Ms. Linda Brennan reports
PJX RESOURCES PRIVATE PLACEMENT AND EXPLORATION UPDATE
PJX Resources Inc. has arranged a non-brokered private placement to raise up to $150,000 through the issuance of flow-through (FT) units. Each FT unit will be sold at a price of 20 cents per FT unit and will consist of one common share of the company, which will be designated as a flow-through share for the purposes of the Income Tax Act (Canada), and one common share purchase warrant. Each full warrant entitles its holder to purchase one common share at a price of 25 cents per warrant share for a period of 24 months following the closing of the offering.
The proceeds from the offering will be used by the company to incur exploration expenditures on the company's properties in British Columbia. Such exploration expenditures on the properties will constitute Canadian exploration expenses and flow-through mining expenditures as defined in the Income Tax Act, which can be renounced to purchasers of the FT units for the 2012 taxation year.
The offering is subject the approval of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a four-month hold period.
PJX has completed its fall exploration program and is providing an update on its progress.
The company completed preliminary drill programs to test targets on the Eddy and Zinger properties. Assay results from these first holes are pending and will be released when they are received. The company next expects to drill test gold and base metal targets on the Vine property early next year.
The Eddy property covers a 20-kilometre shear zone with gold mineralization in historical rock grab samples ranging up to 56 grams per tonne (g/t) in vicinity of the shear. Airborne geophysics has also identified four large electro-magnetic (EM) and magnetic anomalies at depth that could be associated with gold and base metal mineralization. Preliminary holes drilled to test the geology and source of the geophysical anomalies were inconclusive. Additional geophysics is being undertaken to help further define the geophysical anomalies for possible further drill testing in 2013.
The Zinger property has an eight-kilometre-long and 1.5-kilometre-wide trend in historical rock grab samples containing anomalous results up to 39 g/t gold. Within this trend, airborne geophysics has identified a four-kilometre-long magnetic trend and resistive zones that may correlate with alteration associated with gold mineralization. Recent mapping has also identified a fold structure in the sediments that appears to correlate with the trend in gold mineralization. Preliminary drilling completed will be used to help confirm the fold structure's orientation, and assess alteration and gold mineralization. Results of this work will be used to define targets for testing in 2013.
The Vine property has potential for two types of deposits, subvertically-dipping, vein-style gold-silver-lead-zinc-copper mineralization and shallow-dipping, Sullivan-style massive sulphide lead-zinc-silver mineralization. Historical drilling has identified mineralization within the Vine vein structure for over one kilometre along strike and to a depth of about 500 metres in one location. The potential for additional mineralization at depth and along strike is being evaluated. In addition, an airborne VTEM geophysical survey has identified a large EM anomaly on the Vine property. Compilation of historical drilling and surface mapping suggests that the anomaly may occur at the same geological time horizon that hosts the Sullivan lead-zinc-silver deposit. The anomaly may also be associated with a deeper sulphide horizon that was intersected by Kokanee Exploration Ltd. in a 1990 drill hole located about 1.5 kilometres northeast of the anomaly. The four-metre sulphide intersection averaged 0.11 g/t gold, 42 g/t silver, 4.3 per cent lead, 2.1 per cent zinc and 0.4 per cent copper. Multiple target areas are being prioritized for drilling planned in early 2013.
"Exploration during 2012 has greatly advanced our understanding of the geological controls that influence the distribution and concentration of gold mineralization. Results from work on the Dewdney Trail, Zinger and other properties are still being received and will be compiled to help define additional targets for testing in 2013. With our recent financing of $1.4-million combined with the financing announced today, PJX is well positioned to continue to explore in pursuit of making a discovery."
Historical analyses and data have been largely obtained from documents published by, or filed with, the government of British Columbia. The technical accuracy of the data has not been verified by the company.
The foregoing geological disclosure has been reviewed by John Keating, PGeo (a qualified person for the purpose of National Instrument 43-101 standards of disclosure for mineral projects). Mr. Keating is the president, chief executive officer and a director of PJX.
We seek Safe Harbor.