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Message: ExGen Provides Update on Phase 1 Infill Drilling at Empire Mine Project


2017-11-02 08:30:53 AM ET (GlobeNewswire)


ExGen Resources Inc. (TSX.V:EXG) (OTC:BXXRF) ("ExGen") is pleased to provide an update in respect of Phoenix Global Mining Ltd.'s ("Phoenix") exploration and development activities at the Empire Mine Project in Idaho, USA. Further to previous ExGen news releases, ExGen owns 20% and Phoenix owns 80% of Konnex Resources, Inc. ("Konnex"), which holds the leases to the Empire Mine Project. ExGen further has a 2.5% NSR royalty on the Empire Mine Project and owns 11,300,000 Phoenix common shares.

ExGen is pleased to report the final 6 holes of the 28-hole drill program recently completed by Phoenix on the Empire Mine Project. The updated drill-hole block is intended to be used as the foundation for a potential NI 43-101 resource calculation and a potential Pre-Feasibility Study (PFS). To date, results from 22 of the 28 holes have been reported in recent news releases (August 2nd, September 13th, 2017, and October 10, 2017).


-- Final batch of drilling results include the following from the AP Pit oxide zone:

- 6.1m @ 2.08% copper ('Cu'), 79.18 g/t silver ('Ag') and 2.48 g/t gold ('Au') (Cu equivalent grade 4.35%)

- 24.4m @ 1.06% Cu, 34.82 g/t Ag and 0.17 g/t Au (Cu equivalent grade 1.84%)

- 29.0m @ 0.88% Cu, 46.84 g/t Ag and 0.29 g/t Au (Cu equivalent grade 1.64%)

-- The second of two diamond drill holes targeting the higher grade and deeper sulphide mineralisation is underway. The final depth of the first hole was 314m. Assay results for the two holes are expected in December 2017.

-- Completion of the NI 43-101 resource calculation expected within the next 4 weeks.

As stated in Phoenix's June 29, 2017 news release, Phoenix's strategy to develop the Empire Mine Project can be split into two concurrently-running phases. Phase 1 is to advance the near-surface copper oxide mineralization in the AP Pit through a Pre-Feasibility Study (PFS), with a targeted completion date of early Q2-2018. Phase 1 is focused on proving the commercial viability of the oxides and recovering copper cathode by heap leaching, solvent extraction and electrowinning (SX-EW). The longer-term Phase 2 strategy is to complete a thorough exploration program of the copper sulphide system at depth and the associated gold, silver, zinc, and tungsten mineralization evidenced in historic exploration programs.

Phase 1: AP Drilling

Phoenix previously reported that its initial 28-hole drill program consisted of 21 reverse circulation holes (1,595 metres) and 4 PQ and 3 HQ diamond drill holes (537 metres). The PQ holes are being treated as metallurgical holes.

The following is the summary of results from the last 6 of these 28 holes which are PQ and HQ diamond drill holes. The results for all other holes were included in the Company's October 10th 2017 press release. These results, together with all of the historic drilling results, will now be used by the Preliminary Feasibility Study (PFS) consultant to complete the NI 43-101 resource calculation on the AP Pit oxide zone.

Hole      Intersection Metres    %         gms / tonne
Number    From   To     Interval T Cu Zn   Ag     Au
KXd17-2   0.0    39.6   39.6     0.85 0.60 25.89  0.18
including 7.6    33.5   24.4     1.06 0.84 34.82  0.17
including 10.7   13.7   3.0      2.57 0.12 162.50 0.59
KXd17-4   0.0    15.2   15.2     1.00 0.07 9.73   0.07
including 12.2   15.2   3.0      1.51 0.13 4.65   0.01
and       36.6   79.2   42.7     0.62 0.11 15.56  0.21
including 53.3   73.2   19.8     0.86 0.12 23.52  0.32
KXd17-5   0.0    29.0   29.0     0.88 0.39 46.84  0.29
including 25.9   27.4   1.5      6.26 1.13 338.00 0.93
KXd17-5A  6.1    9.1    3.0      0.98 0.61 75.60  0.37
and       27.4   30.5   3.0      1.31 0.19 78.75  0.43
KXd17-6   15.2   18.3   3.0      0.66 0.07 784.70 0.07
KXd17-7   9.1    15.2   6.1      2.08 0.09 79.18  2.48
including 10.7   12.2   1.5      4.19 0.06 195.00 6.04
          Diamond Drill Holes (PQ & HQ size)

ExGen understands that the above intercepts are not considered to be true widths. Copper, zinc and silver were determined by the ICP method after four-acid digestion, whereas gold was determined by a 30gm fire assay followed by atomic absorption. The QP for this news release notes that Phoenix inserted industry standards, blanks and duplicates into their sample stream, as standard QA/QC protocol.

