NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Dec. 13, 2023 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) (“ExGen”, the “Company”) is pleased to provide an update on its DOK project in northern British Columbia which is currently under option to Mountain Boy Minerals Ltd. Under the terms of the option Mountain Boy may acquire a 60% interest in the DOK claims by paying $230,000 and issuing 1,500,000 shares to ExGen and by spending $2,500,000 on the DOK claims by January 2026.
Jason Riley, CEO of ExGen commented: “We are very pleased with the confirmed discovery of a mineralized porphyry that carries significant grades of copper and gold. The multi-kilometer footprint of the DOK system augers well for additional significant discoveries. ExGen is eagerly awaiting the assay results for the remaining three drill holes completed this year.”
In a news release dated December 12, 2023, Mountain Boy reported assays from the first hole of the inaugural drill program at the flagship Telegraph Project in the prolific Golden Triangle. Mountain Boy noted that the grade and thickness in this hole are comparable to those found in active mines in the province. The release recorded the following:
“Hole DK2023-01 intersected 107 metres of 0.38% CuEq (see Table 1 for details). Another 6-meter interval carries 1.07% CuEq. Those intersections are within 436 metres of mineralization averaging 0.21% CuEq. Hole 1 is on the margin of a prominent IP chargeability zone that appears to be dipping away from the drill hole trace as detailed and illustrated in Figure 1.
The Telegraph project is in the same region as four world class deposits: adjacent to Schaft Creek (Teck), 40 km north of Galore (Teck/Newmont) and within 110 kms of Saddle North (Newmont) and the Red Chris Mine (Newmont). Work in 2023 was focused on the Dok Trend, one of several copper-gold mineralized areas on the 344 square kilometre property. Four holes were drilled in 2023, for a total of 2,142 metres. The holes were drilled on three separate targets along 3.3 kilometres of the Dok Trend (See Figure 2).
Hole 3, collared 700 meters to the southeast of Hole 1, appears to be in the same target zone. Hole 2 and Hole 4 tested two separate targets. Results for those three holes are pending.
Lawrence Roulston, CEO, stated: “Even at this early stage of exploration, we have confirmed a mineralized porphyry that carries significant grades of copper and gold. Those initial grades, and the scale of the mineralized footprint, provide strong encouragement that Telegraph has potential in line with the other porphyry deposits in the area. We may well look back on this hole as the “discovery hole” of a new mine.”
John Ryan, a member of MTB’s Technical Advisory Board, commented: "Having worked in multiple BC porphyry mines and after leading exploration programs on numerous porphyry systems, I consider these results to be extremely encouraging. The grade and width of the intercepts in DK-2023-01 is comparable to drill holes from active BC Alkalic Porphyry mines and is a great indication that the Dok system has considerable potential within its multi-kilometer footprint. The fact that this was the first hole by the MTB Metals team speaks to the success of the team’s systematic approach."
Table 1 - Assay results for drill hole DOK2023-01
The copper equivalent calculation utilizes the standard equation and is based on current spot metal prices of copper at US$3.76 per pound, gold at US$2,038 per ounce, silver at US$23.79 per ounce, and molybdenum at $25 per pound. Recoveries are set at 100% for all metals for purposes of the copper equivalent calculation as no metallurgical test data is available. Cu Eq is used for illustrative purposes only and does not imply that the metals are economically recoverable.
Figure 1 - Cartoon Cross Section through drill holes DK-2023-001 (right) and DK-2014-001 (left) and chargeability. The merged data is from 3 programs, conducted in 2012, 2022 and October of 2023. It has not been leveled by a geophysicist and is for illustrative purposes only.
Figure 2 - Drill Hole Locations including 2014 and 2023 collars.
Telegraph Project Drilling Summary
Two diamond drill holes were completed in the vicinity of the Dok Zone. Hole DK-2023-01 ended at 484 metres depth and Hole DK-2023-03 ended at 572 metres depth. The holes are 700 metres apart and define a single target. Both holes targeted an Induced Polarization (“IP”) chargeability anomaly which underlies coincident high-grade surface mineralization and elevated copper in soils, within a pronounced magnetic anomaly.
