Tuesday 25th October 2016

Resource Clips

Old Mine, New Lustre

MAX Drills Nevada’s Historic Majuba Hil

By Greg Klein

“We’re excited,” says MAX Resource Corp TSX:MXR President/Director Stuart Rogers. “We can’t call it a new discovery because it used to be a mine. But we’re just thrilled with the results.” The object of his enthusiasm is the Majuba Hill Copper-Silver-Gold Property, now the focus of the company’s foray into Nevada.

“We’ve got long intervals of high-grade mineralization, and we now have gold in the system that hadn’t been identified before,” Rogers continues. “We’ve identified other areas to the east and northwest where we can explore. We’re permitted now, and we’re starting the drill up again now. The next step will be to prove up the size of this resource.”

MAX Drills Nevada's Historic Majuba Hill

MAX initially looked at three other Nevada properties with equal enthusiasm: Table Top (gold), East Manhattan Wash (gold) and Diamond Peak (gold-zinc-silver). Such were Rogers’ conflicting passions that in September 2010 he told ResourceClips.com, “My favourite property changes day to day, as the results come in.” But when the company began drilling Majuba Hill last June, the object of his ardour was set. The property’s Phase II drill program, announced October 31, confirms his new commitment.

An agreement with Claremont Nevada Mines LLC allows MAX to earn an initial 60% interest in Majuba Hill through US$6.5 million worth of exploration over six years. A further $3.5 million over two additional years would increase the interest to 75%. The vendor gets a 3% NSR, 1.5% of which may be purchased for $1.5 million.

Before 1947, Majuba Hill produced grades up to 12% copper and 1,244 grams per tonne silver. “It was high grade, just like the stuff the old guys mined by hand,” says Rogers. “These types of places are the best places to start when you want an open pit because you can see the high grade that’s left in the system.”

The company’s first Majuba Hill assays, released September 27, include

  • 37.5 g/t silver and 0.38% copper over 42.7 metres
    (including 364.6 g/t silver and 2.23% copper over 1.5 metres)
  • 4.3 g/t silver and 0.05% copper over 257 metres
    (including 12.3 g/t silver and 0.09% copper over 24.4 metres)

A fourth hole released October 12 shows

  • 16.5 g/t silver and 0.28% copper over 89.3 metres
    (including 71.6 g/t silver and 0.95% copper over 1.5 metres)

On October 25 MAX released the final four Phase I assays:

  • 39.2 g/t silver, 0.57% copper and 0.1 g/t gold over 96 metres
    (including 71 g/t silver, 1.14% copper and 0.15 g/t gold over 44.2 metres)
  • 50.8 g/t silver, 0.31% copper and 0.31 g/t gold over 50.3 metres
    (including 100.1 g/t silver, 0.53% copper and 0.56 g/t gold over 19.8 metres)
  • 15.4 g/t silver, 0.56% copper and 0.07 g/t gold over 45.7 metres
    (including 39.3 g/t silver, 0.54% copper and 0.11 g/t gold over 9.1 metres)
  • 3.08 g/t silver and 0.06% copper over 111.2 metres

By the time the last results were released, Rogers’ enthusiasm for Majuba Hill was unshakeable: “We’re getting the drill back on the property, and we’re going to drive this project like a truck. If you’ve got results like these, then follow up on them, maximize them.”

As for Phase II’s direction, “We’ve identified targets a couple of kilometres to the northwest and to the east [of the former producing mine] that we’re going to drill. If those holes show there’s some size to this, it will become a development project. We’re trying to go very quickly with the drilling to prove our theory that there’s size to this system,” Rogers says.

If those holes show there’s some size to this, it will become a development project. We’re trying to go very quickly with the drilling to prove our theory that there’s size to this system —Stuart Rogers

The project has yet to produce a resource estimate. “We could do an estimate with what’s been drilled already, but it’s not going to be the size we need to get attention,” he says. “What we’re looking at here is a copper-silver porphyry. We think it’s open-pitable, and right now the stripping ratio looks like it’ll be basically nothing.”

The 1,039-hectare property sits on the Western Nevada Gold Belt, about halfway between Allied Nevada’s TSX:ANV Hycroft Mine, which produced 102,483 ounces gold and 233,974 ounces silver in 2010, and Jipangu Inc’s Florida Canyon Mine, which produced 54,975 ounces gold and 39,903 ounces silver the same year. About 48 miles away lies Coeur d’Alene’s TSX:CDM Coeur Rochester Mine, with 2010 production numbers of 9,641 ounces gold and 2.02 million ounces silver.

Apart from productive neighbours, good infrastructure and a mining-friendly jurisdiction, Rogers emphasizes the company’s expertise—especially in Director/VP of Exploration Clancy Wendt. He’s a long-time Nevada hand who’s helped discover 12 gold deposits in that state alone.

Should the company take Majuba Hill into production, Wendt’s contacts would be especially useful. “Clancy knows the people we can bring in when we get to the development exercise,” Rogers says.

Notwithstanding his Majuba Hill passion, Rogers hasn’t forgotten East Manhattan Wash, “a large area of free gold, volcanic tuff and soil samples like 1.2 grams over a large area,” he says. MAX is currently undergoing a 100% earn-in with MSM LLC. MAX can also earn 100% of the Table Top Gold Project from Energex LLC. The company’s other properties include the Diamond Peak Gold-Zinc-Silver Project and the Ravin Molybdenum-Tungsten Project, both in Nevada, and the C de Baca Uranium Project in New Mexico.

“Clancy has expertise in all those areas,” says Rogers.

At press time MAX Resource had 21.7 million shares outstanding at $0.22 a share for a market cap of $4.77 million.

One Response to “Old Mine, New Lustre”

  1. Sounds very interesting, Tell me more.

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