Thu Feb 19, 2009 Maxy Gold Corp Provides Corporate And Exploration Update
Vancouver, BC, February 19, 2009 - Maxy Gold Corp. (TSX-V: MXD) provides an update on corporate matters and 2008 second half exploration activities on its properties in China and Peru.
China Projects
Huangnan Project, Northeastern Qinghai Province
The Huangnan Project is a Joint Venture with Western Mining Group, where Maxy is earning a 50% interest in 2 exploration properties (Duoba and Danbonlongwa) totaling 200 km2 located in northeastern Qinghai province of western China.
During 2008 a geochemistry and geology survey was completed over prioritized sectors of the properties. 35km magnetic and ground IP (pole dipole) surveys were also completed on both properties in April and May, 2008.
On the Danbolongwa property an area in the north was targeted, covering half of a porphyry Copper (Cu) Molybdenum (Mo) intrusive with a juxtaposed Cu -- Gold (Au) skarn mineralized zone that extends from a mine on a neighboring property. Geology and geochemistry surveys have confirmed previous regional exploration work by local geological bureau teams. A few anomalies and many alteration zones were delineated.
The magnetic and IP survey (lines oriented NE-SW, 400m apart) showed excellent chargeability anomalies at depth (150m) and good correlation between IP results and the geological information as the anomaly coincides with the intrusive hosting Cu-Mo mineralization to the north on the neighboring mine property as well as some skarn mineralization next to the intrusive observed on the adjacent property to the west.
On the Duoba property the surveyed area was in the northern half of the property along the western extension from the neighboring Qiadong Cu mine, a SEDEX type of deposit. The geology and geochemistry survey over the prioritized sector confirmed previous regional exploration works showing that the sediments hosted - Qiadong mine may extend northwest onto the Maxy joint venture property. In addition, the survey indicates a few transversal faults with minor surface anomalies previously indicated in some old trenches.
The magnetic and IP survey (lines oriented N-S, 400m apart) showed an excellent chargeability anomaly starting at a depth of 150m and extending directly from the neighboring Qiadong mine area up to the northwest of the property. The anomaly is approximately 200m wide and extends for over 5 km, being cut a few times by interpreted faults, which is consistent with the regional extension of the disseminated mineralization, characterized with Chalcopyrite and pyrite mineralization disseminated into a fine grain sedimentary rock, and with the regional geological context between intrusive rocks and sedimentary rocks of the Qiadong mine units.
Issuance of the business licence for the joint venture company remains outstanding, pending completion of additional government requirements. Upon issuance of the Business licence Western Mining Group, Maxy's joint venture partner, will complete the transfer of the exploration licenses. The Western Mining Group has a buyback of a 15% interest by financing feasibility and development of any discovery on the properties, leaving Maxy with a 35 % interest in the Joint Venture.
MIDU Project, Yunnan Province
The main target on the Midu gold project, is the Muluozuo area, where the 2008 exploration program confirmed and extended the presence of a low grade gold zone at depth and along strike and the discovery of two new gold zones in the East Muluozuo area. Maxy holds a 75% interest in the Midu project under a Joint Venture with its Chinese partner. The target is a low grade gold oxide heap leachable and open pitable resource.
During 2008 Maxy carried out tunneling and surface mapping and sampling. Also completed was 1499.33 of diamond drilling in 14 holes. Drilling was very complicated with very low production rate and poor core recovery, particularly in the mineralization zones, As such, assays are not believed to properly represent the contained mineralization content. The assays returned anomalous Au (>0.1g/t) to 2.1 grams per tonne Au and intersections of the mineralized zones varying from over 1.5m through to 24m.
254 meters (m) of underground tunneling has been completed, including 137m in the main Adit PD3-YD1E on the 2083m level and 117m of six crosscuts orienting south-north .
Two mineralized zones have been delineated by the exploration program to date. Mineralization zones consist of a series of approximately east-west oriented low grade gold bodies surrounded by alteration envelopes contained within major east-west trending structure up to 60m wide and traceable for over 600m.
Twelve mineralized showings have been discovered by detailed exploration in the west sector of the south zone. Limited exploration in the east sector of the south zone and in the north zone, has resulted in discoveries of several gold mineralization showings, which are poorly defined at present.
Gold mineralization in the west sector of the south zone extends from surface to a minimum of 183m depth where values varying from 0.12 g/t Au to 2.1 g/t Au averaging over 18.3m have been intersected in hole #08-6; values varying from 0.1 to 1.76 g/t Au over 24m have been intersected in holes #08-7 and a value of 1.3 g/t Au over 10.3m has been cut by tunnel #PD-3.
