Auxico met tests recover 92.9% Ag, 71.6% Au at Zamora

Oct 31, 2017

2017-10-31 08:28 ET – News Release

Mr. Mark Billings reports

AUXICO ANNOUNCES ENCOURAGING METALLURGICAL RESULTS FOR THE CAMPANILLAS MINE

Auxico Resources Canada Inc. has released encouraging metallurgical results from a 2.095-kilogram sample (2,095 grams) taken from the volcanic breccia hostrock material in the footwall of the Campanillas mine, which is located in the northeast corner of the Zamora property. The sample contains 1.98 kilograms per tonne of silver (1,980 grams per tonne) and 2.01 g/t of gold. This sample was treated by the Centre for Mineral Technology and Plastics in Thetford Mines in order to optimize the metallurgical extraction of both gold and silver. The recovery of gold was 71.60 per cent and 92.9 per cent for silver, as a result of processing this material by gravity and flotation methods. Please refer to the table.

       METALLURGICAL RESULTS -- CAMPANILLAS     

Process                         Gold        Silver

Gravity feed                2.01 g/t     1,980 g/t
Gravity concentrate         8.12 g/t     5,000 g/t
Flotation concentrate       11.9 g/t     6,854 g/t
Recovery by gravity            13.8%          8.6%
Recovery by flotation          67.8%         89.1%
Total recovery                71.60%         92.9%

The gravity concentrate represents 3.41 per cent of the overall weight of the sample while the flotation concentrate represented 12.2 per cent of the overall weight. Therefore, 92.9 per cent of the silver and 71.6 per cent of the gold were recovered from less than 13 per cent of the overall weight of the feed material. The concentrates represent a concentration ratio of 8:1 with concentrates having a value of over $4,000 (U.S.) per tonne.

The sample was selected by the qualified person in the Campanillas mine at the far end of the main drift represented by an intensely silicified volcanic breccia containing native silver and silver sulphides. The silver appears to have replaced the highly altered fragments within the host rock. The sample was taken from the footwall of a three-metre-wide highly mineralized quartz vein in the stoped area of the mine. The high-grade potential of Campanillas was first identified by a grab sample taken from a small stockpile outside the main portal, which returned an assay of 14.56 kg/t (14,560 g/t) silver and 15.53 g/t gold. The company is currently putting a plan together for dewatering Campanillas in order to reach the second and possibly third level, which is accessed by a ramp and decline shaft. Once a better understanding of the mine can be developed, a drill plan will be proposed. There are almost 500 m of historical workings on surface and along strike of the Campanillas vein, represented by ventilation raises, trenches and prospect pits, which indicate the minimum strike length of the structure.

Additional information on Auxico can be found on the company’s website or on SEDAR under Auxico Resources Canada.

Technical information on the Zamora property can be found in the company’s technical report, dated Aug. 16, 2017 (amended), and written by Joel Scodnick, PGeo, an independent consultant to the company.

Qualified person

This news release was reviewed and approved by Joel Scodnick, PGeo, an independent consultant to Auxico, in his capacity as a qualified person, as defined by National Instrument 43-101.

About Auxico Resources Canada Inc.

Auxico Resources Canada is a Canadian company that was founded in 2014 and based in Montreal. Auxico is engaged in the acquisition, exploration and development of mineral properties in Mexico. The company has a 100-per-cent interest in the Zamora silver-gold property in Sinaloa, Mexico. Auxico will continue to identify and potentially acquire additional property interests and conduct exploration and evaluation of these properties to assess their potential.

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