EXG ExGen Resources Inc

ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF) (“ExGen”, the “Company”) is pleased to update drilling results for Phoenix Copper Ltd.’s (“Phoenix”) Empire Mine Project in Idaho, USA. ExGen owns 20% and Phoenix owns 80% of Konnex Resources, Inc. (“Konnex”), which holds the leases and claims to the Empire Mine Project. ExGen further has a 2.5% NSR royalty on the Empire Mine Project and owns 1,330,000 common shares of Phoenix.

ExGen reported an updated NI 43-101 resource estimate for the Empire Mine Project, in a news release on August 31, 2020. The updated resource estimate includes data from both the Empire Mine and Red Star drilling. ExGen reported positive metallurgical test results by AuRIC Metalurgical Labs, for the Empire Mine Project in a news release dated September 10, 2020.

To-date, Phoenix Copper Ltd., the project operator, has released results for 23 reverse circulation (RC) holes and 2 diamond drill core holes drilled at Empire as well as results for 4 core holes drilled at Red Star. None of these holes are included in the updated NI 43-101 resource estimate reported on August 31, 2020. (https://phoenixcopperlimited.com/the-empire-mine ).

EMPIRE OPEN PIT GOLD ZONEDrill results from the Empire Mine Gold Zone and the gold and copper grades continue to impress (Table 1 and 2).  Gold grades in the trends targeted in this year's drilling are consistent and remarkably high-grade, and considering their relatively shallow depths, should be readily accessible by open pit mining. These assays will be added to the database used in the calculation of the updated NI 43-101 resources estimate, which contained Measured, Indicated and Inferred Resources of 342,249 ounces of gold, 9.5 million ounces of silver, and 129,932 metric tons of copper, and used to recalculate the resource.  Hardrock Consulting (HRC) is scheduled to update the resource in early Q4 2020 based on a data set consisting of 411 drill holes plus the assays from Empire channel samples due at any time. The resource update will be followed by an updated Preliminary Economic Assessment (PEA) in mid-Q4 2020.  In addition, the metallurgical pilot testing program at AuRIC Laboratories in Salt Lake City, Utah is well underway and expected to provide additional reporting on ammonium thiosulfate (ATS) gold recovery in the coming weeks.

Holes KX20-01 and KX20-05 both returned significant, near-surface gold values at shallow depths. These shallow intercepts appear to be closely related to the higher-grade gold trend defined from the 2018 drilling. Holes KX20-09 returned 6.1 metres of 2.05 g/t gold and KX20-15 returned a gold value of 9.78 g/t over 1.5 metres. Of particular interest, in addition to gold, are the elevated silver and copper values shown throughout all of the drilling.  Drill hole KX20-18 returned 1.5 metres of 508 g/t silver with 2.41 g/t gold and 6.13% copper, and holes KX20-19 and KX20-20 both showed values above 140 g/t silver, with copper intercepts above 4%. These results are not unusual given the polymetallic nature of the Empire Mine and are important in understanding the connection between the near surface, high-grade polymetallic oxide zones and the connection with the deeper, high-grade polymetallic sulphide vein system.

A total of 48 channel samples, each 1.6 m in length, were collected from limited outcroppings around the Empire Mine Open Pit Gold Zone. The channel samples were collected to aid in drill targeting and to provide grade and geological information on the magnetite skarn contact.   In addition to the results from drilling, the assays for the 48 channel samples collected in the Empire Mine Open Pit Gold Zone returned respectable gold and copper grades on the surface, most notably 3.84 g/t gold, 74.1 g/t silver, and 2.83% copper (Table 3).

RED STARThe results from core holes RSD20-01, -03, -04 and -06 (Table 4) confirm the orientation and continuation of the high-grade silver and lead system, both down-dip and to the south of the discovery outcrop, which was first discovered in the 2018 exploratory RC drilling program.  Especially noteworthy are the results from core holes RSD20-01 and RSD20-03, with 1.5 metre intercepts of 204 g/t (6.56 oz/tonne) silver and 2.31% lead, and 360 g/t (11.57 oz/tonne) silver and 7.79% lead, respectively, though numerous other silver intercepts in excess of 115 g/t (3.70 oz/tonne) were received. 

Holes RSD20-07 through RSD20-10 (results pending) were primarily drilled to give an indication of the limits of the mineralization, both geologically into the granite and at the limits of the patented claims to the north. 

NAVARRE CREEK

The Navarre Creek Gold claims are located 5 km west of the Empire Mine. Assays for the rock chip samples are pending.

QUALITY ASSURANCE AND QUALITY CONTROL PROTOCOLS

Rock, drill core and reverse circulation samples were analyzed by ALS Global, Reno, an ISO/IEC 17025:2005 accredited facility. Copper, zinc and silver were determined by the ICP method. Copper and zinc >1% ICP are assayed using four-acid digestion and silver >100ppm by four acid digestion, whereas gold was determined by a 30gm fire assay followed by atomic absorption. Standards, duplicates and blanks were inserted into the sample stream for QA/QC purposes. Blanks and duplicates were inserted roughly every 50ft and standards were inserted roughly every 100ft. Core samples are saw cut in half and stored in a secure facility. RC chips and channel samples are stored in the same secure facility. All samples are delivered to the laboratory under chain of custody protocol and submitted using sub-form sample numbers.

Jason Riley, CEO of ExGen commented: “We are encouraged to see the positive drilling results from both the Red Star deposit and the Empire Mine gold zone. We look forward to the updated 43-101 reports later this year.”

QUALIFIED PERSON

Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release. 

ABOUT EXGEN RESOURCES INC.

ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.

For more information on ExGen please contact ExGen Resources Inc.

Jason TongChief Financial OfficerEmail: jason@catapultgroup.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Empire Mine Project and the exploration and development of the Empire Mine Project; the earning of the Option by Phoenix and the potential transfer back to ExGen of the Konnex shares; the exploration and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, completion of an updated resource and PEA in compliance with NI 43-101, and the timing for completion of these events; the timing for the completion of exploration drilling and the receipt of exploration information and drill assays; and the potential of the underground sulphide mineralization. The potential for the Empire Mine Gold Zone to host further gold mineralization of sufficient grade. The potential for the RedStar Zone and the Horseshoe Block to host further mineralization of a lead and silver system. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Empire Mine Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen and its partners to raise future equity financing, if needed, at prices acceptable to ExGen or its partners; ExGen's current and initial understanding and analysis of the Empire Mine Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Empire Mine Project; the ability of Phoenix to explore and develop the Empire Mine Project; the cost of exploration, including sampling, drilling and assaying, on the Empire Mine Project, the costs of developing the Empire Mine Project and the costs and the ability of Phoenix to produce a feasibility study in compliance with NI 43-101; and ExGen's general and administrative costs remaining sustainable. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant or successful exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Empire Mine Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices, in particular copper, gold, silver, and zinc prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.