Accuracy in geochemical reporting and data management is crucial for both exploration companies and their investors. We would hope that Carmax has learned from this and will be extra diligent with it’s future sampling programs.
WEST VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 21, 2014) – Carmax Mining Corp. (“Carmax“) (TSX VENTURE:CXM) is pleased to provide this update on the Summer Exploration Program currently in progress on its Eaglehead property located in northern British Columbia and other corporate activities.
Highlights:
- The Quantec Titan-24 DCIP survey over the East, Bornite, Camp and Pass mineralized zones has been completed. Preliminary results are expected by the end of July;
- The 2014 exploration program for the Eaglehead project has been expanded to include a high sensitivity airborne magnetic survey which is expected to commence within a few days;
- Carmax is purchasing at cost an additional 2,130 ha of mineral tenures that surround the Eaglehead property from Copper Fox Metals Inc. (“Copper Fox”) (TSX VENTURE:CUU); and
- Copper Fox has notified Carmax that it intends to take up an additional 1,960,878 units of Carmax pursuant to its pre-emptive and top-up rights provided for in connection with the recently completed private placement of Carmax, the closing of which was announced May 29, 2014.
This year the company is completing a Induced Polarization Survey (IP) and following up with a airborne magnetic survey.
Jevin Werbes, President of Carmax commented, “The 2014 exploration program is underway and the data acquired from the work to date has mandated changes to our initial program. The location of the new zone of copper mineralization along with the re-logging of the historical core has advanced our understanding of the porphyry potential of the project. We are looking forward to seeing the results of the Quantec and airborne surveys over the next few weeks.”
The Quantec Titan-24 survey over a 5.6 kilometre long portion of the property that covers the East, Bornite, Camp and Pass mineralized zones has been completed. A total of 10 lines at a 600m line spacing has been completed.
A new zone of oxide copper mineralization has been located east of the Camp and Pass zones. Preliminary work suggests that the zone is at least 600m long and 250m wide. This area has been covered by the Quantec Titan-24 survey. The mineral tenures being purchased from Copper Fox protects this new discovery to the east as well as favorable volcanic rock to the west. The mineral tenures are being acquired from Copper Fox at cost.
Northern Fox Copper Inc. (“Northern Fox“), a wholly owned subsidiary of Copper Fox Metals Inc. (“Copper Fox“), pursuant to Copper Fox’s pre-emptive and non-dilution rights set out in the Letter Agreement between Copper Fox and Carmax dated March 17, 2014 has notified Carmax of its intentions to take up an additional 1,960,878 units of Carmax at the same price as the recently announced private placement, which top-up subscription will add $98,043.88 to Carmax’s treasury once closed. The exercise of the pre-emptive right and top-up subscription will allow Northern Fox to maintain a 42.09% equity interest in Carmax, the percentage ownership of Northern Fox established under Carmax’s recent private placement. Each unit being placed by Carmax is priced at $0.05 and will consist of one common share and one common share purchase warrant of Carmax with each common share purchase warrant providing the holder with the right to purchase, for a period of two years following the date of closing, one additional common share of Carmax at a price of $0.075 per share, subject to the terms and conditions set forth in the warrant certificate. The top-up placement is subject to the TSX Venture Exchange approval.
About the Eaglehead Project
The property hosts an NI 43-101 Inferred Mineral Resource estimated to total 102.5 million tonnes at an average grade of 0.29% Cu, 0.010% Mo and 0.08 g/t Au. The report, filed on Sedar at www.sedar.com was prepared by RPA Inc. and was previously announced in a Carmax news release dated May 16, 2012. The resource was estimated at a cut-off grade of 0.16% CuEq, to contain approximately 662 million pounds copper, 22 million pounds molybdenum, and 265,000 ounces gold. The Mineral Resource is contained within two conceptual open pits covering the East and Bornite zones approximately 69% of the total mineralization above the grade cut-off.
The resource estimate is based on fairly small 8,300m of drilling program conducted in 2011. Roscole Postle Associates (RPA) was contracted to produce the technical report and made a few comments regarding problems with the QA/QC protocols from Carmax’s 2011 program. They point out that the database contained several hundred duplicate assay sample numbers over multiple holes. This is problematic since each sample needs a unique identifier to correlate to a sample interval within drill core. They also point out that the company ran out of standards (Certified Reference Material) used for assays and instead used what was available nearby. Lastly, Carmax personnel sampled selective “chunks” of core, rather then splitting. Splitting core involves cutting the core in half or to quarter size for future records. The remaining core is preserved for record keeping and potential re-logging or sampling.
Data management and quality control are crucial from the moment the rock is pulled from the ground. The technical report suggested that the company must carefully scrutinize it’s QA/QC policies before conducting future programs in order to ensure accuracy in its resource estimates and reported data. The problems don’t appear to have been enough that the consultant couldn’t define the resource, but it serves as a reminder of the importance of quality control and the problems that can arise from inadequate or loosely followed policies.
The Eaglehead Cu-Mo Project is located approximately 48 km east of Dease Lake, in northwestern British Columbia. The property comprises 31 mineral claims consisting of 613 cells covering a total area of approximately 11,410 hectares (ha) in the Liard Mining Division of British Columbia not including the proposed mineral tenure acquisition set out above.
Eaglehead Property hosts porphyry style copper-molybdenum-gold silver mineralization in potassic and phyllic altered granodioritic and monzonitic rocks. Mineralization occurs as dominantly fracture controlled chalcopyrite +/- bornite as well as in quartz stockworks and hydrothermal breccia zones. Disseminated chalcopyrite, and fracture controlled molybdenite as well as pyrite also occur the mineralized zones located to date. Past work has identified six mineralized zones on the property.
About Carmax
Accuracy in geochemical reporting and data management is crucial for both exploration companies and their investors. We would hope that Carmax has learned from this and will be extra diligent with it’s future sampling programs.
Carmax is a Canadian company engaged in exploration for porphyry copper-gold-molybdenum deposits in northwestern British Columbia. The company recently completed a private placement of 4,660,000 units, for aggregate proceeds of $233,000, was completed on July 9, 2014 (see News Release July 10, 2014).
Chris M. Healey, P.Geo., a Director of Carmax, is a qualified person as defined in NI 43-101, and has reviewed and approved the technical information contained in this news release.
Jevin Werbes, President
