Monday, 30 April 2012

PJX Resources expands exploration potential at Vine deposit, BC

PJX Resources (CVE:PJX) said Monday that it has optioned ground on strike with the Vine property in British Columbia, opening the way for expanded exploration potential.
The company has boosted the land position at Vine from 640 hectares to more than 6,300 hectares of land, through an option agreement with Klondike Gold Corp (CVE:KG).
The Vine property hosts a deposit of gold, silver, lead, zinc and copper mineralization that was first discovered in the late 1970s by Cominco.  The last significant drilling done on Vine was between 1989 and 1991, when low metal prices curtailed any further exploration and the land ownership became fragmented.
"This is a win-win scenario for PJX Resources and Klondike Gold," said PJX president and CEO, John Keating.
"This is the first time in over 20 years that the Vine land position has been consolidated into a size that can be properly explored.  Metal prices today are far more favourable than they were when the Vine was last explored.
"Gold is trading over US$1,600 an ounce, as compared to US$360 in 1991.  Silver averaged about US$4 per ounce in 1991 and is now trading over US$30 an ounce.   Zinc, lead and copper prices are also much stronger today.
"This larger land package combined with stronger metal prices makes a discovery on strike or at depth with the Vine more favourable for development."
Under the terms of the option deal, PJX can earn a 50 percent interest in Klondike's 6,300 hectare property by completing $1.5 million in work, and by making share payments of a maximum of 200,000 common shares over a five year period.
Once PJX has completed the option terms, the companies will form a 50/50 joint venture, with PJX as the operator. If either company decides not to participate in the venture, then its interest will be diluted on a pro-rata basis to a two percent net smelter royalty.
The road-accessible Vine property is located 11 kilometres south of Cranbrook, British Columbia.
According to BC historical records, trenching and drilling have exposed massive and disseminated sulphides within a sheared vein system, and the mineralized Vine structure has been traced for over 1,000 metres along strike and a downdip extension of at least 700 metres.
Drilling in the 1990s of the Vine structure intersected three massive sulphide veins. The upper vein had a true width of 4 metres, averaging 2.94 per cent lead, 0.2 per cent zinc and 29.13 grams per tonne silver across 4 metres.
The lower vein had a true width of 3.4 metres, averaging 4.7 per cent lead, 2.09 per cent zinc, 0.36 per cent copper and 35.3 grams per tonne silver across 3.4 metres.
Historical proven and probable reserves for the Vine property are estimated at 1.3 million tonnes grading 2.2 grams per tonne gold, 36.3 grams per tonne silver, 3.12 per cent lead, 3.12 per cent zinc and 0.11 per cent copper.
PJX said it has access to the drill core and logs from the more than 50 holes drilled on the Vine deposit. It has recently had the data digitized for computer modelling, with the information to be used to assess the potential for mineralization - on strike and at depth.
The results of this work will be used to identify targets for drilling the Vine vein, the company said.
PJX plans to fly an airborne survey over the property to identify potential Vine style and Sullivan deposit targets. The Sullivan Mine is located about 30 kilometres to the north of the property, with Teck Cominco closing it in 2001 after producing over 120 million tonnes of silver-lead-zinc ore during its 90 year mine life.
PJX's primary focus remains the Dewdney Trail property, where three target areas have been identified to date with significant gold deposit potential.
The company has also identified a new target area on the Zinger property that may have the potential for multiple gold deposits.  Meanwhile, targets are being developed on its Eddy property, and PJX can now identify areas on the Vine asset.
PJX said it has identified new targets on multiple properties by using an estimated $8 million in previous exploration work on its Cranbrook Properties.
It plans to test the most promising targets with trenching and drilling this year.  The company's main properties are located in the historical mining area of Cranbrook and Kimberley, British Columbia.

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