Max Resource finds Au conglomerate at Choco

2019-02-06 10:17 ET - News Release

Mr. Brett Matich reports
GOLD BEARING CONGLOMERATE DISCOVERY EXPANDS THE MINERALIZED ZONE
Max Resource Corp. has provided exploration results from the company's 1,757-square-kilometre gold-bearing conglomerate, Choco precious metals project, located 100 kilometres southwest of Medellin, Colombia.
Highlights

• Continuing exploration by the Choco team has located gold-bearing conglomerate, designated outcrop 2, a farther 7.5 kilometres to the south;
• The area the company's continuing exploration now covers 36 square kilometres;
• Processing of the gold-bearing conglomerate from the six two-metre-by-two-metre-by-30-centimetre trial pits and the two outcrops continues and results will be reported as received and verified;
• Field exploration continues, with the objective of increasing the lateral extent of the conglomerates and gold mineralization of the company's Choco Precious metals district area.

Brett Matich, Max's president and chief executive officer, commented: "The continuing exploration success suggests Max may well be on the cusp of a new gold discovery. The results of this exploration program will provide an indication of the scale of this project."
Exploration to date

• Sinking of six two-metre-by-two-metre-by-30-centimetre trial pits and sampling of two outcrop exposures over a 36-square-kilometre area;
• Processing 25-kilogram to 50-kilogram random samples from the plus 2,000 kilograms of conglomerate produced from each of the six test pits to confirm the presence of free gold;
• Processing 25 kilograms to 50 kilograms of chip samples from the two outcrop exposures to confirm the presence of free gold;
• Free gold was observed in the first sample from each of the first five trial pits;
• Confirmation of a vertical thickness of 12 metres from outcrop 1 in near the centre of the 36-square-kilometre area.

Exploration strategy
As shown in the above exploration strategy schematic, the company is working on an exploration model where the gold-bearing conglomerates have formed at the base of the western slopes of the mountains to the east.

The company considers systematic bulk sampling at surface to be the most practical means of determining grade, processing characteristics and the lateral extent of the flat-lying gold-bearing mineralized system. Sampling exposed faces of outcrops, providing initial assessment of thickness, depth and vertical continuity of the gold through the system. The six two-metre-by-two-metre-by-30-centimetre-deep trial pits are excavated from surface by pneumatic hammer. A measured specific gravity of 2.2 indicates plus 2,000 kilograms of hard rock conglomerate is collected from each pit. The continuing exploration in the central part of the mineralized area indicates a vertical thickness of 12 metres. Samples were taken down the face of the outcrop to determine gold distribution vertically through the conglomerate. Analytical results are pending.

Choco precious metals project
Max has 100-per-cent ownership of 82 and 50 per cent of seven mineral licence applications, totalling over 1,757 square kilometres, located within Choco department, approximately 100 kilometres southwest of the city of Medellin, Colombia. Compania Minera del Choco Pacifico produced 1.5 million ounces of surface gold and one million ounces of surface platinum from the Choco district between 1906 to 1990, largely limited to an average depth of eight metres or less.

Max's Choco precious metals project covers, or is adjacent to, much of Choco Pacific's historic exploration and production areas. Choco Pacific historic reports indicate the hard-rock conglomerates underlying the surface production areas are gold bearing, extensive, shallow and generally flat lying with thicknesses from a few metres to 20 metres.

Sampling and analysis methodology
Sampling integrity is essential. The conglomerate (hard rock) surface is cleaned and a two-metre-by-two-metre square is marked. A pneumatic hammer then chips and breaks the conglomerate outcrop to a depth of 30 centimetres. The broken conglomerate is collected in prenumbered rice bags, with approximately 25 kilograms per bag. Each prenumbered bag is sealed by the geologist and transported to secure, locked storage at the Novita camp, in Choco. Two bags per pit are then transported by company staff to the town of Istmina, where the bags are transported to Medellin for processing at Actlabs Medellin and the CIMEX Mineral Institute at the Medellin Mines Faculty of the National University of Colombia.

Each approximate 50-kilogram sample is first crushed to two millimetres. The minus-two-millimetre and plus-two-millimetre fractions are separated by sieving with each fraction subsequently pulverized. The minus-two-millimetre fractions are concentrated by gravity pan and visually examined for free gold by Max technical staff. There has been no analysis conducted on the plus-two-millimetre fraction.

Noble transaction
As previously announced (see Max's press release dated Jan. 28, 2019), Max continues to pursue the acquisition of mineral rights and concessions in and around the Novita project from Condoto Platinum Ltd., a wholly owned subsidiary of Noble Metals Ltd. Because Max proposes to issue 26,665,896 common shares to Noble Metals on the closing of this transaction (constituting approximately 32.7 per cent of the issued and outstanding shares of Max after adjusting for the transaction), the transaction would constitute Noble Metals as a new control person of Max and requires both TSX Venture Exchange and shareholder approval. Max has been working with the TSX-V in an effort to obtain conditional approval, while simultaneously adjusting the transaction structure to remediate concerns developed over the course of its due diligence. Max anticipates that it should be in a position to request shareholder approval in the near future. The transaction remains subject to TSX-V approval.

About Max Resource Corp.
Max's focus is to explore and consolidate gold and platinum group mineral assets in the richly endowed Choco mineral district of Colombia and to explore the Gachala sedimentary copper-hosted mineral belt of Colombia.
We seek Safe Harbor.