MX GOLD CORP TSX-V: MXL

Willa Max

Highlights

  • Mining widths = 5 to 30 meters allow low cost efficient mining methods

 

  • High Quality Database by BP Minerals and Rio Algom.

 

  • $18 million in historic investment by previous operators (BP, Rio Algom, Northair)

 

  • Mineralization Open in 3 directions – several other highly-prospective areas undeveloped.

 

  • Metallurgical sampling completed with additional revenue from pyrite/gold concentrate indicated.

 

Overview

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The Willa property is the site of a gold, copper and silver deposit located in one of the most highly mineralized regions for base and precious metals in southeastern British Columbia.

Since the early 1890s the Slocan and Sandon camps in the vicinity have hosted more than 20 mining/milling operations and some 200 additional mines that shipped ore to custom mills or smelters. The Willa deposit is located 8 kilometres (km) south of Silverton on Red Mountain, named because of the extensive red soils resulting from weathering of sulphide minerals in the local bedrock

The Willa asset is now at the centre of MX Gold Corp’s focus in development and expansion. Survey results indicate that at a cut-off grade of 3.0 g gold/t, current Measured and Indicated mineral resources stand at 758,000 tonnes grading 6.67 g gold/t, 0.85% copper and 12.54 g silver/t. The property has a surface area of approximately 5,329 hectares and consists of twenty-one mineral claims. MX Gold Corp now owns 100% interest in the Willa property, subject to a 2.5% NSR royalty.

The property has been explored off and on since 1893 while the deposit has been extensively explored and developed by several operators including Noranda, Rio Algom, BP Minerals, Bethlehem Resources Corp., Northair Mines Ltd. and Hudson Bay Mining & Smelting.

In the mid-1960’s, Cominco, Amax Exploration and Western Mining Company identified possible economic copper and molybdenum mineralization and from 1980 to 1985, surface and underground drilling completed by a joint venture between Rio Algom Exploration Inc. and BP Minerals Ltd. In 1985 Northair Mines Limited joined the joint venture, completing the majority of the present underground workings and diamond drilling.

In 2003, the database was digitized and a NI 43-101 mineral resource calculation was completed on the Willa property by David Makepeace based on historic drilling. Mr. Makepeace also acted as a supervisory consulting geologist during the 2004 diamond drill program at the Willa property, which included 39 additional hole checks and twinning of holes. He also completed several channel samples to re-confirm the mineralization and bulk sample results in the West Zone. In 2005, Mr. Makepeace up-dated the mineral resource estimate.

In 2005, Hatch Consultants and others completed a preliminary mine design and mine schedule based on the updated Mineral Resource estimate of Mr. Makepeace, however, at the prevailing metals prices of that time the estimated operating costs did not yield the return that was needed to proceed with production..

MX Gold Corp retained Mr. Makepeace to author a technical report on the Willa property in 2012. The 2012 Technical Report on the Willa property disclosed the following Measured, Indicated, and Inferred Mineral Resources for the cut-off grade ranges of 1.5, 2.5 and 3.5 g Au/t:

Willa Measured Mineral Resources

 

Cut-off

(g Au/t)

Tonnage

(t)

Gold(g Au/t) Copper

(%Cu)

Silver

(g Ag/t)

1.5 1,428,934 3.97 0.67 8.97
2.5 814,970 5.52 0.84 10.55
3.5 495,784 7.18 0.94 12.16

The base case estimate in the measured resource category is 496,000 tonnes grading 7.18 g/t gold, 0.94 % copper and 12.16 g/t silver.

Willa Indicated Mineral Resources

 

Cut-off

(g Au/t)

Tonnage

(t)

Gold(g Au/t) Copper

(%Cu)

Silver

(g Ag/t)

1.5 1,200,508 2.96 0.49 7.46
2.5 522,487 4.32 0.59 10.99
3.5 262,415 5.71 0.67 13.26

The base case estimate in the indicated resource category is 262,000 tonnes grading 5.71 g/t gold, 0.67 % copper and 13.26 g/t silver.

 

Willa Inferred Mineral Resources

Cut-off

(g Au/t)

Tonnage

(t)

Gold(g Au/t) Copper

(%Cu)

Silver

(g Ag/t)

1.5 915,727 2.19 0.32 5.18
2.5 238,797 3.07 0.35 6.23
3.5 73,591 3.39 0.29 5.42

The base case estimate in the inferred resource category is 74,000 tonnes grading 3.39 g/t gold, 0.29 % copper and 5.42 g/t silver.


Wayne Ash, P.Eng., is independent of MX Gold Corp and is the qualified person who has reviewed and approved the technical disclosure on this page.