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Posts tagged ‘MAX Resource Corp (MXR)’

MAX reports Nevada Assays of 12 g/t Silver, 0.13% Copper over 332.3m

September 11th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningMAX Resource Corp TSXV:MXR announced results from its Majuba Hill Silver-Copper-Gold Project in Nevada. Assays show

12 g/t silver and 0.13% copper over 332.3 metres
(including 19.2 g/t silver over 80.8 metres)
(which includes 58 g/t silver over 4.6 metres)
(including 10.8 g/t silver and 0.8% copper over 7.6 metres)
(which includes 10.1 g/t silver and 1.16% copper over 3 metres)
(including 16.5 g/t silver and 0.32% copper over 48.7 metres)

True widths were not available. This hole was drilled to a depth of 352 metres and is the first result of eight holes drilled in June. The company states that this result confirms the southeast extension of near-surface high-grade supergene oxide mineralization identified at the historic Majuba Hill Mine during 2011. The project encompasses 1,266 hectares of surface and mineral rights that include patented lode mining claims.

View Company Profile

Contact:
Leonard MacMillan
Corporate Communications
866.331.5088
604.637.2140

Read a feature story about MAX Resource Corp.

by Greg Klein

MAX reports Nevada Result of 0.1 g/t Gold, 5.49 g/t Silver, 0.09% Copper over 292.8m

March 15th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningMAX Resource Corp TSXV:MXR announced the final assay from the fall 2012 drill program at its Majuba Hill Project in Nevada. The result shows

0.1 g/t gold, 5.49 g/t silver and 0.09% copper over 292.8 metres
(including 0.15 g/t gold, 6.3 g/t silver, 0.13% copper and 0.01% molybdenum over 116.6 metres)

VP of Exploration Clancy Wendt stated, “We are very impressed by this intersection of the primary zone and slightly hydrothermally altered mineralization in this first deep hole at Majuba Hill. The increase in gold and molybdenum mineralization at depth and the long intersections of mineralization add more evidence that Majuba Hill is an extensive copper/silver/gold porphyry system that is highly prospective for the development of a bulk-tonnage open-pit deposit. This discovery allows us to concentrate on defining the supergene system located above this zone, with drilling in 2012 to test the extension of high-grade oxide mineralization from the copper stope to the southeast along the ridge above hole MM-20.”

View Company Profile

Contact:
Leonard MacMillan
Corporate Communications
866.331.5088
604.637.2140

Read feature story on MAX Resource Corp.

by Greg Klein

Old Mine, New Lustre

November 7th, 2011

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.

Prosperity For Whom?

October 31st, 2011

Taseko’s BC Mine Hangs in the Balance

By Greg Klein

Read part 2 of the Taseko New Prosperity Mine Story

Read part 3 of the Taseko New Prosperity Mine Story

“The message is simple,” the Vancouver Sun quoted Grand Chief Edward John of B.C.’s First Nations Summit last August. “If you’re going to develop a mine or oil and gas, you need to ensure First Nations people are involved.”

That’s been the guiding principle of resource development in British Columbia for several years now. But a proposal by Taseko Mines Ltd TSX:TKO shows how the extraordinary rights—and additional potential rights—of a few thousand aboriginals might block a project that could provide jobs for themselves and many thousands of others.

Taseko's BC Mine Hangs in the Balance

Taseko’s gold-copper mine proposed for south-central BC is back before the Canadian Environmental Assessment Authority. On October 19, BC aboriginal leaders held an Ottawa press conference calling on the federal government to reject the New Prosperity project without even studying it. One year earlier, native concerns prompted the feds to reject Taseko’s earlier Prosperity proposal. Now the CEAA has until November 7 to decide whether to accept the company’s revised plan as is, allowing the proposal to move further into the permitting stage for construction, or spend up to 12 months on another study. Taseko has spent over $110 million on the project, which first entered the environmental review process in 1993.

