Margaux Resources Ltd.

(MRL:CA)

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Margaux Resources is a mineral acquisition and exploration company focused on the development of zinc, gold 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 has a fast-growing portfolio of previously producing properties that include the Jersey-Emerald mine, which at one point was the 2nd largest historic zinc-lead mine in B.C. and the second largest tungsten mine in North America.

Margaux’s assets are situated in a prolific and mining friendly district near the historic town of Salmo, where Margaux has established a fully operational office in order to facilitate communication with the local community which is a core tenet of the company.

Margaux has a pipeline of projects with both Greenfield and Brownfield potential with excellent infrastructure beneficially located 45km from a zinc-lead smelter.

Projects

Jersey-Emerald

The Property is located in southeastern British Columbia, 10km southeast of the community of Salmo. Margaux has surface and mineral rights in place to over 30,000 acres with all mineral claims in good standing until December 2021.

The Property has a significant resource for lead-zinc and for tungsten, and is prospective for additional deposits such as molybdenum, gold, bismuth and silver.

Zinc Resources

The Jersey Mine

The Jersey Mine historically produced 8 million tonnes. The near/mid-term plan for the Jersey mine is to explore the lead-zinc Resource through data mining, core drilling and bulk sampling, prior to commercial mining operations.

Zones of significant Zinc-Lead-Silver mineralization discovered by the ongoing 2016 surface prospecting program, including:

  • 7.9% zinc, 22.6% lead, 646 g/t (22.8 oz/t) silver
  • 11.6% zinc, 12.8% lead, 228 g/t (8.0 oz/t) silver

Tungsten Resources

The Emerald, Dodger, Invincible and Feeney Mines

The tungsten mines historically produced 1.6 million tonnes of tungsten.On the recovery of tungsten prices or at exhaustion of lead-zincdeposits, Margaux plans to switch production from lead-zinc to tungsten.

Gold Exploration

Drilling and grab samples results indicated that the Jersey-Emerald property hosts areas of elevated gold and silver.

High-grade gold discovery:

  • 25.0 g/t gold over 10 meters
  • Including a portion with up to 69.9 g/t gold

Bayonne

The Property forms part of the Kootenay Arc belt in southeastern British Columbia, a northerly trending arcuate structural zone, which includes Proterozoic to Ordivician sedimentary rocks which have been intruded by igneous granitic rocks of the Nelson batholith. It is believed that these intrusives are related to the gold silver mineralization found in the Bayonne and Sheep Creek properties. The belt is characterized by open to isoclinal north-trending folds in the oldest sedimentary rocks, which contain stratisform zinc-lead-silver deposits in Cambrian limestones and dolomites and gold deposits in quartz veins, filling late crossfaults.

Historically, the Bayonne property produced 81,782 tonnes, grading 16.0 g/t gold (42,174 ounces) and 45.9 g/t silver (120,665 ounces). (1) The Property has the following historic resource:

(1) Dunn, D., 2008: Technical Report on the Sheep Creek, Bayonne, Ymir and Rossland Mining Camps, Yellowstone Resources Ltd., Private company report.

Jackpot/Oxide

Jackpot prospects reports reserves of 3,000,000 tonnes @ 5% combined zinc-lead (1). A nominal drill program required to make the resource NI 43-101 compliant.

Drill results from 2008 (2) on the Property confirmed the presence of zinc mineralization similar in grade to that mined from a number of mines in the region, including:

Since the 1940s at the Oxide prospect, the zinc oxide mineralization occurring in a steeply dipping fault has been the target of exploration by adits, drill holes and trenches, by several operators. Locally showing zinc grades greater than 16% over widths in excess of 5 meters (3) and zinc grades up to 23% reported for narrower intersections (4).

Margaux has not completed any exploration work on the Property and the mineralization that is reported to occur therein is known only from the abundant underground and surface work completed largely between the 1940s and 2000 and from reports by third parties. Acquiring the option to purchase the Property provides Margaux time to further evaluate and explore the historic production and future potential of the Property.

The Company plans to utilize the data mining process established on the Jersey-Emerald to assist with the vetting of the Jackpot/Oxide property. By applying this modern and methodical approach to the Jackpot/Oxide Property, Margaux will move the historical data into the 21st century, utilizing the best of industry technology to gain the most accurate understanding of the resource.

(1) Government of B.C. Minifile website summary
(2) April 7, 2008 Dajin Resources Corp. press release "Dajin Reports Silver Zinc Lead Results at Jackpot"
(3) 1948 assay results, by Fyles and Hewlett 1959
(4) Grab bag sample from the Cominco trench, by McLeod 1999.

Sheep Creek

The Property forms part of the Kootenay Arc belt in southeastern British Columbia, a northerly trending arcuate structural zone, which includes Proterozoic to Ordivician sedimentary rocks which have been intruded by igneous granitic rocks of the Nelson batholith. It is believed that these intrusives are related to the gold silver mineralization found in the Bayonne and Sheep Creek properties. The belt is characterized by open to isoclinal north-trending folds in the oldest sedimentary rocks, which contain stratisform zinc-lead-silver deposits in Cambrian limestones and dolomites and gold deposits in quartz veins, filling late crossfaults.

