Trading Symbol: MXD.TSXV
VANCOUVER, Oct. 11 /CNW/ - Maxy Gold Corp. MXD.TSXV ("Maxy") is pleased
to issue the following corporate update:
Maxy is active on two significant projects in China, the Midu Joint
Venture area (189 km(2)) in western Yunnan Province, and the joint venture
with Western Mining Group in Qinghai Province.
The Midu Gold Project: The two main targets, Muluozuo (MZ) and Qingmuling
(QML) have been explored primarily through tunneling, soil sampling,
trenching, and limited drilling. The trenching highlights of MZ include
48 metres (m) of @3.72 grams per tonne (g/t) gold (TC3) and 177.1m of 0.78g/t
gold (TC1). As previously disclosed, tunneling has confirmed a gold
mineralized zone 200m long by 35m wide which will be the subject of a 2000m
drill program starting in October.
Qinghai Province - Joint Venture (JV) project with Western Mining Group:
Detailed soil geochemistry and geology are underway while drill permitting is
in progress. A ground geophysics program will start in early November.
Tunneling is planned to follow up identified targets. There are several other
properties of interest that are being examined under this JV and we expect
drilling to commence before the end of 2007.
Quality Control Disclosure
Since 2005 Maxy has had in place a quality control program to ensure best
practice in geochemical sampling and analysis of rock chips, trench, tunnel,
and drill core samples. As part of the quality assurance program, systematic
core rejects and pulp samples and standards (approximately 20%) are shipped
directly to ALS Chemex in Vancouver and reassayed to ensure conformity with
assay results received from accredited labs in China. ALS Chemex is an ISO
9002 registered laboratory.
The Board and Management
Maxy has an experienced management team and board of directors,
Mr. Andre Gauthier (President, Director & CEO): A professional geologist
with thirty years experience in the mining exploration business, Mr. Gauthier
has a solid reputation as an international explorationist, and was previously
head of Cambior's international exploration in South America and Mexico as
well as Asia and Africa from 1990 to 2005 and specifically led Cambior's
operation in the Andes and Peru for 9 years (1996 to 2005) before joining Maxy
Dr. Xiaobin Mao (Director): Chairman of the Board of Western Mining
Group., Ltd., one of the largest mining conglomerates in China. Western
Mining, based in the province of Qinghai, focuses on the mining, processing
and refining and sale of lead, zinc, copper and other non-ferrous metal
resources. Dr. Mao is also president and CEO of West Mining Co, listed on the
Shanghai stock exchange and also served as the Chairman of the China Mining
Association. He is also very active in senior political positions, including
People's Representative for the province of Qinghai. Western Mining also holds
a significant share position in Maxy.
Mr. Paul Simpson (Chairman & Director): Mr. Simpson is a Vancouver based
corporate securities lawyer with the firm Armstrong Simpson. He has over 21
years experience, predominately advising public companies with international
natural resource property holdings. He has been a director and officer of a
number of public companies, including Silvercorp Metals Inc., which operates
silver/lead/zinc mines in Henan Province, China.
Mr. Danny Hon (CFO): Mr. Hon is a Certified General Accountant with 20
years of experience in accounting and finance experience with private and
public companies. Mr. Hon has been an Associate member of The Certified
General Accountants Association of Canada since 1994 as well as a Certified
Financial Planner since 1998. He has extensive experience with Resource
companies operating in China.
Alliances and Joint Ventures:
We strongly believe in the joint venture model with major mining partners
in China. On October 4, 2006 Maxy announced a joint venture alliance with
Western Mining, in which Maxy will earn a 50% interest in four gold and base
metal projects held by Western Mining in Tibet and the Qinghai Province of
Western China. Through a wholly owned subsidiary, Western Mining subscribed to
a $2.25 million Maxy placement at $1.20 per unit. The proceeds of the
placement were applied to these joint ventures and to general working capital.
This financing strengthens the alliance between Maxy and Western Mining and
furthers Maxy's strategy of sourcing and developing projects in China through
strong relations with major Chinese mining and exploration companies. Maxy
continues to evaluate projects and looks to ally with other important
strategic partners in China.
Through Sep 25, 2007, Maxy has cash equivalent of CDN$5.5 million, in the
form of GIC which is unaffected by recent US Subprime issues. The cash was
from the sale of our Niukong Gold Project (Yunnan) in May of 2006 for RMB 51
Million (CDN$7.3 million), and from the Western Mining Investment.
About Maxy Gold Corp:
Maxy Gold is focused on the acquisition, exploration and responsible
development of precious and base metal properties in China, while building key
strategic alliances and is well financed with over US$4.2 million on deposit.
The Company has an exploration project underway on the MIDU joint venture in
Yunnan province where gold mineralization has been identified, and has a
strategic joint venture alliance in Qinghai Province with Western Mining Co.
Group, Ltd. one of China's largest mining and development companies.
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
For further information:
For further information: Maxy Gold Corp., Andre Gauthier, President,
Tel: (604) 688-8811, Email: email@example.com; The Equicom Group Inc.,
Michael Joyner, Investor Relations, Tel: (416) 815-0700 ext.275, Email: