Margaux Resources announces results of 2019 exploration program at Cassiar Gold Property
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NEWS RELEASE
Margaux Resources announces results of 2019 exploration program at Cassiar
Gold Property
• Drill core resampling confirms bulk tonnage target potential at Backyard prospect
• Rock grab samples return multi-ounce assay results at Taurus and Lucky
• New data supplements ongoing compilation work for drill target generation at Cassiar
CALGARY, ALBERTA – February 4, 2020
Margaux Resources Ltd. (TSX VENTURE:MRL, OTCQB:MARFF) ("Margaux" or the "Company”) is pleased to share
analytical results from the 2019 field season at its Cassiar Gold Property in northern British Columbia. The 2019
exploration program was an efficient and successful effort to assess and characterize the recently acquired Cassiar
Gold Property. The program included rock and chip sampling of documented and previously unknown prospects, as
well as select resampling of historic drill core. Exploration efforts were guided by the Margaux corporate strategy
which prioritizes near-surface, bulk-tonnage gold resource discoveries.
“With an existing million-ounce resource base and demonstrated exploration potential across the property, we see
numerous opportunities for potential resource growth at Cassiar through extension and exploration,” stated CEO
and president Tyler Rice. “This optionality will be a key driver in evolving this district-scale project.”
Rock samples
A total of 373 rock samples were collected by Margaux geologists from prospects across the Cassiar Gold Property.
Samples were taken on traverses and spot-checks of historically documented showings, in a program intended to
confirm historical data and to familiarize Margaux geologists with property geology and prospects. The majority of
samples taken were from outcrop, but float or subcrop samples were taken locally where outcrop was not available
but source was inferred to be proximal. 290 grab samples and 75 chip samples were sent for gold and multielement
analysis. Eight rock samples were submitted for lithogeochemical characterization.
Samples were taken from four regions of the Cassiar Gold Property, shown in Figure 1, as well as some regional
exploration samples. Gold assays returned encouraging results, including numerous high-grade quartz vein samples,
and lower grades from altered and mineralized basalt. Selected high-grade samples from the program, returning
greater than 5 g/t Au, are summarized in Table 1. Most are from mineralized quartz veins with pyrite. High-grade
gold mineralization in quartz veins is well-known at the Cassiar Gold Property, from showings and through historic
underground mining at Table Mountain and at Taurus. Newcoast and Taurus areas have similar character to the
Taurus bulk-tonnage resource, with strong iron carbonate and sericite -altered basalt associated mainly with
extensional quartz veining. The Lucky showing (Figure 2), 3 km northwest of Taurus, is an alpine ridge characterized
by talus and subcrop, 50 m east of the Boomerang-Lyla fault zone, a subvertical dextral-offset regional structure.
True outcrop is scarce at Lucky, which is dominated by angular basalt talus of cm - to m-scale, and quartz vein
fragments which commonly host specks of visible gold; angular blocks suggest proximal source for mineralized and
altered basalt and quartz vein material.
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Table 1. Selected assay data from 2019 Cassiar exploration program rock samples returning >5 g/t Au.
