Sphinx Resources Ltd.
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Sphinx Resources Ltd.

August 06, 2015 08:30 ET

Sphinx Extends Pd+Pt+Au Reef Over 700 m on Its Green Palladium Project and Increases Its Land Position on Its Somanike Project

MONTREAL, QUEBEC--(Marketwired - Aug. 6, 2015) - Sphinx Resources Ltd. ("Sphinx" or the "Corporation") (TSX VENTURE:SFX) is pleased to confirm the extension of the stratabound platinum group elements ("PGE") reef over a distance of 719 m following the completion of a 962-metre drilling program on its 100% owned Green Palladium project located in the Pontiac Regional County Municipality of southern Quebec. The mineralized reef, which returned 3.44 g/t Pd+Pt+Au over 40 cm at the main showing area (see press release of June 18, 2015), was intersected in six (6) of the nine (9) holes. Drilling investigated only the top 50 m of the mineralized reef. The drill results are provided in the enclosed Table 1.

Channel samples taken from a 20 m by 5 m trench over the main showing area returned strongly anomalous PGE values and confirmed the surface exposure of the PGE reef horizon. Results are reported in the enclosed Table 2.

Mineralization in the reef is open in all directions and is characterized by a combination of stratigraphy and highly anomalous PGE values. Regional compilation suggests an interpreted surface expression of the reef horizon over an estimated 11 kilometres.

Exploration results obtained to date are encouraging and must be put into the perspective that at producing PGE mines only two out of three drillholes show economic grades along the same reef. To better assess the full exploration potential of the Green Palladium PGE reef, the Corporation's exploration team has designed a program for the next phase of exploration that consists of: 1) a gamma ray spectrometric and magnetic survey performed by a drone, 2) a soil geochemical survey, 3) detailed surface mapping and prospecting, and 4) drilling of targets identified from the geophysical and geochemical surveys and prospecting results. Exploration in the project area is low cost and benefits from excellent infrastructure and community support.

Sphinx employed a quality assurance and quality control program for the drill program, to ensure leading practice in the sampling and analysis of drill core. This includes the insertion of certified standards and blanks in the sample stream. Assay samples are taken from NQ-size drill core sawn in half; one half is shipped for analysis to AGAT Laboratories based in Val-d'Or, Quebec. The other half is kept for future reference. Analytical methods consist of aqua regia digestion, ICP-OES finish for multi element determination, lithium borate fusion-XRF finish for oxides determination and fire assay-ICP-OES finish for gold and PGE determination.

Somanike project

Sphinx announces the execution of a definitive agreement to acquire seven (7) claims (the "Claims") from Globex Mining Enterprises Inc. ("Globex") in the area of the Somanike project, now 100% owned by the Corporation and located in the Abitibi region of Quebec. Globex assigns, transfers and sells to Sphinx all of its rights, titles and interests in and to the Claims, for consideration that is comprised of:

  • 1,200,000 common shares of Sphinx to be issued to Globex; and
  • a graduated Gross Metal Royalty ("GMR") defined as 1% of all metals produced from the Claims when the Ni price quote is $6.00 US/lb. Ni or less, 1.5% GMR when it is greater than $6.00 US/lb. Ni but less than $8.00 US/lb. Ni and 2% GMR when it is $8.00 US/lb. Ni or greater.

Sphinx also commits to a total of $500,000 in connection with the exploration of the Claims with a minimum of $100,000 per annum within five (5) years. The shares will be subject to a statutory four-month hold period. No finder's fee will be payable by the Corporation in respect of the transaction. By acquiring the Claims, the Corporation consolidates its land position within the Somanike project area which includes the former Marbridge nickel-copper mine project (see press release of June 2, 2015).

Calumet Sud project

In connection with the acquisition of the Calumet Sud project announced by the on June 25, 2015, the Corporation clarifies that the acquisition of the project is made in consideration for an aggregate purchase price of $800,000. In addition it has been agreed that the vendor of the project is Gardin Inc. ("Gardin") instead of Amixam Resources Inc. ("Amixam"). A definitive agreement has been executed between Sphinx and Gardin under the same terms that those announced previously. The 21 project claims have been transferred from Amixam to Gardin. Closing of the transaction is subject to the approval by the TSX Venture Exchange.