Phase 1: Resource report and PFS

A key component of the PFS program is the NI 43-101 compliant resource report which Phoenix confirms is on track to be issued within the next 4 weeks. Results from the current 28-hole drill program (including metallurgy from the four PQ-sized holes) are to be incorporated into the NI 43-101 resource report. With current zinc, gold and silver prices there is the potential for significant value in these by-product metals. The potential for recovering the gold and silver from the same heaps when copper recovery is completed will be investigated.

PFS Program

The consultancy team who are managing the PFS continue to make good progress with completion of the PFS on track for Q2 2018:

The study consists of the following:

-- Complete NI 43-101 resource calculation on the AP Pit oxide zone

-- Mine plan, production schedule and capital and operating cost estimates

-- Updated metallurgical test work

-- Crush and stack design, heap leach pads, ponds and SX-EW plant design and capital and operating cost estimates

-- Infrastructure design and costs

-- Water, soil, wildlife and vegetation environmental base line study

-- Project financial analysis and sensitivity analysis

Sulphide Exploration

The Company has commenced the exploration program on the deeper sulphide potential resources, where grades of up to 11.4% copper were recorded during historical underground mining operations. The first of two diamond drill holes targeting the sulphide zone below the old workings has been completed from surface to a depth of 314 metres. A second deep sulphide hole has been started. All assays from these holes are expected in December. In the meantime, the opening of two of the adits to gain access to the old underground workings is progressing. Once completed, an underground mapping, sampling and drilling campaign will begin.

The reader is referred to ExGen's November 14, 2016, January 30, 2017, July 6, 2017, August 2, 2017, and September 13, 2017 news releases for additional technical information on the Empire Mine Project.

Phil van Angeren, P. Geo., a Qualified Person as defined by National Instrument 43-101, and less than 1% shareholder in both Phoenix Global Mining and ExGen Resources, has reviewed and verified the technical mining information provided in this release.

Mr. Jason Riley, CEO of ExGen commented: "ExGen is pleased to see another round of excellent results from the Phase 1 in-fill drilling program. The final batch of assays have again returned significant copper intersections including longer intervals of 24.4m of 1.06% and 29.0m of 0.88% with numerous shorter intervals as high as 6.26% together with significant gold and silver. These results continue to surpass the historical grades from the AP Pit and ExGen is eagerly awaiting the NI 43-101 resource calculation targeted for completion by the end of November."

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 6 projects in Canada and the US.

For more information on ExGen please contact ExGen Resources Inc.

Jason Tong
Chief Financial Officer
Email: [email protected]

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 contains 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. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Empire Mine Project and the exploration and development of the Empire Mine Project; the earning of the Option by Phoenix and the potential transfer back to ExGen of the Konnex shares; the exploration and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, completion of a potential NI 43-101 resource calculation and a potential pre-feasibility study in compliance with NI 43-101, and the timing for completion of these events; the timing for the completion of exploration drilling and the receipt of exploration information and drill assays; the potential of the underground sulphide mineralization and the potential re-opening of the 700 and 1100 level portals to assist in the analysis of the potential sulphide mineralization. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Empire Mine Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the abili ty of ExGen to raise future equity financing, if needed, at prices acceptable to ExGen; ExGen's current and initial understanding and analysis of the Empire Mine Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Empire Mine Project; the ability of Phoenix to explore and develop the Empire Mine Project; the cost of exploration, including sampling, drilling and assaying, on the Empire Mine Project, the costs of developing the Empire Mine Project and the costs and the ability of Phoenix to produce a NI 43-101 compliant resource calculation and pre-feasibility study; the costs and work required to re-open the 700 and 1100 level portals; and ExGen's general and administrative costs remaining constant. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could ca use ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Empire Mine Project; general busine ss, 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 cou ld 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.

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