SGX Resources Inc.
TSX VENTURE : SXR

SGX Resources Inc.

May 10, 2013 07:00 ET

SGX Resources Drills High Grade Extension to Tully Deposit

WINNIPEG, MANITOBA--(Marketwired - May 10, 2013) - SGX Resources Inc. (TSX VENTURE:SXR) today reported that drilling in and around the Tully gold deposit located 25 km north of Timmins continues to identify wide, high-grade veins within and to the east of the main deposit. The following results are all that have been received to date from the joint (50/50) SGX/San Gold (TSX:SGR) 2013 drill program. Drill hole #13-18 cut seven separate intersections at the eastern extent of the Tully deposit including a new zone of 17.6 metres grading 11.1 g/tonne as well as 7.7 metres of 6.1 g/tonne, less than 250 metres below surface. This hole is located immediately to the east of drill hole #13-15 which intersected 14.1 metres of 20.1 g/tonne, extending the zone along strike. Drilling continues to target gaps of information and extensions to the known zone along strike and to depth. A number of broad, high-grade intersections near surface have been encountered so far this year in a series of stacked gold bearing lenses or veins which make up the Tully deposit.

"Results have been very encouraging this year since our geologists have re-interpreted and compiled past data on the Tully deposit. Grade, widths and its repetitive nature bode well for potential economics, growth and future developments in this region. This, coupled with its proximity to existing mills and roads as well as nearby deposits, give us much confidence in Tully's potential. Undeveloped, high-grade gold deposits near surface such as this one, especially in established mining camps, are extremely valuable and warrants our focus," Dale Ginn, President and Chief Executive Officer of SGX Resources.

Assay results received to date are summarized below:

Hole # From (m) To (m) Length (m) Gold (g/tonne) Zone/Lens
SGX-13-06 62.9 79.0 16.1 2.01 T1
and 102.6 116.5 13.9 6.53 T2
SGX-13-07 76.3 82.5 6.2 12.18 T1
and 93.9 96.0 2.1 4.49 T2
and 103.9 113.0 9.1 5.27 T2
SGX-13-09 117.0 132.0 15.0 7.19 T2
SGX-13-10 213.0 214.0 1.0 9.81 T2
SGX-13-11 120.7 123.4 2.7 5.57 T1
and 168.0 185.0 17.0 5.29 T2
SGX-13-12 56.5 65.0 8.5 1.97 New
and 157.8 160.8 3.0 7.14 T1
and 175.1 177.0 1.9 7.46 T2
and 189.4 192.0 2.6 5.45 T3
and 229.8 270.0 40.2 1.09 New
SGX-13-13 194.1 195.6 1.5 5.32 T2
SGX-13-14 130.3 134.3 4.0 6.47 T1
and 159.5 163.0 3.5 3.50 T2
SGX-13-15 181.0 194.0 13.0 5.89 T2
and 247.3 261.4 14.1 20.10 T3
including 247.3 254.3 7.0 39.00 T3
including 247.3 247.8 0.5 452.0 T3
and 346.3 348.0 1.7 4.70 New
and 372.0 381.0 9.0 1.15 New
SGX-13-17 149.0 151.2 2.2 8.87 T1
and 155.8 166.1 10.3 1.12 New
and 171.0 176.0 5.0 5.45 T2
and 224.0 273.3 49.3 1.10 New
SGX-13-18 134.9 136.0 1.1 6.50 T1
and 143.0 149.0 6.0 2.78 New
and 171.2 178.9 7.7 6.14 T2
and 218.0 235.6 17.6 11.08 New
and 254.5 266.5 12.0 1.47 New
and 295.0 307.7 12.7 2.13 New
and 319.0 330.6 11.6 1.60 New

During the latter part of 2012 an internal study was undertaken focusing on the structural and geological setting in order to fully appreciate the potential for additional mineralization and its controls. The Tully deposit is interpreted to be a series of shallow dipping (extensional or ladder) stacked vein sets within a subvertical 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 the regional east-west Pipestone Fault corridor, a northern splay from the Porcupine-Destor Fault. The Tully deposit has been drilled over a 600 metre strike length to date, and to depths of over 200 metres, remaining open along strike and to depth. True intersection widths are interpreted to be between 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 is continuing to drill on the Tully deposit though the spring and summer. New gold results will be press released as they are received and verified for quality assurance.

SGX Resources is also undertaking drilling and evaluation programs on the Edleston Zone, located 60 km south of Timmins focusing on infill and extensions and 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 mineral resources technical reports will be prepared this year for the Edleston and Tully deposits. 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.

To view "SGX Resources Tully Deposit Composite Section Looking Northeast", please visit: http://media3.marketwire.com/docs/872923img.jpg.

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.

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