ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF)
(“ExGen”, the “Company”) is pleased to provide an update in respect
of Phoenix Copper Ltd.’s (“Phoenix”) exploration and development
activities at the Empire Mine Project in Idaho, USA. Further to
previous ExGen news releases, ExGen owns 20% and Phoenix owns 80%
of Konnex Resources, Inc. (“Konnex”), which holds the leases and
claims to the Empire Mine Project. ExGen further has a 2.5% NSR
royalty on the Empire Mine Project and owns 1,330,000 common shares
of Phoenix.
ExGen is pleased to report data from updated NI
43-10 resource estimate for the Empire Mine Project, in Custer
County, Idaho, USA (the “Empire Mine”) prepared by Hard Rock
Consulting, LLC (“HRC”).
The results of the Empire Mine work programme,
to date, were published throughout the period 2017 to present, and
can be found in the Company’s news releases filed on SEDAR
(www.sedar.com).
Highlights
- New NI 43-101 resource reported at the Empire Mine oxide open
pit based on future recovery of copper, zinc, gold and silver
increases Measured & Indicated resources increased by 27%
- Measured & Indicated open pit resource using a combined
metal cut-off grade of 0.36% copper equivalent, compared with the
previously reported May 2019 resource using a copper-only cut-off
of 0.184%, has increased as follows:
Metal |
Measured & Indicated resource |
|
May 2020 |
May 2019 |
Increase |
Copper (tonnes) |
81,948 |
73,872 |
11% |
Zinc (tonnes) |
37,650 |
29,813 |
26% |
Silver (ounces) |
6,824,460 |
6,038,000 |
13% |
Gold (ounces) |
217,500 |
139,000 |
56% |
Measured & Indicated Tonnes |
19,302,000 |
15,169,000 |
27% |
Jason Riley, CEO of ExGen commented: “I am
pleased to see the large increase in the polymetallic resource at
Empire. Our M+I tonnes increased by 27%, with the gold M+I seeing
the largest increase at 56%. Of note, our inferred resource tonnes
also increased by an impressive 147%.”
Empire Mine - 2020 Resource
Update
In May 2019 an NI 43-101 resource on the oxide
copper deposit at Empire was generated for a heap leach SX/EW open
pit to recover copper. This heap leach operation would not recover
gold and silver unless a separate heap leach precious metals
operation was built on completion of the copper leaching
operation. With an agitation leach plant to recover copper
and zinc followed by a gold/silver Merrill Crowe recovery circuit
as an alternative to the heap leach operation it was decided to
evaluate the resources based on the recovery of copper, zinc, gold
and silver. With the gold price performance since the 2019 resource
calculation this has been an increasingly attractive alternative to
the heap leach option.
Based on the examination of the distribution of
gold, silver, and zinc values, and independent of copper values,
from the assays used in the May 2019 Empire oxide resource, HRC
estimated this updated NI 43-101 resource using the value of all
gold, silver, copper and zinc in the deposit using a combined metal
cut-off grade of 0.36% copper equivalent. The Measured &
Indicated Empire Mine open pit resource based on a combined metal
cut-off grade of 0.36% copper equivalent, compared with the May
2019 resource at a copper-only cut-off of 0.184%, is tabulated as
follows:
Mineral Resource Statement for Empire
Mine, after Hard Rock Consulting May 2020 |
|
CLASS |
Tonnes |
Cu Equiv % |
Average Grade |
Metal Content |
Cu |
Zn |
Ag |
Au |
Cu |
Zn |
Ag |
Au |
Cu Equiv |
% |
% |
g/t |
g/t |
tonnes |
tonnes |
ozs |
ozs |
Tonnes |
Measured |
6,389,000 |
0.82 |
0.46 |
0.22 |
11.8 |
0.315 |
29,134 |
14,184 |
2,423,810 |
64,703 |
52,408 |
Indicated |
12,913,000 |
0.79 |
0.41 |
0.18 |
10.6 |
0.368 |
52,814 |
23,502 |
4,400,649 |
152,797 |
102,094 |
M+I |
19,302,000 |
0.80 |
0.42 |
0.20 |
11.0 |
0.351 |
81,948 |
37,685 |
6,824,460 |
217,500 |
154,502 |
Inferred |
10,544,000 |
0.81 |
0.46 |
0.12 |
7.9 |
0.368 |
47,975 |
12,864 |
2,678,035 |
124,749 |
85,043 |
*Notes:Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Inferred
mineral resources are that part of the mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geologic evidence and sampling, which is sufficient to imply but
not verify grade or quality continuity. Inferred mineral resources
may not be converted to mineral reserves. It is reasonably
expected, though not guaranteed, that the majority of Inferred
mineral resources could be upgraded to Indicated mineral resources
with continued exploration.Mineral resources are reported at a
0.36% CuEq cutoff. The CuEq is calculated based on the following
assumptions: a long-term copper price of US$3.30/lb; gold price of
US$1,650/oz; silver price of US$19.25/oz; zinc price of $1.21/lb;
assumed combined operating ore costs of US$19.25/t (process,
general and administrative and mining taxes); refining costs of
$0.10/lb of CuEq; metallurgical recoveries of 85% for copper, 85%
for gold; 65% for silver and 60% for zinc and a 2.5% royalty.These
Mineral Resource are considered to be amenable to open-pit mining
and are constrained by a conceptual Lersch Grossman pit shell
generated on the same costs, metal prices and recoveries used in
the above CuEq calculation and an average mining cost of $1.80/t
and variable pit slope angles that ranged from 45–52oRounding may
result in apparent differences between when summing tons, grade and
contained metal content. Tonnage and copper and zinc grade
measurements are in Imperial units. Gold and silver grades are
reported in metric g/tonne units to remain consistent with past
reporting formats.