A November 2010 CEAA study killed the previous proposal. The report’s conclusions expressed relatively little concern about the environmental impact but had surprisingly much to say about aboriginal rights, potential rights and spirituality. The three-person CEAA panel’s mandate did not include making recommendations, but its report nevertheless persuaded Canada’s Minister of the Environment, then Jim Prentice, to reject the proposal.

Now Taseko is back with a $300-million alteration, bringing the adjusted cost to $1.1 billion. The extra expense is the cost of preserving Fish Lake, a 118-hectare body of water that was originally considered for a tailings dump. That was a primary focus of CEAA concern. Rising metal prices, Taseko says, now make it possible to relocate the tailings two kilometres away, saving the lake and, the company hopes, the mine.

New Prosperity would be one of Canada’s largest gold-copper mines, an open-pit project with a measured and indicated resource estimated at 5.3 billion pounds copper and 13.3 million ounces gold, including proven and probable reserves of 2.4 billion pounds copper and 7.7 million ounces gold. Its 2007 feasibility study projects a 20-year mine life producing an annual average 300,000 ounces gold and 130 million pounds copper for the first five years.

Its economic impact would be massive, according to a Taseko-commissioned report by the Centre for Spatial Economics—71,000 direct and indirect jobs, $4.3 billion in federal taxes, $5.52 billion in provincial taxes, an $11-billion increase in Real GDP and a 5,400-person increase in BC’s population.

To emphasize the industry’s importance overall, on October 25 the Mining Association of BC released a report commissioned from PricewaterhouseCoopers. It says the mining sector spent $5.2 billion in BC last year for a total output of $8.9 billion, attributing for each dollar spent $1.73 in direct, indirect and induced total impact. Taxes paid by this sector in 2010 were $449.2 million at the federal level, $414.8 million provincial and $74.6 million municipal, with an additional $364 million in royalties and land taxes. The industry provided 45,703 jobs direct, indirect and induced. The report also notes that BC has “the world’s largest concentration of exploration firms and mining professionals.”

For all that, BC ranks surprisingly low as a mining-friendly location. The Fraser Institute’s 2010-2011 survey rates the province 36th out of 79 jurisdictions internationally. That’s a slight improvement over 2009-2010, but the score still lags behind the three previous annual studies.

“We’ve studied British Columbia since the 1990s, and things have improved a lot,” says Fraser Institute spokesperson Jean-Francois Minardi. “But the mining community believes there are still problems. There seems to be a lack of trust in the government. The main reason is the uncertainty, the sudden policy changes, especially with recent decisions concerning uranium, the Prosperity mine and Flathead.”

In February 2010, after years of protests from environmentalists in Canada and the US, the BC government banned mining in the Flathead Valley in the province’s southeastern corner. About 10% of the region had already been staked. One of the companies effectively expropriated was Max Resource TSX:MXR, which had spent $750,000 on its Crowsnest gold project. “The reason to kick them out was arbitrary,” Minardi says. As a result the industry now fears “the possibility that official land use plans will be overturned without due consultation.”

In March 2009, the BC government banned uranium and thorium exploration “even though Canada is the world’s largest exporter of uranium and has the most stringent regulations and safeguards,” Minardi says. “Metals and minerals do not occur in isolation,” he adds, “so a ban on uranium could affect other types of mining, like rare earths.”

There seems to be a lack of trust in the government. The main reason is the uncertainty, the sudden policy changes, especially with recent decisions concerning uranium, the Prosperity mine and Flathead —Jean-Francois Minardi

Once again, on October 21, the uranium ban hit the fan. The Vancouver Sun reported that Boss Power Corp TSXV:BPU received a $30-million out-of-court settlement, considerably more than its estimated sunk costs of $4 million to $5 million. Court documents show the BC government admitted that its deputy minister of mines ordered his chief inspector to ignore the company’s application for an exploration permit, an order that contradicted advice from the attorney-general’s department. The ban on uranium mining came three days later.

A week after reporting the Boss payout, the province’s media learned that BC Hydro, the Crown electrical utility, has an undisclosed $2.2 billion in deferred debt, an amount expected to hit $5 billion by 2017. Richard Stout, spokesperson for the Association of Major Power Customers of BC, said the problem exacerbates concerns about future rate increases that could hinder large-scale industrial development.

