Nov 15 2010
The management of Vantex Resources Ltd (TSX VENTURE:VAX) has announced the completion of 6 new drill holes for a total of 1,750 metres, in the area of the Moriss showing where a new gold discovery was announced by press release on October 8, 2010 (Drill hole VPE10-02 - 5.81 g/t Au over 4.75 metres).
The first assay results from the lab indicates that the size of this new gold zone is getting larger and the grades are getting better. The Moriss zone is located 600 metres West of the Galloway-Pitchvein zone (GP).
In VPE10-11, the hole intersected two gold zones with one of the zones showing visible gold. The initial assay results returned grades of 8.21 g/t Au over 22.50 metres (along the hole) including a section that returned 18.16 g/t Au over 5.50 metres and 13.93 g/t Au over 6 metres as well as another zone with 1.81 g/t Au over 13.50 metres including a zone with 3.62 g/t Au over 6.25 metres. Drill hole VPE10-10, located 20 metres under VPE10-02, returned 11.6 g/t Au over 5.35 metres ( along the hole ) including 2.65 metres at 22.73 g/t Au while hole VPE 10-06 returned 4.548 g/t Au over 10.50 metres including a zone with 14.646 g/t Au over 3 metres. The management of the company requested additional assays (metallic sieves) to confirm those results.
Drill holes VPE10-12 and VPE10-13 did not return any significant results while results from VPE10-14 are still pending. Another 3,000-meter drilling campaign will start very soon in this same area.
"We are excited and pleased with these new results. This proves that we are in the presence of another important gold source and that this new promising showing confirms the potential of the Galloway property. The full set of results will be available in the coming weeks. For the GP zone, the initial drill phase is now completed and we are only starting to receive assay results. These results will allow us to proceed with an initial 43-101 resource estimate for the GP area ", commented Mr. Guy Morissette, CEO of Vantex.
In order to protect this asset, the company filed a claim request at Quebec's Natural Resources department to secure the north and northwest extensions of the new zone. A request to transfer claims into cells was also filed at the same department.
Regarding drilling of the GP showing, management is pleased that every drill hole completed so far on this zone, intersected the targeted gold structure. Vantex plans to resume another drilling program on the north-east extension of this zone, as soon as the compilation of results from the recent drilling campaigns, is completed. Due to a large amount of exploration currently taking place in the area, assay results are subject to longer delays.
Hendrick Zone
The Company also started an important drill hole in the area of the Hendrick gold zone where historical drill holes returned 1.23 gt/Au over 67.67 m and 1.34 gt/Au over 42.98 m in KOD86-01 and 1.03 gt/Au over 49.8 m in KOD86-04, in order to test the potential of this gold area located 500 metres south-east of the Galloway zone.
Geophysics surveys, mag and IP, are also underway in the Hendrick and Moriss areas.
The works are under the supervision of Mr. Jeannot Théberge, consulting geologist and Qualified Person under NI 43-101. Mr. Theberge has read and approved this press release.
All samples were tagged, bagged and shipped to Laboratoire Expert Inc., Rouyn-Noranda, where 30-gram pulp samples are prepared and assayed for gold (FAA). New gravimetric analysis (FA) are performed on all the samples with levels higher than 1.0 g/t Au. A strict QA/QC program including random insertion of blanks, standards and duplicate samples has been followed throughout the sample preparation. The NQ-size core is logged, sampled and split in two at the company's core shack in Rouyn-Noranda.
Financing
Vantex also wishes to inform its shareholders that it entered into an agreement with Jones Gable & Company Ltd. (« Jones, Gable ») in respect of two brokered private placement financings at the following conditions:
A Flow through financing for a maximum of $1,000,000 consisting of 1,000 Flow through units (the "FT Units") at a purchase price of $1,000 per Unit, on a commercially reasonable effort agency basis. Each FT Units will consist of 4,000 flow-through common shares and 1,000 common shares at a price of $0.20 per share and 2,500 common share purchase warrants. Each whole warrant will entitle the holder to purchase one additional common share in the capital of the company for a period of twelve months from the date of issuance, at a purchase price of $0.25 per share.
Proceeds of the Units will be used for the continuation of exploration of the Galloway property in Quebec. The expenses will constitute Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act (Canada)), which can be renounced to purchasers for the 2010 taxation year.
A second financing for a maximum of $499,500 consists of 666 units (the « Units ») at a purchase price of 750 $ per Unit, on a commercially reasonable effort agency basis. Each Unit includes 5,000 common shares at a price of $0.15 per share and 2,500 common share purchase warrants. Each whole warrant will entitle the holder to purchase one additional common share in the capital of the company for a period of twelve months from the date of issuance, at a purchase price of $0.25 per share. These funds will be allocated for cash flow purposes.
Source: Vantex Resources Ltd