MAX Resource Corp. (TSXV: MXR) (OTCBB: MXROF) (Frankfurt: M1D) has entered into an Option Agreement to acquire up to a 75% interest in the Majuba Hill Copper/Gold/Silver property in Pershing County, Nevada from Claremont Nevada Mines LLC., Nevada.
The Majuba Hill Project encompasses 2,313 acres of surface and mineral rights consisting of patented lode mining claims, unpatented lode mining claims, and private mineral rights.
Majuba Hill is a large, highly prospective, multi-mineral, intrusive-type system within the Western Nevada Gold Belt and is located approximately halfway between the Florida Canyon Mine (Jipangju) and the Hycroft Mine (Allied Nevada Corporation). The project is 28 miles northwest of Midway Gold Corporations Spring Valley Project. Access is good via 23 miles of dirt roads maintained by Pershing County leading from U.S. Interstate 80.
MAX believes that Majuba Hill is a newly defined copper/silver porphyry system that is highly prospective for the discovery of economic mineralization. We have developed a new exploration model designed to expand and define the current zones of copper/silver mineralization as well as explore new areas of the property where significant gold values have been reported but not been followed up. Initial exploration at Majuba Hill will include follow-up on rock chip samples reported by previous operators with values up to 10 g/t Au, 981 g/t Ag and 7.7% Cu as well as soil anomalies with silver values up to 7.7 g/t Ag and copper values up to 290 g/t Cu.
Exploration and historic production data available on Majuba Hill outline excellent potential for the discovery of new economic zones of silver/copper and gold mineralization. Production reported from historic underground mines in the project area (see Nevada Bureau of Mines and Geology Bulletin 86) included:
- 184,000 ounces of silver
- 5,800 ounces of gold
- 2.8 million lbs of copper
GEOLOGY OF MAJUBA HILL
The Majuba Hill property is centered on the mid-Tertiary age Majuba Hill intrusive complex which is about 4,700 feet in diameter. The lithologic assemblage is a cross-cutting series of intrusives ranging from rhyolite to latite with multiple stages of flow-banded units, intrusive breccias, and radial dikes. These are all emplaced into steeply dipping, northeast striking Triassic argillite.
Breccia textures are very diverse and typically include tourmaline as:
- Breccia matrix
- Cross-cutting veinlets
- Disseminated tourmaline in the mineralized areas
Highlights of reverse-circulation drilling reported by Minterra Resource Corp. in 2007-8 included:
Stuart Rogers, President of MAX states "We have reviewed the historic data available on Majuba Hill and are excited about the silver and gold exploration potential on this property, where previous exploration was focused on copper and the high silver values were of little interest due to low silver prices at the time. In fact, all but one of the silver drill intercepts listed above were even announced by Minterra when originally recovered in 2007. With silver today trading above US$35 per ounce, historic drill intercepts such as 145 ft of 1.85 opt Ag and 0.49% Cu as well as unexplored soil anomalies with values up to 7.7 g/t Ag are extremely encouraging. We have already identified drill targets on patented land at Majuba Hill and plan to drill four core holes there immediately after completion of drilling at our Table Top gold project, only 44 miles to the northeast."
The terms of the Option Agreement with Claremont allow MAX to earn an initial 60% interest in the property over six years by spending US$6.5 Million on exploration of the property. MAX can increase its interest in the property to 75% by spending a further $3.5 Million on exploration over a subsequent two year period. The Majuba Hill property will be subject to a 3% NSR payable to the vendor, 1.5% of which may be purchased at any time for US$1.5 Million. This agreement is subject to acceptance for filing by the TSX Venture Exchange.
This news release has been reviewed by Clancy J. Wendt, P. Geo, a qualified person as that term is defined under National Instrument 43-101. Any historic information provided has not been verified by MAX and is for reference only.