The Prosperity project, Minardi says, creates further uncertainty. The proposal passed the BC environmental assessment only to be rejected at the federal level, largely because it would destroy the 118-hectare Fish Lake. The region’s aboriginal groups had turned down a revenue-sharing plan (see below). “The lack of aboriginal treaties is a big problem with [its concomitant] lack of clarity.” Minardi declares. He doesn’t, however, see any solution.

Mining Association President/CEO Karina Briño says BC’s mining outlook has improved during the last year, emphasizing that the province’s revenue-sharing program for aboriginals is “a policy that’s making a difference.” She adds, however, that miners would like “one environmental assessment process that meets the requirements of both federal and provincial levels of government.”

She emphasizes, “We need more clarity in the scope of the assessment and the requirements expected of proponents.”

The provincial government extended the revenue-sharing policy from forestry to mining in August 2010, with two agreements that will transfer nearly one-third of the provincial mineral tax royalty from two mines to local aboriginals.

One of the deals concerns Thompson Creek Metals’ TSX:TCM Mount Milligan Copper-Gold Mine. The McLeod Lake Indian Band will get $35 million to $40 million over the mine’s 15-year life. The band’s population is currently estimated at 491.

Provincial revenue from New Gold’s Inc TSX:NGD New Afton Copper-Gold Mine will bring the Tk’emlups and Skeetchestn Indian Bands, currently estimated to have a combined population of about 1,500 people, about $30 million over 12 years.

As the deal was announced, Black Press quoted Tk’emlups Chief Shane Gottfriedson as saying his band expected more money to come. “While this agreement is specifically for the mine tax for the New Afton mine located on our territory, we look forward to a more comprehensive agreement on all revenues generated by such projects.”

But the Tsilhqot’in National Government, representing five bands totalling about 3,100 people, steadfastly spurns any such benefits from the New Prosperity proposal. They won’t even talk to Taseko. And so the $1.1-billion proposal remains at an impasse.

Read part 2 of the Taseko New Prosperity Mine Story

Read part 3 of the Taseko New Prosperity Mine Story

MAX President Stuart Rogers on Nevada assays of 39.2 g/t silver over 96m

October 26th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningMAX Resource Corp TSXV:MXR announced assays from its Majuba Hill Copper-Silver Project in Nevada. Results include

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

President/Director Stuart Rogers tells ResourceClips.com, “We’re excited. We can’t call it a new discovery because it used to be a mine. But we’re just thrilled with the results. We’ve got long intervals of high-grade mineralization, and we now have gold in the system that hadn’t been identified before. We’ve now 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.

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—Stuart Rogers

“We were very optimistic these results would be good because we were on an old mine site. But these results are better than anyone had before. So 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.

“We’re in a good mining district,” he adds. “I think what we’ve indicated here is a bulk-tonnage, open-pit deposit. This mineralization starts basically at surface. One hole is 96 metres of 0.57% copper, 39 grams per tonne silver that starts just one and a half metres in. Everything’s very close to surface.

“We’ve identified targets a couple of kilometres to the northwest and to the east 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.

“The first step will be this five-hole drill program to the east and the northwest. Then we’re going to drill under the former mine. You couldn’t really drill that unless you go down through the mine. That’s on BLM [Bureau of Land Management] land outside of the patented lands. The BLM land is down the hill from the deposit, so now we can go down the hill and drill back in underneath the mine. So we’re going to do that as well.

“The mine operated around the turn of the century, then during World War II the US Bureau of Mines took it over for the war effort. It was high grade, just like the stuff the old guys mined by hand. 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. With an open pit we’d probably be processing for about $6 a tonne for the rock.

Rogers concludes, “We think we’re proving [VP of Exploration Clancy Wendt’s] theory that this is a large-scale copper-silver porphyry, and it’s now copper-silver-gold. We’re going to work very quickly to see if we can prove this up. Bulk-tonnage, open pit, middle of Nevada, 23 miles from a highway—how much better can it get?”