Hole DK-2023-01 tested a high IP chargeability anomaly underlying an outcrop that hosted a hydrothermal breccia with chalcopyrite, secondary biotite, and potassium feldspar. Within the area of the drill hole there is a magnetic high and magnetite ‘M’ veins were observed in outcrop. The hole encountered porphyritic diorite, nested intrusions including phaneritic monzonite, quartz monzonite and megacrystic monzonites, and Stuhini volcanic host rocks. The data suggests that the porphyritic monzonite intersected around 100 meters depth carries significantly more mineralization than the other intrusions, as seen in the strip log (Figure 3). That information provides a valuable targeting tool. From a depth of 15 to 51 meters copper and gold mineralization occurs as a black supergene mineral (chalcocite or tenorite) on fractures and rimming chalcopyrite. Below 51 metres mineralization occurs within stockwork veins, breccia matrix, disseminations, broad wisps and bands.
Hole DOK2023-03 similarly targeted a high IP chargeability anomaly, underneath an outcrop which returned high-grade grab samples including 3.22% copper with 4.62 g/t gold. The hole encountered Stuhini sediments, a post mineral dyke and sections of potassium feldspar and secondary biotite and potassium feldspar mini dykes. Assay results for Hole DOK2023-03 are anticipated in the new year.
Additional drilling will be required to define the geometry of the hydrothermal system and to vector towards areas of increased mineralization. Both holes were drilled on the margins of high IP chargeability anomalies; these geophysical features have provided a valuable vector towards mineralization.
Figure 3 DK-2023-001 strip log showing lithology, alteration, and assays.
Figure 4 is a plan view of the chargeability merged and interpolated from the 2014, 2022 and 2023 IP surveys. DOK2023-01 is at the northwest end of the chargeability zone. The figure demonstrates the size of untested prospective ground and the incentive for further drilling.
Figure 4 - Plan view of chargeability merged from the 2014, 2022 and October 2023 IP surveys. The merged data has not been leveled by a geophysicist and is for illustrative purposes only.
The other two holes in this program were completed in the vicinity of the Red Creek Zone, located 2.5 km southeast of the Dok Zone. These holes tested two distinct target areas which were identified by high IP chargeability, magnetic anomalies, alteration and copper and gold values at surface. They are the first holes in this area. Assays are anticipated in the new year collar information listed in Table 2.
Table 2 - Drill Collar Locations
Easting and Northing are UTM co-ordinates (NAD 83, zone 9N). Azimuth is with respect to true north.
Soil Geochemistry and IP Geophysics
Due to the usefulness of soil geochemistry and IP geophysics for targeting drill holes, additional soil samples were collected over the Dok trend and an 3D IP survey was conducted between the two IP geophysical grids that were conducted in 2012 and 2022, respectively. A total of 703 soil samples were collected over the summer field program. The IP survey was conducted in October and consisted of 16 line-kilometres of 3D IP conducted by Dias Geophysics. Preliminary results show a broad chargeability high feature occurring to the southeast of the Dok showing and Holes 1 and 3. Multiple anomalies were identified that will be followed-up initially with prospecting and mapping next exploration season.
Property Geology and Mineralization
The geological setting of the Telegraph property is similar to four world-class porphyry copper-gold deposits in the same region, all of which are being advanced by major mining companies. MTB assembled a 344 square kilometer land package beginning in 2021 and is now exploring this area for the first time on a consolidated basis.
The property is in northern British Columbia, 50 km southwest of the town of Telegraph Creek, in an underexplored part of the Stikine Terrane within the Golden Triangle in British Columbia. The property straddles the prospective Triassic-Jurassic unconformity, known as the Red Line. The Stikine Terrane is characterized by Late Triassic to early Jurassic volcanic-plutonic arc complexes that are well-endowed with copper-gold-molybdenum porphyries including the Red Chris, Schaft Creek, Kemess, KSM and Galore Creek deposits and mines.
The Telegraph area is mostly underlain by augite phyric basalt of the Stuhini Group, centered on a 6 x 3 km regional magnetic high, with several satellite magnetic features, interpreted to be intrusions. Mineralization is associated with potassic, calc-potassic, propylitic and sodic alteration of monzonites, porphyritic diorite and hydrothermal breccias. Locally there is intense alteration, brecciation and up to 10% disseminated to blebby pyrite, chalcopyrite, and trace molybdenite. Secondary copper minerals including malachite, azurite, chalcocite or tenorite coat fracture surfaces and rim chalcopyrite.
The geology, alteration and mineralization observed throughout the property are all indicative of copper - gold ± molybdenum bearing porphyry systems. In addition to the Dok Trend, the property hosts multiple other target zones including other porphyry targets, epithermal targets, and a nickel-cobalt target.
