gold and is expected to produce 80,000 ounces of gold per year.

Forward-looking information:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the impact of these results on the Company's operations and performance, the timing and amount of future exploration and development of the property, the timing and amount of future production, and the future financial or operating performance of QMX Gold and its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/axsmd0723fig1e.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/axsmd0723fig2e.pdf.

* Mineral resource estimates from Snow Lake Mine Re-activation Project Technical Report NI 43-101, December 10, 2010 prepared by Mr. Andre Roy P.Eng.

Contact Information

  • QMX Gold Corporation
    Francois Perron
    President and CEO
    (416) 309-2952

    QMX Gold Corporation
    Louis Baribeau
    Public Relations
    (514) 667-2304

    QMX Gold Corporation
    Rob Hopkins
    Investor Relations
    (416) 861-5899 or Toll free: +1 877-717-3027
    info@qmxgold.com
    www.alexisminerals.com