TORONTO, ON June 25, 2020 Fenixoro Gold Corp (FENX:CSE) (8FD:Frankfurt) is pleased to provide an update on the Phase 1 exploration program at its Abriaqui project in Antioquia, Colombia. The Company has completed the preliminary portion of the Phase 1 program. Soil sampling and ground magnetics have been completed and samples and data have been delivered for analysis.
FenixOro VP Exploration Stuart Moller commented: “We are pleased with the swift progress our exploration team made in completing this first portion of the Phase 1 program, particularly in the midst of the pandemic. We are particularly grateful for the support we have received from the local community of Abriaqui, the Mayor’s office, and the State Secretaria de Minas to allow us to continue the program and provide local employment under safe protocols. Field work during the first phase generated significant discoveries of manto style mineralization (see Press Release June 3, 2020) and potential outcropping porphyry mineralization (see Press Release June 9, 2020) providing us with three distinct mineralization target styles.”
The Company is awaiting a final permit to begin the drilling portion of Phase 1. After submission in November the Company expected the permit to be issued in the March timeframe. Permit issuance has been impacted by the government shutdown during the COVID crisis, however government offices have restarted operations and the Company is optimistic that the permit should be received shortly.
The principal target at Abriaqui is a series of over 80 closely-spaced, “Buritica-style” high grade gold veins many of which have assayed over 20 g/t gold and as high as 146 g/t gold. These veins occur in distinct corridors and are spaced meters to tens of meters apart. The veins and several areas of intervening stockwork mineralization will be the principal target of the upcoming 6000-meter maiden drill program slated to begin in the summer of 2020 with each hole targeting multiple families of veins.
The Company recently announced the discovery of a second style of mineralization consisting of replacement mantos in the sedimentary rocks flanking the main intrusion. The main occurrence is 15-25 meters thick with surface grab samples assaying up to 4.5 g/t gold. Detailed channel sampling will better define the average grade of the body.
A previous historical ground magnetics grid covering a small portion of the property indicated a north-south trending magnetic anomaly which could not be explained by known vein and replacement mineralization (see Slide 18 in the Corporate Presentation at https://fenixoro.com).
Recent mapping, petrographic studies, and rock chip sampling in the area of the anomaly have discovered small outcrops of types of gold-mineralized veining and rock alteration that are consistent with a porphyry-style system. The area is soil covered and has dense vegetation and known outcrops of this type cover only a small portion of the magnetic anomaly. The anomaly measures 700 meters north-south and is opening and strengthening beyond the limit of the present grid. The magnetometry program just completed covers a greatly expanded area and, along with additional soil sampling, will help to define relatively shallow drill targets which could be incorporated into the Phase 1 drill program.
The Company is pleased to announce that all warrants expiring June 14, 2020 have been exercised in addition to nearly 90% of warrants expiring July 10, 2020.
The Company has now received proceeds of $1,128,590 from the warrant exercise. Of the 5,400,000 warrants that were scheduled to expire July 10, 2020 with an exercise price of $0.155, approximately 800,000 warrants remain unexercised. The company anticipates that these warrants will be exercised prior to their expiry within the next two weeks.
“We are very pleased to receive this vote of confidence from our shareholders and we are eager to continue delivering exploration results” stated FenixOro CEO John Carlesso. “The proceeds from the warrants will continue to fund the balance of our Phase 1 program which is already well underway, including the maiden 6000m drill program for which approval is expected imminently.”
FenixOro Gold Corp
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Stuart Moller P.Geo., Director, VP Exploration and a Qualified Person for the purposes of NI 43-101, has prepared the technical portion of this press release. Mr. Moller is a professional geologist with 40 years of worldwide experience in mineral exploration including 10 years in Colombia.
About Fenixoro Gold
FenixOro Gold Corp is a Canadian company focused on acquiring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is located 15 km west of Continental Gold’s Buritica project in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are very similar. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. Abriaqui has not yet been drilled but surface and underground geological mapping and sampling as well as a preliminary magnetometry survey have been completed. The property is drill-ready pending finalization of the government permitting process.
Fenix’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011 which included drilling the first 270 holes. The Buritica Mine currently contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources. Buritica is scheduled to commence production in 2020 with annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.
Cautionary Statement on Forward-Looking Information
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of FenixOro’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “will”, “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the Transaction including the Listing Date, Abriaqui and the Escrowed Securities. Although FenixOro believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. In particular, there is no guarantee that that the Company will successfully list its securities on the CSE on the Listing Date or at all, that Abriaqui will be drilled or produce viable quantities of minerals, that the Company will pursue Abriaqui or that any mineral deposits will be found.. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and FenixOro does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.