Sphinx Resources Ltd.

Sphinx Resources Ltd.

June 18, 2015 08:30 ET

Sphinx Intersects a Stratabound PGE Reef Grading 3.44 g/t Pd+Pt+Au Over 0.4 m on Its Green Palladium Project, Quebec

MONTRÉAL, QUEBEC--(Marketwired - June 18, 2015) - Sphinx Resources Ltd. ("Sphinx" or the "Corporation") (TSX VENTURE:SFX) is pleased to confirm the presence of significant palladium-platinum-gold-copper mineralization on its Green Palladium project in the Pontiac regional county municipality of southern Quebec. The project is wholly owned by the Corporation. A nine (9) hole program, totaling 962 m, has been completed. Due to their promising character, a few priority samples have been taken in the first hole and in a surface channel sample vertically above the hole. Assay results from these first samples reveal that hole GP-15-01 intersected a stratabound platinum group elements ("PGE") reef which returned 3.44 g/t Pd+Pt+Au over 40 centimetres. It is a metamelanogabbro layer containing about 2% finely disseminated sulphides. This reef is overlain by a 28-cm layer of barren monzonite. Above the monzonite layer,1.29 m of sulphide-mineralized metamelanogabbro and metapyroxenite containing about 10% sulphides in places, returned strongly anomalous palladium values including 0.59 g/t Pd+Pt+Au over 21 centimetres. The table below provides the details of these first results.

Hole # UTM E UTM N Dip/ Lithology Mineralization From To Interval Pd Pt Au Pt+Pt
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 Metapyroxenite 2% disseminated sulphides 41.47 42.10 0.63 0.16 0.05 0.01 0.21 0.40 0.19 0.04 1.25
Metamelano-gabbro 5% banded sulphides 42.10 42.27 0.17 0.28 0.01 0.01 0.29 0.20 0.27 0.10 2.97
Metamelano-gabbro 10% net-textured sulphides 42.27 42.48 0.21 0.55 0.03 0.01 0.59 0.40 0.53 0.23 6.67
Metagabbro 3% disseminated sulphides 42.48 42.76 0.28 0.23 0.06 0.02 0.30 0.30 0.29 0.07 2.23
Barren Monzonite Barren 42.76 43.04 0.28 0.03 0.01 0.00 0.04 <0.2 0.05 0.01 0.50
Metamelano-gabbro 3% disseminated sulphides 43.04 43.16 0.12 2.78 0.90 0.30 3.98 0.90 0.30 0.07 1.91
Metamelano-gabbro 2% disseminated sulphides 43.16 43.44 0.28 2.33 0.66 0.23 3.22 4.90 0.81 0.05 1.25
Composite 1 41.47 42.76 1.29 0.25 0.04 0.01 0.30 0.35 0.27 0.09 2.57
Composite 2 43.04 43.44 0.40 2.46 0.73 0.25 3.44 3.70 0.66 0.06 1.45
Channel sample # UTM E UTM N Dip/ Lithology Mineralization From To Interval Pd Pt Au Pt+Pt
Ag Cu Ni S
NAD 83 NAD 83 Dir. (pyrrhotite-chalcopyrite) (m) (m) (m) * (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%)
true N
Meilleur 1 372204 5061153 317.5 Metapyroxenite 2% disseminated sulphides 1.0 1.5 0.5 0.19 0.03 0.01 0.23 0.40 0.26 0.03 1.08
Metapyroxenite and metamelano-gabbro 10% disseminated sulphides 1.5 2.0 0.5 0.80 0.52 0.04 1.36 0.70 0.48 0.25 7.45
Metamelano-gabbro and metapyroxenite 15% disseminated and net-textured sulphides 2.0 2.5 0.5 1.06 0.39 0.04 1.49 0.30 0.30 0.37 >10
Metamelano-gabbro and metapyroxenite 5% disseminated and net-textured sulphides 2.5 3.0 0.5 0.73 0.12 0.05 0.90 0.50 0.43 0.08 2.71
* Reported drill intercepts intervals and channel intervals are not true widths. There is insufficient data with respect to the shape of the mineralization to calculate true orientations in space.

A 1.5 m-long surface channel sample, taken in a direction parallel to hole GP-15-01, returned a composite interval of 0.86 g/t Pd, 0.34 g/t Pt, 0.05 g/t Au and 0.40 % Cu from 1.50 to 3.00 metres. This channel sample is situated 31 m sub-vertically (about 70 degrees dip) above the PGE reef intersected by the drill hole. It indicates a vertical continuity of the mineralized reef. The sample has been taken within a small test pit blasted in 1958, cleaned and expanded during the current drilling program. It is in this small pit that grab samples were taken during 2014. The samples revealed grades of 3.3 g/t, 2.3 g/t and 0.6 g/t Pd as well as 3.2%, 3.3% and 0.2% Cu respectively (see press release of January 21, 2015).

This discovery occurs in a previously unrecognized layered igneous complex. Mineralization is hosted in an interpreted "reef" horizon of metamorphosed and ouralitized pyroxenite and melanogabbro. This horizon shows disseminated sulphides that local concentration can be sufficiently high to confer to this rock a "net texture". The sulphides are comprised primarily of pyrrhotite (iron sulphide) and chalcopyrite (copper sulphide). Mineralized breccias exhibiting magmatic textures with centimeter-scale rounded pyroxenite xenoliths contained in a massive sulphide constitute the stratigraphic top of the reef. There appears to be a strong correlation between the presence of chalcopyrite and high palladium values. The highest palladium, platinum and gold values are in the sulphide-poor basal section of the intersected reef. Both the mineralized drillhole intercept and surface channel samples are situated at the northeast end of an anomaly identified by the magnetometer and an induced polarization survey performed earlier this year. This linear anomaly, more than 700 m long, is oriented SSW-NNE.

The complete assay results for the remaining holes and other channel samples are pending. Reef stratigraphy comprised of metamelanogabbro and metapyroxenite has been observed in all other drillholes with the exception of one (1) hole drilled outside of the aforementioned geophysical anomaly. The mineralized reef horizon remains open in all directions.

Drilling was conducted by Rouillier Drilling based in Amos, Quebec whereas supervision of the drilling program was carried out by GFE Forestry & Exploration Services based in La Motte, Quebec with the participation of locally-employed workers and Gardin Inc. The drill core and channel samples were analyzed by AGAT Laboratories based in Val-d'Or, Quebec.

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 to the commercial laboratory and the other half is kept for future reference. For selected intervals within the mineralized zone of drillhole GP-15-01, the reference samples were sawn again in half to provide quarter-split samples for determining grade variations within specific lithologies within the zone. 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.

The Green Palladium project comprises of 210 claims with a surface area of about 126 km2.

Further to the June 2, 2015 press release in connection with the signing of a cooperation agreement between Sphinx and the Abitibiwinni first nation (the "Abitibiwinni Nation"), the Corporation will issue 100,000 common shares of Sphinx to the Abitibiwinni Nation as per the TSX-Venture policy. These shares have a deemed price per share of $0.05 and will be subject to a four (4) month hold period.

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.

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