Temex : Drilling intersects high grade silver Gowganda Silver Project
Temex Resources Corp. is pleased to announce results from a Phase I drilling program completed on its wholly-owned Gowganda Silver Project (“the Property”). The Property contains the Miller Lake O’Brien Silver Mine, the largest past producing Cobalt-style silver mine outside of Cobalt, Ontario. It was operated by Miller Lake O’Brien Mines (1910-1944) and later by Siscoe Metals (1945-1972), with combined historical production of 40.7 million ounces of silver at an average grade of 22 ounces per ton silver (DMBW, 1990). The project is located 3 kilometres northeast of the historic silver mining town of Gowganda, Ontario and has excellent access and infrastructure.
Drilling Highlights – 4,560 grams per tonne silver over 0.75 metres (133 ounces per ton) in hole TGS-06-03 – 6,066 grams per tonne silver over 0.70 metres (177 ounces per ton) in hole TGS-06-04 – 1,885 grams per tonne silver over 0.30 metres (55 ounces per ton) in hole TGS-06-02 – Several multi-ounce intersections in program of 22 holes drilled for
a total 2,500 metres
The Company completed a diamond drilling program in late December 2006, consisting of 2,500 metres in 22 drill holes. Twelve holes tested the Upper Bonsall area, 6 holes tested the Millerett 7-9 area, and 4 holes tested the Millerett No.1 Shaft area. All of the holes were angle holes drilled from surface and ranged from 55 to 185 metres in length.
Drill holes in the Upper Bonsall area were designed to confirm and test the vertical and strike extensions of several high grade silver veins discovered by the previous operators during an extensive underground exploration program (1987-1995). These veins are located beneath the main tailings in a previously undeveloped area of the Property and are readily accessed by an existing adit. The drill program was successful in confirming the presence and continuity of the high grade silver veins, with eight of the holes intersecting silver-bearing veins with individual samples returning values ranging from 31 grams per tonne silver to several thousand grams per tonne silver over core lengths ranging from 0.10 to 0.50 metres. The two highest grade intersections were 4,560 grams per tonne silver over 0.75 metres, including 8,314 grams per tonne silver (242.54 ounces per ton) over 0.40 metres and 15,689 grams per tonne silver (457.66 ounces per ton) over 0.15 metres (hole TGS-06-03) and 6,066 grams per tonne silver over 0.70 metres, including 12,541 grams per tonne silver (365.82 ounces per ton) over 0.30 metres (hole TGS-06-04).
In the Millerett 7-9 area, located 200 metres south of the Upper Bonsall area, six drill holes tested for the presence of new silver veins in addition to testing the veins evaluated by the previous operator. Silver-bearing calcite veins were intersected in three of the holes, including TGS-06-19 which intersected 1.75 metres grading 162 grams per tonne silver, including 1.0 metres grading 274 grams per tonne silver from near the collar of the hole. A separate interval, 30 metres further down the hole, graded 80 grams per tonne silver over 0.50 metres. The upper intersection is interpreted to represent the western extension of the Millerett No. 8 vein from which the previous operator recorded drill intersections ranging from 73 grams per tonne silver (2.15 ounces per ton) over 0.3 metres to 5,306 grams per tonne silver (154.8 ounces per ton) over 0.61 metres and 9,989 grams per tonne silver (291.4 ounces per ton) over 0.30 metres. Drill hole TGS-06-19 was collared about 50-75 metres west and along strike of Millerett No. 8 vein. Drill hole TGS-06-22 intersected numerous silver-bearing zones and contained abundant calcite veinlets with highly anomalous silver unevenly distributed over an 80 metre core length. This broad intersection suggests the presence of a significant silver mineralized system located in an area that has seen very little drilling or previous exploration.
Four holes tested a section of stratigraphy in the Millerett No.1 Shaft area where past production totalled approximately 500,000 ounces of silver (1910-1912). No significant silver values were obtained in this area.
Commented Ian Campbell, President and CEO of Temex, “We are very pleased with the results of the initial drill program in that it has identified and confirmed two areas which clearly demonstrate the potential of the Property to host high grade silver veins and vein sets that are similar to those which were successfully exploited at the Miller Lake O’Brien Silver Mine. These results have given us the confidence to incorporate and utilize the information and data from previous drilling and mining into a 3D geological model which will guide our future exploration.”
Past-producing silver veins are hosted in Nipissing Gabbro and are characterized by spectacular native silver mineralization that is subject to extreme heterogeneity in grades, whereby certain portions of the veins have native silver mineralization, and other portions of the same veins have little or no silver mineralization. The distribution of silver mineralization within specific veins is generally unpredictable however the presence of high grade silver in any portion of a vein has historically proven to indicate a potentially mineable structure. Results from the drill program indicate the presence of several veins that are similar in size and character to those which were mined on the Property.