The Sheep Creek property (Motherlode, Reno, Nugget, Goldbelt and Queen) produced 632,590 ounces of gold with an average grade of 15.12 g/t Au from the Reno, Queen, Goldbelt, Nugget, and Motherlode mines, and 252,461 ounces of silver.(2) Between 1899 and 1951 the Sheep Creek Camp exposed 55 Au bearing quartz veins distributed over a roughly 8 kilometres north-south trend. It is noted that 34 of the 55 veins have been past producers.

The Property has the following historic resource:

Note: The reader is cautioned that a qualified person has not done sufficient work to classify the historical estimate as current resources and Margaux is not treating the historical estimate as current mineral resources. The resource/reserve categories disclosed in the historical estimates are not consistent with current definitions. While we believe the estimates were completed to the standards of the day they do not use current mineral resource and reserve categories as required by NI 43-101. The historic resource includes 1,179.2 t at 5.3 grams per tonne in the proven category which is a stockpile owned by an unrelated 3rd party and not included in this transaction.

(2) Kushner, W, 2013: Geochemical Assessment Report on the Sheep Creek / Bayonne Property, Yellowstone Resources Ltd, Private company report.
(3) Price, B. (P. Geo.), 1988. Geological Summary Report Nugget Mine Sheep Creek Area prepared for Gunsteel Resources Inc.

Management

Tyler Rice, President, Chief Executive Officer & Director

Mr. Rice has substantial experience with both public and private companies as a consultant, investor and/or an employee in a wide spectrum of industries, including healthcare, oil & gas production and shipping, oilfield communications, real estate and mining. As a Chartered Professional Accountant, he has provided consultancy services to several public and private companies in numerous capacities, including International Financial Reporting Standards, Sarbanes-Oxley implementation and providing virtual CFO services.

Jason Linkewich, Chief Financial Officer

Mr. Linkewich has spent over 20 years in the resource sector with

extensive experience in all aspects of management, strategic planning and development. He has served in various leadership and strategy positions across a variety of sectors. Mr. Linkewich has achieved both FCPA and FCMA designation status and currently serves on several private and not-for-profit boards.

Linda Caron, Vice President, Exploration

Ms. Caron has over 30 years of national and international experience in the mining industry. Since 1997 she has worked as a geological consultant on multiple projects for junior mining companies, small-scale producers and majors. Most recently, she has acted as Project Manager for several large mineral exploration projects in southern B.C., with a primary focus on gold, including Kinross Gold Corp’s Grizzly Greenwood project and Ximen Mining Corp’s Brett Gold project. Ms. Caron graduated from the University of British Columbia in 1985 with an honors degree in geological engineering and obtained a master’s degree in geological sciences from the University of Calgary in 1988.

Ryan Bignucolo, Vice President, Business Development

Mr. Bignucolo is a seasoned investor relations executive, and brings more than 18 years of experience in a broad array of industries to his role at Margaux. For the last 5 years, he was at The PACE Network, where he assisted clients in identifying new opportunities and attracting new investors, while building strategic alliances and improving stakeholder communications. Prior to that, he owned and ran his own construction and resource services company in Northern Ontario.

Additional Information

Margaux Resources Ltd.

Profile

Margaux Resources Ltd. (TSX.V: MRL, OTCQB: MARFF) is a mineral acquisition and exploration company focused on the development of zinc, gold 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 has a fast-growing portfolio of previously producing properties that include the Jersey-Emerald mine, which at one point was the 2nd largest historic zinc-lead mine in B.C. and the second largest tungsten mine in North America.

Contact Information

Website: margauxresources.com/
Email: tyler@margauxresources.com
Main Phone: +1 403 537-5590
Address: 510 - 5th Street SouthWest
Address 2: Suite 1600
State: AB
City / Town: Calgary
Country: CAN
Postal Code: T2P 3S2

Issuer Information

Exchange: CDX
CEO: Tyler Rice
Employees: 4
Issuer Type: CS - Common Stock
Sector/Industry: Cyclical
NAICS: All Other Metal
$ 0.29 $ 0. (0.00%)
Last Price 0.29 Change $ 0. Change % 0.00 Tick N/A
Bid 0.23 Bid Size 31,500.00 Ask 0.29 Ask Size 5,000.00
Open 0.29 High 0.29 Low 0.25 Prev Close 0.29
Last Trade Volume 43,100 52 Wk Hi 0.50 52 Wk Low 0.18
Market Cap 16.1 mi Ex-Div Date N/A Div Rate N/A Yield N/A
Shares 55,528,061.00 EPS (TTM) -0.07 PE Ratio N/A Exchange TSXV