11:21:50 EST Mon 19 Nov 2018
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ExGen Resources Inc
Symbol C : EXG
Shares Issued 344,730,080
Close 2018-11-08 C$ 0.02
Recent Sedar Documents

ExGen Resources drills 18.9 m of 2.14% CuEq at Empire

2018-11-08 15:36 ET - News Release

Mr. Jason Riley reports

RECENT EXPLORATION RESULTS INDICATE POTENTIAL ENLARGED OPPORTUNITY IN THE EMPIRE MINE VICINITY AND CONTINUED STRONG RESULTS FROM ONGOING DRILLING AT THE EMPIRE MINE

ExGen Resources Inc. has provided an update in respect of Phoenix Global Mining Ltd.'s exploration and development activities at the Empire mine project in Idaho, United States. Further to previous ExGen news releases, ExGen owns 20 per cent and Phoenix owns 80 per cent of Konnex Resources Inc., which holds the leases and claims to the Empire mine project. ExGen further has a 2.5-per-cent net smelter return royalty on the Empire mine project and is one of Phoenix's largest shareholders, owning 1.33 million common shares (4.18 per cent of Phoenix).

ExGen is pleased to announce the results from the company's continuing surface sampling and drilling programs at the Empire copper project in Idaho, United States. The results of the 2018 drilling program, to date, were published in September and early October and can be found under the company's filings on SEDAR.

Highlights:

  • Mineralization is now demonstrated along a 3.5-kilometre strike within the expanded 1,837-acre property.
  • The current resource (shallow oxide deposit) exists along one kilometre of strike length.
  • Phoenix will now fast-track further exploration work alongside completing the feasibility study on the current resource.
  • Drilling in and around the current resource returned high-grade copper and silver assays and confirmed the presence of sulphides.

Dennis Thomas, chief executive officer of Phoenix, said: "The results of the current program suggest we have [an enlarged potential] opportunity along a 3.5-kilometre strike. We have only really begun to understand the scale of the opportunity following the mapping, sampling and drilling work outside the [current resource], which has been the focus of our attention to date. We have always believed that the area had strong potential. We needed to increase the property holdings to incorporate these potential areas, which we have now done. We have increased the holding from 813 acres to 1,837 acres.

"The newly discovered Red Star zone is located 330 metres northwest along strike from the present northern limit of the Empire [current resource] and appears to be a continuation of the Empire [deposit's] mineralization trend, which, in turn, continues on into the Horseshoe block of claims towards the old Horseshoe mine approximately 1.3 kilometres along strike from Empire. Three reverse circulation (RC) drill holes have already been completed in the Red Star zone.

"We believe we can add considerable value by continuing exploration along the whole 3,500-metre zone within the property boundary and investigating the mineralized showings and old workings within this [potentially] vast mineralized system.

"Finally, the drilling program around the [current resource] at Empire continues to return robust results which will [hopefully] enhance the new resource estimate scheduled for completion in January next year. High-grade copper and silver assays, consistent with results reported in the last two months, provides more evidence of a deeper-rooted, high-grade sulphide system. Assay results for those holes are anticipated in November and early December. We look forward to keeping the market updated on our progress."

Jason Riley, chief executive officer of ExGen, commented: "We are very pleased with this latest round of assay results from Red Star and now the Horseshoe block that indicate the potential of a larger-scale area play at Empire. Additionally, the ongoing infill and stepout drilling continues to deliver impressive grades of copper, which should benefit the current resource update expected in Q1 next year. We eagerly await the next drilling results from Red Star before year-end."

Red Star channel sampling

One continuous channel, comprising 12 1.5-metre samples, were collected from the exposed outcropping at the Red Star zone. The results of these samples were composited as a single sample. Individual 1.5-metre samples ranged in grade from 0.15 per cent copper to 1.69 per cent copper and were all included in the grand composite.

The channel samples were composited and are presented in the attached table. Copper-equivalent grades were calculated based on metal prices as follows -- $6,000 per tonne for copper, $2,325 per tonne for zinc, $1,200 per ounce for gold and $14 per ounce for silver.

The Red Star zone is 330 metres outside of the current resource area to the northwest on the edge of the Horseshoe claim block.

