MAX Resource Corp. Identifies Free Gold in First Five Conglomerate Bulk Tests
Vancouver, British Columbia--(Newsfile Corp. - January 30, 2019) - MAX RESOURCE CORP. (TSXV: MXR) (OTC Pink: MXROF) (FSE: M1D1) ("MAX" or the "Company") is pleased to announce test sample results from five conglomerate trial pits, located within the Company's "Choco Precious Metals Project", 100km SW of Medellin, Colombia.
Map can be viewed at: http://maxresource.com/resources/MXR_Choco_Map_2019Jan30.pdf
Highlights
- Free gold was observed in the test sample concentrates from each of the five hard rock conglomerate trial pits;
- The objective was to process approximately 40kg of the 2,500kg of conglomerate collected from each of the 2m by 2m by 30 cm deep pits to gravity test for signs of free gold;
- The initial test results suggest potential gold continuity throughout a surface area of approximately 8 square kilometers; open in all directions;
- Identification of a conglomerate outcrop 1.5km south of Pit 5 indicates a vertical thickness of 12m; test samples are currently being processed;
- The Company is developing a processing system to analyze the gold content of the 2,500kg of bulk sample collected from each of the five pits; additional samples are currently being processed; and
- The on-going conglomerate test pit program continues to branch out further and further with the objective of increasing the lateral extent of the gold mineralization.
The exploration strategy is to determine the full lateral extent and gold content of the underlying hard rock conglomerate hosted gold deposits throughout the Company's 89 mineral license applications totaling 1,757 square kilometres in Western Colombia.
Brett Matich, MAX's President and CEO, commented: "Our initial exploration results support the historic reports of free gold contained within the underlying hard rock conglomerates which are potentially the source of the 1.5Mozs of gold and 1.0Mozs of platinum produced during historic surface mining." (Source: R.J. Fletcher and Associates (2011) Review of Gold and Platinum Exploration and Production in Choco Province Colombia Part 3. Private Report for Condoto Platinum Ltd)
Plate 1. -2mm Concentrates with Free Gold
To view an enhanced version of Plate 1, please visit:
https://orders.newsfilecorp.com/files/3834/42540_d5e62a9c04c82bcd_002full.jpg
| | Sample | weight (kg) | -2mm (kg) | Concentrate -2mm (g) |
| Pit 1 | 0714 | 48.38 | 37.4 | 838 |
| Pit 2 | 0718 | 32.5 | 28.3 | 265.08 |
| Pit 3 | 0716 | 27.18 | 24.05 | 287.57 |
| Pit 4 | 0713 | 52.61 | 45.4 | 962 |
| Pit 5 | 0715 | 45.7 | 39.7 | 60 |
Table 1. Hard Rock Conglomerate Bulk Sample Detail
Table key: weight (kg) is the dry weight in kilograms of the conglomerate sample prior to processing; -2mm (kg) is the weight in kilograms of the -2mm fraction of the full sample after crushing and sieving; concentrate -2mm (g) is the weight in grams of the concentrate produced from the -2mm fraction of the full sample.
Exploration Program
The Company considers systematic bulk sampling at surface to be the most practical means of determining grade, processing characteristics and the lateral extent of the mineralization. Sampling the exposed face of outcrops will provide initial assessment of thickness, depth and gold content of this flat lying mineralized system.
The six 2m by 2m by 30cm deep test pits are excavated from surface by pneumatic hammer. A measured specific gravity of 2.2 indicates approximately 2,500kg to 3,000kg of hard rock conglomerate is collected from each pit.
The on-going exploration recently identified a 12m thick conglomerate outcrop approximately 1.5km south of the most southern test pit. Samples were taken down the face of the outcrop to determine gold distribution vertically through the conglomerate. Analytical results are pending.
Choco Precious Metals Project
MAX has 100% ownership of 82 and 50% of 7 mineral license applications, totaling over 1,757 square kilometres, located within Choco Department approximately 100km SW of the city of Medellin, Colombia.
Compania Minera del Choco Pacifico ("Choco Pacific") produced 1.5 million ounces of surface gold and 1.0 million ounces of surface platinum from the "Choco District" between 1906 to 1990, largely limited to an average depth of 8 meters or less.
MAX's Choco Precious Metals Project ("Choco Project") covers or is adjacent to much of Choco Pacific's historic exploration and production areas. Choco Pacific historic reports indicate the hard rock conglomerates underlying the surface production areas are gold-bearing, extensive, shallow and generally flat lying with thicknesses from a few metres to 20 metres. (Source: R.J. Fletcher and Associates (2011) Review of Gold and Platinum Exploration and Production in Choco Province Colombia Part 3. Private Report for Condoto Platinum Ltd)
MAX cautions investors it has yet to verify the historic information.
Sampling and Assay Methodology
Sampling integrity is essential. The conglomerate (hard rock) surface is cleaned and a 2m by 2m square is marked. A pneumatic hammer then chips and breaks the conglomerate outcrop to a depth of 30cm. The broken conglomerate is collected in pre-numbered rice bags; approximately 25kg per bag. Each pre-numbered bag is sealed by the geologist and transported to secure, locked storage at the Novita Camp, in Choco. Two bags per pit are then transported by Company personnel to the town of Istmina, where is the bags are transported to Medellin for processing.
Each approximate 50kg sample is first crushed to 2 millimetres (2mm). The -2mm and +2mm fractions are separated by sieving with each fraction subsequently pulverized. The -2mm fractions are concentrated by gravity pan and visually examined for free gold by MAX technical personnel. There has been no analysis conducted on the +2mm fraction.
Noble Transaction
As previously announced (see MAX press release January 28, 2019), MAX continues to pursue the acquisition of mineral rights and concessions in and around the Novita Project from Condoto Platinum Ltd., a wholly-owned subsidiary of Noble Metals Limited. Because MAX proposes to issue 26,665,896 common shares to Noble Metals on the closing of this transaction (constituting approximately 32.7% of the issued and outstanding shares of MAX after adjusting for the transaction), the transaction would constitute Noble Metals as a new 'control person' of MAX and requires both TSX Venture and shareholder approval. MAX has been working with TSX Venture in an effort to obtain conditional approval while simultaneously adjusting the transaction structure to remediate concerns developed over the course of its due diligence. MAX anticipates that it should be in a position to request shareholder approval in the near future. The transaction remains subject to TSX Venture approval.
About MAX Resource Corp.
MAX Resource Corp.'s focus is to explore and consolidate gold and platinum group mineral assets in the richly endowed Choco mineral district of Colombia and to explore the Gachala sedimentary copper hosted mineral belt of Colombia.
ON BEHALF OF THE BOARD OF MAX RESOURCE CORP.
"Brett Matich"
Brett Matich, CEO and President
Tim Henneberry, P. Geo (British Columbia), a member of the MAX Resource Corp. Advisory Board, is the qualified person who has reviewed and approved the technical content of this news release on behalf of the Company.
For further information, please visit the Company's website at www.maxresource.com or the Company's profile at www.SEDAR.com
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For more information contact:
Investor Relations
Tel: (+1) 604 365-1522
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.
This news release includes certain statements that may be deemed as "forward-looking statements" within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical facts, are forward-looking statements, including, without limitation, statements pertaining to completion of the Transaction and any approvals required in connection with the Acquisition. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of commodities (particularly copper), unanticipated changes in key management personnel and general social, economic or geo-political conditions. Mining exploration and development is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be from time to time by the Company or on its behalf, except in accordance with applicable securities laws. We seek safe harbor.
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