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Mexivada finds new molybdenum-gold targets at Moly Dome

2008-04-21 09:22 ET - News Release

Mr. Richard Redfern reports

MEXIVADA DISCOVERS PORPHYRY MOLYBDENUM, SILVER-TELLURIUM, AND GOLD SYSTEMS AT MOLY DOME, NEVADA; BEGINS TELLURIUM EXPLORATION PROGRAM

Mexivada Mining Corp. has received final assay and geochemical results from its 2007 phase 1 drilling program at its Moly Dome property, which is located 120 kilometres north-northwest of Elko, Nev. Three HQ diamond core drill holes were completed for a total of 1,202 metres of drilling. A porphyry-molybdenum system and several intervals of gold-silver-tellurium mineralization were intersected in hole 1. Hole 2 intersected a sulphidized, tungsten-enriched metasediment "carapace" cover rock sequence, ostensibly above granitic or porphyry bodies, and a silver-tellurium-gold enriched vein system was intersected in hole 3. These drill results show that Moly Dome is in a highly prospective target area for molybdenum, gold and silver-tellurium mineralization, in close proximity to each other.

Tellurium is a rare "high-tech" metal that is an integral part of new cadmium telluride solar panel technologies used by industry leader First Solar. The price of tellurium metal has increased from $10 (U.S.) per kilogram in 2004 to recent selling prices of $300 (U.S.) to possibly as much as $500 (U.S.) per kilogram, and a recent article suggested that First Solar could be vulnerable to tellurium shortages that could result in significantly higher prices from here. Mexivada's Jefferson property near Round Mountain, Nevada, also contains significant enrichments in tellurium, associated with its precious metal systems. Mexivada has begun an exploration program for additional potential new sources of tellurium metal.

Drill hole MD07-1 was drilled to a depth of 458.7 metres at an angle of minus 65 degrees, attempting to drill across projected surface vein mineralization located at the "Moly shaft" prospect, where samples of molybdenite (MoS2)-pyrite bearing quartz were found that contained up to 0.359 per cent MoS2 (see Mexivada's website). MD07-1 also was designed to drill into a significant induced polarization (IP) chargeability anomaly defined below the Moly shaft. The molybdenum mineralization intersected in MD07-1 is associated with porphyry-style granitic intrusives and hydrothermal breccias that cut deep-level "mesozonal" granodiorite to quartz monzonite stocks of the Cretaceous 81-million-year-old to 90-million-year-old Mountain City granitic stock system. Molybdenite mineralization occurs in variable amounts through much of the drill hole, as closely spaced quartz-molybdenite-pyrite veins, small pockets, and disseminations within strongly altered metasedimentary and greenstone strata of the Paleozoic upper plate Valmy formation, and in alaskite and granodiorite porphyry rocks that are strongly sericitic with potassic overprints characterized by potassium feldspar and biotite selvages developed along veinlets and stringers of quartz plus magnetite plus pyrrhotite. Geochemical and assay results from MD07-1 indicate a 127-metre-thick intercept of stronger mineralization occurring between 91 to 218 metres with values of up to 0.626 per cent MoS2 over 1.5-metre core lengths, as shown in the table, "Drilling results, Moly Dome phase 1 core drilling project."

Gold mineralization in MD07-01 is somewhat anomalous yet pervasive throughout most of drill hole MD07-1. A high gold value of 1.82 parts per million Au over a 1.5-metre interval (147.8 to 149.3 metres) occurs adjacent to a quartz latite dike of possibly Carlin-age and to a quartz-healed quartz vein breccia. This could be indicative of a second, younger gold-rich mineral event of Tertiary age, synchronous with gold mineralization at Carlin Goldstrike, Nevada, at 39 million years. A gold-silver-tellurium-lead enriched interval of mineralization also occurs at 222.5 to 224 metres, similar to those described below in holes MD07-2 and MD07-3.

Drill hole MD07-02 was drilled in the southern part of the Moly Dome property to a depth of 331.3 metres, at an angle of minus 60 degrees into a second IP chargeability anomaly. The hole intersected a south-dipping, domed-up and pyrite-sulphidized metasediment "carapace" cover rock sequence of Valmy greenstone and quartzite that ostensibly overlies granitic or porphyry intrusive bodies. Some weak gold-tungsten mineralization was found in this sulphidized rock package, but wide intervals between 150 to 185 and 215 to 280 metres downhole were strongly enriched in tungsten, with values to 0.056 per cent W, suggestive of possible nearby skarn mineralization. A gold-silver-lead-tellurium-enriched interval also occurs at 224 to 225.5 metres, similar to that described below in hole MD07-3.