Channel        Length      Cu      Zn      Au      Ag    CuEq           
sample        (metres)     (%)     (%)   (g/t)   (g/t)     (%) 
              
Red Star        18.3     0.65    0.12    0.36    16.4    1.09 
Including        4.6     1.08    0.13    0.03    13.7    1.26 
Including        1.5     1.69    0.08    0.02    11.0    1.82 

Note: Reported lengths are sample lengths; true widths 
have not been determined.

Horseshoe exploration rock-chip samples

Twenty rock-chip samples were collected as part of the initial exploration effort on the Horseshoe claim block from various outcroppings and exposures with at least some visually identifiable mineralization. The sampling represents a small portion of the proposed exploration program for the area in 2019. A notice of intent (NOI) is currently under review by the U.S. Forest Service for drilling on the Horseshoe claim block.

The Horseshoe block comprises of 944 acres of unpatented claims contiguous to the Empire property and staked by Phoenix in 2017 and 2018. The historical Horseshoe mine is located approximately 1,000 metres north of Red Star and approximately 1,300 metres north-northwest of Empire's North pit.

                HORSESHOE ROCK CHIP SAMPLES  
    
Sample       Cu       Zn       Pb       Au         Ag      W
number       (%)      (%)      (%)    (g/t)      (g/t)  (g/t)

458503     0.02     5.83    20.00     0.18     580.00      5
458504     0.01     0.05     0.04     0.02       2.90     50
458505     0.00     0.17     2.01     0.03      15.20      5
458506     0.00     0.04     0.04     0.01       1.30      5
458507     0.01     0.11     2.71     0.02      25.70     10
458508     0.02     0.02     0.01     0.01       0.80      5
458509     9.19     0.43     0.02     0.50      89.80     30
458510     0.19     1.26     5.08     0.08      84.80     40
458511     1.67     0.61     0.03     0.01       7.80    120
458513     1.95     1.77     0.81     0.48     367.00     40
458514     0.20     1.01     0.01     0.01       2.50      5
458515     0.06     0.03     0.00     0.01       1.60      5
458516     0.13     0.38     0.22     0.05      12.60      5
458517     0.02     0.06     0.27     0.05      30.40      5
458518     0.15     1.11     2.33     0.01      31.70     20
458519     0.47     3.21     3.06     0.01      38.30     30
458520     0.03     0.23     0.06     0.01       2.40      5
458521     2.93     1.41     0.04     0.01      39.40    790
458523     3.83     1.55     0.02     2.02     141.00    220

Note: Readers are cautioned that rock-chip samples are 
selected samples and are not necessarily representative 
of the mineralization hosted on the property.

Drilling update -- Empire mine

ExGen has completed a total of 8,604 metres of drilling at Empire. To date, this consists of 6,328 metres of reverse circulation (RC) drilling and 2,276 metres of diamond drilling. Drill samples are being delivered to the ALS Global laboratory in Nevada for assay with a turnaround time of approximately six weeks. The drill hole results received to date from diamond drill holes KXD18-14A through to KXD18-19 and RC holes KX18-48 through to KX18-52 are shown in the attached table. The results from the previous ExGen drilling programs in 2017 and the 2018 results for 47 RC holes and 13 diamond drill holes, published in September and October, 2018, can be found under the company's filings on SEDAR.

The copper-equivalent grade is calculated based on metal prices as follows: $6,000 per tonne for copper, $2,325 per tonne fo zinc, $1,200 per ounce for gold and $14 per ounce for silver.

