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(Marketwire - Sept. 26, 2007) - Boxxer Gold Corp. (TSX VENTURE:BXX) ("Boxxer" or the "Corporation") is pleased to announce it has received an independent National Instrument 43-101 compliant report titled "REPORT ON THE NALESBITAN GOLD PROPERTY MUNICIPALITY OF LABO, CAMARINES NORTE PROVINCE, REPUBLIC OF PHILIPPINES, dated September 19th, 2007 prepared byTaiga Consultants Ltd. ("Taiga"). James W. Davis P.Geol., FGAC of Taiga is the Independent Qualified Person who prepared the Report as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
The historical estimates reported below completed on the Property were not prepared by independent Qualified Persons, nor has any of the information contained therein been audited by an independent Qualified Person. The historical estimates for the Property do not conform to the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") standards of reporting pursuant to requirements under National Instrument 43-101 and should not be relied upon. The historical estimates and resource estimations completed for the Property were not prepared by an independent Qualified Person as defined in National Instrument 43-101. As a result, the Corporation wishes to clarify that the historical estimates are not current mineral resources and the Corporation is not treating the historical resource estimates as current mineral resource estimates as such term is define in National Instrument 43-101.
The historical resource estimations completed in 1990 and 1995 were completed by persons who would have been considered to be qualified persons at that time. The persons who prepared the historical resource estimations are not considered to be independent qualified persons as defined by the Canadian Institute of Mining and Metallurgy ("CIMM") and National Instrument 43-101: Standards of Disclosure for Mineral Projects ("NI 43-101").
CALGARY, ALBERTA--(Marketwire - Sept. 26, 2007) - Boxxer Gold Corp. (TSX VENTURE:BXX) ("Boxxer" or the "Corporation") is pleased to announce it has received an independent National Instrument 43-101 compliant report titled "REPORT ON THE NALESBITAN GOLD PROPERTY MUNICIPALITY OF LABO, CAMARINES NORTE PROVINCE, REPUBLIC OF PHILIPPINES, dated September 19th, 2007 prepared byTaiga Consultants Ltd. ("Taiga"). James W. Davis P.Geol., FGAC of Taiga is the Independent Qualified Person who prepared the Report as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
Highlights of the Report
- In 2007, ElDore Mining Corporation ("EDM") updated an internal scoping study. The scoping study is based on a mineral resource estimate prepared by independent consultants Hellman & Schofield of Sydney, Australia, using the JORC Code. The scoping study defined the gold grade and tonnage as having an inferred resource of 7,455,000 tonnes grading 1.15 g/t gold. Taiga classifies this resource as a current inferred mineral resource
- The zone of gold mineralization is approximately 1,300 m long, up to150 m wide and extends to a depth of 125 m below surface.
- Overall recoveries from the higher grade central breccia zone were estimated at 85% for gold and 72% for silver. The gold and silver recoveries in the lower grade mineralization ranged from 58% to 62% for gold and from 49% to 64% for silver. Additional testing is warranted; and
- The proposed 2007 program is estimated to be C$1.66 million dollars and includes diamond drilling, additional metallurgical test work and geotechnical studies to collect the data required to complete a pre-feasibility study of the Nalesbitan Hill Gold deposit.
Option Agreement:
Boxxer has an option to purchase a 28% direct equity interest (the "Option") and the assumption of the opportunity to acquire a further 37% farm-in joint venture equity interest (the "JVA Rights") for a total undivided 65% interest in the "Property under the following terms and conditions;
a) Boxxer will assume (by novation) EDM's farm-in rights to the joint venture and the obligations to spend the balance of US$7,000,000 remaining under the farm-in joint venture agreement to earn a 37% interest, and
b) Boxxer can acquire a 28% direct Property equity interest in the Property from ElDore Mining Corporation ("EDM") by payment of the following cash obligations:
i)Payment of US$3,000,000 to EDM, which represents EDM's investment in the Property to date,
ii) and an additional US$3,000,000 bonus. The total payments (the "Payments") to EDM would be approximately US$6,000,000 to be paid as follows:
(a)US$50,000 cash payment on signing the Option agreement (paid)
(b)US$100,000 cash payment on completion of a positive feasibility study on the Property
(c)US$250,000 cash payment on the Option being exercised and full transfer of the 28% equity interest;
(d)US$250,000 cash payment on reaching commercial production, and
(e)Thereafter US$250,000 per quarter until full payout of the US$6,000,000.
