Dec 17 2014
Sphinx Resources Ltd. ("Sphinx" or the "Corporation") announces the execution of a new option agreement with Midland Exploration Inc. ("Midland") for its Adam project, currently wholly owned by Midland and consisting of 182 cells covering a surface area of about 100 km2 located approximately 50 km west of the town of Matagami in the Abitibi region of Quebec.
This new project exhibits strong gold and copper potential and is located about 15 km east of the B26 Zone held by SOQUEM inc. ("SOQUEM"). The B26 and East Zone gold-copper deposits, held and worked actively by SOQUEM, respectively host historical resources in the order of 600,000 tonnes grading 2.9 g/t Au and 2.8% Cu and 750,000 tonnes grading 2.0% Cu and 0.4 g/t Au (Source: SOQUEM's web site; historical resources non-compliant with NI 43-101). In addition, drill holes completed in 2012 by Excellon Resources Inc. ("Excellon") on the Beschefer project (B-14 Zone) located less than 7 km west of the Adam project, intersected high-grade gold intervals reaching 13.1 g/t Au over 8.8 m, including 58.5 g/t Au over 1.50 m (Source: press release by Excellon dated April 17, 2012). The Adam project is also located about 20 km east of the former Selbaie mine, which historically produced 56.5 million tonnes grading 1.9% Zn, 0.9% Cu, 38.0 g/t Ag, and 0.6 g/t Au.
Pursuant to this new agreement, Sphinx may earn 50% of Midland's interest over a period of four (4) years, by fulfilling the following conditions:
- Cash payments totalling $250,000, including a $20,000 cash payment upon signing the agreement;
- Exploration expenditures totalling $3,000,000, including $400,000 during the first year with a firm commitment of $200,000. Midland will be project operator during the option period.
This new acquisition, with strong gold and copper potential, covers more than 8 km of the well-mineralized regional contact between tholeiitic volcanic rocks of the Enjalran Group and calc-alkaline volcanic rocks of the Brouillan Group as well as an assemblage of felsic volcaniclastic rocks. The B26 Zone is hosted in felsic to mafic volcaniclastic rocks with iron carbonate, chlorite, sericite, and silica alteration. In the south part of the Adam project lies another favourable contact, between volcanic rocks of the Enjalran Group and wackes, mudrocks, and iron formations of the Taibi sedimentary Group. A gold showing is located less than 5 km west of the Adam project, where a historical drill hole yielded grades reaching 19.9 g/t Au over 0.77 metre (Source: SIGEOM map sheet 32E10, GM56241).
On the Adam project, historical INPUT electromagnetic surveys identified several conductors that had never been drill-tested. These are located near the felsic volcanic units identified near the favourable regional contact between the Enjalran and Brouillan groups.
A helicopter-borne VTEM electromagnetic survey totalling about 800 line-km will be flown in December 2014 to cover the entire project.
Maps showing the location of the Adam project subject to the new option agreement with Sphinx may be consulted using the following link: http://media3.marketwire.com/docs/Adam_Dec16_2014.pdf
This press release was prepared by Normand Champigny, President and Chief Executive Officer of Sphinx and Qualified Person as defined by NI 43-101.
Source: http://sphinxresources.ca/