PPX Drills 3.0m at 9.71 gpt Au, 45.1 gpt Ag (10.31 gpt Au Eq) and New Ag Zone: 2.7m at 1.73 gpt Au and 752 gpt Ag (11.76 gpt Au Eq) at Callanquitas
December 4, 2017
Vancouver, British Columbia – December 4, 2017 – PPX Mining Corp. (the “Company” or “PPX”) is pleased announce that the Company has received results from three additional infill and resource confirmation/expansion diamond drill holes on the Callanquitas structure at its Igor Project in northern Peru. Drill hole CA-17-82 cut 3.0m grading 9.71 gpt Au and 45.1 gpt Ag (10.31 gpt Au Eq) within a thick interval of lower grade mineralization: 40.8m grading 1.72 gpt Au and 38.7 gpt Ag (2.24 gpt Au Eq) on a previously undrilled portion of the Callanquitas Structure. Drill holes CA-17-83 and -84 have identified a new Ag-rich portion of the Callanquitas Structure, intercepting 2.7m grading 1.73 gpt Au and 752 gpt Ag (11.76 gpt Au Eq) and 1.8m grading 0.12 gpt Au and 605 gpt Ag (8.19 gpt Au Eq) respectively. The drill results are described in more detail below and in the following table:
- Diamond drill hole CA-17-82 was drilled between two previously drilled sections in order to confirm grade continuity and mineralization thickness on the Callanquitas Structure. The average gold grade, 9.71 gpt, is higher than seen in adjacent sections, but consistent with recent gold grades encountered in the Company’s test mining and bulk-sampling program (please see PPX press release dated November 21, 2017). Within the interval reported above, much higher-grade gold and silver mineralization was encountered: 0.7m grading 15.66 gpt Au and 566 gpt Ag (23.21 gpt Au Eq). Previously reported underground channel sampling at Mina Callanquitas has shown similar grades, the underground samples consistent with the gold and silver grades seen in recent drilling (please see PPX Mining press release dated September 25, 2017). A cross-section through drill hole CA-17-82 is posted on the Company’s website, www.ppxmining.com .
- High Silver Grades: Diamond drill holes CA-17-83 and -84, drilled on section NW4545, both intercepted significant widths of high-grade silver mineralization: 2.7m grading 1.73 gpt Au and 752 gpt Ag (11.76 gpt Au Eq) and 1.8m grading 0.12 gpt Au and 605 gpt Ag (8.19 gpt Au Eq) respectively. Individual samples have grades of nearly one kilo Ag per tonne: 0.8m grading 2.38 gpt Au and 933 gpt Ag (14.82 gpt Au Eq) in drill hole CA-17-83. These silver intercepts are defining a new zone of silver rich mineralization on the Callanquitas structure, starting at an elevation of approximately 3300 metres. More drilling will be required to outline this new area. A cross-section through these drill holes is posted on the Company’s website, www.ppxmining.com .
- Callanquitas West Structure: Drill holes CA-17-83 and CA-17-84 also cut the Callanquitas West structure at shallow levels about 15-20 metres below the surface. Drill hole -83 cut 1.8m grading 5.05 gpt Au and 87.7 gpt Ag (6.22 gpt Au Eq) while drill hole -84 intercepted 0.7m grading 3.36 gpt Au and 31.0 gpt Ag (3.77 gpt Au Eq). PPX views the Callanquitas West structure as an important exploration target, being located only 100m west of the main Callanquitas structure where the majority of the Company’s defined precious metal resources are found. Located adjacent to the underground mining infrastructure being developed on Callanquitas East, the Callanquitas West exploration targets will be more thoroughly explored and drilled in the coming months.
Brian J. Maher, President and CEO of PPX Mining Corp., commented: “The drill results reported today will be utilized to update the gold and silver resource estimate for the Igor Project as part of the Pre Feasibility Study (PFS) the Company expects to complete in Q1 2018. The continuity in grade and thickness demonstrated by the in-fill drilling program, coupled with underground channel samples and the results from bulk sampling are encouraging as we enter the PFS process. The high grade silver zone seen in drill holes -83 and -84 will need further evaluation, as the mineralization is open down-rake. PPX plans to continue the current drilling program into the New Year to follow-up on these encouraging results.”
|Drill Hole||From (m)||To (m)||Length (m)||Weighted Average Grade||Line Section||Total Depth (m)||Azimuth, Inclination|
|Gold (g/t)||Silver (g/t)||Gold Eq (g/t)|
Core sampling protocols and QA/QC: PPX geologists collect diamond drill hole samples from core immediately after geologic and geotechnical logging. Samples are collected based on natural breaks in geologic features and also on individual drill runs. Samples are broken at obvious geologic boundaries to correctly separate rock types, mineralization styles and hydrothermal alteration assemblages. Samples are collected by cutting the core in half using a diamond saw, preserving the second half for check analyses, further study and reference. Samples are sealed, labeled and stored in a secure area prior to shipment to a qualified assay laboratory. Gold and silver analyses are conducted by the fire assay method with a CN leach. Blanks and standards are inserted approximately every 10 samples; duplicate samples are included at the same intervals. Duplicate fire assays for approximately every 30 samples are sent to a second assay laboratory for umpire analysis.
About PPX Mining Corp: PPX Mining Corp. (TSX.V: PPX.V, SSE: PPX, BVL: PPX) is a Canadian-based exploration and development company with assets in northern Peru. Igor, the Company’s 100%-owned flagship gold and silver project, is located in the prolific Northern Peru gold belt in eastern La Libertad Department. PPX is pursuing a two-prong strategy to further develop and explore the Igor Project. The Company has begun work on its underground test mining and bulk sampling program which is designed to upgrade the resource estimate and generate data to evaluate the possibility of future mine development at Igor through the PFS process. To date, PPX has processed over 7,805 tonnes of bulk sample averaging 8.33 gpt gold. Simultaneously, PPX is accelerating its exploration program at Igor in order to fully evaluate the resource potential of the entire Igor project area. The Callanquitas Structure is open along strike and at depth. Parallel structures are unexplored and, coupled with the Domo and Tesoros areas; these drill targets highlight the exploration potential at Igor. Evaluating mine development alternatives in parallel with exploration drilling provide dual catalysts for growth and increasing shareholder value.
Previous exploration on the Callanquitas Structure discovered a significant Inferred gold and silver resource: 7,189,000 tonnes grading 1.94 gpt gold and 71.8 gpt silver containing 448,500 ounces of gold and 16,600,000 ounces of silver at a cutoff grade of 1.5 gpt gold equivalent. Included within this resource estimate is a higher grade zone consisting of 2,730,000 tonnes grading 2.73 gpt gold and 119.1 gpt silver containing 239,400 ounces of gold and 10,500,000 ounces of silver using a 3.0 gpt gold equivalent cutoff grade (Please see Technical Report, amended September 27, 2013, available on the Company’s website or SEDAR). Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.
All scientific and technical information in this press release has been reviewed and approved by Quentin J. Browne, P.Geo., Independent Consulting Geologist to PPX Mining Corp., who is a qualified person under the definitions established by National Instrument 43-101.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
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. Certain disclosure in this release, may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks are detailed from time to time in the Company’s filings with the appropriate securities commissions, and may include, among others, market conditions, and delays in obtaining or failure to obtain required regulatory approvals or financing. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.