Property Location:
The Nalesbitan Property is located in the Province of Camarines Norte, within Barangay Dumagman, Municipality of Lobo, Republic of the Philippines approximately 315 kms. east-southeast of Manila, on the Bicol Peninsula on the country's main island of Luzon. The Property is accessible by road and is comprised of 14 contiguous mineral claims (2,800 acres).
Property Geology and Deposit Type:
A considerable amount of exploration has been completed on the Property over the past 20 years. The Property is underlain by variably altered volcanics consisting of andesitic lavas, pyroclastics and debris flows of probable Miocene to Pliocene age. The Nalesbitan Hill gold zone is hosted in flat lying andesitic flows and interbedded volcaniclastic sediments. The mineralization demonstrates a strong structural control, silicification and argillic and chloritic alteration. The Property is considered to have potential for epithermal gold-silver mineralization and porphyry related copper-gold-silver molybdenum mineralizatioin. The main area of surface gold-silver mineralization located within the Project is referred to as the Nalesbitan Hill Gold Deposit.
Historical Resource Estimations:
The historical estimates reported below completed on the Property were not prepared by independent Qualified Persons, nor has any of the information contained therein been audited by an independent Qualified Person. The historical estimates for the Property do not conform to the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") standards of reporting pursuant to requirements under National Instrument 43-101 and should not be relied upon. The historical estimates and resource estimations completed for the Property were not prepared by an independent Qualified Person as defined in National Instrument 43-101. As a result, the Corporation wishes to clarify that the historical estimates are not current mineral resources and the Corporation is not treating the historical resource estimates as current mineral resource estimates as such term is define in National Instrument 43-101.
In 1990, Gold Fields Asia Limited completed an historical resource estimate on the Property and produced an indicated resource of approximately 1,185,000 tonnes grading 2.53 grams per tonne (g/t) gold. Gold Fields defined the size of the deposit as measuring 1,300 m long, and up to 150 m wide to a depth of 125 m.
In 1995, consultants to Triarx Gold Corporation estimated a historical gold resource at Nalesbitan at 1,185,000 tonnes grading 2.53 g/t gold at a cutoff of 1.25 g/t gold. A review of this resource by Watts Griffs and McQuat Limited in 1996 re-classified this resource as an inferred resource of approximately 1,200,000 tonnes grading about 2.50 g/t.
The historical resource estimations completed in 1990 and 1995 were completed by persons who would have been considered to be qualified persons at that time. The persons who prepared the historical resource estimations are not considered to be independent qualified persons as defined by the Canadian Institute of Mining and Metallurgy ("CIMM") and National Instrument 43-101: Standards of Disclosure for Mineral Projects ("NI 43-101").
Current Resource Estimation:
In 2007, EDM updated its internal scoping study. The scoping study is based on a mineral resource estimate by consultants Hellman & Schofield. The scoping study defined the gold grade and tonnage as 7,455,000 tonnes grading 1.15 g/t gold. The Hellman &Schofield resource estimate is classified as a current inferred mineral resource by Taiga.
Taiga's Conclusions:
Tiaga has reviewed the internal scoping study completed by EDM and the resource estimate completed by Hellman & Schofield and state:
a) "Various resource estimates have been calculated for this deposit and an internal scoping study has been recently completed indicating an indicated resource is present. While the resource estimate conforms substantially to the JORC Code, it does not conform to the QA/QC requirements in NI 43-101" ,
b)"Additional drilling and metallurgical test work are required on the Nalesbitan Property. Diamond drilling is recommended on the Nalesbitan gold zone sufficient to confirm previous results and to complete sufficient infill drilling to define a measured and indicated resource." and
c)"Based on the available data the Nalesbitan Hill deposit has an inferred mineral resource".
