CALGARY, ALBERTA–(Marketwired – May 25, 2016) –
Not for distribution to U.S. newswire services or for dissemination in the United States of America.
Margaux Resources Ltd. (TSX VENTURE:MRL) (“Margaux” or the “Company”) is pleased to announce that, subject to regulatory approvals, it intends to issue up to 625,000 units (“Units”) of the Company at a price of $0.20 per Unit for aggregate gross proceeds of up to $125,000 pursuant to a non-brokered private placement (the “Offering”).
Each Unit consists of one common share of the Company (“Common Share”) and one Common Share purchase warrant (“Warrant”). Each whole Warrant will expire 24 months from the closing date of the Offering, and will entitle the holder to acquire one Common Share of the Company at a price of $0.30 per Common Share. Proceeds of the Offering will be used on the Company’s summer 2016 work program on its Jersey-Emerald Property (the “Property”), located near Salmo, British Columbia. The securities issued pursuant to the Offering are subject to a four month hold period under applicable securities laws.
In addition, Margaux is pleased to announce that it has engaged Perry Grunenberg, P. Geo., of PBG Geoscience to assist in planning and managing testing programs on the Property.
The proposed 2016 work programs will involve underground drifting, surface diamond drilling, bulk sampling, and metallurgical testing of a high grade lead-zinc zone discovered during previous work programs. Recent underground sampling on the property returned values over 10% zinc and 20% lead as shown in the below table (previously released on April 12, 2016). Continuous chip samples were taken from a band of galena-rich mineralization running the length of the 13-metre long drift. Planning is underway to extend this drift to test the extent of mineralization.
| SampleID | From* m |
To m |
Length m** |
Zn % |
Pb % |
Ag g/T |
Description | |||||||
| 4640-01 | 0.0 | 3.0 | 3.0 | 14.15 | 9.30 | 4.18 | West wall 1.5 m from floor; galena with sphalerite | |||||||
| 4640-02 | 3.0 | 6.0 | 3.0 | 11.60 | 23.21 | 2.99 | West wall 1.5 m from floor; galena with sphalerite | |||||||
| 4640-03 | 6.0 | 9.0 | 3.0 | 14.85 | 10.55 | 2.32 | West wall 1.5 m from floor; galena with sphalerite | |||||||
| 4640-04 | 9.0 | 12.8 | 3.8 | 11.45 | 20.45 | 3.22 | West wall 1.5 m from floor; galena with sphalerite | |||||||
| 4640-05 | 12.8 | 12.8 | 0.9 | 11.35 | 13.60 | 4.40 | End face 1.5 m from floor; galena with sphalerite | |||||||
| 4640-06 | 2.3 | 5.0 | 2.7 | 14.65 | 0.91 | 0.49 | West wall near floor; sphalerite with minor galena | |||||||
| *Start of sampling from adit at UTM 483918, 5439716 (NAD83, Zone 11)**True width of sample not yet known | ||||||||||||||
The sampled drift is located approximately 150 metres northeast of 2014 Margaux drillholes E1419 and E1420, which delivered elevated zinc and lead result as summarized in the table below (previously released on April 12, 2016).
| HoleID | UTMX m |
UTMY m |
UTMZ m |
Azimuth | Dip | From m |
To m |
Length m |
Zn % |
Pb % |
||||||||||||
| E1419 | 483845 | 5439568 | 1424 | 112 | -79 | • | 0.00 | 5.00 | 5.00 | 6.00 | 3.75 | |||||||||||
| • | 13.80 | 15.95 | 2.15 | 2.09 | 0.41 | |||||||||||||||||
| Incl | 13.80 | 15.00 | 1.20 | 3.45 | 0.48 | |||||||||||||||||
| • | 65.12 | 67.10 | 1.98 | 0.29 | 0.15 | |||||||||||||||||
| E1420 | 483845 | 5439568 | 1424 | 112 | -65 | • | 0.00 | 8.00 | 8.00 | 3.79 | 3.32 | |||||||||||
| Incl | 0.00 | 2.80 | 2.80 | 6.05 | 1.63 | |||||||||||||||||
| Incl | 2.80 | 3.60 | 0.80 | 2.47 | 18.48 | |||||||||||||||||
| • | 9.05 | 9.65 | 0.60 | 0.07 | 0.18 |
Exploration drifting is designed to directly test and extend the high grade mineralization to the south of the sampled short drift. Diamond drilling will include step-outs from the drift, and outward from drillholes E1419 and E1420 to test possible continuity of lead and zinc mineralization through those 2 previously sampled zones, and continuing North along trend.
Finally, Margaux wishes to announce that it has agreed to issue 175,000 Common Share purchase options to a board member, each option exercisable into one Common Share of the Company at a price of $0.20 per share.
Permitting is currently in process for both underground and surface exploration programs. Ed Lawrence, previous Jersey mine manager and Margaux director, is working with Perry Grunenberg in program planning and will oversee the underground drift work. The proposed 2016 work programs are subject to financing. Perry Grunenberg is Margaux’s “Qualified Person” for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Margaux Resources Ltd.: Margaux is a publicly traded mineral exploration company based in Calgary, Alberta. The Company has an option on the previously producing Jersey Emerald tungsten-zinc mine, located in southeastern British Columbia.
Forward Looking Statements
This press release may contain forward looking statements including those describing Margaux’s future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Margaux and its management. In particular, this news release contains forward-looking statements pertaining, directly or indirectly, to the following: risks associated with future equity financings, the ability to close the Offering in the amount anticipated or at all, Margaux’s exploration plans and work commitments, the receipt of required regulatory and other approvals as well as other market conditions and economic factors, business and operations strategies. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
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.
