MAX Resource Corp. to Acquire Gold Hill Project in Alaska.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--May 17, 2004 MAX Resource Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension Venture: MXR MXR Mixer MXR Munxar (postal locality, Malta) MXR Mail Exchange Record )(OTCBB OTCBB See OTC Bulletin Board (OTCBB). : MXROF) announces that it has entered into an agreement to acquire an interest in the Gold Hill Project near Cantwell, Alaska, subject to acceptance for filing by the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . The Gold Hill property is located along the southern portion of the prolific Tintina Gold Province, approximately 145 miles north of Anchorage, Alaska and only 10 miles off the paved highway to Cantwell, Alaska. The property was first drilled as a joint venture between Dome Exploration and Cities Service Company in 1972. They were exploring for molybdenum and did not find an economic deposit so they left the property. General Crude Oil ("GCO") acquired the property in 1983 and explored the property for gold. They did geologic mapping, soil geochemistry, a VLF-EM survey and drilled five diamond drill holes. The best intersection from this drilling was 11.5 feet which averaged 0.668 ounces per ton. In 1988, Amax Gold entered into a joint venture with GCO. They completed geologic mapping, rock sampling, soil geochemical surveys and VLF-EM geophysical surveys, select metallic screen fire assays and preliminary cyanide bottle roll metallurgical tests and 5,885 feet of reverse circulation drilling in 21 drill holes. The target was to find a bulk tonnage open pittable deposit. Amax did not find significant thick intervals of low grade mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. and dropped the property. High grade gold intervals were encountered in drill holes AUH 7, 16, and 17. Hole 7 contained five feet of 0.18 opt Au, Hole 16 contained five feet of 0.46 opt Au, five feet of 0.23 opt Au and five feet of 0.66 opt Au, and Hole 17 contained five feet of 0.19 opt Au. These holes are open along strike and, since they were drilled with a reverse circulation drill rig which encountered large quantities of water, they should be re-examined to see if loss of gold might have occurred. A large soil geochemical anomaly exists on both Gold Hill and West Hill. Values up to 0.1 opt Au have been found. The Gold Hill area was originally drilled for molybdenum but not assayed for gold in all holes. There is still a target there. Gold Hill is an intrusion related gold system which has many of the characteristics of a Tintina Gold Belt system. The dominate rock types consist of argillite ar·gil·lite n. A metamorphic rock, intermediate between shale and slate, that does not possess true slaty cleavage. [Latin argilla, argil; see argil + -ite1. , metasiltstone, greywacke Greywacke (German grauwacke, signifying a grey, earthy rock) is a variety of sandstone generally characterized by its hardness, dark color, and poorly-sorted, angular grains of quartz, feldspar, and small rock fragments set in a compact, clay-fine matrix. , carbonaceous schist and a small wedge-shaped fault block of tuffaceous metasedimentay and metavolcaniclastic rocks. Early to mid-Teritary monzonite monzonite Type of igneous rock that contains abundant and approximately equal amounts of plagioclase and potash feldspar, as well as other minerals. The type region is Monzoni, Italy, in the Italian Tirol; similar rocks have been described from Montana, Norway, Sakhalin and diorite diorite Medium- to coarse-grained igneous rock that commonly is composed of about two-thirds plagioclase feldspar and one-third dark-coloured minerals, such as hornblende or biotite. stocks, plugs and dikes intrude the metasiltstone units on Gold Hill and the tuffaceous metasedimentary sequences on West Hill located in the western part of the property. Hydrothermal alteration is pervasive throughout the property. Quartz-sericite-pyrite alteration is particularly evident around the summit of Gold Hill and to a lesser extent in the vicinity of the Swale swale n. 1. A low tract of land, especially when moist or marshy. 2. A long, narrow, usually shallow trough between ridges on a beach, running parallel to the coastline. 