Mg Capital and DLP Resources Signs Definitive Option Agreement to Earn up to 75% of PJX Resources’ Dd Property
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DLP RESOURCES NEWS RELEASE- July 20, 2020
MG CAPITAL AND DLP RESOURCES SIGNS DEFINITIVE OPTION AGREEMENT
TO EARN UP TO 75% OF PJX RESOURCES’ DD PROPERTY
Cranbrook, British Columbia, (Newsfile Corp. – July 20, 2020) – MG Capital Corporation
(TSXV:DLP) is pleased to announce that its wholly-owned subsidiary, DLP Resources Inc. (“DLP”),
and PJX Resources Inc. ("PJX") have signed a definitive option agreement in respect of DLP's option
to acquire an interest in PJX’s Sullivan-type Lead Zinc Silver DD Property (the "DD Property”).
The DD Property has potential to ho st a high -grade Sullivan style deposit that is located near
Cranbrook, British Columbia, Canada. The Sullivan Deposit occurs at a geological horizon called the
Lower-Middle Aldridge Contact or “LMC” horizon. A 1425 metre sub -vertical hole (PAN -18-01) to
test a Magnetotel luric (MT) geophysical anomaly stopped short of the LMC horizon (see Figure
below)
PJX and DLP believe there is an opportunity to drill the Pan-18-01 hole to a greater depth and locate
the LMC zone and potential Sullivan style mineralization.
The key terms of the definitive option agreement are consistent with th e terms of the letter of
intent announced on June 22, 2020, being as follows:
• DLP to earn a 50% undivided interest in the DD Property by spending $4 million in
exploration expenditures and making a total of $250,000 cash pay ments to PJX over 48
months of the effective date of the agreement.
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DLP RESOURCES NEWS RELEASE- July 20, 2020
• DLP will have the right to earn an additional undivided 25% interest (75% total interest) by
delivering a bankable commercial feasibility study on the DD Property within 96 months of
the effective date of the agreement.
• Upon DLP’s exercise of the Option and acquisition of a 50% or 75% interest in the DD
Property, as applicable, the parties will enter into a joint v enture agreement for the further
development of the Property.
Ian Gendall, President of DLP commented “Now that we have the Definitive Option signed and the
work permit in place, we can commence d rilling to extend PAN -18-01 to the LMC horizon by late
July-early August . The geology and Sullivan type deposit potential make s the DD Property very
attractive. No holes have tested the LMC horizon on the property and the historical holes drilled to
test the LMC horizon in vicinity of the DD Property have encount ered geology th at supports the
potential for a Sullivan Type Deposit. Th e thickness, alteration, and mineralization of the LMC
horizon increases and is strongest in historical holes drilled closest to the DD Property. This points
to the DD Property as the location with the best potential to host a Sullivan Type deposit in the
Panda geological basin”.
President and CEO of PJX, John Keating commented “We look forward to working with DLP to
advance our DD Property which is one of PJX’s eight , 100% owned, base metal and gold properties
in the Sullivan mining district and Vulcan Gold Belt. The DD Property , in the Panda Basin, and PJX’s
Vine and West Basin Properties, in the Vine Basin, have considerable potential to host Sullivan type
mineralization. High-grade gold mineralization and targets occur on our Gold Shear, Edd y, and
other properties. PJX’s plan is to focus resource s this year to explore and drill these highly
prospective gold and base metal targets.”
For further information on the DD property pot ential, refer to the recent news release of June 22,
2020: MG Capital and DLP Resources Signs Letter of Intent to Option up to 75% of PJX Resources DD
Property.
The road accessible DD Property is located approximately 120 km east of the Trail Metallurgica l
Complex that produced some 8 million tonnes of zinc, 9 million tonnes of lead, and over 285 million
ounces of silver from processing Sullivan Mine concentrate. The Sullivan Mine produced
concentrate for over 90 years before being closed in 2001.
The fo regoing geologi cal disclosure and content of thi s news release has been reviewed and
approved by Dave Pighin , P.Geo., Ian Gendall, Pr. Sci. Nat. , and John Keating P.Geo. (qualified
persons for the purpose of National Instrument 43 -101 Standards of Disclosu re for Mineral
Projects). Mr. Pighin is the con sulting geologist for PJ X and DLP on the DD Property. Mr. Gendall
is the President of DLP. Mr. Keating is the President, Chief Executive Officer and a Director of PJX.
About DLP Resources Inc.
DLP Resources Inc. is a min eral exploration company operatin g in Southeastern Britis h Columbia,
exploring for Base Metals and Cobalt. DLP is a wholly-owned subsidiary of MG Capital Corporation
listed on the TSX -V, trading symbol DLP. Please refer to our web site
http://www.dlpresourcesinc.com.com for additional information.
FOR FURTHER INFORMATION PLEASE CONTACT:
MG Capital Corporation
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DLP RESOURCES NEWS RELEASE- July 20, 2020
DLP Resources Inc.
Ian Gendall, President
Jim Stypula, Chief Executive Officer
Robin Sudo, Chief Financial Officer and Corporate Secretary
Telephone: 250-426-7808
Email: [email protected]
Email: [email protected]
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Serv ices Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This News Release contains forward -looking statements. Forward looking stat ements are stat ements which relate to future eve nts.
Forward-looking statements include, but are not limited to, statements with respect to exploration results, the success of exploration
activities, mine development prospects, completion of economic asses sments, and fut ure gold production. In some case s, you can
identify forward-looking statements by terminology such as "may", “appears to”, "should", "expects", "plans", "anticipates", believes",
"estimates", "predicts", "potential", or "continue" or the ne gative of these terms or other comparable termin ology. These statements
are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of
activity, performance or achievements to be materi ally different from any future results, levels o f activity, performance, or
achievements expressed or implied by these forward -looking-statements.
Although DLP has attempted to identify important factors that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that forward -looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.