Historic high grade Hallnor Gold Mine consolidated
TSX Venture Exchange:TME, Frankfurt Exchange:TQ1
TORONTO, April 15 /CNW/ - Temex Resources Corp. (TSX Venture: TME, Frankfurt: TQ1) ("Temex" or "the Company") announces that it has entered into a non-binding letter of intent for the acquisition of a 60% interest in the upper portion of the Hallnor Mine claims (the "Property") from Porcupine Gold Mines ("PGM", a joint venture between Goldcorp Inc. and Goldcorp Canada Ltd. "Goldcorp"). The Upper Hallnor Mine Property will become part of the Whitney Township Joint Venture between Temex and Goldcorp with Temex as the Operator with the signing of the Venture Agreement.
The Upper Hallnor Mine and property has not seen any significant exploration since mining operations ceased in 1972 and contains several areas of significant exploration potential with drill intersections that include:
- 15.26 g/t gold over 3.99 metres - 1173.26 g/t gold over 1.52 metres - 12.37 g/t gold over 4.88 metres - 42.10 g/t over 2.44 metres
The Upper Hallnor Mine, together with Temex's 60% ownership of the Lower Hallnor Mine, consolidates the Company's interest in this historic gold producer which was the highest grade mine (of those who produced greater than 1M ounces) in the 65 million ounce Porcupine Gold Camp, having produced more than 1.7 million ounces of gold at an average grade of 0.40 opt (13.71 g/t).
The Lower Hallnor Mine also contains several high grade gold targets defined by drill intersections including:
- 21.10 g/t gold over 6.55 metres (Temex drill hole TW08-075) - 1270.57 g/t gold over 2.89 metres (Royal Oak Mines) - 202.17 g/t gold over 2.10 metres (Royal Oak Mines)
Commented Ian Campbell, President and CEO: "The letter of intent with Goldcorp consolidates our position on the highest grade, past producer from which nearly 2 million ounces of high grade gold was produced in the heart of Canada's most prolific gold camp. It is an exciting time for Temex as we prepare to aggressively explore this cornerstone project of our precious metals platform and we are very pleased to have a world class partner in Goldcorp. Our immediate goals are to define high grade gold mineralization on the Upper Hallnor Mine Property and follow-up on our recent discovery of the high grade Q Zone which remains wide open in all directions. We are well-funded to carry out the drill program."
The Company's 2009 drill program discovered the Q Zone which Temex believes is the down plunge extension of the main mineralized structures in the Upper Hallnor Mine which produced 1.2 million ounces of gold grading 0.40 opt gold. Temex drilled two holes into the Q Zone target with the first drill hole TW09-078 intersecting 25 occurrences of visible gold and multiple, high grade gold intersections that include:
- 17.71 g/t gold over 2.90 metres - 90.35 g/t gold over 0.50 metres - 52.67 g/t gold over 0.71 metres
Further drilling on the Q Zone was not carried out immediately as Temex had met its requirements under the Option Agreement to earn a 60% interest in the Whitney Township Joint Venture. The parties have subsequently been negotiating various items required under the Agreement to consolidate the Upper and Lower Portions of the Hallnor before commencing the next round of exploration.
The Q Zone discovery demonstrates the potential for the discovery of additional zones of gold mineralization within this horizon along strike and to depth and the importance of the acquisition of the Upper Hallnor for the up-dip potential of the Q Zone.
Temex plans to focus its initial drill program on recently identified high priority exploration targets in the Upper and Lower Hallnor Mine area and to the west along strike toward the past producing Bonetal Mine. Several target areas within the Broulan Reef Mine area 2 kilometres to the west of Hallnor, where historical gold production totalled 490,000 ounces grading 0.23 opt, have also been identified to be drilled.
The Whitney Township Property is located central to a 10 million ounce gold mine trend and is surrounded by Goldcorp to the east, Lake Shore Gold Corp. to the north, and a joint venture between San Gold Corporation, Lexam Explorations Inc., and VG Gold Corp. to the west.
The letter of intent contemplates a minimum joint work program of $8.33 million over a 5 year period. Temex expects that the signing of the formal agreement should be completed within a few weeks. Additionally, the terms of the letter of intent contemplate Temex acquiring a 60% interest in the upper Hallnor Mine by paying Goldcorp two equal installments payable as $625,000 cash or 2 million common shares of Temex at the discretion of Temex. Any election by Temex to pay in shares would be subject to the approval of the TSX Venture Exchange. The first payment would be due upon execution of a formal binding joint venture agreement with the second payment due within 12 months of execution of the joint venture agreement. As part of the acquisition and formation of the Joint Venture with Goldcorp, Temex will agree to contribute its 60% share of reclamation, remediation and other costs under the closure plan for previous activities on the Lower and Upper Hallnor Mines to a maximum of $5 million. A portion of these costs will be incurred as part of the above joint venture program.