3. area, a low saddle located just east of West Hill. The gold mineralization is thought to be related to the intrusions and pyrite, arsenopyrite, pyrrhotite, chalcopyrite, molybdenum, and gold are found in veins and as disseminations in the host rocks. All of the creeks contain placer gold and have been worked in the past. Interpretation of the geophysics indicates that there are a number of buried intrusives present on the property which have not been explored. MAX has entered into an Option Agreement with Zazu Exploration, Inc. ("Zazu"), a privately-held Texas corporation, which holds a Lease on the Gold Hill Claims from GCO Minerals Company. The terms of the Option include a payment of US$25,000 and the issuance of 100,000 Shares and 100,000 Warrants exercisable at $0.47 per share for a two year period. In order to maintain the Option, MAX must issue an additional 200,000 shares by January 1, 2005 and a further 200,000 shares by January 1, 2006. MAX will assume all of Zazu's obligations under the lease which include the following minimum work commitments and Advance Royalty Payments (in U.S. funds): Year Work Commitment Advance Royalty -------------------------------------------- 2004 $100,000 $ 5,000 2005 150,000 15,000 2006 250,000 25,000 2007 250,000 25,000 2008 500,000 50,000 2009 500,000 75,000 2010 500,000 100,000 Upon exercise of the Option, MAX can earn up to a 90% interest in the Gold Hill claims, subject to a net smelter return ("NSR NSR abbr. normal sinus rhythm NSR Normal sinus rhythm, see there "). The NSR will fluctuate from 1.5% to 4.0% depending on the price of gold. In addition, MAX will pay to Zazu an additional NSR of 1%. On acceptance for filing of this Option Agreement, the two principals of Zazu will join the MAX team, with Gil Atzmon joining our Board of Directors and Clarence J. Wendt agreeing to oversee our exploration as well as search for additional properties. Clarence J. (Clancy) Wendt received his B.S. degree from San Diego State University San Diego State University (SDSU), founded in 1897 as San Diego Normal School, is the largest and oldest higher education facility in the greater San Diego area (generally the City and County of San Diego), and is part of the California State University system. in 1967. He began his career at Stauffer Chemical and worked at various companies until returning to the University of Arizona (body, education) University of Arizona - The University was founded in 1885 as a Land Grant institution with a three-fold mission of teaching, research and public service. where he obtained his M.S. degree in 1978. After this he worked at Duval Corporation and other companies until becoming District Manager for Westmont Mining. He is credited with the Mt. Hamilton gold discovery and managed the programs which led to the discovery of other deposits in the Carlin car·line or car·lin n. Scots A woman, especially an old one. [Middle English kerling, from Old Norse, from karl, man.] Trend. Mr. Wendt has been a consulting geologist since 1992, specializing in exploration and evaluation of mineral deposits. He is a registered geologist in Arizona, British Columbia, Canada, and a Chartered Professional Geologist in Australia and writes reports for various exchanges. He is a member of SME, SEG, FAusIMM(CP), PDAC PDAC Prospectors and Developers Association of Canada PDAC Poly (Diallyldimethylammonium Chloride) PDAC Power Dynamics Awareness Committee (Pomona College) PDAC Plan, Do, Act, Check , a former Trustee of the NWMA NWMA Northwest Mining Association NWMA North Western Metropolitan Area (UK) NWMA National Woodwork Manufacturers Association NWMA National Western Mining Association and Member of the Board of Directors of the Mining Club of the Southwest. In addition, Mr. Wendt is the recipient of the Presidents Award from the NWMA, the Ben F. Dickerson Award, and is currently the President of the Geological Society of Nevada. Mr. Gil Atzmon has 20 years experience in the financing of global mineral exploration projects, having held senior positions in asset management firms This is a list of corporations that provide financial asset management.
Mr. Atzmon holds a bachelors degree in Geology and Geography from Columbia University in New York, and a Master in Energy & Mineral Resources form The University of Texas at Austin “University of Texas” redirects here. For other system schools, see University of Texas System. The University of Texas at Austin (often referred to as The University of Texas, UT Austin, UT, or Texas . Permitting is underway for the Gold Hill Project and MAX plans to begin an extensive exploration and drilling Program in June, subject to acceptance for filing of the Option by the Exchange and weather conditions in the area. The acquisition of the interest in the Gold Hill property and the planned exploration program will be funded from cash on hand. On behalf of the Board of Directors of MAX Resource Corp. Stuart Rogers, President This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause MAX's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The contents of this news release have neither been approved nor disapproved by the TSX Venture Exchange. |
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