The principal of Gardin is Michel Gauthier, Ph.D. Closing of the transaction will result in Gardin and Michel Gauthier owning or exercising control over 1,384,615 common shares, or 3.05% of the currently outstanding common shares, and up to 6,153,846 common shares, or up to 13.55% of the currently outstanding common shares assuming full issuance to Gardin under the Calumet-Sud project acquisition agreement (the "Agreement"). Gardin owns 50% of the issued and outstanding common shares of Amixam Resources Inc. ("Amixam") but does not exercise control over Amixam within the meaning of applicable securities laws. The Agreement provides that in no event Gardin (together with its affiliates and joint actors) shall own at any time more than 19.99% of the outstanding common shares of the Corporation and share issuances contemplated in the Agreement will be postponed until such time as this condition can be met. Except as set forth in the Agreement, Gardin and its principal do not have any present intention to acquire ownership of, or control over, additional securities of Sphinx. It is the intention of Gardin and its principal to evaluate their investment in Sphinx on a continuing basis and such holdings may be increased or decreased in the future. The address of Gardin for the purposes of National Instrument 62-103 - Early Warning System and Related Take-Over Bid and Reporting Issues is 444 rue Bordeleau, Magog, QC J1X 0M9. As a result of the transaction, Gardin will become an insider of the Corporation. A copy of Gardin's Early Warning Report will be available on SEDAR at www.sedar.com.

As a result of the Agreement, Amixam is now owning or exercising control over 4,000,000 common shares, or 8.81% of the currently outstanding common shares, and up to 4,461,538 common shares, or up to 9.82% of the currently outstanding common shares assuming full issuances to Amixam under the Green Palladium acquisition agreement. The address of Amixam for the purposes of National Instrument 62-103 - Early Warning System and Related Take-Over Bid and Reporting Issues is 344 Chemin du Tour du Lac, Ste-Anne-du-Lac, QC J0W 1V0. Amixam will cease to be an insider. A copy of Amixam's Early Warning Report will be available on SEDAR at www.sedar.com.

Annual and Special Meeting

The Corporation further announces that the Annual and Special Meeting of the shareholders of Sphinx will be held at the offices of Osler, Hoskin & Harcourt LLP, 1000 De La Gauchetière Street West, Suite 2100, Montréal, Québec, H3B 4W5 at 1:30 p.m. (Eastern time) on Thursday, August 27, 2015. The management information circular is available on SEDAR at www.sedar.com.

The technical information presented in this press release has been approved by Normand Champigny, President and Chief Executive Officer of Sphinx and a Qualified Person as defined by NI 43-101.

About Sphinx

Sphinx is an exploration company focused on the development of mineral exploration projects in Quebec, primarily through acquisitions.

Neither 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 this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results and activities to vary materially from targeted results and planning. Such risks and uncertainties include those described in Sphinx's periodic reports including the annual report or in the filings made by Sphinx from time to time with securities regulatory authorities.

Table 1: Drill Results.

Hole # UTM E UTM N Dip/ Lithology Mineralization From To Interval Pd Pt Au Pt+
Pt+Au
Ag Cu Ni S
(total
depth
m)
NAD 83 NAD 83 Dir. (pyrrhotite-chalcopyrite) (m) (m) (m) * (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%)
true N
GP-15-01 (106 m) 372233 5061125 -45 / 317.5 Melanogabbro 3% Cpy
disseminated
47.75 48.00 0.25 0.46 0.12 0.15 0.73 2.20 0.54 0.04 1.70
GP-15-02(121.35 m) 372261 5061093 -45 / 317.5 Syenodiorite 1% Cpy 10.35 10.52 0.17 Nil Nil 0.20 0.20 0.01 0.15 Nil 0.50
Leucogabbro 0.5% Cpy 22.65 23.65 1.00 Nil Nil 0.22 0.22 0.02 0.03 Nil 0.20
composite Metagabbro 1% Cpy 95.00 96.08 1.08 0.14 0.04 0.03 0.21 0.45 0.15 0.01 0.26
GP-15-03(121.35 m) 372305 5061196 -40 / 317.5 Metagabbro 0.2% Cpy 64.15 65.34 1.19 0.01 0.01 0.50 0.52 Nil 0.10 Nil 0.16
composite Metapyroxenite 0.5% Cpy 67.82 68.97 1.15 0.06 0.03 0.02 0.11 0.20 0.08 Nil 0.43
GP-15-04(90.00 m) 372393 5060947 -36 / 317.5 Drilled in centre of the igneous complex - did not intersect the reef horizon - no significant results
GP-15-05(105 m) 371851 5060801 -45 / 317.5 Melanogabbro 1% Cpy 74.40 76.05 1.65 0.02 0.02 0.03 0.07 0.40 0.09 Nil 0.14
GP-15-06(105 m) 371941 5060867 -40 / 317.5 Metagabbro 6% Cpy
Cloudy disseminated
92.90 93.00 0.10 0.44 0.07 0.03 0.54 0.90 0.52 0.03 1.85
Melanogabbro 4% Cpy
Cloudy disseminated
94.75 94.93 0.18 0.20 0.02 0.08 0.29 1.70 0.52 Nil 0.71
GP-15-07(72 m) 371783 5060712 -45 / 317.5 Metagabbro 1% Cpy 71.32 72.00 0.68 0.02 0.01 0.01 0.04 Nil 0.04 Nil 0.06
GP-15-08(117 m) 371968 5060827 -40 / 317.5 Short of the reef horizon - no significant results
GP-15-09(144 m) 371822 5061036 -38 / 145 Drilled in hanging wall - no significant results - IP anomaly unexplained

