Mg Capital and DLP Resources Signs Letter of Intent to Option up to 75% of PJX Resources’ Dd Property
MG CAPITAL and DLP RESOURCES SIGNS LETTER OF INTENT TO OPTION UP
TO 75% OF PJX RESOURCES’ DD PROPERTY
Cranbrook, British Columbia, (Newsfile Corp. – June 22, 2020) – MG Capital Corporation
TSXV:DLP
DLP Resources Inc . (“DLP”) the wholly owned subsidiary o f MG Capital Corporation , and PJX
Resources Inc. are pleased to announce the signing of a Letter of Intent (“LOI”) to finalize a
definitive Option Agreement in relation to PJX’s Sullivan-type Lead Zinc Silver DD Property (or the
”Property”) by July 2, 2020.
The DD Property has potential to host 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 Magnetotelluric (MT) geophysical anomaly stopped short of the LMC horizon.
PJX and DLP believe there is an opportunity to drill this hole to a greater depth and locate the LMC
zone and potential Sullivan style mineralization.
The key terms of the Letter of Intent “LOI” are:
• 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 payments to PJX over 48
months of the effective date of the agreement.
• DLP will have the right to earn an additional undivided 25% interest (75% total interest) by
delivering a bankable commercial feasibility study on the 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 Property,
as applicable, the parties will enter into a joint venture agreement for the further
development of the Property.
Ian Gendall, President of DLP commented “The geology and Sullivan type deposit potential make
the DD Property very attractive . No holes have tested the LMC horizon on the Property and the
historic h oles drilled to test the LMC horizon in vicinity of the DD Property have encountered
geology that supports the po tential for a Sullivan Type Deposit. The thickness, alteration, and
mineralization of the LMC horizon increases and is strongest in historic holes drilled closest to the
DD Property. This points to the DD Property as the location with the best potential t o host a
Sullivan Type deposit in the Panda geological basin”.
Ian further commented “Our key advantages are the excellent infrastructure in the region and the
knowledge of our consulting geologist, Dave Pighin, P.Geo., who is very familiar with the proje ct
geology and has previously consulted on projects and numerous Sullivan style target s in the area.
Our focus is to discover world class deposits in locations where they can be brought into
production. We greatly appreciate the opportunity to explore the DD Property and work with PJX
going forward.”
President and CEO of PJX, John Keating commented “We look forward to having the experienced
management team and resources of DLP as partners to advance the DD Property. Their approach to
mineral exploration is in sync with our values. This partnership also allows PJX to focus resources
on additional highly prospective gold and base metal targets on our other properties in the
Cranbrook area”.
The road accessible DD Property is located approximately 120 k m east of the Trail Metallurgical
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.
DD Property Potential
• The Sullivan deposit occurs at a geological horizon called the LMC (Lower -Middle Aldridge
Contact).
• No drill hole has tested the LMC on the DD Property , which is located in a geological
region called the Panda Basin that is similar to the Sullivan Basin.
• Historical holes drilled to test the LMC horizon around the DD Property have encountered
geology that supports the potential for a Sullivan Type Deposit.
• The thickness, alteration, and mineralization of the LMC horizon increases in historical
holes and becomes strongest the closer they are drilled to the DD Property.
• This suggests that the DD Property has the greatest potential to host a Sullivan Type
deposit in the Panda Basin.
• One 1425-metre-long sub-vertical hole (Pan-18-01), drilled on the DD Property in 2018,
stopped short of the LMC horizon, in a gabbro sill rock unit.
• The hole is accessible and needs to be extended and drilled through the gabbro sill to test
the potential for a Sullivan type deposit at the LMC horizon.
• Albite-silica-sericite-garnet alteration is ubiquitous throughout hole Pan-18-01.
• Strong pervasive and fracture -controlled quartz-albite-white mica alteration occurs from
1262-1361m, proximal to the upper contact of the lowermost gabbro sill.
• These types of alteration are consistent with a geological environment that could host a
Sullivan type deposit.
• The lowermost gabbro sill has the highest mean concentration of zinc ( 185 ppm) out of
any rock unit in the hole. This is unusually anomalous for gabbro.
• A MT conductivity anomaly targeted by PAN -18-01 may be explained by an increase in
pyrrhotite in the lowermost gabbro sill intersected from 1361 – 1425m, or may be caused
by a conductive source, such as massive sulphide, below the sill.
• The anomalous zinc and pyrrhotite in the lowermost gabbro sill may have been a bsorbed
by the gabbro when it intruded zinc and iron rich sediments or a possible Sullivan type
massive sulphide body at depth below the sill.
The foregoing geological disclo sure 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 Disclosure for Mineral Projects). Mr. Pighin is the consulting
geologist for PJX 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 mineral exploration company operating in South eastern British 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 www.dlpresourcesinc.com for
additional information.
FOR FURTHER INFORMATION PLEASE CONTACT:
MG Capital Corporation
DLP Resources Inc.
Jim Stypula, Chief Executive Officer
Robin Sudo, Chief Financial Officer and Corporate Secretary
Telephone: 250-426-7808
Email: [email protected]
Email: [email protected]
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.
Forward-Looking Information
This News Release contains forward -looking statements. Forward looking statements are statements which relate to
future events. Forward -looking statements include, but are not limited to, statemen ts with respect to exploration
results, the success of exploration activities, mine development prospects, completion of economic assessments, and
future gold production. In some cases, you can identify forward -looking statements by terminology such as "ma y",
“appears to”, "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or
the negative of these terms or other comparable terminology. 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 materially different from any future results, levels of 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
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statements. Accordingly, readers should not place undue reliance on forward-looking statements.