Trading Symbol: MXD.TSXV
2000 meters drilling program initiated in late October
VANCOUVER, Oct. 24 /CNW/ - Maxy Gold Corp. MXD.TSXV ("Maxy") today
announced that the underground exploration work underway on the Muluozuo
target of the MIDU property continues to be effective in defining the shape,
size and grade of the gold mineralization zone previously intersected through
trenching and pit work. A new intersection of 16.4 meters (m) grading 1.7 g/t
Au has been cut in the west extension of the ore drift of tunnel No.1 (Level
2133). A section of 5m, grading 0.75 g/t Au and another 4.3m grading 0.7 g/t
Au have been cut in the cross cut 4 E south side.
Based on these results, Maxy has initiated a 2,000m 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
covers 25% of the expenditures, allowing YGM to maintain its 25% interest.
Andre Gauthier, Maxy's president stated: "These recent results
demonstrate the strike extension of the zone and we are looking forward to
extending the mineralization at depth in the forthcoming diamond drilling
EXPLORATION UPDATE OF MIDU PROJECT
During the summer, Maxy focused its exploration on the Muluozuo and
Qingmuling targets (within the greater Midu project). One tunnel has been
completed and another initiated on the Qingmuling target and two tunnels
continue to progress on the Muluozuo target, with more than 687 m of tunneling
completed to date on the 2 targets.
Maxy has now completed over 720m of tunneling and 1200m of Diamond
drilling on the Muluozuo target on the MIDU property. Systematic soil sampling
as well as rock chips sampling have been carried out on a large part of the
2007 Diamond drilling Program:
The second phase 2000m diamond drilling program was mobilized, however a
longer deployment time has resulted from heavy rain slowing progress in
rig-access road construction. The drilling program at Muluozuo will test the
gold mineralization, confirmed by trenching, pitting and tunneling, down to a
depth of 150m (2000 level) over a strike length of 300m and other soil
anomalies to verify the existence of similar mineralization zones in the
immediate area as well as colluvial extensions. 23 drill holes are planned.
The ore drift to the west on level 2133 will be continued to a length of
at least 50m. The ore drift to the east will be extended and an additional
cross cut will be initiated in October. Further tunneling and cross cutting
will continue on level 2082.
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 not encouraging for economic mineralization. A second tunnel
(No.Q2) was initiated and results are pending. This tunnel was designed to
test some interesting gold anomalies in trenches that appeared to be
associated with a low angle geological discordance (fault).
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, P.Eng, 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. Maxy 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
To view map of the Muluozuo Project, please click here:
UNDERGROUND WORKS DETAILED DESCRIPTION
The progress in Tunnels is as follows. A tunnel map is attached, also
available at www.maxygoldcorp.com:
As mentioned in an earlier release, 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 pursued over a distance of 150 meters.
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 new results of 16.4 meters grading 1.7 g/t Au confirm the extension
to the west of this interesting mineralized zone. Ore drifting is continuing
in this direction.
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 this 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 ounces and has the Dalontang Mine in production, mining at a
rate of 1000 tons/day at an approximate grade of 1.0 g/t Au. The annual gold
production is estimated to be approximately 500 kg, once the new plant comes
into full production.
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.
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 the 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 an east-west direction and has been extended over 80m to the
From 0 to 24m, mineralization is averaging 0.9 g/t Au, from 32m to 43m
the average gold grade is 0.7 g/t Au and from 48 to 56m the mineralization is
averaging 0.9 g/t Au. Results of 10 samples (from 70 to 80 meters) are
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 90 m, 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 Au, other results we're not
Cross Cut, Section 4E, South Side
Another cross cut on the same section, 4E, has been driven 22m in a
Few mineralized sections were cut: 5 meters grading 0.75 g/t Au and
4.3 meters grading 0.7 g/t Au.
Ore Drift No. 1a (West)
From the same tunnel No.1, at 40 meters north of the entrance, Ore drift
No.1 b is oriented in a east-west direction has been recently initiated and
will be extended for over 50 meters
A 20 meter section was recently completed yielding an intersection of
16.4 meters, grading 1.7 g/t Au.
Tunnel No.3 has been initiated on section 4W, with an entrance collared
at 4S and oriented to the north. 125 meters have been completed to date. The
zone has not been intersected yet.
No work has been done since the last release and 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 is oriented to the north-west. The tunnel has a
length of 100m with one zone intersected-10.5m wide, grading 0.44 g/t Au. A
45m cross cut has been completed and no zone has been intersected.
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: