MAX Resource Corporation has entered into a Mineral Lease with New Nevada Resources, LLC for 560 acres of mineral rights immediately adjacent of its Majuba Hill copper, silver and gold project in Nevada where soil sampling in 2011 identified a high grade soil anomaly covering 1.5 kilometers by 2 kilometers area that returned values as high as 1.53% Cu and 209 gram per tonne Ag in soils.
This zone, centered around the past producing DeSoto silver mine remains open to the south and east and appears to extend at least another 1 kilometers to the northwest on Section 33. Soil sampling to confirm the grade of mineralization identified on surface at Section 33 will be conducted in early May in conjunction with resumption of drilling at Majuba Hill.
The Mineral Lease with NNR is for a term of 20 years and calls for annual lease payments of USD 15 per acre in the first year increasing incrementally to USD 30 per acre in year four and subsequent years. NNR has the right to retain 15% working interest in Section 33 or can convert it to a NSR of 0.5% on base metals and 1% on precious metals in addition to retaining an overriding NSR of 1.75% on base metals and 3% on precious metals.
During the fall of 2011, MAX intercepted 29.2 meters of 30.5 gram per tonne silver and 0.69% Cu at 21.9 meters below surface in a step out hole at the DeSoto zone which is 1.4 kilometers to the northwest of Phase I drilling completed at Majuba Hill in the summer of 2011 that intercepted high grade copper and silver near surface over long intervals in five of eight holes.
A second step out hole in late 2011 was drilled 730 meters southeast of Phase I drilling and intercepted 42.7 meters of 16.8 gram per tonne Ag, 13.7 meters of 15.9 gram per tonne Ag and 6.16 meters of 51.0 gram per tonne Ag indicating that this target area may be the southeast extension of the high grade supergene oxide mineralization identified during Phase I drilling.
Drill permits have now been received for 5,000 meter Phase III drill program scheduled to begin in May 2012. This core drilling program will continue to test the southeast extension of high grade oxide mineralization at the historic Majuba Hill mine as well as initiate delineation drilling at the DeSoto discovery zone 1.4 kilometers to the northwest with a view to outlining an initial NI 43-101 compliant resource estimate by the end of the year.
MAX believes that Majuba Hill is a newly defined large scale intrusive type porphyry system that is highly prospective for the discovery of new zones of economic copper and silver mineralization. The site of numerous past producing mines with historic production reported of 12% Cu and silver grades up to 40 opt Ag, Majuba Hill encompasses 2,568 acres of surface and mineral rights that includes patented lode mining claims. The property lies 30 miles northwest of Coeur d'Alene's Rochester mine and is easily accessed via 23 miles of well-maintained dirt roads leading from US Interstate 80.
Source - Max Resources
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