The main ore body in the south zone, principally explored in tunnels, extends some 150m in strike, widens 4-16m and returns Au average grade at 1.1g/t (up to 4.4g/t). Several other gold mineralization bodies have been intersected in tunnels.
Drill holes DH08-11 and 12 were testing gold mineralization in shallow colluvials or alluvial and bedrocks on the north zone. Those holes returned gold mineralization structures in depth, but had very low core recovery.
The 2008 reconnaissance exploration program delineated new geochemical anomalies located 4 km east of the main Muluozuo target. 53 chip/grab or channel samples were collected and returned encouraging results. Two geochemical anomalies are related with two mineralization structure zones respectively striking in northwest and north-south and hosted in Triassic shale-sandstone-limestone formations. The northwest-striking mineralization structure zone extends some 3000m in strike and returns gold mineralization grading 0.12-0.47g/t Au from grab samples. The north-south-striking mineralization structure zone extends some 2000m in strike and returns gold mineralization grading 0.16-0.63g/t Au from silicified limestone grab samples. Gold mineralization is closely related to silicification and pyritization. Gold mineralization bodies seem no obvious boundary with the host rocks.
The quality control program in China is as set out in the February 5, 2008 press release. Andre Gauthier, President of Maxy is the Qualified Person under NI 43-101.
Peru Properties
Maxy completed the acquisition of 15 properties in Peru in July, 2008. Together with additional staking Maxy now holds 20 properties in Peru, totaling 186,861.74 hectares. All properties are owned 100% by Maxy. Maxy has completed a first phase exploration program on three main Mining properties including Condoroma, Chocos and Picha and has completed a 43-101 report on Condoroma and Chocos properties.
It has discovered 5 New Mineralization and anomalous areas including new Porphyry Cu-Au system and a probable High sulfidation Au system on its Condoroma property.
It has discovered a multiple veins system of Zn-Pb-Ag-Cu mineralization extending up to 2 km long in the Northern Zone of its Chocos property.
It has identified 5 well-defined mineralized zones on surface confirming the strong copper potential of its Picha property.
CONDOROMA PROPERTY
The company has completed the 2008 field program on its 100% owned Condoroma property located in southern Peru. The Property consists of 15 mining claims totaling 13,325.86 hectares within the SE extension of the Cu-Au skarn-porphyry belt that hosts Xstrata's Las Bambas deposits (> 900 Mt with over 1.0% Cu) and the Tintaya deposit (> 1 Bt with over 1.0% Cu plus Au-Ag-Mo) and is just east of the past producing Condoroma polymetallic Ag-Pb-Zn,Cu-Au mine.
The 2008 exploration program consisted of geological mapping, soil geochemical surveys, magnetic and induced polarization geophysical surveys and rock and colluvial sampling (locally transported rock and derived material).
Significant results from the rock sampling on the Property returned high grade assays up to 6.94% Cu and 3.17 grams gold per tonne. In areas with colluvial cover soil geochemical surveys sampling showed several broad areas with multi element anomalies coincident with large areas of hydrothermal alteration.
The Oro y Paloma target area on the Property is described as a 1.7km x 0.8km hydrothermal alteration zone within volcanic tuffs and breccias. The mineralization exposed on surface consists of secondary copper mineralization associated with quartz veinlets and disseminations within hydrothermal breccias. Thirteen surface rock samples returned assay results greater than 1% Copper and up to 6.94% copper, and three samples returned greater than 1 g/t Au and up to 3.17 g/t Au and greater than 100 g/t silver (Ag) up to 398 g/t Ag.
A soil geochemistry survey was completed over the area along with an Induced Polarization and magnetic geophysical survey. The results show a strong correlation between a low magnetic susceptibility and an induce polarization chargeability anomaly and Cu, Au, and Ag geochemical anomalies. This is designated to be followed up by diamond drilling, subject to arranging financing.
In addition five other target areas have been identified on the Property (Oro y Paloma East, Blanquilla South, Blanquilla West, Cerro Crucero and Las Hermanas) with kilometre scale argillic and silicified alteration zones containing anomalous multi element soil geochemistry. These areas are designated to be followed up with detailed geological mapping and sampling in preparation for diamond drilling.
CHOCOS POLYMETALLIC PROPERTY
The 44,648 hectare CHOCOS Property is 100% owned and located in Southern Peru in the Arequipa area. The 2008 program on the north zone of the property discovered a multiple polymetallic vein system with Zn-Pb-Ag-Cu mineralization. The veins are hosted in andesites and limestone sediments and in some cases have been traced over 2 km strike length.