View Company Profile

Contact:
Leonard MacMillan
Corporate Communication
866.331.5088
604.637.2140

by Greg Klein

MAX reports Nevada Results of 39.2 g/t Silver, 0.57% Copper, 0.1 g/t Gold over 96m

October 25th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningMAX Resource Corp TSXV:MXR announced assays from its Majuba Hill Copper-Silver Project in Nevada. Results include

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

President/Director Stuart Rogers tells ResourceClips.com, “We’re excited. We can’t call it a new discovery because it used to be a mine. But we’re just thrilled with the results. We’ve got long intervals of high-grade mineralization, and we now have gold in the system that hadn’t been identified before. We’ve now 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.

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—Stuart Rogers

“We were very optimistic these results would be good because we were on an old mine site. But these results are better than anyone had before. So 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.

“We’re in a good mining district,” he adds. “I think what we’ve indicated here is a bulk-tonnage, open-pit deposit. This mineralization starts basically at surface. One hole is 96 metres of 0.57% copper, 39 grams per tonne silver that starts just one and a half metres in. Everything’s very close to surface.

“We’ve identified targets a couple of kilometres to the northwest and to the east 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.

“The first step will be this five-hole drill program to the east and the northwest. Then we’re going to drill under the former mine. You couldn’t really drill that unless you go down through the mine. That’s on BLM [Bureau of Land Management] land outside of the patented lands. The BLM land is down the hill from the deposit, so now we can go down the hill and drill back in underneath the mine. So we’re going to do that as well.

“The mine operated around the turn of the century, then during World War II the US Bureau of Mines took it over for the war effort. It was high grade, just like the stuff the old guys mined by hand. 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. With an open pit we’d probably be processing for about $6 a tonne for the rock.

Rogers concludes, “We think we’re proving [VP of Exploration Clancy Wendt’s] theory that this is a large-scale copper-silver porphyry, and it’s now copper-silver-gold. We’re going to work very quickly to see if we can prove this up. Bulk-tonnage, open pit, middle of Nevada, 23 miles from a highway—how much better can it get?”

View Company Profile

Contact:
Leonard MacMillan
Corporate Communication
866.331.5088
604.637.2140

by Greg Klein

MAX President Stuart Rogers on Nevada assays of 16.5 g/t silver and 0.28% copper over 89.3m

October 13th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningMAX Resource Corp TSXV:MXR announced results from its Majuba Hill Project in Nevada. Hole MM-05 shows

16.5 g/t silver and 0.28% copper over 89.3 metres
(including 30 g/t silver and 0.47% copper over 13.7 metres)
(including 71.6 g/t silver and 0.95% copper over 1.5 metres)

Hole MM-03, released September 27, 2011, shows

37.5 g/t silver and 0.38% copper over 42.7 metres
(including 90.2 g/t silver and 0.93% copper over 10.7 metres)
(including 364.6 g/t silver and 2.23% copper over 1.5 metres)

A March 2011 option agreement with Claremont Nevada Mines LLC allows MAX to earn an initial 60% interest in the property over six years by spending US$6.5 million on exploration. MAX can increase its interest to 75% by spending a further $3.5 million over a subsequent two-year period. The Majuba Hill property will be subject to a 3% NSR payable to the vendor, 1.5% of which may be purchased at any time for $1.5 million.

When Minterra drilled, silver was under $10 an ounce. Now that it’s over $30 and holding, it’s very meaningful —Stuart Rogers

President/Director Stuart Rogers tells ResourceClips.com, “We entered into an option agreement for Majuba Hill last March. [VP of Exploration/Director Clancy Wendt] took an interest in it, did some homework, went to the property and got pretty excited once he saw the potential. This had been previously drilled for copper by Minterra in 2007. They announced pretty good copper grades, but they never announced the silver. But when we look at our intervals, the silver has more value than the copper. When Minterra drilled, silver was under $10 an ounce. Now that it’s over $30 and holding, it’s very meaningful. The Rochester Mine’s just 30 miles south, Coeur d’Alene has been operating that since 1986. Rochester operates on a reserve grade of 0.6 of an ounce silver. Today’s announcement is about equivalent to what Coeur d’Alene was getting on silver, plus we get the credit for the copper, which is very good. So you can look at it as a copper-equivalent or a silver-equivalent.