Drill hole MD07-03 was drilled in the east-central part of the Moly Dome property, north of hole MD07-1, at an angle of minus 75 degrees, to a total depth of 411.8 metres. This hole was sited southeast of a large, strong IP chargeability anomaly, targeting projected east-west-trending outcropping quartz vein mineralization containing molybdenite, galena (hessite) and malachite. Localized subplanar-to-stylolitic veins of molybdenite were intersected between 303.3 to 408.4 metres within and along the margins of a quartz stockwork zone hosted by carbonaceous spotted phyllite metasedimentary rock. Cross-cutting the molybdenite mineralization are high-grade silver-tellurium-lead-gold-bearing quartz-sulphide and quartz-carbonate veins that contain up to 206 parts per million tellurium, 320 parts per million silver, 1.15 parts per million gold and 1,555 parts per million lead, over 1.5-metre core intervals. These veined zones contain localized concentrations of the tellurium minerals hessite and altaite. The relationship between the telluride-precious metal-carbonate mineralization and molybdenum has not yet been clarified, but the former may be superimposed on the molybdenum, and thus be younger in age.

DRILLING RESULTS, MOLY DOME
PHASE 1 CORE DRILLING PROJECT
(core hole molybdenum geochemistry % MoS2)

DDH No. Intercept (m) Width (m) % MoS2

MD07-1 91.4 - 92.9 1.5 0.023
MD07-1 99.1-111.3 12.0 0.060
MD07-1 111.3-123.4 12.0 0.133
MD07-1 118.9-120.4 1.5 0.626
MD07-1 126.5-128.0 1.5 0.055
MD07-1 132.5-158.5 26.0 0.043
MD07-1 161.5-178.3 17.0 0.028
MD07-1 189.0-218.0 29.0 0.021
MD07-3 303.3-304.8 1.5 0.033
MD07-3 347.5-349.0 1.5 0.101
MD07-3 358.5-360.0 1.5 0.053
MD07-3 379.5-380.0 1.5 0.017
MD07-3 402.3-403.8 1.5 0.019
MD07-3 406.9-408.4 1.5 0.017

CORE HOLE GEOCHEMISTRY (AU, AG, TE, PB)

DDH No. Intercept (m) Width (m) Au (ppm) Ag (ppm) Te (ppm) Pb (ppm)

MD07-1 77.7 - 79.2 1.5 0.189 -0.01 -0.05 6
MD07-1 147.8-149.3 1.5 1.820 28.3 15.65 47
MD07-1 193.5-195.0 1.5 0.113 54.5 6.37 711
MD07-1 222.5-224.0 1.5 0.444 59.5 16.4 1555
MD07-1 257.5-259.0 1.5 0.251 24.9 8.31 170
MD07-1 266.8-268.3 1.5 0.128 126.0 17.05 1030
MD07-1 291.2-292.7 1.5 0.016 41.8 2.61 217
MD07-2 18.3 - 19.8 1.5 0.112 2.78 0.30 8
MD07-2 39.6 - 41.1 1.5 0.158 1.86 0.19 17
MD07-2 224 - 225.5 1.5 0.100 46.8 3.67 544
MD07-3 150.9-152.4 1.5 0.217 1.67 1.10 45
MD07-3 353.5-335.0 1.5 1.155 320.0 206.0 608

Interpretation

Mexivada has identified a previously unknown low-fluorine-style porphyry molybdenum-gold mineral deposit system at Moly Dome, with low copper values. Similar-style molybdenum systems are found at Thompson Creek, Idaho and elsewhere in Nevada. The northern part of the Moly Dome property has a strong IP chargeability anomaly area that has not yet been tested for molybdenum by drilling. In addition, strong silver-tellurium-gold mineralization appears to cut the molybdenum system, and the extent and geometry of this mineralization needs to be explored by additional drilling. Both the molybdenum-gold and silver-tellurium-gold systems may extend upward to or toward the ground surface. Moly Dome holds good potential to yield a bulk-minable molybdenum-gold-silver-tellurium deposit in today's market, and it is close to established infrastructure and mining work forces.

Future work

Planning of phase II drilling is now under way in order to define the shape, extents and grades of mineralization at Moly Dome. The northern part of the property area will be tested for additional molybdenum porphyry bodies, in and near the IP anomalies. The form, geometry and extents of the silver-tellurium-gold mineralization also will be tested by drilling, and additional bodies of this mineralization will be explored for. Mexivada has begun a new program of exploration for high-grade tellurium deposits in North America, and elsewhere as opportunities arise, to augment the two properties that it already controls.

This press release and its contents have been reviewed by Richard R. Redfern, Mexivada's president, who is a certified professional geologist and qualified person as defined under National Instrument 43-101.

We seek Safe Harbor.