Tasca Resources Ltd. to Purchase 100% of the Max Resource Corp. Gachala Copper Project North Block
Vancouver B.C., February 20, 2019 – MAX RESOURCE CORP. (“MAX” or the “Company”) (TSX.V: MXR; OTC: MXROF; Frankfurt: M1D1) is pleased to report it has signed a non-binding letter of intent (the “LOI”), whereby Tasca Resources Ltd (“Tasca”) will purchase a 100% interest in the 7 mineral license applications comprising the North Block of MAX’s Gachala Copper Project, 60 km east of Bogota, Colombia.
- The North Block consists of 7 mineral license applications covering 48-line kilometres of the Devonian – Permian / Cretaceous contact believed to be highly prospective for sedimentary copper deposits.
- Two of the license applications are contiguous to area where historical exploration returned rock sample values ranging from 1.6 to 7.82 percent copper. MAX cautions investors it has not yet verified any of the historical data.
Clive Massey, Tasca’s Chief Executive Officer, commented: "I am extremely bullish on the future price of copper. When Max Resource Corp.’s gold discovery in Choco unexpectedly made the Gachala Project available I felt Tasca had to pounce on the opportunity.” He added: “We are very fortunate to have Brett Matich, Max’s President and CEO, prepared to assist our technical team, as both the team and Mr. Matich are convinced a concentrated exploration effort in the underexplored Gachala region has the potential to define the world's next copper frontier."
Mr. Matich commented: “I am looking forward to assisting Tasca’s technical team in advancing the Gachala Project, as we see the region as a highly prospective area for a massive copper discovery.”
Two of the seven mineral license applications comprising the 13,280 hectare North Block cover the western limb of the Anticlinal Montecristo in the area adjacent to and immediately north of the Sinai property where Rio Tinto Mining and Exploration Ltd. completed stream sediment and limited rock sampling in 1999. Rio Tinto took a total of 47 rock samples with 12 returning values in excess of 1 per cent copper, ranging from 1.6 per cent to 7.82 per cent (source: E.E. Vargas Ruiz, 1999; Exploracion Geoquimica Chivor Colombia Rio Tinto Mining and Exploration Ltd.). Max cautions investors that mineralization on the Sinai property is not necessarily indicative of similar mineralization on its licence applications. Another two of the license applications cover a 4-kilometre-long cobalt anomaly identified by the Colombian Geological Survey. This metal is of extreme interest to the Company as cobalt is one of the key accessory metals for sedimentary copper deposits.
The 7 North Block mineral license applications form part of the 53,538-hectare Max’s Gachala sedimentary copper project. The Gachala project lies with a northeast trending 250km-by-120km belt of Devonian-through-Cretaceous-age rocks in a geological setting conducive to hosting sedimentary copper deposits. Research by Rodriguez and Warden has found similarities between the sedimentary basin in Colombia and the sedimentary basin hosting the Zambian copper belt of Africa (source: C. Rodriguez and A.J. Warden (1993); "Overview of some Colombian gold deposits and their development potential"; Mineralium Deposita, Vol. 28, pages 47 to 57).
In total, the 30 mineral license applications of the Gachala Project cover an aggregate 107-line kms of the highly prospective contact between the Devonian-Permian red beds and overlying Cretaceous reducing black shales, one of the settings typical of these copper deposits.
Gachala Copper Project Location
A detailed review of the Colombian Geological Survey reports documents a number of historical copper occurrences within or adjacent to a number of the Gachala mineral license applications. Most of these occurrences consist of locations marked on the map with no descriptions in the literature. The Tasca exploration team will immediately commence examination and evaluation of the occurrences in the North Block area to attempt to verify the historical data.
Infrequent historic exploration throughout the central 5,625 sq. km of the sedimentary belt has identified several zones and areas copper mineralization, a number of which appear to lie on or proximal to the Gachala project mineral license applications.
MAX further cautions investors it has not yet verified any of the historical data.
About the Transaction
MAX has entered into an LOI whereby Tasca proposes to acquire from MAX 100% of 7 mineral license applications comprising the 13,280-hectare known as North Block of the Gachala Project located in Colombia, South America. Under the terms of the LOI, Tasca has agreed to issue a total of 6,000,000 post-consolidation common shares to MAX. The LOI is subject to conditions, including the completion of the Tasca consolidation, execution of a definitive agreement, TSX Venture Exchange approval and other conditions.
The transaction and the consolidation are subject to TSX Venture Exchange approval and customary corporate and other approvals.
About Max Resource Corp.
Max Resource Corp.’s focus is to explore and consolidate gold and platinum group mineral assets in the richly endowed Choco mineral district of Colombia and to explore the Gachala sedimentary copper hosted mineral belt of Colombia.
ON BEHALF OF THE BOARD OF MAX RESOURCE CORP.
Brett Matich, CEO and President
Tim Henneberry, P. Geo (British Columbia), a member of the Max Resource Corp. Advisory Board, is the qualified person who has reviewed and approved the technical content of this news release on behalf of the Company.
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This news release includes certain statements that may be deemed as “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical facts, are forward-looking statements, including, without limitation, statements pertaining to completion of the Transaction and any approvals required in connection with the Acquisition. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of commodities (particularly copper), unanticipated changes in key management personnel and general social, economic or geo-political conditions. Mining exploration and development is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward–looking statement that may be from time to time by the Company or on its behalf, except in accordance with applicable securities laws. We seek safe harbor.Back to Past News