Margaux Resources Ltd. Provides 2018 Update on the Sheep Creek Gold District; 6,000 m of Diamond Drilling Planned to Test Gold Targets
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NEWS RELEASE
Margaux Resources Ltd. Provides 2018 Update on the Sheep Creek Gold District;
6,000 m of Diamond Drilling Planned to Test Gold Targets
CALGARY, ALBERTA -- (May 21, 2018)
Margaux Resources Ltd. (TSX VENTURE:MRL , OTCQB:MARFF) ("Margaux" or the "Company") is pleased to provide
an update on the 2018 work program for the Company’s Sheep Creek Gold District, in southe astern B C.
Approximately 6,000 m of diamond drilling is planned (25 holes) to test gold targets within the Sheep Creek Gold
District in 2018; drilling is expected to commence in June.
Key Highlights
• 6,000 m of diamond drilling to test gold targets to commence in June 2018.
• Drilling on recently consolidated Sheep Creek Gold District ; Margaux now controls over 96% of the
area.
• Drill targets to include Ore Hill gold anomaly; anomaly grab samples returned high-grade gold values
including 119 g/t and 105 g/t Au.
The Sheep Creek Gold District has historical gold production of 785,000 ounces at an average grade of 14.4 g/t gold
(1) from multiple high -grade orogenic gold veins, making it the 3rd largest past -producing orogenic gold district in
British Columbia. Margaux has consolidated mineral tenure in the Salmo area over the past several years through
various option and purchase agreements, and through strategic staking. The Company now controls over 96% of the
Sheep Creek Gold District by area (and over 85% by historical gold production) making it the first time since gold was
discovered here in the late 1890’s that this land has been under single management. 2017 was Margaux’s first year
of exploration on the property and the first time that effective modern exploration across the consolidated land
package has been possible.
In terms of global endowment (past production + resources + reserves), orogenic gold, including related placer gold,
is the most significant deposit type, accounting for over 50% of global gold (2). Archean-aged greenstone gold belts
have long been recognized for their ability to host multi-million-ounce orogenic gold deposits. In more recent years,
an understanding of gold districts within the Cordillera, from the Motherlode District in California, to the Bralorne,
Cariboo (Barkerville) and Sheep Creek Districts in British Columbia, the Klondike/White Gold District of the Yukon,
and the Juneau and Nome Districts in Alaska, has shown how gold in all these areas relates to the Cordilleran orogeny
and how there remains good upside exploration potential within this region for both high -grade vein-type and low-
grade bulk tonnage gold mineralization (3).
At Sheep Creek, historic mining was directed at high -grade gold -bearing veins. Veins are strongly controlled by
structure and lithology. Margaux has compiled historic information and undertaken a 3D computer modelling
project, incorporating historic underground mine workings, geological and structural information from surface, drill
holes and underground, to generate targets for drill testing in 2018.
One of the highlights for work in 2018 is the Ore Hill area, in the southern p ortion of the Sheep Creek Gold District.
At Ore Hill, a gold soil anomaly, 1 ,500 m long by up to 150 m wide is known from historic exploration work. 2017
rock samples collected within a 950 m x 150 m area by Margaux, returned the grab sample results shown in the table
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and illustrated in the figure below (see Company news release September 20, 2017 for further details). Ore Hill is a
high priority target for drill testing in 2018. In addition, a ground geophysical survey is planned for 2018, to help
refine targets for drilling.
Table 1 Ore Hill Rock Sample Results
Sample # Au
(ppm)
Ag
(ppm)
Cu
(%)
Pb
(%)
Zn
(%)
W
(%)
8579 119.00 20.4 0.90 3.41 0.152
8587 105.00 18.1
8180 60.20 53.2 1.45 0.34
8582 50.50 47.9 0.14 2.10 2.05
8183 48.10 58.4 3.75 2.49 0.089
8173 39.20 31.8 0.86 6.92
8174 34.70 51.9 3.01 5.26
8170 11.10 37.3 2.27 17.50
8583 16.20 26.9 1.65 22.80 0.022
8176 14.10 41.2 2.34 2.87
8168 11.70 2.9
8589 10.50 4.4
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Figure 1 Ore Hill Gold Soil Anomaly
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Notes
(1) Production records for historic Sheep Creek and Bayonne mining camps from:
− Matthews, 1953. Geology of the Sheep Creek Camp, BC Department of Mines, Bulletin 31.
− Minfile 082FSE030, Bayonne.
(2) Allan, M., 2018. Orogenic Gold Deposits of British Columbia, Kamloops Exploration Short Course, April 2018.
(3) Allan, M. et al, 2017. Orogenic gold mineralization of the eastern Cordilleran gold belt, British Columbia:
− Structural ore controls in the Cariboo, Cassiar and Sheep Creek mining districts, Geoscience BC
report 2017-15.
− Hart, C. and R. Goldfarb, 2017. Constraints on the metallogeny and geochronology of the Bridge
River gold district and associated intrusions, southwest British Columbia, Geoscience BC Report
2017-08.
− Mortensen, J., et al, 2011. Investigation of orogenic gold deposits in the Cariboo gold district, east-
central British Columbia, Geoscience BC Report 2011-1.
− Bailey, L., 2013. Late Jurassic fault-hosted gold mineralization of the Golden Saddle deposit, White
Gold District, Yukon. UBC MSc. Thesis.
Samples reported in this release were primarily grab samples collected from outcrop or from the dumps of historic
workings. Grab samples are designed show the presence or absence of mineralization and to characterize
mineralization. They are not intended to provide a representative indication of average grade of mineralization.
Samples were shipped to ActLabs’ Kamloops, B.C. laboratory (ISO 9001:2008, ISO 17025, CAN -P-1579 certification)
for preparation and analysis. Samples were cr ushed at the lab to 80% passing a 10 mesh (2 mm) screen, then a 250
g split of the crushed sample was pulverized to 95% passing 105 microns. All samples were analysed for gold by FA/AA
finish on a 30 g sample of pulverized material, and for a multi-element suite by ICP-MS following aqua regia digestion.
For samples returning > 10 g/t Au by FA/AA methods, gold was assayed by FA/gravimetric methods on a 30 gm
sample. Samples returning >5000 ppm Pb or Zn, >200 ppm W or >10000 ppm Cu were assayed using peroxid e
fusion/ICP-MS techniques.
Qualified Person
Linda Caron, M.Sc., P.Eng, 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 r elease.
About Margaux Resources Ltd.
Margaux Resources Ltd. (TSX.V: MRL, OTCQB: MARFF) is a mineral acquisition and exploration Company focused on
the development of gold , zinc and tungsten deposits in the Kootenay Arc, in the southeastern region of British
Columbia. The Company is directed by a group of highly successful Canadian business executives and is focused on
exploration of the Company’s Kootenay Arc Zinc District, and Sheep Creek Gold District.
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, the potential of mineral
resources and potential for recovery thereof, the timing of reporting exploration results , as well as other market
conditions and economic factors, business and operations strategies . 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 accompanying this release, as the case may be. The Company undertakes no
obligation to publicly update or revise any forward -looking stateme nts 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