During the course of the drill program, a small trenching program was completed in order to explore the up-dip extensions of sub-vertical, silver-bearing quartz-carbonate-sulphide veins, which were encountered at depth by the current drilling and historic drilling campaigns. One of these trenches encountered a significant east-west striking, 1-3 cm wide, silver-mineralized calcite vein that was exposed for 12 metres and hosted in Nipissing Gabbro. This vein assayed up to 3,390 grams per tonne silver from grab samples and up to 1,570 grams per tonne silver from one 20 cm long channel sample cut perpendicular to the vein. In total, five separate 20 cm long channel samples were collected from the exposed vein, and these samples averaged 448 grams per tonne silver. It is believed that this vein is the same as that intersected in drill hole TGS-06-04. In another area of the Property, grab samples from 10-25 cm wide quartz veins, hosted in Archean mafic volcanic rocks, contained abundant cobalt mineralization, assaying 1.475 grams per tonne gold, 3.7% cobalt, 0.9% bismuth, with elevated nickel, arsenic, copper and molybdenum concentrations.
This press release has been reviewed and approved by Scott Jobin-Bevans, Ph.D., P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101, working with Caracle Creek International Consulting Inc., based in Sudbury, Ontario.
Other Business
The Company also wishes to announce that it has completed a Purchase and Sale Agreement to acquire 4 mining claims totalling 1,800 acres in South Lorrain Township, approximately 20 kilometres east of Temagami. The claims, known as the TO Property, were acquired from the Seller by making a cash payment of $10,000 and issuing 200,000 shares in the common stock of the Company. The Seller shall retain a 2% Net Smelter Return Royalty interest (“NSR”) in any mineral products mined from the property except in the case of any diamond production from the property, in which case the royalty interest shall be a 2% Gross Overriding Royalty (“GOR”) payable to the Seller. The Company retains the right to buy back a 0.50% NSR from the Seller at any time for $1.0 million cash (CDN). The terms of the deal are subject to approval from the TSX Venture Exchange.
The Company also wishes to announce that as of January 31, 2007 it has granted 200,000 stock options to an insider of the Company in order to replace 200,000 options at the same price which expired on January 21, 2007. The new options are exercisable at a price of $0.40 for a period of 5 years.
Temex, focused on advancing its gold, silver and diamond projects in northeastern Ontario, is well funded with $4.0 million in the treasury and has no debt. For further information please visit the Temex website www.temexcorp.com or contact Ian Campbell at 416-862-2246.
On behalf of the Board of Directors,
“Ian Campbell”
Ian Campbell
President and CEO
Sampling and QA/QC Procedures
NQ core was logged and sample intervals selected which were sawed in half, with one side bagged and labelled; the remaining half was returned to the core box for a permanent record and is stored at a secure facility in Gowganda. Core sample size varied from 0.10 to 0.50 metres. All samples were transported to ALS Chemex Ltd. Laboratories in Sudbury for fine-crushing, splitting, and pulverization. Samples were first crushed to -2 mm, then split off 250 gram (using a riffle splitter), the split was then pulverized and homogenized. The pulp was shipped to ALS Chemex Ltd. Laboratories in Vancouver. Pulverized samples were analyzed for 27 major elements using a four acid digestion with an ICP-AES finish. Samples with values of silver over 100 ppm were analyzed using fire assay with a gravimetric finish, and a 50 gram nominal sample weight. Samples with values of cobalt greater than 10,000 ppm were analyzed using an ore grade four acid digestion and HCL leach with an AAS finish. Gold was analyzed by fire assay with an ICP-AES finish, using a 30 g nominal sample weight. Results are reported in ppm and reported in this news release as grams per tonne with conversions to troy ounces per short ton (see notes below). All widths stated are drilled widths; the true widths of the reported intervals are interpreted to range from 85-95% of the drilled widths.
Quality control standards for silver and blanks were inserted at regular intervals in the sample sequence. All blanks assayed below detection limit for silver, and the quality control standards returned values within the statistical limits. ALS Chemex standard operating procedures require the analysis of quality control samples (reference materials, duplicates and blanks) with all sample batches. As part of the assessment of every data set, results from the control samples were evaluated to ensure that they met set standards determined by the precision and accuracy requirements of the method.
Notes: 1 ppm (equal sign) 1 gram per metric tonne. 1 gram per metric tonne (equal sign) 0.2917 troy ounces per short ton.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release
For further information
please visit the Temex website, www.temexcorp.com, or contact Ian Campbell at (416) 862-2246
Source: Temex Resources Corp.
