TEMEX ENTERS INTO OPTION AND JOINT VENTURE ON CROXALL PROPERTY WEST TIMMINS
GOLD DISTRICT, ONTARIO
TSX-V:TME; FWB:TQ1
TORONTO, Sept. 22 /CNW/ - Temex Resources Corp. (TSX-V: TME, FWB: TQ1) ("Temex" or "the Company") announces that it has entered into an option and joint venture agreement with Mill City Gold Corp. ("Mill City") pursuant to which the Company has agreed to grant Mill City the right to earn not less than a 75% interest in the Croxall Property. The 2,400 acre Croxall Property ("Croxall") is a key property located in the area known as the West Timmins Gold District where Lake Shore Gold Corp. ("LSG") is currently in the pre-production phase of developing the first gold mine on the Timmins Mine Project, 6 kilometres northwest of Croxall. The optionors of Croxall were also the prospectors who sold the Thunder Creek portion of the Timmins Mine to the predecessor company to Lake Shore Gold Corp. The Croxall Property is located adjacent to the east of the southeast portion of the LSG property and two kilometres to the south of the Explor Resources property.
Commented Ian Campbell, President and CEO of Temex: "The entering into this arrangement with Mill City fits into our strategy of dedicating our resources to rapidly advance our high grade Whitney Gold Property in Timmins and our Juby Gold Project, both of which currently have significant drill programs underway, while concurrently advancing projects such as Croxall which we believe is one of the best underexplored properties in the West Timmins area. We are already a significant shareholder of Mill City and we look forward to working with them to advance this Property in this exciting and quickly developing area."
Lake Shore Gold Corp. reported in their presentation at the Denver Gold show September 20, 2010 that drilling was continuing on the Golden River area 3 kilometres to the west of Croxall with 4 drill rigs (LSG website - Presentations). Information from historic work completed on the two properties, including the recent work by Temex on Croxall, indicates the presence of the same style of mineralization extending for several kilometres on the two properties. Over the years, operators on the LSG property to the west found that detailed drilling and deeper drilling was required to find the higher grade and wider parts of the gold mineralized systems once they were located. To date gold mineralization has been found in drill holes at a number of sites on Croxall but little detailed follow-up has been carried out to trace the mineralization along strike or to depth.
History and Geology
The Croxall Property was optioned by Temex in 2009 based on its favourable geological position and the fact that it contained known gold mineralization. It is contiguous to the east of the Golden River trend being explored by LSG and is underlain by similar stratigraphy that hosts gold mineralization on the LSG property. The southern portion of the Croxall Property covers approximately 3 kilometres of the Porcupine-Destor Fault, a key marker for gold mineralization in the Timmins camp, and the Property is known to host more than one "syenite" type gold-bearing porphyry body similar to that being explored by LSG and also to the north of Croxall on the Explor Resources property. Gold mineralization has also been identified by previous operators within other host rock types on Croxall.
During the first year of the option agreement, the Company completed a first phase drill program consisting of eight holes totalling 2,863 metres. Drill hole TC09-01 intersected significant gold mineralization including visible gold within an altered porphyry unit that assayed 5.28 g/t gold over 1.90 metres including 7.81 g/t gold over 1.10 metres. Similar altered porphyry containing molybdenite mineralization was intersected approximately 100 metres vertically below and assayed 1.09 g/t gold over 1.40 metres. This intersection represents the deepest hole drilled on the Croxall Property. A second, much larger altered porphyry intrusion intersected near the top of the hole assayed 4.15 g/t gold over 1.00 metres, while a 1.30 metre wide interval of ultramafic rock adjacent to this porphyry assayed 1.55 g/t gold over 1.30 metres.
The first phase results were very encouraging, with the highest gold grades recorded to date and also included the definition of a number of altered felsic porphyry units associated with the gold mineralization. Further drilling is required to test for gold mineralization associated with the porphyry bodies which remain untested in all directions.
Agreement
The Company has an option to acquire a 100% interest in the Croxall Property, located in the Ogden, Price and Thorneloe townships, in the Porcupine Mining Division; the original agreement was announced by the Company in its June 25, 2009 news release. On September 21, 2010 Temex entered into an agreement with Mill City under which Mill City will have the option to earn not less than a 75% interest in Croxall pursuant to the following main terms: Mill City shall commit to spend not less than $250,000 on Croxall by the first anniversary of the agreement and deliver to Temex 250,000 common shares of Mill City. In order to earn any interest in the Property which shall be a 75% interest in the Property, Mill City must spend a total of not less than $750,000 on the Croxall Property prior to the fourth anniversary of the agreement and must pay all cash payments that remain to be paid on the Property until the formation of the joint venture that will be Mill City 75% and Temex 25%. Temex shall remain responsible for any share payments due to the optionors under the original agreement. If the interest of Temex under the joint venture drops below 10% its interest shall be forfeited. Mill City has agreed and Temex has accepted that Mill City has agreed to terminate the agreement dated December 12, 2007 with Temex relating to properties (Northern and Southern Star Eagle claims) in the James Bay Lowlands and Mill City retains no interest in the properties.
Ian Campbell, P. Geo., President and CEO of the Company, is the designated "qualified person" (within the meaning of National Instrument 43-101) responsible for the preparation of this news release.
About Temex Resources Corp.
Temex is a Canadian based exploration company focusing on its portfolio of precious metals properties in northeastern Ontario, a world class mining district. The properties are located within the world-renowned Abitibi greenstone belt, in proximity to the Porcupine - Destor and Cadillac - Larder Lake fault zones from which over 150 million ounces of gold has been mined to date and along which companies such as Osisko, Kirkland Lake Gold, Queenston, Northgate and Lake Shore Gold are currently in development stage. Temex's strategy is to focus on developing its flagship project, the Timmins Gold Project, and specifically the property known as Whitney, in partnership with Goldcorp. This property has historically produced over 2.3 million ounces of gold and contains the Hallnor Mine, the highest grade past producing multi-million ounce gold deposit in Canada's largest gold camp. Temex is also working to advance its 100% owned Juby Gold Project, one component of which is the Juby Lease Property which contains a National Instrument 43-101 Indicated resource of 614,000 ounces of gold and an Inferred resource of 602,000 ounces of gold (news release June 15, 2010). The Company maintains a number of early stage projects with considerable 'Blue Sky' potential in its portfolio.
Forward Looking Statements:
This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. The Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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.
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For further information: please visit www.temexcorp.com or email: [email protected] or phone: 416-862-2246, toll free: 866-373-6287
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