| ||Mon Jul 27, 2009|
MAX options Crowsnest Gold Property; drilling planned for fall at Crowsnest and Howell gold projects in Southeastern B.C.
| ||MAX Resource Corp. (TSX.V: MXR; OTCBB: MXROF; Frankfurt: M1D) plans to conduct further drilling and exploration at the Howell Gold property in Southeastern British Columbia and has amended the Howell Option Agreement with Eastfield Resources Ltd. (TSX.V:ETF) to include the nearby Crowsnest Gold property. |
The Howell Gold project is comprised of 4,376 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 Gold project consists of fifteen claims totaling 3,142 hectares located approximately 10 km southeast of the Howell property.
At the Howell Gold project, disseminated gold mineralization occurs in limestone and as quartz stockworks in limestone and syenite intrusives. Prior drilling included 1.23 g/t gold over 58 metres, 0.95 g/t gold over 39 metres, 0.65 g/t gold over 82 metres, and 0.57 g/t gold over 149 metres. MAX completed twelve holes totaling 1,312 metres of NQ core at Howell in 2008, with the best intercept being 22 metres of 0.78 g/t gold. In addition, two new soil grids were established in 2008, including a stockwork quartz system in limestone that returned up to 3 grams gold in previous sampling that will be targeted during the planned fall drill program.
Of the 119 samples collected in 2008 on the southeastern grid, which is 1.5 kilometres to the south of the 2008 drill targets, 16 exceeded 100 ppm gold (maximum 714 ppb), 27 exceeded 500 ppm zinc (maximum 9,527 ppm) and 9 exceeded 400 ppm lead (maximum 14,000 ppm). The southeastern grid was established in 2008 to fill in an area to the north of manto style zinc, lead, silver mineralization which was identified during reverse circulation drilling completed by Placer Dome in 1988 (HRC-2 with 7.5 metres grading 2.4% Zn, 0.40% Pb and 15.3 g/t Ag). Reconnaissance prospecting in this area, completed by Eastfield in 1999, sampled a 300 metre northeast trending syenite intrusive that returned a value of 2.75 grams gold from the single sample collected. Review of a subsequent airborne geophysical survey completed in 2004 highlighted this feature. A drill permit application has been filed for this target, which MAX intends to drill in the fall of 2009 in conjunction with drilling that has been permitted at the nearby Crowsnest Gold property.
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 "A", "B" and "K" grids, which led to the discovery of significant high grade gold.
Many samples of float and rubble on the "B" Grid have returned extraordinarily high gold analysis. This includes a float sample collected in 1989 by Placer Dome Inc. which is described as an intrusive breccia that returned a gold assay of 524.41 g/t gold = 15.2 ounces per ton. Other high grade float samples have returned assays to 620.0 g/t gold = 18.0 ounces per ton.
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, 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. Assay results are pending.
Exploration activity planned for 2009 at Crowsnest will continue to explore the discovery trench with close spaced drill holes to find the extent of the high grade mineralization and to define the direction and extent of the mineralized structure. There are also other areas where gossan mineralization has been found and these will also be tested.
MAX and Eastfield have agreed to amend the prior Howell agreement to allow 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 Howell by making further cash payments totaling $90,000, issuing 400,000 shares and spending a further $700,001 on exploration prior to June 30, 2013. MAX will also be responsible for its portion of the $200,000 payment due to Goldcorp Inc. and Teck Cominco Metals Limited by August 31, 2010 pursuant to Eastfield's underlying option agreement with them. To earn its 60% interest in Crowsnest, MAX must make further cash payments to Eastfield of $90,000, issue 400,000 shares and spend a further $1,050,000 on exploration at Crowsnest prior to June 30, 2013.
MAX has reviewed the results of its 2008 drill program at Eastfield's Indata gold project in North Central B.C. and has determined not to proceed with the option on this property.
This news release has been reviewed by Mr. Clancy J. Wendt, P. Geo, a "qualified person" as that term is defined under National Instrument 43-101. The historic information provided is for reference only and the reader should not infer or assert that the information is correct, reliable or accurate.
About MAX Resource Corp.
MAX Resource Corp. is a Canadian based exploration company with a diversified portfolio of mineral exploration projects in Canada and the Western United States. Our properties include Gold in Alaska, Nevada and British Columbia, Uranium projects in the south western U.S. and northern Canada, and Molybdenum in Alaska and Nevada. For more information, please visit our web site at www.maxresource.com.
On behalf of the Board of Directors of
MAX Resource Corp.
Contact: Leonard MacMillan, Corporate Communication
Telephone: (866) 331-5088 or (604) 637-2140
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 "forward looking statements". Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause MAX's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
You can view the Next News Releases item: Mon Aug 10, 2009, MAX samples > 100g/t Gold, 105 ppm Tellurium at Crowsnest Gold property, Southeastern B.C.
You can view the Previous News Releases item: Mon Jul 6, 2009, MAX sampling at East Manhattan Wash, Nevada returns significant gold values up to 0.32 ppm Au in soils; native gold mineralized area expanded at Old Drill Hole and Gold Pit Zones
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