Preliminary samples from 4 veins returned high Pb-Zn-Ag values up to 13% zinc, 20% lead and 261 g/t Ag. Recent exploration work consisted of detailed geological mapping in the central area concentrating on brecciated structures to better define the nature of the vein structures. An extensive 1,948m trenching and sampling program was complete in covered ground to evaluate the lateral correlation of the veins and to assess other altered and mineralized zones. A total of 1,078 rock samples were collected from trenches.
Eight mineralized polymetallic Zn-Pb-Ag-Cu-Cd vein structures trending Northeast in an area of 2 Km by 300-800m were sampled. The veins that were sampled are the Santa Ines vein, Lechuza vein and A, B, C, D, E, and F veins which have strike lengths ranging from 200m to 800m and thicknesses ranging from 0.25m to 2.5m.
Zone A:
Zone A is located in the central part of the project and is typically brecciated with mineralization consisting of mainly galena and sphalerite. Lengths vary from 200 to 800m and widths from 0.5 to 2.5m. At least 6 main structures have been identified with the Santa Ines vein being the most important, which outcrops for 500m with a variable width from 0.5 to 1.5m.
The "B" vein occurs about 200m to the Northeast of the Santa Ines vein and has a length of 250m and ranges in width from 0.5 to 1.5m. Other veins are the "C", "D", "E". "F" and Lechuza veins.
The trenching program included 1076 rock samples and defined some interesting anomalies at surface in strongly oxidized material.
Full assays are available on the Maxy website at www.maxygoldcorp.com. Assay results include:
Silver.- Returned assays from 20 to 66 g/t Ag (Lechuza vein) and from 10 to 14 g/t Ag in the Santa Ines, "B", and "D" veins.
Lead.- Returned assays from 1 to 7% Pb, with exceptional highs between 9 to 17% Pb from the Lechuza, A, B, D, E, and F veins.
Zinc.- Returned assays from 1 to 5% Zn with exceptional highs of 7 to 13% Zn in Santa Ines, Lechuza, A, B, C, D, E, and F.
Copper.- Assays ranged from 300 ppm to 4.8%Cu in the main veins Santa Ines, A, B, C, D, E, and F.
Zone B:
The Zone B, South of Cerro Choco, extends for 600 x 150m. Host rocks are porphyritic andesites and the veins are typically brecciated with several sub-parallel branches. The length varies from 100 to 300m in length and from 0.10 to 1.50 metres in width. Mineralization consists of disseminated galena and sphalerite in a matrix of quartz and chalcedonic quartz.
The complete assay results from this structure are on the Maxy website (see www.maxygoldcorp.com):
Silver.- returned assays ranging from 18 to 85 g/t Ag in the Chaupiloma vein.
Lead.- returned assays from 0.11 to 16.9% Pb.
Zinc.- Assays ranged from 0.11 to 4.55% Zn.
Copper.- assays ranged from 20 to 1270 ppm Cu.
A first phase reconnaissance exploration program was completed at a 1:5000 scale to ground assess the aerial photo derived colour anomalies on the Chocos. These colour anomalies are believed to be caused by alteration and mineralization. A total of 245 rock samples were collected from four areas resulting in 2 zones: the Yanajaja, and the Collpa Capilla, warranting further detailed exploration. The Yanajaja is located 3 km Southeast of the Chocos central area. Assay results reported moderate Pb, Zn, and Cu anomalies. The Collpa Capilla area, located 5 kms to the northeast of Chocos, contains several
chalcedonic quartz zones and quartz veinlets with widths ranging from 0.5 to 2.0m over strike lengths of 50 to 200m. The veins contain mineralization consisting of pyrite and arsenopyrite. The potential is considered to be very good for veins similar to those at Chocos. The Reconnaissance work to date has been completed on only 14% of the entire Chocos property and the potential to delineate additional mineralized zones is very promising.
To increase its holdings in Peru, Maxy has staked additional mining claims for a total of 45,400 hectares. From this total, 13 claims totaling 11,500 hectares were staked around the Chocos to consolidate this property, with the balance divided between 5 new properties.
PICHA PROPERTY, 6000 Ha, Southern Peru
Towards the end of 2008, two field work campaigns were completed on the Picha property, consisting of geologic mapping at 1:10,000 and rock, soil and stream sediment sampling. A total of 111 rock, 43 soil and 8 stream samples were collected which together with the former 308 rock, 12 soil and 13 stream taken by prior owners constitute the data base of the project.
Mineralization is both controlled both structurally and stratabound. In the old mine workings the oxidized mineralization consists mainly of malachite, azurite, chalcocite, chrysocolla, and chalcopyrite associated to prophylitic alteration, small zones of argillization and quartz (- opal) vein, veinlets, stockworks and concordant mantos. At surface, the vein and veinlets were oxidized and leached and in some parts oxidation seems to penetrate up to 30 m.