Lucia Theny, Vice President, Exploration stated: “The Telegraph drill program was successful for two reasons: the empirical approach to conducting exploration, and the expertise of the professionals and technicians who implemented this system. The first hole has proven that the Dok Trend has all the hallmarks of a Cu-Au porphyry deposit, similar to others in the region. I am very encouraged by the complexity of the intrusive units and the fact that we see a specific lithology that carries significant grade. This is a tremendous starting point for next season, we will continue to foster local relationships and I look forward to welcoming many employees back for another season. I’m very excited to step out from holes 1 and 3 because I think we could define a significant system.”
Property Ownership
The Telegraph project is located within the traditional territory of the Tahltan First Nation. MTB has a 100% interest in 23,989 ha, an option to acquire a 100% interest in 2,972 ha and an option to acquire a 60% interest in 7,478 ha from ExGen Resources Inc. (Dok Option, which covers a portion of the Dok Trend). The recent drilling was conducted on the Dok Option property.
QA/QC
Analytical work for samples was completed by ALS Canada Ltd, with sample preparation and geochemical analyses in North Vancouver, BC. Core samples were fine crushed before a 250-gram split was pulverized to better than 85% passing 75 microns. Gold was determined for core samples by the PGM-ICP24 procedure which involves fire assay preparation using a 50-gram charge with an inductively coupled plasma-atomic emission spectroscopy finish (“ICP-AES”). Soil samples were dry screened at 180 microns, with analysis conducted on the fine fraction. Gold was determined for soil samples by the Au-ICP21 method, which involves fire assay preparation with a 30-gram charge followed by an ICP-AES finish. Multi-element data for 48 elements was determined for all samples by the ME-MS61 procedure, which involves a four-acid digestion followed by ICP-AES and inductively coupled plasma-mass spectrometry.
Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the sample stream of diamond drill samples to ensure integrity of the assay process. All diamond drill samples included in this news release have passed the QA/QC procedures as described above. Core was sampled using a diamond saw, with half of each interval sent to the lab for analysis, and the other half retained.
Results referenced in this release represent highlight results only. Below detection values for gold and copper have been encountered in drilling, rock, and soil samples in these target areas.
The technical disclosure in this release has been read and approved by Andrew Wilkins, B.Sc., P.Geo., a qualified person as defined in National Instrument 43-101.”
QUALIFIED PERSON
Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
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 5 projects in Canada and the US.
For more information on ExGen please contact ExGen Resources Inc.
Jason Tong
Chief Financial Officer
Email: jason@catapultgroup.ca
Phone: 604-889-7827
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 may contain 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. In particular, this news release contains forward-looking information regarding: the observations made on drill core from the diamond drilling program and the proposed drilling and exploration program on the DOK claims and larger Telegraph Project. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects ExGen’s current beliefs and is based on information currently available to ExGen and on assumptions ExGen believes are reasonable. Known risk factors include, among others: the possibility that the analytical results from the core sampling does not return significant grades of copper; uncertainties relating to interpretation of drill results and the geology; continuity and grade of mineralization, any subsequent exploration and/or drilling programs on the DOK project may be delayed or not completed at all; the exploration and drilling program may not intersect any mineralization or mineralization as favorable as suggested by the current and historical exploration; ExGen may not be able to comply with its ongoing obligations regarding the DOK Property; fluctuations in copper and gold prices and demand; currency exchange rates; conditions in the financial markets and the overall economy may continue to deteriorate; uncertainties relating to interpretation of the previous exploration results, the need to obtain additional financing and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of ExGen to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of ExGen and its projects, and in particular, the early stage of the DOK 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.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/9f7cbd90-6733-4051-83d0-297e93ee064e
https://www.globenewswire.com/NewsRoom/AttachmentNg/53ee43cb-6bd6-43a8-ac8f-d862c8ca8878
https://www.globenewswire.com/NewsRoom/AttachmentNg/aeb2035b-d377-41df-a987-bb150fc67268
https://www.globenewswire.com/NewsRoom/AttachmentNg/783095e3-2646-447d-a19f-950bfda81122
https://www.globenewswire.com/NewsRoom/AttachmentNg/76a2602c-5e45-4818-ba84-678378903287
https://www.globenewswire.com/NewsRoom/AttachmentNg/9458ded7-98d4-4e1c-b361-12db51fb5e29
https://www.globenewswire.com/NewsRoom/AttachmentNg/2f249662-6f5f-4c00-a534-79288c25c131
