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| May 29, 2014 --- Vol. 08, No. 22 | May 2014
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British Columbia
FINANCE – Copper Fox Metals Inc. and its wholly owned subsidiary Desert Fox Copper Inc. May 23 said that the shareholders of Carmax Mining Corp. have approved a proposed private placement of 20 million units to Desert Fox. Units will be subscribed for at a price of C5 cents per unit and will consist of one previously unissued common share of Carmax and one purchase warrant. Each warrant is exercisable to purchase one Carmax share at C7.5 cents per share for a period of two years. In connection with the private placement, Carmax will grant Desert Fox certain rights, including the right to nominate two members to the board of directors of Carmax at each annual meeting of shareholders; and the pre-emptive right to participate in any equity financing of Carmax, so as to maintain its pro rata percentage shareholding in Carmax; and the right to make top-up investments in Carmax, by way of future private placements, so as to maintain its pro rata percentage shareholding in Carmax. The proceeds of the private placement will be used to carry out a 2014 field program on the Eaglehead property, located 48 kilometers (30 miles) east of Dease Lake in northwestern British Columbia. The Eaglehead property has an inferred mineral resource in two of the six zones of mineralization identified to date on the Eaglehead property of 102.5 million tons at an average grade of 0.29 percent copper, 0.010 percent molybdenum and 0.08 grams per metric ton gold (containing 663 million pounds copper, 22.07 million lbs. molybdenum and 265,600 ounces gold within conceptual open pit limits). The mineralization at Eaglehead also contains silver; the content of which was not included in the resource estimate due to the assay methodology. Copper Fox President and CEO Elmer Stewart said, “We are excited to receive this news from Carmax and are looking forward to working with them on their Eaglehead Project once the private placement has closed.”
CONSOLIDATION – Brixton Metals Corp. May 23 reported that it has received final approval by the TSX Venture Exchange for the consolidation of the fully paid and issued common shares of the company on the basis of one post-consolidation common share for each 10 pre-consolidation common shares issued and outstanding. The consolidation was previously approved by the company’s shareholders at the company’s annual general and special meeting held May 6. Brixton Metals shares began trading on a post-consolidation basis under the trading symbol “BBB” on the TSXV on May 23. Following the consolidation, Brixton has approximately 11.5 million common shares. No fractional shares were issued. A copy of a management information circular is available under the company’s profile at www.sedar.com and at www.brixtonmetals.com/2014-agm-materials/. The consolidation will not change a shareholder’s proportionate ownership in the company or the rights of holders of common shares. Each common share outstanding after the consolidation will be entitled to one vote and will be fully paid and non-assessable. “The consolidation is a necessary step to improving the company’s structure for new capital investment,” Brixton Chairman and CEO Gary Thompson said. “The company is in a strong position, relative to its peers, with greater than 60 percent of its shares held by long-term strategic investors. Our goal is to position Brixton with very attractive assets to meet the anticipated strength in future demand for precious metals.” Brixton Metals also canceled all stock options issued pursuant to the company’s stock option plan. The company will not be issuing new options until deemed appropriate by the board of directors.
GOLD – Prosper Gold Corp. May 20 reported that drilling has begun on the Star porphyry copper-gold project in northwestern British Columbia. Initial drilling is focused on the Star discovery area. A second drill, scheduled for June, will test the Pyrrhotite Creek targets, located 4.5 kilometers (2.8 miles) southwest of Star. The nearby Star North and Star East targets also will be drilled. Previously released drill results include: Hole DDH S024: 0.37 percent copper, 0.24 grams-per-metric-ton gold over 312 meters (Incl. 77 meters @ 0.66 percent copper, 0.55 g/t gold, 1.11 g/t silver); and hole DDH S025: 0.42 percent copper, 0.20 g/t gold over 269 meters (Incl. 237 meters @ 0.46 percent copper, 0.22 g/t gold, 0.65 g/t silver). The first four holes are steps-outs from the drill holes shown above. The drill will then move to the Star East and Star North targets respectively 750m east and 950m northeast from the Star. Based on results the drill will be returned to the main Star target to commence a Phase 2 drill program to define the resource. Prosper said a third drill could be mobilized to Star, if warranted. One hole will drill the untested Star East target where a coincident chargeability and copper-gold-silver-in-soil are known over an 800-meter by 500-meter area. The hole, to be collared some 620 meters southeast of S-024, will drill into the chargeability and under the soil target. Star North is 950 meters northeast of the Star Porphyry discovery. The target area as defined by chargeability covers a 500-meter by 300-meter area and is marked by a coincident copper-gold and silver-in-soil target. Pyrrhotite Creek is about 4,500 meters southwest of the Star system. Two porphyry targets occur about 1,200 meters apart. The first is a 300-meter by 200-meter area, as defined by soil sampling, historical trenching and short-hole drilling. The second is an 800-meter by 250-meter coincident copper-gold-silver-in-soil geochemical anomaly with coincident induced polarization chargeability. Target 1 was drilled in 1972 and returned grades of 146.3 meters at 0.32 percent copper, near where a trench returned 31.7 meters of 0.65 percent copper. There was no historical analysis of gold from these sample sites. Target 2 has coincident copper-gold-silver-in-soil with chargeability and has not been drilled. “Our 2014 Phase 1 drilling will build on historical results and is expected to expand the mineralization,” said Prosper Gold President and CEO Peter Bernier. “We are well funded to carry out the plan outlined above and aim to have sufficient data to build a resource.” The company optioned the property from Firesteel Resources Inc.
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