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Monday, 3 December 2012
PJX Resources gets set for potential deposit discovery in historical mining region of BC
PJX Resources (CVE:PJX) is on plan to aggressively explore its properties in the historical mining area of Cranbrook and Kimberley in British Columbia in the coming year, with the hopes of uncovering a potential deposit.
It has spent the past year developing target areas to drill on its four properties in the Cranbrook area, for gold, as well as base metals.
Its properties are all located within a 30 kilometre radius of Cranbrook, an under-explored area with “tremendous mining potential”, according to the company’s CEO John Keating, who has more than 30 years of experience in the mining industry, and was a global commodity analyst with the Federal Government of Canada.
The company has spent its time compiling historical work, digitizing data, and combining it with new mapping and modern airborne technologies.
“We have put money in the ground, and have developed many targets to test. At any given time, any target could uncover a discovery and generate value for our shareholders,” says Keating.
“The more targets we have, the more chances we have of finding something. We are at an exciting time for the company.”
Indeed, the company just completed preliminary drill programs to test some of the targets on its Eddy and Zinger properties, with results from these first holes pending. The next targets to test are on the Vine property, with the junior explorer planning to start drilling there early next year for gold and possible base metals.
At the Vine property, PJX has digitized historical data for computer modelling to define potential drill targets that could expand existing mineralized zones along strike and at depth.
The property has an historical resource estimate of 1.3 million tonnes grading 2.2 grams per tonne (g/t) gold, 36.3 g/t silver, 3.12 per cent lead, 3.12 per cent zinc and 0.11 per cent copper. This resource was done by Kokanee Exploration in 1991 and is not compliant with current NI 43-101 standards.
No other drilling has been done since the early 1990s on the resource, which appears to remain open at depth and along strike. Gold prices were trading at around $300 an ounce when the Vine resource was last drilled, which Keating says is one reason no one did anymore work on it.
The mineral company’s philosophy is to explore in areas that have known mineral potential and are under-explored. The Cranbrook area is a prime example of this.
“The area is underexplored because the focus has traditionally been on discovering another Sullivan lead-zinc-silver mine, which is located around 20 km from Cranbrook. Once this was discovered, few explorers looked for any other metals,” explains Keating.
The Sullivan mine, which is located in Kimberley, produced over 100 million tonnes of ore, and was discovered in the early 1900s. It operated until the mine shut in 2001.
“But actually, the area initially became famous in the 1860s when gold was first discovered in the creeks around Cranbrook.”
He says that no one has yet found the source of the three placer-producing gold creeks, meaning exciting times ahead for PJX. “Testing of these new targets may validate the gold potential of the local mountains that prospectors have talked about since 1864.”
Keating says the company has maximized exploration dollars by being able to capitalize on the historic work people have done over the years, and has identified the “best looking areas” for testing to determine what influences the gold and its distribution.
The company has said that mapping and exploration on its Zinger and Dewdney Trail properties in Cranbrook have also found target areas with potential to host large sediment-hosted gold deposits.
These types of deposits are some of the largest gold deposits in the world, as is evident from the 20 million ounce Sukhoi deposit in Russia, and the over 80 million ounce Muruntau gold deposit in Uzbekistan.
Two large soil geochemical anomalies were found at Dewdney, with samples of greater than 150 parts per billion (ppb) gold. “A major fold structure has been found, with the potential for a gold deposit to be located along the structure. Next summer, we will be looking at drilling these targets,” Keating says.
And at Zinger, the company says there is a mineralized trend that is followed for 8 kilometres along strike, with up to 30 g/t gold in rock grab samples. PJX has mapped part of the property in detail this past fall, and is compiling additional information to be able to determine where best to test this summer.
Keating says that Cranbrook is an “economic hub” for the area, with a skilled labour force. All of its properties are road accessible, and there are hydro lines through a number of its assets. “We have contractors, drillers, as well as consulting geologists and prospectors that live in the area and know the properties.”
Indeed, PJX’s CEO explains that he has been able to keep his organization lean, with no need for camp costs.
The company recently closed a $1.4 million oversubscribed private placement financing, which Keating anticipates will secure PJX through exploration through next summer, after which it will look to the market at that time.
Given the strain on junior explorers in Canada now, an oversubscribed placement is considered quite a feat. “We have a tremendous shareholder base that believes in the opportunity, and our team. We look forward to generating value for our shareholders”
“History has shown that investors recognize companies that are building their stock and are actually doing something – not just sitting on their hands.”
Keating says that the company will be selective in the targets it tests, but notes that what it learns from one property can be easily applied to another of its assets. “The geology is very similar – it is an area play we are focusing on,” he concludes.