Metallurgical Test Work:
Preliminary metallurgical test work was completed on four samples from the central breccia zone of the Nalesbitan gold zone by Gekko Systems of Australia. The test work indicated that the gold and silver recoveries could be achieved by a relatively low cost combined gravity/floatation/leaching process. Overall recoveries from the higher grade central breccia zone were estimated at 85% for gold and 72% for silver. The gold and silver recoveries in the lower grade mineralization ranged from 58% to 62% for gold and from 49% to 64% for silver. Additional testing is warranted.
Historical Exploration:
Exploration on the Property has been concentrated on the Nalesbitan Hill gold deposit with limited exploration on other prospective targets. The exploration included a soil geochemical survey, trenching and underground sampling, geophysical surveys and both diamond drilling and reverse circulation drilling.
In 1987 to 1989, Gold Fields Asia Limited drilled 235 holes of various types on Nalesbitan. A feasibility study was completed in 1989 which defined a historic estimate of 3,306,000 tonnes grading 1.90 g/t gold with a cut off grade of 1.0 g/t gold. Mining was undertaken with processing by heap leach extraction methods. Due to a combination of factors, mining continued for only 5.5 months before the operation was shut down.
In 1996, Triarx Gold Corporation carried out exploration consisting of two diamond drill holes, geological mapping, geochemical sampling and geophysical surveys on the Property.
From 1997 to 2005, Sagacity Partners Pty Limited completed additional geophysical and geochemical surveys on the Property. A re-assessment of the Project based on new government geological and geophysical data in 2005 concluded that the type of mineralization found at Nalesbitan was characteristic of that associated with the upper levels of a very large porphyry system. Exploration in 2005 identified a series of satellite gold and copper showings.
In 2005 and 2006, ElDore Mining Corporation completed 52 diamond drill holes and 13 rotary drill holes on Nalesbitan Hill and 62 diamond drill holes testing other mineral prospects on the Property.
The other zones of prospective gold-silver mineralization located within the Property are referred to as Millsite-Singko, Venus Springs and Bagong Dose. These areas are considered to be a prospective environment for epithermal gold-silver mineralization.
Recommendations:
Taiga has recommended a program of drilling, metallurgical test work and geotechnical studies on the Nalesbitan Hill Gold deposit. In addition exploration drilling of the other gold zones on the property should be undertaken to further assess their gold potential. Taiga also recommended that once the drilling phase is completed, a detailed engineering and economic appraisal should be conducted leading to the preparation of a pre-feasibility study. The estimated cost of the program recommended by Taiga is $1.66 million.
Mr. James W. Davis is an independent geologist consulting to Boxxer and is the Qualified Person who has reviewed and verified the technical information detailed in this release.
About Boxxer Gold Corp.
Boxxer Gold is a Canadian junior resource company involved in the exploration of copper-gold porphyry and Iron-Oxide-Copper-Gold projects in the state of Nevada, and gold projects in the Philippines.
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FORWARD-LOOKING STATEMENTS: This news release contains information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, resource estimations, historical resource estimation and potential mineral recovery processes. Forward - looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. For any forward looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements.
Important factors that could cause actual results to differ materially from Boxxer's expectations include uncertainties relating to interpretation of drill result, the geology, continuity and grade of mineral deposits, the possibility of adverse developments in the financial markets generally, and other risks and uncertainties disclosed under the heading "Cautionary Note Concerning Historical Resource Estimations and Resource Estimates" and in other information released by Boxxer and filed with the appropriate regulatory agencies.
Copyright CCNMatthews Sep 26, 2007