Margaux Resources Announces Rock Sample Results from the Jackpot Property, Enters a Community Partnership Agreement with The Salmo Watershed Streamkeepers Society to Assess Recycling and Remediation Opportunities of Historical Tailings, and Grants of Stock Options
CALGARY, ALBERTA — (The Newswire – August 18, 2017)
Margaux Resources Ltd. (TSX VENTURE:MRL, OTCQB:MARFF) (“Margaux” or the “Company”) is pleased to announce zinc grab sample results from its Jackpot property in southeastern British Columbia. Additionally, it has entered into a collaboration-focused partnership agreement (the “Partnership”) with The Salmo Watershed Streamkeepers Society (“Streamkeepers”) to assess the potential for the recycling and remediation of historical tailings, focusing initially on legacy tungsten tailings on the Canex mining claim.
Jackpot Grab Sample Results
Margaux is pleased to announce rock sample results from its ongoing work on the Company’s Jackpot property in southern British Columbia. Representative chip samples were collected from surface showings at the Jackpot West, Jackpot Main and Lerwick zones in the southern part of the property.
Results shown in the table below and on the accompanying map are composite, weighted average grades across continuous chip sample intervals.
“As the zinc supply shortage intensifies and with stock inventories down significantly since the beginning of the year, zinc prices have continued to be pushed north,” commented President and CEO Tyler Rice. “Prices have gained over 35% through the last year and now have reached a decade high of over US$1.41 per pound. In this environment we are encouraged to progress our exploration work on our zinc properties and are working to move them forward. We look forward to the results of our current drill program to support these strong zinc grab sample results.”
In this part of the Jackpot property, multiple horizons of massive to semi-massive sphalerite (+/- pyrite, galena) occur within a 1.5 x 0.75 km area. Mineralization is stratabound, hosted within highly deformed limestone and dolomite, and has been locally thickened by post-mineral folding. Results for additional chip samples collected from the Jackpot property are pending. As announced in the news release dated August 15, 2017, a 1,500 m NQ2 diamond drill program has commenced on the Jackpot property.
Streamkeepers and Margaux Partnership Agreement
The Salmo Watershed Streamkeepers Society is a charitable, non-profit community-based organization focused on environmental stewardship, restoration and awareness of the Salmo River Watershed, part of the Columbia River Watershed in British Columbia.
“Through the Margaux and Streamkeepers Partnership, we will collaborate to explore sustainable economic and environmental solutions for legacy tailings, with an initial focus on the legacy tungsten tailings from the Jersey mine. This Partnership combines the strengths of each party, bringing together Streamkeepers’ established and extensive base of local knowledge and environmental expertise, plus its stakeholder relationships in the Kootenays, and Margaux’s financial and technical resources, to address our shared objectives,” commented Tyler Rice.
Streamkeepers’ Coordinator, Gerry Nellestijn, remarked “Remediation of legacy tailings represent an opportunity to protect environmental values in this very special region, while contributing to economic opportunities for our communities. We believe that, working with government, this Partnership offers the potential to advance these goals, to the benefit of all stakeholders.”
Mining played an important role in the development of the Kootenays, which led to associated legacy issues regarding abandoned mine tailings from that era. Although many of these sites contain potentially useful resources, few such sites are remediated. The Margaux-Streamkeepers collaboration offers a new, community-based approach with which to pursue community investment and environmental objectives.
In consideration for Streamkeepers current expertise, skills and network that is being utilized to review the legacy tailings, and to support the work of Streamkeepers in the Salmo River Basin, Streamkeepers will be issued a one-time grant of 150,000 Margaux shares (subject to receipt of TSX Venture Exchange approval) which will be subject to a four-month hold period. Additionally, under the terms of the Partnership, Margaux will have the exclusive option to recycle and market historical tailings, and Streamkeepers will be granted certain future revenue participation rights, based on the proceeds of sales of minerals from the tailings, for consideration of future services. This Partnership also recognizes the growing realization that those that benefit from the Environment should contribute to a stable fund to restore it.
