MONTRÉAL, QUEBEC--(Marketwired - Sept. 7, 2016) - Sphinx Resources Ltd. ("Sphinx" or the "Corporation") (TSX VENTURE:SFX) and SOQUEM inc. ("SOQUEM") announce the results of the first detailed helicopter-borne geophysical survey to be flown on the Calumet-Sud and Green Palladium projects. The survey was conducted jointly by SOQUEM and Sphinx. On the Calumet-Sud project, the survey identified several new electromagnetic anomalies not previously detected at a distance of 2 to 3 km south-southeast of the former-producing New Calumet mine (production of 3.8 million tonnes 5.8% Zn, 1.6% Pb, 65 g/t Ag and 0.4 g/t Au from 1943 to 1968). The area of these new electromagnetic anomalies includes a strong lead-zinc anomaly in soils 300 m in length and the area where high levels of zinc were measured in samples from trenches dug in 2014 (see press release dated June 25, 2015).
In addition, the interpretation of the magnetic survey data suggests the following in relation to platinum group elements ("PGE") potential on the two projects:
- the extension to the southwest onto the Calumet-Sud project of the platinum group elements-bearing 'reef' discovered by the Corporation on its Green Palladium project and hosted in the Obwondiag layered igneous complex (see press release dated June 18, 2015); and
- the presence of four kilometric scale target zones within the complex, appear to define two or possibly three potential horizons of interest for PGE which are open in all directions. The complex is covered by both the Green Palladium and Calumet-Sud projects.
The survey data was collected on the two projects in late June by the firm CGG Canada Services Ltd. from Toronto using an electromagnetic system with HELITEM30C MULTIPULSE™, a high sensitivity cesium magnetometer and a Radiation Solutions RS-500 spectrometer. The survey covers 636 line-km with flight lines spaced at 100 m and includes the Calumet Nord project (adjacent, 100% owned by Ressources Tranchemontagne and optioned to SOQUEM). The geophysical consulting firm MB Geosolutions of Fossambault-sur-le-Lac, Quebec, in collaboration with the technical staff of Sphinx and SOQUEM, defined the priority targets following an analysis of the data.
A follow-up field exploration program is underway on the priority target areas for both zinc and palladium. It will be accompanied by a ground gravity survey (estimated 16 line-km) on the Calumet-Sud zinc targets and a soil sampling survey on the two projects focussed on the palladium targets. This work aims to identify the best targets for a drill program.
The Calumet-Sud project consists of 21 claims covering an area of 12 km2 optioned to SOQUEM in 2016. Under the option and joint venture agreement with SOQUEM, Sphinx grants SOQUEM the option to acquire an undivided 50% interest in the Calumet-Sud project. If the option is exercised, a joint venture will be created between Sphinx and SOQUEM. The project Calumet-Sud is adjacent to the Green Palladium project (231 claims, 132km2) held 100% by Sphinx.
Agreement with Eco-Niobium Resources Inc. ("Eco-Niobium")
Following the investment announced by the Corporation (see press release of July 26), Eco-Niobium and Sphinx have changed the investment agreement as follows: the closing of the first, second and third tranches of Eco-Niobium's unsecured convertible debentures (the "Debentures") an aggregate principal amount of $250,000, assuming Sphinx exercises its option with respect to the second and third closings and subject to the satisfaction of the closing conditions, will be held no later than March 31, 2017. Sphinx now intends to seek the approval of disinterested shareholders at a special meeting whose date will be scheduled later instead of seeking it on its annual meeting to be held on October 6, 2016. In addition, following the conditional approval of the TSX Venture Exchange (the "TSX-V"), the Corporation still has the faculty to grant to Eco-Niobium a bridge loan of up to 250 000 $ in principal amount on the same terms as disclosed on July 25, 2016. The Corporation previously disbursed a first tranche of the bridge loan in the principal amount of 85 000 $ and, as a result, additional tranches of up to 165 000 $ in principal amount can be disbursed. Once the final approval of the TSX-V will have been obtained, the Corporation will have the faculty to pay in whole or in part the subscription price of the Debentures by cancelling the bridge loan on the basis of $1 principal of bridge loan per $1 principal of Debenture and by waiving any accrued interest under the bridge loan. The other terms and conditions as announced previously remain unchanged. The final approval of the TSX-V must be obtained no later than March 31, 2017.
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. The transaction is an exempt transaction under Policy 5.3 of the TSX Venture Exchange.
SOQUEM, a subsidiary of Investissement Québec, is a leading player in mineral exploration in Québec. Its mission is to explore, discover and develop mining properties in Québec. SOQUEM has participated in more than 350 exploration projects and contributed to major discoveries of gold, diamonds, lithium and other minerals.
Sphinx is engaged in the generation and acquisition of exploration projects in Québec, Canada which is recognized as an attractive mining jurisdiction worldwide.
For further information, please consult Sphinx's website.
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.