Panex Resources Inc. (the "Company," or "Panex") (OTCQB:DBGF), is pleased to announce that it has received results for the first twelve holes drilled on its highly prospective Giro Gold Project. The Giro Project covers a surface area of 610sqkm and lies within the Kilo-Moto Belt in one of the world's principal greenstone belts which hosts Randgold Resources' multi-million ounce Kibali Gold deposits within 30km of Giro, Anglogold Ashanti's deposits to the east, Loncore and Kilogold deposits to the south and 50Moz of gold discovered in Tanzania since 1994.
Results were received for drill holes GRRC001 - GRRC012, completed across 250m of the interpreted shear along the eastern drill line at the main Giro target. All holes were stopped short of the planned 120m where excessive ground water prevented the return of a dry sample. Results are summarized in Table 1.
Nearly all holes northeast of GRRC001 were mineralised. A significant zone of gold mineralisation was intersected within the southern portion of the broader shear and reported 16m @ 2.50g/t Au from 28m including 4m @ 7.02g/t Au from 30m in GRRC002; 11m @ 1.23g/t Au from 14m and 18m @ 7.80g/t Au from 31m including 6m @ 20.63g/t Au from 31m in GRRC003 and 15m @ 1.41g/t Au from 24m in GRRC004 (Section in Figure 2).
A second zone of lower grade mineralisation commences with hole GRRC006 and is open to the northeast. Significant results within the zone include 24m @ 1.44g/t Au from 8m in GRRC007, 8m @ 2.97g/t Au from 6m in GRRC010 (abandoned in an artisanal working), 38m @ 1.44g/t Au from 14m in GRRC011and 34m @ 1.35g/t Au from 8m including 20m @ 1.66g/t Au from 17m in GRRC012. Pyrite mineralisation (1-5%) and quartz fragments were logged in the remaining four holes to the north suggesting mineralisation is open for at least a further 50-100m to the north across the shear.
Dominant lithologies included saprolite with quartz stringers and veins and volcano sediments and tuffs at depth. The bedrock commonly contained 1-3% pyrite believed to be associated with gold mineralisation. The area is covered by a lateritic cap with reported grades of 7m @ 4.01g/t Au from surface in GRRC003 and 6m @ 3.06g/t Au from surface in GRRC010. Laterite intercepts have been treated separately. Mineralisation from the laterite cap will be exploited from a mining operation in the area.
Drill line 2 in Figure 1 has been completed. Samples from the remaining holes on line 1 together with those from line 2 are being despatched to ALS Chemex laboratory in Mwanza for assay. Similar pyrite mineralisation and quartz fragments were observed in all holes along line 2 suggesting similar results can be expected. Results are expected within 3 weeks.
Reported results are highly encouraging suggesting the Giro target has excellent potential to support sufficient gold mineralisation at open pittable depths. This mineralisation is open over more than 2,000m along strike and over a width of 200-300m.
One thousand eight hundred metres of the 3,000m programme have been completed. Due to delays experienced from breakdowns and access the Company has decided to test the potential of the southwestern target and is currently drilling along line 5. The programme is expected to be completed within two weeks when all remaining samples will be sent to the laboratory.
The Company is extremely pleased with the initial results which confirm the potential of the project.