The first tailings the Partnership will review are the legacy tungsten tailings from the Jersey mine located on the Canex mineral claim. Margaux entered into an option agreement with a third party (“Option Agreement”) for the 100% acquisition of the Canex mineral claim in the Nelson Mining Division (the “Property”), which has been approved by the TSX Venture Exchange. Under the terms of the Option Agreement, Margaux has the exclusive option to acquire the mineral claim by making payments to the third party of an aggregate $110,000 cash and aggregate issuance of 275,000 shares, paid in several installments over three years.
In addition, Margaux has been granted the exclusive right to access the Property, plus the use of an adjacent area for future operations related to the assessment of the legacy tungsten tailings via a surface access agreement with the surface rights’ owners.
The Property is located in the Kootenay Arc belt in southeastern British Columbia, approximately 10 kilometers south of the community of Salmo, and adjacent to Margaux’s Jersey-Emerald property. It consists of a mineral claim, covering 25 hectares.
Granting of Options
Finally, Margaux wishes to announce that it has granted an aggregate of 1,760,000 Common Share purchase options in accordance with the Company’s shareholder-approved stock option plan. These stock options include 1,050,000 options to directors, being Messrs. James Letwin, Robert Derkitt, Edward Lawrence and Douglas Foster, 250,000 to officers, being Ms. Linda Caron and Messrs. Tyler Rice and Jason Linkewich, 275,000 to the advisory committee and the balance to consultants. The stock options are exercisable at a price of $0.30 per share, expire in five years, and vest over a period of three years, with 1/3 of the Options vesting immediately, and 1/3 vesting at the end of each the first and second anniversary of the date of grant.
The Jackpot samples reported in this release were continuous representative chip samples that, where possible, were collected perpendicular to the trend of mineralization. Additional work is required to determine the true width of the mineralized zones.
For Jackpot samples, sample weight averaged about 1.1 kg. QA/QC procedures were implemented in the sampling program and included Company-inserted standards of known lead-zinc grade. Jackpot samples were shipped to ActLabs’ Kamloops, B.C. laboratory (ISO 9001:2008, ISO 17025, CAN-P-1579 certification) for preparation and analysis. Samples were crushed at the lab to 80% passing a 10 mesh (2 mm) screen, then a 250 g split of the crushed sample was pulverized to 95% passing 105 microns. All samples were analysed for gold by FA/AA finish on a 30 g sample of pulverized material, and for a multi-element suite by ICP-MS following aqua regia digestion. Zinc assays were done for all samples returning > 5000 ppm Zn.
Linda Caron, M.Sc., P.Eng, Margaux’s Vice President of Exploration, is the Company’s Qualified Person as defined by NI 43-101 who supervised the sampling program and who has reviewed and approved the technical information contained within this press release.
About Margaux Resources Ltd.
Margaux Resources Ltd. (TSX.V: MRL, OTCQB: MARFF) is a mineral acquisition and exploration Company focused on the development of zinc, gold and tungsten deposits in the Kootenay Arc, in the southeastern region of British Columbia. The Company is directed by a group of highly successful Canadian business executives and has a fast-growing portfolio of previously producing properties that include the Jersey-Emerald mine, which at one point was the 2nd largest historic zinc-lead mine in B.C. and the second largest tungsten mine in North America.
Forward Looking Statements
This press release may contain forward looking statements including those describing Margaux’s future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Margaux and its management. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws. There can be no assurance that the Company will complete the option payments to acquire the Property on the time frame required by the Option Agreement or at all. The payments under the Option Agreement and Partnership are subject to a number of conditions, including Margaux obtaining requisite TSX Venture Exchange approval and being able to source the cash required under the Option Agreements to make the requisite option payments.
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.
Margaux Resources Ltd.
President, CEO and a Director