SGX Resources Inc.
TSX VENTURE : SXR

SGX Resources Inc.

September 26, 2013 07:30 ET

SGX Extends Length of Tully Deposit to Over 1,000 Metres

WINNIPEG, MANITOBA--(Marketwired - Sept. 26, 2013) - Dale Ginn, President and Chief Executive Officer of SGX Resources Inc. (TSX VENTURE:SXR), is pleased to report that recent step-out drilling has substantially increased the known strike length of the Tully Deposit to more than 1,000 metres (1 km) in length.

Step out drilling at approximately 300 metres to the west of previously established limits of the Tully Deposit encountered high grade gold in drill hole #13-38, cutting 36.7 g/tonne (uncut) over 6.3 metres at 200 metres below surface. Coarse visible gold (see Figure 1 photo) was observed within a broad zone of mineralized quartz and carbonate veining within the host altered volcanic tuff, identical to the main Tully Deposit to the east. This drilling took place on the bordering "Creighton" claims which were 100% acquired under a three-year option agreement beginning in 2011. The host volcanic tuff unit is readily identifiable by geophysics and has been traced by the Company for over 2 km in both the eastern and western directions away from the main deposit. Drilling has also extended the zone by another 150 metres to the east beyond previously established limits identified recently (see press release dated August 28, 2013) as demonstrated by drill hole #13-26. The Tully Deposit and adjoining claims are jointly owned (50/50) by SGX and San Gold Corporation (TSX:SGR) with SGX being the operator.

"We have now managed to successfully extend the limits of the deposit in all directions from the main body of the Tully Deposit with our drill programs. Our last press release of August 28 established Tully's potential to depths of over 600 metres and we now have firmly demonstrated the length potential to the west and east with this latest round of drilling," said Mr. Ginn.

Assay results received to date on the step-out program are summarized below:

Hole # From
(m)
To
(m)
Length
(m)
Gold
(g/tonne)
Zone/Lens
Western Extension Holes:
SGX-13-38 223.2 229.7 6.3 36.72 West/Creighton
including 225.0 225.4 0.4 560.00 West/Creighton
and 245.2 249.5 4.3 1.43 West/Creighton
and 297.6 298.6 1.0 6.05 West/Creighton
SGX-13-36 65.0 71.7 6.7 2.39 West/Creighton
Eastern Extension Holes:
SGX-13-19 199.0 204.0 5.0 5.40 East
and 345.0 354.5 9.5 1.94 East
SGX-13-20 241.0 247.7 6.7 9.01 East
SGX-13-26 314.1 324.6 10.5 1.32 East
Deep Extension (East) Holes:
SGX-13-22 634.0 640.5 6.5 8.00 East Deep
SGX-13-22B 644.0 647.2 3.2 5.50 East Deep

The Tully Deposit does not outcrop and is overlain by overburden and till. The host mafic volcanic tuff unit is readily identifiable by geophysics and has been traced along strike further to the east and west. Initial shallow drill holes such as #13-36 were designed simply to locate the tuff so that follow up drilling as in #13-38 could focus on locating mineralization within the tuff. The Tully Deposit is interpreted to be a series of shallow dipping (extensional or ladder) stacked vein sets within a sub vertical competent mafic tuff host that is bounded by ultramafic volcanic rocks to the south and sediments to the north. This host sequence of rocks all lie within a regional east-west fault corridor, a northern splay from the Porcupine-Destor Fault. The Tully deposit has been drilled over a 1,000 metre strike length to date, and to depths of over 600 metres, remaining open along strike and to depth. True intersection widths are interpreted to be 65% to 80% of drilled widths as shown in the table above. Assay intersections are uncut as an appropriate cutting factor has not yet been determined for this deposit.

SGX Resources is also undertaking evaluation programs on its wholly owned Edleston Zone, discovered in 2010 and located 60 km south of Timmins. An additional drill program has been completed on the Grenfel project located west of Kirkland Lake in order to follow up on historical shaft, level development and diamond drilling by previous owners. It is anticipated that a mineral resources technical report will be prepared this year for the Tully Deposit. SGX also holds a position in the Davidson-Tisdale Deposit and other strategic lands to the west and south of Timmins, near current and past production.

Sections, plans and diagrams related to this press release are available at the Company's website, www.sgxresources.com, specifically a composite/longitudinal section showing the location of the intersections received and released to date.

This program was carried out under the supervision of Peter Caldbick, P.Geo., of SGX Resources Inc., the qualified person responsible for this news release. The drill core was split, with half sent to Activation Labs of Ancaster, ON and fire assayed with an AA and gravimetric finish. Whole metallic assays were performed on samples containing visible gold. Check assays were also performed on pulps and rejects, as well, blanks and standards were inserted into the sample stream.

A copy of this press release will be made available on the Company's website and will be filed with SEDAR.

CAUTIONARY STATEMENT: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.

To view Figure 1: Hole 13-38 Core Sample, please visit the following link: http://media3.marketwire.com/docs/sxr0926fig1.pdf.

To view Figure 2: Composite Section Looking Northeast, please visit the following link: http://media3.marketwire.com/docs/sxr0926fig2.pdf.

To view Figure 3: Tully Mafic Tuff Location and Regional Magnetic Signatures, please visit the following link: http://media3.marketwire.com/docs/sxr0926fig3.pdf.

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