Sample Easting Northing Region Source Type Lithology Mineralization1 Au_ppm Method2
A0019038 456843 6573038 Lucky Subcrop Grab Quartz vein Au, py, aspy 258.00 Au-SCR24
A0019064 456858 6573047 Lucky Float Grab Quartz vein trace py 5.81 Au-AA24
A0019065 456863 6573047 Lucky Float Grab Quartz vein trace py 34.00 Au-SCR24
A0667619 456843 6573042 Lucky Float Grab Quartz vein Au, py, aspy 27.70 Au-SCR24
A0667620 456842 6573047 Lucky Float Grab Quartz vein Au, py, aspy 313.00 Au-SCR24
A0019048 462283 6568009 Newcoast Outcrop Grab Quartz vein py 9.37 Au-AA24
A0019183 461529 6567563 Newcoast Outcrop Grab Quartz vein breccia py 5.45 Au-AA24
A0019305 461537 6567561 Newcoast Outcrop Chip Quartz vein py 30.20 Au-SCR24
A0019308 461537 6567561 Newcoast Outcrop Chip Altered basalt, quartz vein py 10.90 Au-SCR24
A0667618 461610 6568163 Newcoast Float Grab Quartz vein Au, py, aspy 27.10 Au-SCR24
A0667568 6557946 461500 Table Mtn. Outcrop Grab Quartz vein 2% py 6.21 Au-AA24
A0019262 462962 6570660 Regional Outcrop Grab Altered basalt pyrite 6.16 Au-AA24
A0667585 463105 6571067 Regional Outcrop Grab Quartz vein pyrite 27.20 Au-SCR24
A0019272 459607 6570319 Taurus area Outcrop Grab Brecciated & altered basalt 2% py 108.00 Au-GRA22
A0667595 459627 6570389 Taurus area Outcrop Chip Altered basalt 3% py 5.46 Au-AA24
1 Mineralization: Au = visible gold, py = pyrite, aspy = arsenopyrite
2 Method: Au-AA24 = 50 g fire assay with atomic absorption finish; Au-GRA22 = 50 g fire assay with gravimetric finish; Au-SCR24 = screen fire assay with
gravimetric finish
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All rock samples were assayed for gold by 50 g fire assay with atomic absorption (AA) finish. Samples returning >10
g/t Au were re-analyzed by screen fire assay with gravimetric finish, except for sample A0019272 which was analyzed
by 50 g fire assay with gravimetric finish and was not re-analyzed by screen fire assay. Standards were inserted in
each shipment to the lab.
Drill core resampling
The 2019 exploration program included resampling of historical core from drillhole 05BY-01, originally drilled and
selectively sampled in 2005 on the Backyard target, within the Newcoast region along Highway 37 (Figure 2). The
Backyard prospect is 3 km southeast of the Taurus deposit, 50 m north of Highway 37. Six drillholes were completed
in 2005, testing a strike length of 300 m and a width of 40 m.
Drillhole 05BY-01 was selected for resampling due to its similarity in lithology, alteration, and mineralization to the
Taurus deposit (see Margaux news release 11 September 2019). Original sampling had gaps through low-alteration
intervals, and some gold-bearing samples did not have shoulder samples. Margaux geologists sampled the remaining
core from the drillhole from top to bottom, using standard QAQC procedures, to gain a better understanding of gold
and trace element distribution in the Backyard system.
Results from the resampled core compared closely with historical values, confirming that gold mineralization at
Backyard comprises both low-grade bulk-tonnage values and high-grade vein values. Gold mineralization is restricted
to sericite-pyrite-Fe carbonate alteration zones centred on quartz veins. Arsenic values show a consistent positive
correlation with the altered and gold-mineralized zones (Figure 3), and may thus provide a useful vectoring tool for
exploration.
Table 2. Selected composite assay values from resampling of drillhole 05BY-01.
Drillhole From To Length
Composite
value Capped (30 g/t Au)
05BY-01 42.30 43.60 1.30 m 1.81 g/t Au
05BY-01 56.00 58.30 2.30 m 31.09 g/t Au 12.42 g/t Au
incl. 56.90 57.80 0.90 m 77.70 g/t Au
05BY-01 65.90 74.00 8.10 m 1.90 g/t Au
05BY-01 83.00 88.00 5.00 m 4.77 g/t Au
05BY-01 114.60 115.90 1.30 m 1.97 g/t Au
05BY-01 119.70 141.10 21.40 m 1.15 g/t Au
05BY-01 167.65 170.50 2.85 m 1.58 g/t Au
05BY-01 179.25 193.15 13.90 m 1.36 g/t Au
Grab samples taken at Backyard returned peak values of 9.78 g/t Au from an extensional quartz vein, and 1.99 g/t
Au and 2.41 g/t Au from altered basalt wall rock, providing additional confirmation of the grades and distribution of
gold mineralization.
In addition to confirming the prospectivity of the Backyard target, and the validity of historical data, the resampling
effort illustrates the value of the available core record on the property. Unsampled and half core for many historical
deposit and exploration drillholes is available for review and, if warranted, resampling. This core record is a valuable
asset, as Margaux continues to develop and assess bulk-tonnage gold prospects on a property that was historically
explored for high-grade veins.
