Trading Symbol: MXD.TSXV
VANCOUVER, Sept. 5 /CNW/ - Maxy Gold Corp. MXD.TSXV ("Maxy") today
announced that the underground exploration work underway on the Muluozuo
target of the MIDU property has been effective at defining the shape, size and
grade of the gold mineralization zone previously intersected in trenches and
pits. Based on these results, Maxy will commence a 2,000 meter drill campaign
to explore the mineralization extension at depth and to verify the presence of
other similar zones in the immediate area. The Muluozuo target is located in
the northeast corner of the MIDU property 1.5 km west of the Dalongtan mine
owned by partner Yunnan Mining Geology And Mining Co, Ltd (YGM).
An exploration budget of US$1.5 million has been approved by YGM which is
covering 25% of the expenditures to maintain its 25% interest.
During the summer, Maxy focused its exploration on the Muluozuo and
Qingmuling properties (within the greater Midu project). One tunnel has been
initiated on the Qingmuling target and two tunnels continue to progress on the
Muluozuo target with more than 687m of tunneling completed to date on the 2
Up to date Maxy has completed over 687 meters of tunneling and 1200m of
Diamond drilling on the Muluozuo target of the MIDU property. Systematic soils
sampling as well as rock chips sampling have been carried out on most of the
Initial tunneling work, including ore drifting and 2 cross cuts at the
2133m elevation (level 2133) indicate that the mineralization zone is oriented
in an east-west direction and has an approximate width of 35m and can be
pursue over a 150 meters length. Similar tunneling work, including a main
tunnel with ore drift and cross cuts 50m below level 2133 (on level 2082),
will test the depth extension of the zone.
The zone consists of a brecciated conglomerate and is capped by a thick
colluvial mineralized zone that seems to have a similar shape with a dimension
of 230m by 130m. According to geological information the zone is associated
with a fault zone oriented in the same direction. Further work will aid in the
verification of this work hypothesis.
Trench mapping continues to indicate a correlation of gold results with a
"conglomerate colluvial" unit that potentially could be of a similar
mineralization style to other known gold deposits in the world, such as the
"La Quinua" deposit at the Yanacocha mine in Peru. This is also the
mineralization style at the Dalontang Gold mine owned by partner YGM,
approximately 1.8 km from the Muluozuo property. YGM reports a gold resource
of over 1 million ounce and has the Dalontang in production, mining at a rate
of 1000 tons/day at an approximate grade of 1.0 g-t Au. New annual gold
production is planned to be approximately 500 kg once the new plant comes into
Much of the gold produced and contained in the Yanacocha gold deposit is
related to high sulphidation epithermal mineralization disseminated in various
volcanic units and in porphyry style copper-gold deposits. However, part of
the mineralization is contained in the "La Quinua" deposit which, like the
Muluozuo mineralization, is hosted by unconsolidated gravel.
The progress in Tunnels is as follows. A tunnel map is attached, also
available at www.maxygoldcorp.com:
LEVEL 2133 (elevation 2133m)
Tunnel No. 1,
Oriented in a north- south direction, located on level 2133 and collared
at 00 - 00 . North. The tunnel has been completed to a length of 190m north.
A 35m mineralization zone (from 21.2 to 56m north of entrance) has been
cut through with an average grade of 0.8 g/t Au with some higher grade
sections. Although some breccia zones similar to the mineralization zone have
been intersected no gold mineralization appears to be associated with it.
Ore Drift No. 1a (East)
From the same tunnel No.1, at 40m north of the entrance, Ore drift No.1A
is oriented in a east-west direction and has been extended over 70m to the
From 0 to 24m, mineralization is averaging 0.9 g/t gold, from 32m to 43m
the average gold grade is 0.7 g/t and from 48 to 56m the mineralization is
averaging 0.9 g/t gold.
Cross Cut, Section 4E, North side
In Ore drift No. 1A, 40m east from its commencement in tunnel No.1, a
north/south oriented cross cut has been driven 85m,in a northern direction
This is on section 4E, parallel and 40m to the east of Tunnel No.1. From
0.8 to 14.2m, gold mineralization is averaging 1.3 g/t gold, further results
Cross Cut, Section 4E, South Side
Another cross cut on the same section, 4E, has been driven 22m in a
southern direction. Assay results are pending.
Tunnel No.3 has been initiated on section 4W, with an entrance collared
at 4S and oriented to the north. 85m have been completed to date. The
mineralized zone (breccia) has not been reached yet, however, results from the
conglomerate are still pending
Tunnel No.2 is away from the main zone and was completed approximately
1 km east of tunnel No.1 at an elevation of 1940m. The tunnel was oriented to
the north-west. The tunnel has a length of 100m with one zone
intersected-10.5m wide, grading 0.44 g/t gold. A 45m cross cut has been
completed and no zone has been intersected.
The second phase 2000m diamond drilling program will mobilize shortly,
with commencement expected by the third week of September. The drilling is
aimed to extend the mineralization that surface trenching and pitting, and now
underground tunneling have confirmed, with the drill to, test the zone down to
a depth of 150m over a length of 300m. The drilling will also test additional
soil anomalies to verify the existence of similar mineralized zones in the
immediate area as well as colluvial extensions.
An ore drift on level 2133 will be initiated from Tunnel No.1 going to
the west. Further tunneling is continuing on level 2082.
To view map of Muluozuo Gold Project, please see attached link:
The Qingmuling target is located in the southern part of the MIDU
property and Tunnel No.Q1 has been initiated in the main anomalous zone and
proceeds in a northern direction. Some 124m have been completed and assay
results are pending. However, no evidence of major mineralization zones has
been observed. This tunnel was designed to test some interesting gold
anomalies in trenches, that appeared to be associated with a low angle
geological discordance (fault). Another tunnel will be initiated in September
under some high grade trench samples.
QUALITY CONTROL PROGRAM AND QUALIFIED PERSON
The quality control program is under the supervision of Vice president -
CHINA, Eng. Zhu Cheng Wei and Andre Gauthier, President of Maxy Gold. Samples
in trenches were systematic chip samples averaging 1m in length, taken from
the sides of the trench according to geological unit and across the entire
section (depending on the depth) of the trench, approximately every 3m. Trench
sample preparation was carried out at the certified SGS Lab in Kunming and
assayed at SGS Tianjin laboratory.
Underground samples are systematic chip samples averaging 1m in length,
taken from the sides of the wall. Trench sample preparation was carried out at
the certified SGS Lab in Kunming and assayed at SGS Tianjin laboratory
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 re-assayed. ALS Chemex is an ISO 9002 registered
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: firstname.lastname@example.org; The Equicom Group Inc.:
Michael Joyner, Investor Relations, Tel: (416) 815-0700 ext.275, Email: