News Release: February 10, 2010
B.C. PROVINCIAL GOVERNMENT HALTS MINERAL EXPLORATION IN FLATHEAD VALLEY
Max Resource Corp. (TSX.V: MXR; OTCBB: MXROF; Frankfurt: M1D) has learned that the Government of British Columbia intends to halt all ongoing mineral exploration work and prohibit any future mine development in the Flathead Valley in Southeastern B.C.
In his Throne Speech of February 9, 2010, which outlines the B.C. Government's legislative agenda for the upcoming session, BC Lieutenant-Governor Steven L. Point announced that the Province of B.C. intends to enter into a partnership with the State of Montana regarding the Flathead River Basin and, as a result, "Mining, oil and gas development and coalbed gas extraction will not be permitted in British Columbia's Flathead Valley".
This action will effectively prevent any further exploration or development of the Company's Crowsnest gold project, which is located in the Flathead Valley watershed.
"We are surprised and disappointed by the Government's action," said Stuart Rogers, President of MAX, "given our outstanding exploration results at Crowsnest in 2009. And we will seek adequate compensation."
MAX will now resume its focus on gold in Nevada, where drill permitting on three gold exploration projects (Table Top, Diamond Peak and East Manhattan Wash) is already well underway.
See full news release
The Crowsnest Gold project consists of fifteen claims totaling 3,142 hectares in southeast B.C., located one hour by gravel road south of the town of Sparwood, straddling the drainages of Twenty-Nine Mile Creek and Howell Creek. The Crowsnest claims are approximately 10 km southeast of the Howell gold property, which was optioned from Eastfield Resources in June 2008.
In July 2009 MAX and Eastfield agreed to amend the prior Howell agreement to include the Crowsnest project, allowing MAX to earn a 60% interest in either the Howell or the Crowsnest projects over a four year period by making cash payments totaling $60,000 to Eastfield (of which $10,000 was paid on signing), issuing 100,000 shares (50,000 shares in the first year) and by completing aggregate exploration expenditures on both properties of $400,000 by the second anniversary date (June 30, 2011). Following that date, MAX can earn its 60% interest in Crowsnest by making further cash payments to Eastfield of $90,000, issuing 400,000 shares and spending a further $1,050,000 on exploration prior to June 30, 2013.
Gold mineralization at the Crowsnest Gold property occurs in limestone, siltstone or syenite. The property is underlain by a thick sequence of Pennsylvanian and Mississippian carbonate and clastic rocks, of which the Mississippian Rundle Group shows the greatest exposure. Mid-Cretaceous syenite and trachyte intrusions as sills, dykes, plugs and possible diatremes intrude these units. Several grids have already been established, including the "B" and "K" grids (see map below), which led to the discovery of significant high grade gold.
One bedrock source of mineralization was discovered in 1996 and trenched by Eastfield in 1999, resulting in a trench intercept of 8.57 g/t gold over 16.5 metres. The 1999 area of focus, referred to as the Discovery Trench Area (see picture below), has been the centre of most of the exploration activity completed at Crowsnest during exploration conducted in 1999, 2002, 2003 and 2006. The most recent exploration at Crowsnest in 2006 entailed road reconstruction and mechanical trenching, again largely in the Discovery Trench Area. Other areas that have also yielded high grade float samples have had only rudimentary work completed. A review of the database calculates an average gold grade for samples of this float exceeding 1.0 g/t to be 32.656 g/t (based on 36 determinations) with a corresponding copper grade of 0.23% (based on 34 determinations).
In June 2009, MAX conducted a site visit at Crowsnest to review the previous field work and assess the potential of the property. Prior drill sites and trenches were observed and samples taken. One sample of gossan was examined and free gold was found which had never been reported by historic workers. The sample of this mineralization, which occurs in a silicified, quartz veined and pyritic mineralized section of a monzonite intrusive, returned an assay of 104 g/t Au. Also of significance in this sample result was the high content of tellurium (105.4 ppm). Several previous operators at Crowsnest, including Placer Dome Inc., have suggested a number of comparables exist between the Crowsnest Project and the Cripple Creek deposit located in Colorado. These comparables include the tectonic setting, alkalic intrusive association and occurrence of tellurium. Cripple Creek, in production since 1890, has produced in excess of 23.3 million ounces of gold (to 2005) and continues to be mined by Anglo Ashanti Gold Mining.
Exploration Activity - 2009
MAX completed a 26 hole reverse-circulation drill program totaling 799 meters at Crowsnest in October 2009. During this program, two new trenches were dug, sampled and drilled to the west of the original Discovery Trench area (where MAX sampled gossan mineralization in June that returned an assay of 104 g/t Au). Results included hole RC 09-7 which returned 19.03 grams per tonne (g/t) gold over 6.1 meters, including 1.5 meters of 50.26 g/t gold. Of the 26 holes drilled, seven holes (including RC 09-07) contained gold intercepts greater than 2 g/t over 1.5 meters and a further six drill holes returned values ranging from 0.5 g/t to 1.86 g/t Au over minimum 1.5 meter intervals. All mineralization was intercepted within 30 meters of surface. Significant gold assays (over 2 g/t Au) returned from the drill program are listed below:
Analysis was performed by Acme Analytical Laboratories, an ISO certified facility in Vancouver, B.C., using fire assay and multi-element (ICP-ES) techniques. Standards and duplicates were used for quality control of the samples. In addition, a full Metallic Screen assay was ordered on all samples to make sure that any coarse gold was not missed during the assay process. These assays were received in December 2009 and confirmed the previous assay results listed above. The locations of the trenches and drill holes are indicated on the following map.
Drill Locations 2009
Click to Enlarge
An extensive exploration program will be conducted in 2010 to extend the area of high grade mineralization at Crowsnest and test new targets identified during surface exploration and review of historic data. These include drill results reported by Goldrea Resources in 2002 that included:
Crowsnest Exploration Area - 2010
Click to Enlarge
Drilling at Crowsnest - September 2009
|Home | Corporate | Projects | Investors | News | QwikReport | Contact | Disclaimer | ©2008 Max Resource Corp.|