Vancouver, British Columbia-based, MAX Resource Corp. (OTCBB:MXROF) (TSX-Venture:MXR), is a Canadian exploration company with a diversified portfolio of mineral exploration projects in the Western United States. The Company has several projects, including two gold exploration projects in British Columbia, a molybdenum/tungsten in Nevada and a uranium project in New Mexico, but is primarily focused on its three active gold exploration projects in Nevada.
In September, MAX began drilling to test mineralization structure depth at its 100%-owned Table Top project in Nevada. Assay results are still pending, but of 14 holes drilled, 10 intersected the mineralized structure and contained significant gold mineralization, including 27.4 metres of 0.467 g/t gold and three metres of 1.79 g/t gold.
Significant carbon has been identified at deeper levels along with dark brassy granular pyrite partially replacing bedding; the mineralization and core appear similar to that encountered around the Goldstrike Betze-Post mine operated by Barrick Gold Corp. (NYSE:ABX) on the Carlin trend.
Another MAX project, East Manhattan Wash, Nevada, has been permitted for drilling and has produced promising soil samples. Assays have been received from a second batch of soil sampling, where 163 new samples were taken with significant values ranging from 0.05 ppm to 1.27 ppm (1.27 g/t) gold. In 2009, MAX announced the recovery of 4.9 g/t gold and 1.2 g/t silver from a large bulk sample from the project.
East Manhattan Wash, located eight miles (about 13 kilometres) from the Round Mountain Mine of Kinross Gold Corp. (NYSE:KGC) and Barrick Gold Corp. which has produced over 12 million ounces of gold to date, is the subject of an option agreement whereby MAX can earn a 100% interest, subject to a 3% NSR royalty.
MAX released news on Wednesday on its third gold project in Nevada. On its wholly-owned Diamond Peak gold/silver/zinc project, MAX has split and assayed drill core from two recently drilled holes which contained significant intercepts. One of these holes, DP-02, contained an intercept of 0.588 g/t gold over 7.62m (25 feet) beginning at 155 feet, inclusive of a higher grade zone of 1.359 g/t gold over 1.52m (five feet). Hole DP-02 was a vertical hole drilled at the same location as a 60-degree angle hole drilled by MK Gold in 1999 that reported 2.08 g/t gold over five feet.
It was not just gold that was discovered on the property. An outcrop sample from the silver zone that was identified through extensively sampling in September in the southern portion of the property has returned an assay grade of 53.5 g/t silver. Assay results from September showed results as high as 4.3 g/t and 1.9 g/t silver in soils confirming the high silver zone and its continuation to the east.
Additionally, soil sampling has also identified a further zinc zone on the west side of the northern part of the property that had not been previously drilled or sampled. This zone contains a sample grading 648 ppm Zinc.
Proximity of producing mines is always a topic amongst investors in exploration companies. The Diamond Peak property is located at the southern end of the prolific Carlin Trend of Nevada which has produced millions of ounces of gold and other precious metals. The property is seated approximately 30 miles (about 50 kms) from the famous Archimedes gold deposit owned by Barrick Gold Corporation, the world’s largest gold producer.
Trading at $0.23, MXROF is well off its 52-week high of $0.51, but has climbed off its lows at $0.11 recently. According to the MAX website, the Company has over $2 million in cash on hand, and a share structure of only 21.7 million shares outstanding. With numbers like that and consistent progressions in Nevada, MAX Resources may soon be popping up on the radar of more and more resource traders.