“We’re drilling on patented land this time,” Rogers says. “That was basically part of our due diligence, confirming the Minterra grades. We’ve done our soil sampling, we’ve identified other zones that haven’t been explored. This is the old historic workings area. But it’s never been drilled underneath, except for the US Bureau of Mines. They drilled about 50 feet [15.25 metres] under the old workings and found some great silver and copper. The drilling we’ve done was to confirm the Minterra results, and we feel confident the first two holes do that. We’ve matched what they were doing and we’ve done better. On Hole MM-03 we doubled what they had because they were drilling with reverse circulation with water, and they were losing a lot down the hole. It just gets washed away when you grind it up. In our case we’re getting the core, so we’re getting a more accurate assay.”

View Company Profile

Contact:
MAX Resource Corp
Leonard MacMillan
Corporate Communications
866.331.5088
604.637.2140

by Greg Klein

MAX reports Nevada Results up to 37.5 g/t Silver and 0.38% Copper over 42.7m

October 12th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningMAX Resource Corp TSXV:MXR announced results from its Majuba Hill Project in Nevada. Hole MM-05 shows

16.5 g/t silver and 0.28% copper over 89.3 metres
(including 30 g/t silver and 0.47% copper over 13.7 metres)
(including 71.6 g/t silver and 0.95% copper over 1.5 metres)

Hole MM-03, released September 27, 2011, shows

37.5 g/t silver and 0.38% copper over 42.7 metres
(including 90.2 g/t silver and 0.93% copper over 10.7 metres)
(including 364.6 g/t silver and 2.23% copper over 1.5 metres)

A March 2011 option agreement with Claremont Nevada Mines LLC allows MAX to earn an initial 60% interest in the property over six years by spending US$6.5 million on exploration. MAX can increase its interest to 75% by spending a further $3.5 million over a subsequent two-year period. The Majuba Hill property will be subject to a 3% NSR payable to the vendor, 1.5% of which may be purchased at any time for $1.5 million.

When Minterra drilled, silver was under $10 an ounce. Now that it’s over $30 and holding, it’s very meaningful —Stuart Rogers

President/Director Stuart Rogers tells ResourceClips.com, “We entered into an option agreement for Majuba Hill last March. [VP of Exploration/Director Clancy Wendt] took an interest in it, did some homework, went to the property and got pretty excited once he saw the potential. This had been previously drilled for copper by Minterra in 2007. They announced pretty good copper grades, but they never announced the silver. But when we look at our intervals, the silver has more value than the copper. When Minterra drilled, silver was under $10 an ounce. Now that it’s over $30 and holding, it’s very meaningful. The Rochester Mine’s just 30 miles south, Coeur d’Alene has been operating that since 1986. Rochester operates on a reserve grade of 0.6 of an ounce silver. Today’s announcement is about equivalent to what Coeur d’Alene was getting on silver, plus we get the credit for the copper, which is very good. So you can look at it as a copper-equivalent or a silver-equivalent.

“We’re drilling on patented land this time,” Rogers says. “That was basically part of our due diligence, confirming the Minterra grades. We’ve done our soil sampling, we’ve identified other zones that haven’t been explored. This is the old historic workings area. But it’s never been drilled underneath, except for the US Bureau of Mines. They drilled about 50 feet [15.25 metres] under the old workings and found some great silver and copper. The drilling we’ve done was to confirm the Minterra results, and we feel confident the first two holes do that. We’ve matched what they were doing and we’ve done better. On Hole MM-03 we doubled what they had because they were drilling with reverse circulation with water, and they were losing a lot down the hole. It just gets washed away when you grind it up. In our case we’re getting the core, so we’re getting a more accurate assay.”

View Company Profile

Contact:
MAX Resource Corp
Leonard MacMillan
Corporate Communications
866.331.5088
604.637.2140

by Greg Klein