Mineral Resource Statement for Empire
Mine, after Hard Rock Consulting May 2019 |
CLASS |
Tonnes |
Average Grade |
Metal Content |
Cu |
Zn |
Ag |
Au |
Cu |
Zn |
Ag |
Au |
% |
% |
g/t |
g/t |
tonnes |
tonnes |
ozs |
ozs |
Measured |
6,176,000 |
0.49 |
0.21 |
12.2 |
0.26 |
30,419 |
12,864 |
2,419,000 |
51,000 |
Indicated |
8,993,000 |
0.48 |
0.19 |
12.5 |
0.30 |
43,453 |
16,949 |
3,618,000 |
88,000 |
M+I |
15,169,000 |
0.49 |
0.20 |
12.4 |
0.28 |
73,872 |
29,813 |
6,038,000 |
139,000 |
Inferred |
4,271,000 |
0.44 |
0.13 |
9.8 |
0.32 |
18,993 |
5,449 |
1,340,000 |
44,000 |
It should be noted that HRC utilised the same
assay data to tabulate the current resource estimate that was used
for the May 2019 resource. The method of estimation for the
resource presented above included the calculation of a copper
equivalent cut-off grade of 0.36% so as not to exclude gold, silver
and zinc occurring at resource grades in areas where the copper
grade alone did not meet the cut-off criteria. This resource
estimation did not utilise any new drilling data.
The economic parameters used for this analysis
are based upon estimated project operating costs scaled to reflect
production rates and expected processing costs, and upon estimated
copper recoveries from metallurgical tests completed to date. The
CuEq is calculated based on the following assumptions: a long- term
copper price of US$3.30/lb; gold price of US$1,650/oz; silver price
of US$19.25/oz; zinc price of $1.21/lb; metallurgical recoveries of
85% for copper, 85% for gold; 65% for silver and 60% for zinc. The
assumed processing method is a grinding mill followed by an acid
tank leach with separate SX/EW circuits for recovery of copper and
zinc followed by a tank leach operation for recovery of gold and
silver with a Merrill Crowe plant. Table 14-8 summarizes the cost
and recovery parameters used in the analysis. Blocks classified as
Measured, Indicated, and Inferred were used to define the resource
pit shell.
The mineral resource estimate for the Empire
Mine resource area is summarized in Table 1-1. The mineral resource
estimate is based on all data obtained as of April 27, 2020 and has
been independently verified by HRC. Mineral resources are not
mineral reserves and do not have demonstrated economic viability
such as diluting materials and allowances for losses that may occur
when material is mined or extracted; or modifying factors including
but not restricted to mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors. HRC knows of no existing environmental,
permitting, legal, title, taxation, socio-economic, or other
relevant factors that might materially affect the mineral resource
estimate. Inferred mineral resources are that part of the mineral
resource for which quantity and grade or quality are estimated on
the basis of limited geologic evidence and sampling, which is
sufficient to imply but not verify grade or quality continuity.
Inferred mineral resources may not be converted to mineral
reserves. It is reasonably expected, though not guaranteed, that
the majority of Inferred mineral resources could be upgraded to
Indicated mineral resources with continued exploration.
The HRC report entitled “2020 Resource Updated
for the Empire Mine Project” by HRC for Konnex Resources (20% ExGen
US subsidiary) will be filed on SEDAR within 45 days. This
report is in imperial units (1 US short ton = 2,000 lbs, 1 metric
tonne = 2,204.6 lbs). HRC estimated the mineral resource for the
Project based on drill hole data constrained by geologic boundaries
with an Ordinary Krige algorithm. Leapfrog Geo V4.4.2 software was
used to complete the resource estimate.
The mineral resources for the Project have been
estimated in a manner consistent with the NI 43-101 Committee of
Mineral Reserves International Reporting Standards (“CRIRSCO”) of
which both the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) and Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the “JORC
Code”) are members.
