PJX Resources Inc. ("PJX") is pleased to announce that exploration potential at the Vine Property has been expanded from a 640 hectare (ha) land position to over 6,300 ha of land. This has been made possible through an option agreement with Klondike Gold Corp. ("KG")
The Vine Property has a deposit of gold, silver, lead, zinc and copper mineralization that was first discovered in the late 1970's by Cominco. The last significant drilling done on the Vine was between 1989 and 1991. Low metal prices in the 1990's curtailed any further exploration and the land position became fragmented.
Company President and CEO, John Keating, comments, "This is a win-win scenario for PJX Resources and Klondike Gold. This is the first time in over 20 years that the Vine land position has been consolidated into a size that can be properly explored. Metal prices today are far more favourable than they were when the Vine was last explored. Gold is trading over US$ 1600 an ounce, as compared to US$ 360 in 1991. Silver averaged about US$ 4 per ounce in 1991 and is now trading over US$ 30 an ounce. Zinc, lead and copper prices are also much stronger today. This larger land package combined with stronger metal prices makes a discovery on strike or at depth with the Vine more favourable for development."
Under the terms of the Vine Extension Option Agreement, PJX can earn a 50% interest in KG's 6,300 ha property by completing $1.5 million in work, with at least $1 million of the $1.5 million spent on drilling, and make share payments to a maximum total of 200,000 common shares over a 5 year period. Once PJX has exercised the option the companies will form a Joint Venture (JV - 50% PJX and 50% KG) with PJX as operator. If either company decides not to participate in the JV then their interest is diluted on a pro-rata basis to a 2% NSR with the other company having the right to purchase ½ of the 2% NSR for $2 million. The issuance of shares is subject to approval by the TSX-Venture Exchange.
The road-accessible Vine Property is located 11 kilometres south of Cranbrook, British Columbia. The following summary of the Vine occurrence is quoted from the B.C Ministry of Energy Mines, and Petroleum Resources' Minfile Record Summary (082GSW050).
"The Vine 1 occurrence is a shear-related vein system in Middle Aldridge Formation argillites and quartzites. Trenching and drilling has exposed massive and disseminated sulphides (pyrite, sphalerite and galena) within a sheared vein system striking about 120 degrees and dipping 45 to 85 degrees to the northwest. Stringer and disseminated sulphides are conspicuous in the shear zone for several metres on either side of the massive sulphides. The mineralized Vine structure has been traced for over 1000 metres along strike and a downdip extension of at least 700 metres.
Recent drilling (1990) of the Vine structure (630 metres depth) has intersected 3 massive sulphide veins. The upper vein has a true width of 4 metres, the middle vein a true width of 2 metres and the lower vein a true width of 3.4 metres. The upper vein averages 2.94 per cent lead, 0.2 per cent zinc and 29.13 grams per tonne silver across 4 metres. The middle vein averages 36.24 per cent lead, 12.16 per cent zinc, 229.67 grams per tonne silver and 0.34 grams per tonne gold across 2 metres. The lower vein averages 4.7 per cent lead, 2.09 per cent zinc, 0.36 per cent copper and 35.3 grams per tonne silver across 3.4 metres. The lower vein represents a new sulphide zone within the Vine structure (George Cross News Letter #224 (November), 1991).
Proven and probable reserves for the Vine property are 1,300,000 tonnes grading 2.2 grams per tonne gold, 36.3 grams per tonne silver, 3.12 per cent lead, 3.12 per cent zinc and 0.11 per cent copper (MDAP - Kokanee Exploration Ltd. Prospectus (1990))."
Kokanee Exploration Ltd.'s resource estimate reported above is an historical estimate and was not prepared using the resources categorizations set out in NI 43-101. The Company is uncertain as to the relevance or reliability of the historical estimate.
PJX is fortunate enough to have access to the drill core and drill logs from the over 50 holes drilled on the Vine deposit. The company has recently had the drill data digitized for computer modelling. The data will be used to assess potential for more mineralization on strike and at depth. The results of this work will be used to identify targets for drilling the Vine vein.
The structure hosting the Vine vein is projected to strike on to the newly optioned property. PJX plans to fly an airborne survey over the property to identify potential Vine style and Sullivan deposit targets. The geological environment for the Vine Property and area is also favourable for hosting a Sullivan Mine type of deposit. The Sullivan Mine is located about 30 km to the north of the property. Teck Cominco closed the mine in 2001 after producing over 120 million tonnes of silver-lead-zinc ore during its 90 year mine life.
PJX's Potential for Discoveries
PJX Resources' primary focus is the Dewdney Trail Property; where 3 target areas have been identified to date with large gold deposit potential. In addition, PJX has identified a significant new target area on the Zinger Property that may have the potential for multiple gold deposits. Targets are being developed on the Eddy Property, and PJX can now identify targets on the Vine Property.
The key to deposit discovery is often in the number of quality targets that are developed for testing. In a short period of time, PJX has identified new targets on multiple properties by using an estimated $8 million in exploration work that was done by others in the past on our Cranbrook Properties. The targets are being discovered by combining historical data with fresh thinking and the latest technologies, such as new airborne geophysical systems or computer modelling. PJX plans to selectively test the most promising targets with trenching and drilling during 2012, and continue to cost effectively develop new targets for future testing.
The foregoing geological disclosure has been reviewed by John Keating, P.Geo. (a qualified person for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. Keating is the President, CEO and a Director of PJX.
About PJX Resources Inc.
PJX is a mineral exploration company focused on building shareholder value and community opportunity through the exploration and development of mineral resources with a focus on gold. PJX's primary properties are located in the historical mining area of Cranbrook and Kimberley, British Columbia.
Please refer to our web site http://www.pjxresources.com for additional information.
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. Forward-looking statements include, but are not limited to, statements with respect to exploration results, the success of exploration activities, mine development prospects, completion of economic assessments, and future gold production. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements.
Although PJX has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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.
PJX Resources Inc.
Linda Brennan, 416-799-9205
Chief Financial Officer