From the total of 419 rock samples, 11 reported values > 3% Cu; 37 reported values > 1% Cu; 53 reported > 0.5% Cu; 69 reported > 0.1% Cu; 85 reported > 500 ppm Cu; and 174 reported > 100 ppm Cu.
Reported Mo values were low and the few anomalous values correlate with anomalous Cu values. Ag reported also low values but a total of 58 samples or 19% reported anomalous values which have good correlation with Cu. In general, anomalous Pb, Zn, and As values show good correlation with anomalous Cu values. Reported Sb, Bi ,Hg, and Au values were very low. Reported Ba values were very high and exhibit very good correlation with Cu mineralization.
The best concentration of highly anomalous to ore grades Cu values are at Cobremani and Maricate (1.5km NS by 1.0Km E-W). Cobremani, an area of about 150 x 150m with old mine workings, exhibits a breccia pipe or hydrothermal breccia with altered and mineralized fragments of volcanics in a matrix of limonites after sulfides and green Cu oxides. Also, there is a stockwork zone with veinlets of green Cu oxides and limonites in argillized andesite volcanics.
The Maricate area exhibits zones with widely-spaced veinlets, stockwork with quartz-limonites veinlets after chalcopyrite and some green Cu staining. Recent mapping discovered other small zones of stockwork the largest being 200 x 150m and a nearby zone of 190 x 100m with disseminated mineralization. The prospective area now extends about 800 x 900m but a great deal of the area is covered by soil and grass.
The next step for checking the downward extension of the Cobremani and Maricate system will be an IP/Mag survey and the detailed evaluation of the other mineral occurrences of the Picha property. The target at Cobremani is a Cu-Ag(-Mo) breccia-stockwork body near to surface and a porphyry Cu in depth. The target at Maricate is a Cu-Ag stockwork body underneath the oxidized and leached zone tested at surface
Additional Staking
To increase its holdings in Peru, Maxy staked additional mining claims for a total of 45,400 hectares. From this total, 13 claims totaling 11,500 hectares were staked around the Chocos to consolidate this property, with the balance divided between 5 new properties.
QUALITY CONTROL PROGRAM AND QUALIFIED PERSON FOR PERU
The quality control program in Peru is under the supervision of Noel Díaz, General Manager, Peru, and André Gauthier, P. Eng. (President of Maxy Gold), who is the Qualified Person responsible for the content of this press release pursuant to NI 43-101.
Lithogeochemical sampling, channel and colluvium sampling were performed at the Condoroma property. Individual channel samples measures 10 cm wide, 5 cm deep and 1.5m up 4.5m length. Colluvium samples material were collected from 1m by 1m by 1.5m depth pits. Samples are collected in plastic bags and an assay tag, prepared and correlatively numbered in a book assays in Vancouver, Canada, is placed inside the bag, and the bag numbered with permanent marker. Bags are sealed with zip lock. The sample locations are taken with GPS and the descriptions written at the book which contains field data codes related to lithology, alteration, structures and mineralization. The respective number is marked with the bed outcrop. Samples are placed in large rice bags to be transported by truck to the CIMM Preparation Laboratory located at Arequipa City. Subsequently, pulps are sent to Lima city for the chemical assays. Splits of samples for duplicates were also prepared at Arequipa city at AlS Chemex Laboratory and the pulps sent to Lima city for chemical assays. Five by ten cm hand samples are collected from every rock sample and are sent and properly stored at Lima office for additional checking.
Maxy Gold selected CIMM Peru as Laboratory 1 (ISO 9901:2000) for the samples chemical assays and ALS Chemex as Laboratory 2 (ISO 9001:2000), for recheck assaying. As a rule, between 5-10% of the total samples must be sent to be re-assayed. After receiving the samples, these are crushed and pulverized with the pulps dispatched to the Lima facility for analyses.
CORPORATE
As Maxy currently has minimal cash reserves, it has suspended exploration activities on all projects and undergone a cost cutting exercise. The Company is reviewing all available options to attract new capital.
The Company has also granted 200,000 incentive stock options to acquire shares at $0.15 per share for a period of 5 years to one director.
About Maxy Gold Corp.
Maxy Gold Corp. (MXD-TSXV) is a publicly traded Canadian junior exploration dedicated to the exploration and development of precious and base metal resources in China and Peru.
For further information:
Maxy Gold Corp.
Andre Gauthier, President
Tel: (604) 688-8811
Cel : (778) 999-1578
Email:
Paul Simpson, Chairman
Tel : (604) 633-4286
Email:
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements.
Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statement.
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