Qualified PersonThe scientific
and technical data contained in this news release was prepared and
reviewed by Kieran Downes, Ph.D., P.Geo., an independent qualified
person to the Company. Mr. Downes is responsible for ensuring that
the geologic information provided in this news release is accurate
and acts as a qualified person pursuant to National Instrument
43-101 – Standards of Disclosure for Mineral Projects.
Environmental, Social, and Corporate
GovernancePhoenix is committed to meeting and exceeding
the environmental standards required by law as a core value of the
Company. The baseline environmental data collected to date
will be used for furthering the permitting process, but as
importantly, will be used as the building blocks for the Company’s
future Environmental, Social, and Corporate Governance (ESG)
platform.
ABOUT EXGEN RESOURCES INC.
ExGen, formerly Boxxer Gold Corp, is a project
accelerator that seeks to fund exploration and development of our
projects through joint ventures and partnership agreements. This
approach significantly reduces the technical and financial risks
for ExGen, while maintaining the upside exposure to new discoveries
and potential cash flow. The company intends to build a diverse
portfolio of projects across exploration stages and various
commodity groups. ExGen currently has 6 projects in Canada and the
US.
For more information on ExGen please contact
ExGen Resources Inc.
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 this release.
Forward-Looking Information:
This news release contains certain forward-looking information. All
statements included herein, other than statements of historical
fact, are forward-looking information and such information involves
various risks and uncertainties. There can be no assurance that
such information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such information. In particular, this news release contains
forward-looking information in relation to: the Empire Mine Project
and the exploration and development of the Empire Mine Project; the
earning of the Option by Phoenix and the potential transfer back to
ExGen of the Konnex shares; the exploration and development
strategy of the Empire Mine Project, including the exploration
program, drilling, mine development, completion of a potential
feasibility study in compliance with NI 43-101, and the timing for
completion of these events; the timing for the completion of
exploration drilling and the receipt of exploration information and
drill assays; the potential of the underground sulphide
mineralization and the potential re-opening of the 700 and 1100
level portals to assist in the analysis of the potential sulphide
mineralization. There can be no assurance that such information
will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such information.
There can be no assurance that the development of the Empire Mine
Project will be completed, and if development is completed, that
such development will result in a producing mine. In the forward
looking information contained in this news release, ExGen has made
numerous assumptions, based upon practices and methodologies which
are consistent with the mineral industry. In addition, ExGen has
assumed: the continued market acceptance of its joint venture
partnership model; the ability of ExGen to raise future equity
financing, if needed, at prices acceptable to ExGen; ExGen's
current and initial understanding and analysis of the Empire Mine
Project; the ability of ExGen or third parties to discover viable
exploration targets and the results of exploration on the Empire
Mine Project; the ability of Phoenix to explore and develop the
Empire Mine Project; the cost of exploration, including sampling,
drilling and assaying, on the Empire Mine Project, the costs of
developing the Empire Mine Project and the costs and the ability of
Phoenix to produce a feasibility study in compliance with NI
43-101; the costs and work required to re-open the 700 and 1100
level portals; and ExGen's general and administrative costs
remaining sustainable. While, ExGen considers these assumptions to
be reasonable, these assumptions are inherently subject to
significant uncertainties and contingencies. Additionally, there
are known and unknown risk factors which could cause ExGen's
observations, actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information contained herein. Known risk factors include, among
others: there is no certainty that the Option will result in
significant exploration of the Empire Mine Project or development
of the Empire Mine Project into a producing mine; uncertainties
relating to interpretation of drill results and the geology,
continuity and grade of mineralization and uncertainty as to the
actual results of exploration and development or operational
activities; uncertainty as to the availability and terms of future
financing; uncertainty as to timely availability of permits and
other governmental approvals; ExGen may not be able to comply with
its ongoing obligations regarding its properties; the early stage
development of ExGen and its projects, and in particular, the
Empire Mine Project; general business, economic, competitive,
political and social uncertainties; capital market conditions and
market prices for securities, junior market securities and mining
exploration company securities; commodity prices, in particular
copper, gold, silver, and zinc prices; competition; changes in
project parameters as plans continue to be refined; accidents and
other risks inherent in the mining industry; lack of insurance;
delay or failure to receive board or regulatory approvals; changes
in legislation, including environmental legislation, affecting
ExGen; conclusions of economic evaluations; and lack of qualified,
skilled labour or loss of key individuals. A description of
additional assumptions and risk factors used to develop such
forward-looking information that may cause actual results to differ
materially from forward-looking information can be found in ExGen's
disclosure documents on the SEDAR website at www.sedar.com.
Although ExGen has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking information. ExGen does not undertake to update any
forward-looking information except in accordance with applicable
securities laws.
Jason Tong
Chief Financial Officer
Email: jason@catapultgroup.ca
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