2020 Exploration program development
The Margaux exploration team continues its data compilation and verification work as it works to develop high-
quality drill targets for the upcoming field season. “Margaux has the benefit of decades of accumulated geological
data, across a large contiguous property with a demonstrated production history,” stated Kaesy Gladwin, Margaux
VP Exploration. “We will leverage this asset to refine deposit models and develop targets that we can use to
advance the Cassiar project through diamond drilling in 2020.”
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Drill core samples reported in this release were taken from previously logged drill core. Original sample intervals were used where
possible. For intervals which had been sampled previously, the remaining half of the drill core was placed in bags for sampling.
Intervals which had not been previously sampled were placed in bags as whole core. No drill core was retained for drillhole 05BY-
01.
All drill core and rock samples were transported by Margaux personnel to ALS Geochemistry, Whitehorse, Yukon, for preparation
and analysis. At the lab, samples were crushed to 70% passing a 10 mesh (2 mm) screen, then a 1000 g split of the crushed sample
was pulverized to 85% passing 75 microns. Prepared samples were transported to ALS Geochemistry facility in North Vancouver,
British Columbia. All drill core and rock samples were analysed for gold by method Au-AA24 (fire assay with atomic absorption
finish of a 50 g sample). For drill core samples returning > 10 ppm Au by Au-AA24, subsequent gold assay was done by method
Au-SCR24 (screen fire assay/gravimetric finish of a 1000 g sample). For rock samples returning > 10 ppm Au by Au -AA24,
subsequent gold assay was done by method Au-GRA22 (fire assay with gravimetric finish of a 50 g sample). For both rock and drill
core samples, a multi-element suite was analyzed by method ME-ICP-61 (ICP-AES analysis following four-acid digestion of a 0.25
g sample of pulverized material).
Margaux Resources follows a rigorous QA/QC procedure for all drill core samples, including the insertion of analytical blanks and
standards at regular intervals. Core size was NQ2. Intervals reported in this news release are core intervals. Additional drilling is
required to fully understand the difference between core intercept and true width. Rock grab and chip samples are selective in
nature, and may not represent the overall grade or extent of mineralization in an area.
Qualified Person
Kaesy Gladwin, M. Sc., P. Geo., Margaux’s Vice President of Exploration, is the Company’s Qualified Person as defined
by NI 43-101, who has reviewed and approved the technical information contained within this press release.
Margaux Resources Ltd.
Margaux Resources Ltd. is a junior exploration company with two district-scale assets in the eastern Cordilleran gold
belt, Canada. The Cassiar Property in northernmost British Columbia is the Company’s flagship property, with a
decades-long mining history and a recently announced near-surface 1 Moz gold inferred resource (MRL press release
11 Sep. 2019). The Company’s Sheep Creek Property in southernmost British Columbia comprises gold and base
metal prospects in an area with a long history of exploration and mining.
Forward Looking Statements
This press release may contain forward looking statements including those describing Margaux's future plans and
the expectations of management that a stated result or condition will occur. Any statement addressing future events
or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those
anticipated by management at the time of writing due to many factors, the majority of which are beyond the control
of Margaux and its management. In particular, this news release contains forward-looking statements pertaining,
directly or indirectly, to the following: Margaux's exploration plans and work commitments, and economic factors,
business and operations strategies. Although Margaux believes that the expectations reflected in these forward-
looking statements are reasonably, undue reliance should not be placed on them because Margaux can give no
assurance that they will prove to be correct. Readers are cautioned that the foregoing list of risk factors should not
be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in
the documents referenced by this release, as the case may be. The Company undertakes no obligation to publicly
update or revise any forward-looking statements except as expressly required by applicable securities laws.
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.
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CONTACT INFORMATION
Margaux Resources Ltd.
Tyler Rice
President, CEO and a Director
(403) 537-5590
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Figure 1. Distribution and gold grade ranges of rock samples taken during the 2019 exploration program. In total, 373 samples
were collected.
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Figure 2. Geology and gold grades in grab samples at Lucky and Backyard prospects, Cassiar Gold Property.
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Figure 3. Vertical section looking west through drillhole 05BY-01 and 05BY-02, showing gold assay and arsenic profile from 2019
resampling.