Vancouver, British Columbia, September 8, 2020 – AUX Resources Corporation (TSXV: AUX, OTCPK: AUXRF) is pleased to announce that the acquisition of Isla Gold Corporation (“Isla”) announced on June 8, 2020 has closed. Isla controls 100% of the 2,647 hectare Independence and Silver Crown properties (“Properties”), approximately 15 kilometres north-northeast of Stewart, British Colombia. The paved Stewart Highway 37A and major electrical transmission lines cross the eastern portion of the Independence property. In order to advance the properties rapidly, AUX mobilized a field crew in early August to generate and refine drill targets for the 2021 field season.
“The addition of the Independence and Silver Crown claims complement AUX’s existing land position north of Stewart with two excellent properties,” comments Ian Slater, Chief Executive Officer. “Given their proximity to infrastructure and the known mineral potential of the claims, both of these properties have been incredibly underserved during recent exploration booms in the Stewart Mining Camp.”
The properties are underlain by the Unuk River, Betty Creek, Mount Dilworth and Quock formations of the Jurassic Hazelton Group. These rocks host significant precious and base metal deposits in the Golden Triangle, including the Silbak Premier, Brucejack, Silver Coin, Sulphurets, Red Mountain, Scottie Gold and Eskay Creek deposits. Mineralization occurs dominantly as polymetallic gold-silver-copper-lead-zinc replacement veins along fault structures. On both properties there is an apparent spatial association between late veins and dykes, suggesting a similar structural control and thus a potentially larger system.
The mineralization potential of the properties is exemplified by the 13 known MINFILE occurrences, which include the small past-producing Spider 3 mine on the Silver Crown Property (recovered grades of 13.7 g/t Au and 6,449 g/t Ag from 16 tonnes). Mineralization on the Silver Crown Property occurs in a structural corridor with a strike length of 1,400 metres with at least 18 major quartz-sulphide-bearing veins. Veins have an average width of 75 centimetres and a strike length of 60 metres.
The Independence Property surrounds the historic Red Cliff copper-gold mine which was in production between 1910-1912 and has recorded drill intercepts of up to 49.2 g/t Au over 18.45 metres. The Independence property hosts numerous adits from the 1920s which exploited significant silver-rich veins and returned multi-ounce silver grades.
Both properties have seen renewed work in recent years, including a heli-borne magnetic survey in 2017 and a reconnaissance level surficial program during 2019. Sampling of grab samples during the 2019 exploration program yielded results of up to 50.7 g/t Au, 9,300 g/t Ag, 13.75% Cu, 19.05% Pb and 19.55% Zn (It should be noted that, owing to their selective nature, assay results from the grab samples discussed may not be representative of the overall grade and extent of mineralization on the subject areas, and the upper limit values reported are from multiple samples). The area has experienced significant glacial retreat since the last mapping program in 1986 and, in 2019, a new showing was discovered in an area previously covered by ice. This showing returned grades up to 8.2 g/t Au. The 2020 exploration work focused on prospecting and mapping areas of recent glacial retreat, as well as refining drill ready targets. Analytical results are pending.
Quality Assurance and Control
Samples were analyzed at ALS Global Laboratories (Geochemistry Division) in Vancouver, Canada (an ISO 9001:2008 accredited facility). The sampling program was undertaken by the prior operator of the property under the direction of Tom Setterfield, P.Geo. A secure chain of custody was maintained in transporting and storing of all samples. Gold was assayed using a fire assay with atomic absorption spectrometry and gravimetric finish when required (+10 g/t Au).
About AUX Resources
AUX holds more than 25,500 hectares of strategic claims in the Stewart Mining Camp in the Golden Triangle of British Columbia, which is among the world’s most prolific mineralized districts, including the high-grade Georgia Project and the past-producing Georgie River Mine. AUX is also actively consolidating in the Stewart Mining Camp.
The technical disclosures in this release have been read and approved by Dr. Paul Metcalfe, Ph.D., P.Geo., a director of AUX and Vice President Exploration, a qualified person as defined in National Instrument 43-101.
For further information please see www.auxrc.com or contact:
Ian Slater, Chief Executive Officer
+1 604 638 2545
Mars Investor Relations
+1 604 715 6845
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing and general economic, market or business conditions and regulatory and administrative approvals, processes and filing requirements. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.