PJX Resources Signs Letter of Intent with DLP Resources (Mg Capital) to Option up to 75% of Dd Property
(TSX VENTURE: PJX.V)
PJX RESOURCES SIGNS LETTER OF INTENT WITH
DLP RESOURCES (MG CAPITAL) TO OPTION UP TO 75% OF DD PROPERTY
Toronto, Ontario – June 22, 2020 – PJX Resources Inc. (“PJX”) and DLP Resources Inc. (“DLP”), the
wholly owned subsidiary of MG Capital Corporation, 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 Prop erty has po tential to host a high-grade Sullivan style deposit that is locat ed 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 to tal of $2 50,000 cash paymen ts to PJX over 48
months of the effective date of the agreement.
• DLP will have the right to earn an additi onal 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 appli cable, the parties will enter into a joint venture agreement for the fur ther
development of the Property.
Ian Gendall, President of DLP commented “The geology and Sullivan type depos it 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 suppor ts the potential for a Sullivan Type Deposit. The thickness, alteration, and
mineralization of the LMC horizon increases and is strongest in historic holes drilled clos est to the
DD Proper ty. This points t o the DD Property as the location with the best potential to 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 project
geology and has previously consulted on projects and numerous Sullivan style targets in the area.
Our focus is to discover world class deposits in locations wh ere they can be brought into
production. We greatly appreciate the opportunity to explore the DD Pr operty and work with PJX
going forward.”
President and CEO o f PJX, Joh n 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 wi th our values. This partnership also allows PJX to focus resources
on additional highly pros pective gold and base metal targets on our other properties in the
Cranbrook area”.
The road accessible DD Property is located approximately 120 km 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 Sull ivan Mine conce ntrate. 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 t he LM C on t he DD Pro perty, 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 mineralizatio n of the LMC horizon increases in historical
holes and becomes strongest the closer they are drilled to the DD Property.
• This suggests th at the DD Property has the gr eatest potentia l to host a Sullivan Type
deposit in the Panda Basin.
• One 1425-metre-long sub-vertical hole (Pan-18-01), drilled on the DD P roperty 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 alte ration occurs from
1262-1361m, proximal to the upper contact of the lowermost gabbro sill.
• These types of alteration are cons istent with a geological environment that could ho st a
Sullivan type deposit.
• The lowermost gabbro sill has the h ighest mean concentration of z inc (185 ppm) out of
any rock unit in the hole. This is unusually anomalous for gabbro.
• A MT conductivity ano maly target ed by PAN -18-01 may be exp lained 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 p yrrhotite in the lowermost gabbro sill may have been absorbed
by the gabbro when i t intruded zinc and i ron rich sediments or a possible Sullivan type
massive sulphide body at depth below the sill.
The foregoing geological disclosure has been reviewed and approved by Dave Pighin, P.Geo., Ian
Gendall, Pr. Sc i. Nat. , and John Keating P.Geo. (qualified pe rsons for the purpose of N ational
Instrument 4 3-101 Stan dards of Disclosure for Mineral Projec ts). 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 PJX Resources Inc.
PJX is a mineral exploration company focus ed on building s hareholder value and community
opportunity through the exploration an d development of m ineral resources with a focus on gold
and base metals. PJX’s prope rties are located in the h istorical mining area of Cranbrook and
Kimberley, British Col umbia. Please refer to our web site http://www.pjxresources.com for
additional information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Linda Brennan, Chief Financial Officer
(416) 799-9205
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