Drill hole       From       To   Interval       Cu       Zn       Au       Ag     CuEq                
No.                (m)      (m)        (m)      (%)      (%)    (g/t)    (g/t)      (%)

KX18-48          39.6     41.1        1.5     0.29     0.04     0.56     18.6     0.85
KX18-51          73.2     74.7        1.5     0.74     1.93     0.06     25.8     1.75
KX18-52          12.2     18.3        6.1     0.35     0.02     0.02     12.0     0.48
And             103.6    121.9       18.3     1.28     0.10     0.22     18.2     1.62
including       103.6    108.2        4.6     2.95     0.20     0.70     44.0     3.88
Including       103.6    105.2        1.5     5.54     0.22     1.36     69.6     7.16
KXD18-14A        25.6     26.8        1.2     0.30     0.03     0.09     26.0     0.59
And              35.7     37.2        1.5     0.25     0.40     0.01      6.4     0.47
And             112.5    113.4        0.9     0.26     0.04     0.01     10.9     0.37
And             113.4    115.5        2.1     0.58     0.03     0.10     13.8     0.78
KXD18-15         32.2     32.8        0.5     0.02     1.66     0.19     55.7     1.26
And             105.7    107.5        1.8     0.03     3.78     0.03     71.1     2.10
KXD18-16          0.0      3.7        3.7     0.56     0.19     0.03      3.6     0.69
And              18.9     38.6       19.7     1.10     1.10     0.23     12.0     1.79
Including        24.7     27.4        2.7     2.50     0.65     0.20     11.4     2.98
Including        30.5     36.9        6.4     1.49     1.30     0.53     17.9     2.52
And             117.0    119.8        2.8     0.54     0.14     0.09     14.2     0.78
And             143.9    145.4        1.5     0.46     0.05     0.04      9.3     0.58
KXD18-17          4.6      6.7        2.1     0.44     0.03     0.03      8.1     0.54
And              10.4     13.4        3.0     1.52     0.04     0.04     12.4     1.67
And              27.5     28.8        1.3     1.91     0.05     0.12     38.4     2.33
And              66.1     69.2        3.0     0.76     0.02     0.25     27.7     1.17
KXD18-18          6.2     10.7        4.4     1.17     0.02     0.12     52.3     1.70
And              16.0     18.6        2.6     0.56     0.33     0.24     32.8     1.12
And              25.0     26.4        1.4     0.71     0.14     0.32     22.5     1.17
And              41.8     60.7       18.9     1.26     0.15     1.01     12.8     2.14
Including        47.2     55.3        8.1     2.26     0.21     1.98     14.1     3.86
Including        52.3     53.8        1.5     3.94     0.13     2.52     15.8     5.91
KXD18-19          0.0      4.0        4.0     0.55     0.17     0.47     11.4     1.04
And              52.8     54.4        1.6     1.44     0.18     1.42     17.1     2.65

Note: Reported lengths are core lengths as true widths have not yet been 
determined. The company anticipates the true-width calculations to be 
available in the coming weeks.

Quality assurance and quality control protocols

Copper, zinc and silver were determined by the ICP method. Copper and zinc over 1 per cent ICP are assayed using four-acid digestion and silver over 100 parts per million by four-acid digestion, whereas gold was determined by a 30-gram fire assay followed by atomic absorption. The qualified person for this news release notes that Phoenix inserts at least two blanks, duplicates or standards for every 20 samples submitted to the ALS assay laboratory in Nevada. Core samples are saw cut in half and stored in a secure facility. RC chips and channel samples are stored in the same secure facility. All samples are delivered to the laboratory under chain of custody protocol and submitted using subform sample numbers.

Other results pending analysis

There are currently 11 RC holes and seven diamond drill holes awaiting assay results, which should be received in November and December, 2018, and will be reported as soon as possible. The samples are at the ALS assay laboratory in Nevada. These results will be announced following the receipt of assay certificates and QA/QC sign-off.

Qualified person

Roger Turner, ACSM, MSc, MIMMM, CEng, a qualified person as defined by National Instrument 43-101, and chief technical officer and director of Phoenix Global Mining, has reviewed and verified the technical mining information provided in this release. Mr. Turner is a graduate mining engineer from the Camborne School of Mines with an MSc in economic geology from Leicester University with more than 40 years of experience in mine development, construction and operation.

Shareholder communications

As previously announced, ExGen also became a member of the 8020 Connect Inc. investor community. The company invites all shareholders and stakeholders to join the ExGen Resources portal on 8020 Connect.

About ExGen Resources Inc.

ExGen, formerly Boxxer Gold Corp., is a project accelerator that seeks to finance exploration and development of its 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 six projects in Canada and the United States.

We seek Safe Harbor.

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