SOURCE: SGX Resources

SGX Resources

February 23, 2012 09:25 ET

SGX Resources Intersects 65 Meters of 1.82 g/tonne Gold at New Edleston Zone South of Timmins

WINNIPEG, MB--(Marketwire - Feb 23, 2012) - Dale Ginn, Chief Executive Officer of SGX Resources Inc. (TSX VENTURE: SXR), is pleased to announce additional results originating from the discovery of significant gold mineralization on its Edleston Zone in Sothman Township located 60 km south of Timmins, ON. Broad, consistent gold intersections have been encountered near surface as demonstrated by drill hole #11-29, cutting 1.82 g/tonne over 64.9 meters, including a significant high grade section at 11.9 g/tonne over 7.8 meters. Drilling has restarted in order to extend this zone along strike and to depth, as well, an additional drill has commenced at the Sirola Zone located 1.5 kms to the east, interpreted to be a potential extension to the Edleston Zone. The Edleston Zone is open in all directions and appears to be strengthening with depth as evidenced by the four deepest holes to date, #11-36, #11-35, #11-29 and #11-43. San Gold Corporation (TSX: SGR) is the company's largest shareholder at 39.5% or 34.7 million shares.

Assay results from eleven drill holes have been received to date and are summarized in the following table:

Hole # From (m) To (m) Length (m) Gold g/tonne Zone/Lens
SL-11-29 104.1 169.0 64.9 1.82 EL #1
Including 104.1 111.9 7.8 11.90
SL-11-43 130.6 193.5 62.9 1.10 EL #1
SL-11-18 36.2 86.0 49.8 0.52 EL #1
SL-11-26 80.0 136.0 56.0 0.59 EL #1
And 165.2 169.6 4.4 1.70 FW #1
SL-11-35 133.0 176.0 43.0 1.04 EL #1
Within 92.0 187.0 95.0 0.78 EL #1
SL-11-21 34.3 71.0 36.7 1.01 EL #1
SL-11-38 43.8 72.0 28.2 0.43 EL #1
SL-11-14 32.9 96.5 63.6 0.85 EL #1
SL-11-16 45.2 140.1 94.9 0.82 EL #1
SL-11-36 89.4 157.9 68.5 1.27 EL #1
SL-11-45 40.0 74.7 34.7 1.07 EL #1

Geophysical anomaly drilling for vein-style gold targets intersected what is now known as the Edleston Zone with drill holes #SL-11-14 and #SL-11-16. The deepest hole drilled on this section to date, SL-11-36 encountered 69 meters of 1.27 g/tonne gold at 100 meters below surface. This discovery is located in the north-west quadrant of SGX's claim group within the Sothman Township and has road access via Pine Street extending south from Timmins. The deposit dips moderately steeply to the south and strikes roughly at an azimuth of 100 degrees or east-southeast. Over 30 drill holes have been completed to date along 50 meter spaced sections, outlining a mineralized zone approximately 100 meters wide and over 400 meters long to a maximum depth of 150 meters while the zone continues to remain open in all directions.

Regionally, this property appears to lie on the potential western extension of the Cadillac- Larder fault zone along which a number of major gold deposits are located. The host rock is an altered and sheared ultramafic that exhibits extensive silicification and contains quartz-carbonate in veins, veinlets and fracture fill. Mineralization is broadly distributed throughout the unit as pyrite in amounts of 3 to 5 percent with trace chalcopyrite and occasional visible gold observed as well. Additional intercalated volcanic and meta sediment units lie to the north and south of the deposit, large felsic and mafic intrusive units are in contact with the northern volcanic rocks to the east beyond the SGX property boundaries. Along strike to the east of the Edleston zone by approximately 1.5 km lies the Sirola Zone, which exhibits identical geology and mineralization and contains some of the only outcropping in the region. The outcropping portion of this property consists of an altered reddish feldspar porphyry which lies in contact with mineralized ultramafic volcanic. These formations have a general strike of 100 degrees azimuth with a steep dip and are generally sheared and highly altered by carbonatization and silicification. Numerous trenches and test pits, believed to be from the early 1980's are also located on the property. SGX has completed IP geophysical surveys and has commenced follow up drilling in order to determine if the Sirola Zone is an extension of the Edleston Zone.

Assay values within the zone appear to be distributed in a relatively stable fashion with the exception of an occasional high value due to the presence of visible gold. The intersections above are near true widths as drilling has taken place from surface hangingwall positions, intersecting the zone nearly perpendicular to its strike and dip.

SGX Resources has undertaken an extensive diamond drilling program on the Sothman property since September of 2011 as a follow-up to geophysical targets with the objective of locating near surface gold deposits. This land package is located approximately 60 km to the south of Timmins, Ontario, between the Young-Davidson mine to the east and the Cote Lake deposit to the west. Activities at the Tully property, located approximately 25 km to the north of Timmins are focused on diamond drilling in order to expand on and further define the Tully gold deposit. As well, the company holds strategic land positions to the west and south of Timmins, near current and past production. San Gold Corporation (TSX: SGR) is the company's largest shareholder with over 34 million shares.

Sections, plans and diagrams related to this press release are available at the company's website, www.sgxresources.com, specifically a longitudinal section, a drill hole and geology plan, two complete cross-sections, property and geophysical plans and general location maps.

This program was carried out under the supervision of John Boissoneault, P.Eng., of SGX Resources Inc., the qualified person responsible for this news release. The drill core was split, with half sent to the Porcupine Joint Venture laboratory in Timmins, ON or SPJ Laboratories of Sudbury, 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.

For further information contact Dale Ginn, CEO at (204) 794-5818. A copy of this press release will be made available on the company's website and will be filed with Sedar.

NOTE: 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.