Max to Acquire North Choco Gold-Copper Assets Contiguous to AngloGold Ashanti and Continental Gold Properties
Max to Acquire North Choco Gold-Copper Assets Contiguous to AngloGold
Ashanti and Continental Gold Properties
Vancouver B.C., May 8, 2019 – MAX RESOURCE CORP. ( “Max” or the “Company”) (TSX.V: MXR; OTC:
MXROF; Frankfurt: M1D1) is pleased to announce that it has entered into a binding Letter of Intent (the “LOI”)
dated May 7, 2019 with Noble Metals Limited and Buena Fortuna Mining Company P ty Ltd. (together, the
“Vendors”) whereby the Vendors shall grant an option to Max to acquire up to 100% of their interest in Andagueda
Mining Pty Ltd. (“ Andagueda”) which holds an exploration and mining Agreement with the Tahami Indigenous
Reservation of Alto Andagueda (“TAHAMI”) for the North Choco Gold-Copper Project (“North Choco”).
North Choco is located adjacent and trending to the NE of the Company’s 2,140 sq. km Choco Gold -Platinum
Project (“Choco”), located 100km SW of Medellin, Colombia with the following highlights:
Through Andagueda’s historic agreement, North Choco encompasses TAHAMI’s 500 sq. km land area, and
includes exploration and development of economic mineral resources on: Indigenous Communities Mining Zone
8-1704 covering 6535.7 hectares and Mining Concession BAE-112 covering 720.6 hectares;
Andagueda conducted a reconnaissance visit of the North Choco property in January 2019, concentrating on the
historic gold mines taking 14 samples, including the following channel samples:
• 0.3m at 262.0 g/t gold + 0.57% copper + 941 ppm cobalt
• 2m at 29.1 g/t gold
• 1.6m at 20.7 g/t gold + 592 ppm cobalt
• 0.3m at 49.3 g/t gold + 11.4% copper + 502 ppm cobalt
North Choco is located 47 km SW of AngloGold Ashanti’s Nuevo Chaquiro porphyry copper discovery;
• AngloGold’s 03-Nov-2014 News Release announced an initial Inferred Resource of 604Mt at 0.65% copper
and 0.32g/t gold for contained metal content of 3.95Mt of copper and 6.13Moz of gold. This is one of five
known porphyry centres concentrated within a 15 sq. km area; Max cautions investors it has not yet
verified the Andagueda and AngloGold sampling data. Max further cautions investors mineralization on
the Nuevo Chaquiro property is not necessarily indicative of similar mineralization at North Choco.
• AngloGold’s initial reconnaissance in 2005 within the North Choco property area identified pyrite,
chalcopyrite, galena, sphalerite and arsenopyrite, in a matrix of quartz and calcite from historic gold
mines and copper porphyry prospects; there was no follow up because of access restrictions;
The North Choco property significantly expands Max’s Choco landholdings from 2,140 to 2,640 sq. km, with
North Choco contiguous to properties held by AngloGold Ashanti and Continental Gold;
Exploration at North Choco will initially focus on verification and follow up of the historic mining activities and
the AngloGold and Andagueda exploration data within the 720.6 hectare mining lease and expanding to the
6535.7-hectare Mining Area and the 500 sq. km community area.
“Max has achieved a significant opportunity, with the TAHAMI community’s much sought out mineral
properties,” commented Max Resource CEO, Brett Matich. “This acquisition adds leverage to Max’s copper
holdings and compliments its existing gold and platinum portfolio, as historic government surveys suggest the
North Choco project has excellent potential for porphyry copper,” he continued.
North Choco Gold-Copper Project
Through the acquisition of Andagueda, North Choco will add 500 sq. km to Max’s Choco project, bringing the
consolidated landholdings to 2,640 sq. km. North Choco is contiguous to properties held by AngloGold Ashanti
and Continental Gold and is located approximately 80km SE of the City of Medellin, Colombia.