Notes:

All reported drill intersections are drilled widths. There is insufficient data with respect to the shape of the mineralization to calculate true widths at this time. Drilling was conducted perpendicular to surface stratigraphy and dips are uncertain with the level of data available.

Abbreviations: Cpy = chalcopyrite, Po = pyrrhotite.

Table 2: Channel sample Results

Channel
sample
#
UTM E UTM N Dip/ Lithology Mineralization From To Interval Pd Pt Au Pt+
Pt+Au
Ag Cu Ni S
(length
m)
NAD 83 NAD 83 Dir. (pyrrhotite-chalcopyrite) (m) (m) (m) * (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%)
true N
Meilleur 1(4.5 m) 372204 5061153 317.5 Metagabbro 3% Cpy 3.25 4.5 1.25 0.51 0.12 0.06 0.68 1.10 0.56 0.08 3.17
Meilleur 2(4.5 m) 372208 5061153 315 Melanogabbro 1.5% Cpy 0.00 1.00 1.00 0.34 0.12 0.07 0.52 1.1 0.23 0.02 0.91
Meilleur 3(4.0 m) 372203 5067742 315 Metagabbro 4% Cpy 2.05 3.00 0.95 0.89 0.23 0.08 1.204 1.13 0.49 0.12 4.23
Meilleur 4(2.65 m) 372209 5061149 317 Metapyroxenite 5% Cpy + 3% Po 0.50 2.65 2.15 0.75 0.13 0.08 0.97 1.15 0.45 0.16 5.20
Meilleur 5(2.50 m) 372212 5061150 315 Metapyroxenite 2.5% Cpy 0.50 1.50 1.00 0.40 0.08 0.01 0.49 0.45 0.52 0.15 5.14
Meilleur 6(5.05 m) 372217 5061159 005 Metapyroxenite 1% Cpy 3.55 4.55 1.00 0.31 0.05 0.01 0.36 0.35 0.43 0.07 2.91
Meilleur 7(4.85 m) 372216 5061158 005 Metapyroxenite 1% Cpy 0.55 3.05 2.50 0.31 0.05 0.01 0.36 0.42 0.36 0.09 2.88
Meilleur 8(3.65 m) 372214 5061153 315 Metagabbro 2% Cpy 1.65 3.65 2.00 0.16 0.10 0.01 0.26 0.05 0.15 0.02 1.24
Meilleur 9(1.25 m) 372213 5061151 080 Metagabbro 4% Cpy 0.00 0.65 0.65 0.32 0.04 0.01 0.36 0.32 0.37 0.12 4.04

Notes:

True widths are uncertain due to variable strike and dip of the zones. Channels 1, 2, 3, 4, and 5 were cut perpendicular to strike. Channels 6, 7, 8 and 9 were cut along strike. Dips are between 54 and 79 degrees (channels 1, 2 3, 4 and 5), with localized parasitic folding that changes dip geometry of the reef to near shallow dips locally (channels 6, 7, 8 and 9).

All channel samples are taken from a 20 m by 5 m trench at the main showing area.

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