NRMaximus And NFX Report Assays From Larder Lake Gold Project, Ontario
TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 18, 2006) - NFX Gold Inc. ("NFX") (TSX VENTURE:NFX) and Maximus Ventures Ltd. ("Maximus") (TSX VENTURE:MXV) announced today assay results from the first two diamond drill holes at the Larder Lake Gold Project, which are part of an exploration program of up to 24 holes to be drilled in 2006. The project is being explored under an Option and Joint Venture Agreement between NFX and Maximus. These two holes were drilled adjacent to the historic Cheminis gold mine to explore for gold mineralization along extensions of known fault zones, as described in a joint news release by Maximus and NFX dated June 5, 2006. The Cheminis mine area and other targets being explored by Maximus lie on the Larder Lake Break, a larger zone of connected faults that extends over 200 kilometers east from Kirkland Lake, through Larder Lake, to Val d'Or, along which numerous large gold mining districts are located.
"Gold mineralization was intersected in both holes." noted Frederick T. Graybeal, Maximus' President, "and the two intersections in hole CH-06-15 are both candidates for offset drilling later in the program. Maximus is encouraged that each of the first two holes in a program of up to 24 exploration holes have intersected potentially important zones of gold, but these are step-out exploration holes and interpretation of the results will require additional drilling."
Exploration Objectives
The objectives of the 2006 drill program are to test areas where iron-rich basalt flows and ultramafic rocks have been cut by strong fault zones and altered to mixtures of sericite, fuchsite, pyrite, quartz veins, and carbonate minerals, all commonly associated with gold mineralization. Areas for drilling are shown on Figure 1 at the end of this release; target types are generally as follows:
1. High grade gold mineralization adjacent to the Cheminis gold mine, as well as the Fernland and Bear Lake prospects, along the southern strand of the Larder Lake Break;
2. Shallow, near-surface zones of gold mineralization for their potential to host resources that might be amenable to open pit mining; and
3. Shallow and deeper gold targets on three additional, recently recognized, regional scale fault zones north of the Cheminis mine for Kerr Addison type deposits.
Most of the holes planned for the 2006 program will be widely spaced and designed to test areas with few or no previously known drill holes. Assays may not be easily correlated with other holes in the project area so their importance may be difficult to interpret until additional drilling is completed. As a matter of policy for reporting assays in the future, NFX and Maximus will release all assay results from the drill program either when the drilling has been completed or at such earlier time as NFX and Maximus deem the results to be material or consider that results can be presented in the correct geological context.
Drill Program Details
Since June 2, 2006, two diamond drill holes (1150 meters) were completed and a third hole was started in western part of the Larder Lake Property. Assays received to date are as follows:
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Hole From To Length Gold Mineralization
Numbers (m) (m) (m) (1) (g/t) (2) Type (3)
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PR-06-13 301.15 303.40 2.25 3.88 Flow
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including 302.10 302.40 0.30 15.63 Flow
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PR-06-15 371.60 375.65 4.05 5.12 Flow
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including 372.15 374.40 2.25 7.30 Flow
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And 483.40 487.75 4.35 5.69 Carbonate
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including 484.35 485.75 1.40 10.18 Carbonate
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Notes:
(1) Meters. Length is reported in meters of drilled core and is not necessarily the "true" width.
(2) Au g/t. Gold grades are reported in units of grams per tonne gold. All gold assays were performed by Expert Laboratories in Rouyn, QC using standard fire assaying protocols. Assay results from the 2006 drill program are considered accurate, precise and free of contamination as determined from assay results of quality control certified reference standards, field blank standards and duplicate samples submitted during the program. Core recovery generally exceeded 95%. All other assays are less than 1.00 g/t Au
(3) Flow - contains abundant pyrite in altered volcanic rock. Carbonate - contains abundant ankerite, quartz veins, occasional visible gold, and only minor pyrite.
The technical content of this news release has been reviewed by Martin Bourgoin, PGeo, responsible for supervising the drilling campaign and is the qualified person for Maximus under the guidelines of National Instrument 43-101.
Larder Lake Geology
The Cheminis mine hosts an in situ Measured and Indicated Mineral Resource of 1,619,082 tons grading 0.175 oz/ton gold and an in situ Inferred Mineral Resource of 924,275 tons grading 0.189 oz/ton gold (see NFX's National Instrument 43-101 Technical Report dated November 20, 2003, prepared by MRB & Associates, available on SEDAR). These estimates were prepared by G.M. Hogg in 1998, in accordance with National Policy 2A, the requirement in 1998 when the resource estimates were made, and as such, are not NI 43-101 compliant. Since these estimates were prepared before the introduction of NI 43-101, they should be treated as historical estimates only. Investors are cautioned that recent independent verification has not been completed and Maximus has not completed sufficient work to independently verify the historical resource and reserve estimates. Maximus is not treating the historical estimates as NI 43-101 defined resources and reserves verified by a qualified person and the historical estimates should not be relied upon.
Most of the 876 holes drilled previously at Larder Lake have focused on a single fault strand that controls gold mineralization at the Cheminis mine and Fernland, Bear Lake and Barber Larder prospects. However, an analysis of assays and geologic information in the property database by consultants to NFX and Maximus has identified 3 additional altered and mineralized fault zones north of the Cheminis mine. These three fault zones extend across a cumulative 11 kilometers of the project and a compilation of historic data indicates very limited drilling along these important, ore controlling structures. The northernmost of these structures may extend through the site of the now-closed Kerr Addison mine (11 million ounces of gold produced at a grade of 0.29 oz Au), located 2 kilometers to the east of the project property boundary.
Further information on the Larder Lake Property can be found in a Maximus report titled "Technical Report, NI-43-101 & 43-101F1, LARDER LAKE PROPERTY, Larder Lake, Ontario", dated February 20, 2006, prepared by MRB & Associates, and also filed on SEDAR.
Larder Lake Property
The Larder Lake Project consists of the Cheminis, Bear Lake, and Fernland properties (all 100% NFX owned) and the Barber Larder property (75% NFX owned). Under the definitive Option and Joint Venture Agreement between NFX and Maximus signed March 3, 2006 Maximus acquired the right to earn a 60% interest in NFX's interest at Larder Lake by expending $6 million on exploration thereon by December 31, 2008. Minimum expenditures must total $700,000 by July 31, 2006 to continue the option.
This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
NOTE: To view Figure 1 (Altered and Mineralized Fault Zones with Drill Targets, Larder Lake Property, Ontario) please visit the following link - https://www.ccnmatthews.com/docs/NFX0718.doc
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.