Vancouver, B.C. July 6, 2017 Explorex Resources Inc. (the “Company” or “Explorex”) (Canadian Stock Exchange: EX:CSE) is very pleased to announce it has entered a Letter of Intent (“LOI”) to acquire 100% of the Cobalt-Paragon project (The “Project”)” within the historic Elk Lake Silver camp, of northeastern Ontario, 60 km south west from Kirkland Lake, Ontario.
The Cobalt-Paragon project consists of two historic mines (as described below), hosting two distinct target types: (1).Archean age volcanics, hosting NE oriented shears with multiple east-west pinch and swell veins with historic gold values on surface. (Cobalt-Frontenac) and (2) Proterozoic age Nipissing Diabase sills hosting quartz – calcite veining with silver and cobalt mineralization (Paragon-Hitchcock). Historic exploration dates largely to the period from 1900 to 1920 and was focused on prospecting of identified structures followed by underground development in both cases.
The Elk Lake area began as a mining boom town when native silver was discovered in nearby James township in 1906, with mining activity peaking between 1907 and 1913, when there were about 30 active mining properties in the area. While the historic focus was on silver production, there is a well-known association with cobalt mineralization, as the area lies near the northern limits of the Cobalt Embayment, a key geological feature which covers an extensive region from Cobalt to Gowganda and stretches as far west as Elliot Lake in Ontario. The Cobalt Embayment is best understood in the Cobalt district where historic production has been estimated at some 600 million ounces of silver and approximately 15,000 tonnes of cobalt metal since the early 1900s (Joyce, et.al. 2012 and Sergiades, 1968). Much of this production is from high grade-silver cobalt vein structures in the Lake Temiskaming area of the Cobalt Embayment.
The Cobalt-Paragon Project
Cobalt–Frontenac lies along the projection of the Rideout fault structure, which to the west is extensively covered by Proterozoic age Huronian sediments. The Cobalt-Frontenac property was developed to explore and exploit a high grade, shear hosted Archean gold occurrence in about 1904 to 1917 when a 30 metre deep shaft was sunk and 2 underground levels were completed on gold rich vein (s). Recent stripping and trenching by the vendor near the vicinity of the shaft exposed a 30 metre wide extent of outcrop of NE trending, sheared quartz feldspar porphyry. Multiple, elevated gold values have been obtained by the vendor from the outcrop, but have not been confirmed at this time by the Company.
Paragon-Hitchcock hosts 3 known zones of silver veining and before 1929, a 180 metre shaft was sunk with 30 metre levels to explore the main vein that was reported to be thickening with depth with increasing amounts of chalcopyrite and skutterudite (a key cobalt bearing mineral). All funding and operations ceased due to the collapse in silver price during the great depression by 1930. Recent, selective, muck pile sampling has returned elevated values of cobalt, gold and silver, but have not yet been confirmed by the Company.
Neither of the two targets have ever been investigated by modern exploration methods using current ore deposit modelling criteria nor has any drilling been done on the projects. Access is excellent from the nearby community of Elk Lake, with provincial highway access to either Kirkland Lake or New Liskeard (approximately 45 minutes driving time).
The LOI is with Canadian Gold Miner Inc., a private company who have assembled a significant land package of early stage projects in the Kirkland Lake area of the Abitibi gold camp. Under the terms of the LOI, the Company has agreed to pay a total of $140,000 (of which $130,000 can be in cash or shares), issue a total of 1.7 million shares and commit to $1.275 million in work expenditure over a 3-year period from signing a definitive agreement. Upon earning a 100% interest, Explorex will grant a 1% NSR and retain first right of refusal to buyback the NSR. Explorex will commit to meeting all obligations of the underlying commitments. The closing of the agreement will be subject to signing a binding contract and regulatory approvals.
Bill Wishart, President and CEO of Explorex. commented, “This key acquisition complements our Chrysler project acquisition (see press release dated June 14, 2017) and will provide significant exploration synergies in this emerging region. As the Cobalt-Paragon project is well located within a historical mine area, is unexplored for cobalt and has excellent access, it meets our selection criteria. In the context of overall increasing competitive exploration within the Cobalt Embayment, our team is looking forward to getting into the field to verify the historical assays”.
About Explorex Resources Inc.
Explorex is an exploration company with a recent focus on critical elements used in rechargeable battery technology, including cobalt, and is seeking to build a portfolio of exploration and development projects of merit in jurisdictions with favourable geologic settings and historic cobalt production within North America. The Company also has an option agreement to earn a 100% interest the Silver Dollar project, BC, subject to the favourable outcome of its ongoing due diligence period.
On behalf of the board,
For further information, please contact Bill Wishart, President at email@example.com or phone 604.609.0555.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.