The terms of the February 7, 2019 Exploration and Exploitation Operation Development and Participation in Net
Profits Agreement with Tahami Indigenous Reservation of Alto Andagueda (the “TAHAMI Agreement”) provides
North Choco certain mineral rights over the 500 sq. km area including the exploration and development of
economic mineral resources on Indigenous Communities Mining Zone 8-1704 covering 6535.7 hectares, granted
July 29 1996 and Mining Concession Contract BAE-112 covering 720.6 hectares is a fully granted exploration,
development and mining license granted June 26, 2001.
The main veins at Mina Morron have been explored and mined since the late 1800’s, with production periods in
1929-1930 and 1948-1968. The geology of the North Choco project consists of Cretaceous mudstones to sandstone
in the east and Palecone to Eocene basalts, breccias, agglomerates and tuffs in the west. These units are intruded
by the monzonites and tonalites of the Miocene Farallones batholith. Presently known mineralization, largely
quartz veins, is hosted in the basalts and the intrusive, with historic exploration confined to the 720.6-hectare
mining lease.
In 2005, AngloGold Ashanti conducted a site visit targeting the copper porphyry potential of North Choco; this
resulted in identification of pyrite, chalcopyrite, galena, sphalerite and arsenopyrite, in a matrix of quartz and
calcite from historic gold mines and copper porphyry prospects, however, AngloGold was unable to follow up the
anomaly’s because of land access restrictions.
Located on trend and 47km NE of North Choco, AngloGold’s Nuevo Chaquiro discovery was the result of a
systematic stream sediment geochemistry survey initiated in 2004. Follow up of a modest localized gold anomaly
led to identification of the “Discovery Outcrop” in 2005. In 2014 AngloGold reported a maiden Inferred Resource
of 604Mt at 0.65% copper and 0.32g/t gold for contained metal content of 3.95Mt of copper and 6.13Moz of gold.;
This is one of five known porphyry centres concentrated within a 15 sq. km area.
The Nuevo Chaquiro deposit was a blind discovery resulting from identification porphyry style alteration and
mineralization during follow up of a regional stream sediment sampling survey. The geology of Nuevo Chaquiro
consists of Miocene tuffs, andesites, basalts and agglomerates intruded by small stocks and dykes of Miocene
diorites and quartz diorites.
Site visit and exploration programs
Andagueda conducted a reconnaissance visit of the North Choco property in January 2019, concentrating on the
historic gold mines, taking 14 channel samples and four chip samples, 7 of 14 samples assayed above 1 g/t and up
to 262 g/t gold, plus copper graded up to 11.4%.
The Max exploration team is currently at North Choco completing preliminary exploration. The team is mapping
and sampling the historic Mina Morron, Mina Paloma and Mine La Esmeralda gold mines. They are also
sampling other Colonial occurrences within both the mining area and the TAHAMI Community Area.
After completing the preliminary exploration phase, the Max exploration team will commence a property wide
stream sediment sampling and prospecting program with the assistance of members of the greater TAHAMI
community. The community members will be able to guide the Max geologists to outcrop and mineralization
locations handed down generation to generation. The methodology of the program will be similar to the effective
program utilized by AngloGold Ashanti that lead to the Nuevo Chaquiro discovery.
Sample
No. Location Sample
Type
Sample
Width (m) Description Gold
(g/t)
Copper
(ppm)
Cobalt
(ppm)
051455 Morron Channel 0.3 Massive po, cp, qz cut by qz veinlets. 262.000 5740 941
051456 Morron Channel 2.0 Diorite, ch alteration, ac veinlets, qz, (po). 29.100 66 37
051461 Paloma Channel 1.6 Fine grained dark green - gray rock,
veinlets qz, massive sulphides, ap, cp. 20.700 464 592
051457 Morron Channel 0.1 Massive mt, po, cp, minor qz veinlets. 49.300 114000 502
051453 Morron Channel 0.3 Qz veinlets flat, po, mt, (cp). 5.990 308 46
051460 Morron Channel 0.3 Vein qz, po, se? 4.700 1005 353
051459 Morron Channel 0.5 Massive po & f. g. dark green rock,
veinlets qz, po, (cp), disseminated mt, po. 1.145 1710 192
Andagueda Channel Sampling & AngloGold Ashanti Sampling Locations within Mining License BAE-112
Choco Gold-Platinum Project
Exploration at Choco continues, focusing on expanding the area underlain by the gold-bearing conglomerates
outside of the 1,000 sq. km exploration area. Testing of the base of the surface gravels will continue as well to
establish zones of gold enrichment to assist in targeting zones of enrichment in the underlying conglomerates.
Net Profit Return
Under the terms of the TAHAMI Agreement, the TAHAMI Council is entitled to a 12.5% of Net Profit Return to
the Council and a 5% of Net Profit Return to the Committee from any production, from any present or future
mining areas within the TAHAMI 500 sq. km land area.
Net Profit Return is a non-IFRS measure defined in the TAHAMI Agreement to mean: gross proceeds derived
from the sale of the mineral, less all outgoings, costs, charges and expenses incurred in relation to the mining
rights and production of the mineral, deductions include all exploration, development and pre-production
expenditures, reclamation costs, amortized capital costs and all expenses including but not limited to all mining,
crushing, treatment, processing, smelting, refining, transporting, assaying, sampling, handling, storage, sales
costs, insurance, rents, marketing and any other related costs.
About the Transaction
Under the terms of the binding LOI, Max and the Vendors shall enter into a definitive agreement pursuant to
which Max shall earn an initial 51% interest in Andagueda, and an option to acquire the remaining 49% (the
“Option”) by paying a non-refundable cash payment of CAD $25,000 to the Vendors within five days of the
signing of the LOI, and by issuing an aggregate of 12,750,000 common shares of Max to the Vendors upon the
closing of the Transaction (the “Closing”).
In order to exercise the Option and acquire the remaining 49% interest in Andagueda (for a total of a 100%
interest), Max may issue an additional 12,250,000 common shares of Max to the Vendors and incur exploration
and development expenditures of at least CAD $500,000 on or before the date that is twelve (12) months after the
date on which Closing occurs.
If the parties have not executed a definitive agreement in respect of the transaction on or before 180 days from
May 7,2019, Max may elect to terminate the LOI.
There are a number of conditions precedent to the closing of the transaction which include the completion of
due diligence, the execution of a definitive agreement, and board, regulatory, and TSX Venture Exchange
approvals. There are no finders’ fees payable in connection with the proposed transaction.
About Max Resource Corp.
MAX is a mineral exploration company focused on the development and acquisition of prospective projects in
the rich mineral belts of Colombia. The Company has established significant exploration infrastructure and local
community support for the Choco Gold and Platinum Project, located 100 km south of Medellin, which covers or
is adjacent to historic production of 1.5Mozs gold and 1.0Mozs platinum. The Company’s Gachala Copper Project,
is located 60 km east of Bogota. The Company is led by a seasoned management team with a track record of
significant discovery and exploration success. Source: R.J. Fletcher and Associates (2011) Review of Gold and Platinum Exploration
and Production in Choco Province Colombia Part 3. Private Report for Condoto Platinum Ltd.)
MAX cautions investors it has yet to verify the Choco Gold and Platinum Project historic information.
Tim Henneberry, PGeo (British Columbia), a member of the Max Resource advisory board, is the qualified person
who has reviewed and approved the technical content of this news release on behalf of the company.
For more information visit: https://www.maxresource.com/
For additional information contact:
Max Resource Corp.
Tim McNulty
T: (604) 290-8100
For Max Resource’s French inquiries:
Remy Scalabrini, Maricom Inc.
T: (888) 585-MARI
Neither 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
Except for statements of historic fact, this news release contains certain "forward -looking information" within the
meaning of applicable securities law. Forward-looking information is frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that
certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and
estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from those anticipated in the forward-looking statements
including, but not limited to delays or uncertainties with regulatory approvals, including that of the TSXV. There are
uncertainties inherent in forward -looking information, including factors beyond the Company’s cont rol. There are
no assurances that the commercialization plans for Max Resources Corp. described in this news release will come
into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-
looking information if circumstances or management's estimates or opinions should change except as required by
law. The reader is cautioned not to place undue reliance on forward -looking statements. Additional information
identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with
Canadian securities regulators, which filings are available at www.sedar.com