Temex Announces Resource of 87% Increase in Measured and Indicated Gold Ounces Whitney Project, Ontario

TORONTO, Jan. 14, 2014 /CNW/ - Temex Resources Corp. (TSX-V: TME, FWB: TQ1) ("Temex" or "the Company") is pleased to announce an updated National Instrument 43-101 ("NI 43-101") mineral resource estimate on the Whitney Gold Property (the "Property" or "Project") located in Timmins, Ontario. The mineral resource estimate was prepared with the objective of defining gold resources which would be amenable to stand-alone underground mining operations and more selective open pit mining methods.

The Upper Whitney resource includes an update of the Upper Hallnor as well as initial estimates on the former producing Bonetal, Broulan Reef Mines, and the C Zone, located between them. This work resulted in an increase of gold ounces by 87% in the Measured and Indicated categories at the 3.0 g/t cut-off grade sensitivity reported in the initial September 2012 NI 43-101 resource estimate.

Additional compilation is in progress in anticipation of resource estimates for the Lower Whitney to the bottom of the past producing Lower Hallnor Mine shaft at 1,550 metres from surface. The Company's operating strategy is to initially define and develop higher grade zones amenable to underground and more selective open pit extraction within the lower grade envelopes that continue to remain available for future expansion plans.

Temex holds 60% and Goldcorp Canada Ltd. holds 40% ("Goldcorp") (as manager, and on behalf, of the Porcupine Gold Mines Joint Venture (a joint venture between Goldcorp Inc. and Goldcorp)); Temex is the operator of the joint venture.

The results are summarized below (the estimate parameters are detailed at the end of this release; shown on 100% basis). The technical report will be filed on SEDAR within 45 days.

Mineral Resource Upper Whitney at 3.0 g/t Au cut-off grade (from Table 2 below)

• Measured ("M"): 218,100 ounces contained in 966,000 tonnes at a grade of 7.02 g/t gold
• Indicated ("I"): 490,500 ounces contained in 2,253,000 tonnes at a grade of 6.77 g/t gold
• TOTAL M+I: 708,600 ounces contained in 3,219,000 tonnes at a grade of 6.85 g/t gold
• Inferred: 170,700 ounces contained in 995,000 tonnes at a grade of 5.34 g/t gold
• Grade sensitivity at a 5.0 g/t gold cut-off results in a Measured and Indicated resource of 502,200 ounces at 10.12 g/t gold within 1,544,000 tonnes and an Inferred resource of 88,700 ounces at 8.50 g/t gold within 325,000 tonnes.

The resource remains robust at higher grade cut-offs as detailed in the grade sensitivity table below allowing for early, low risk/low cost production commencing at the bedrock surface.

Table 1: Upper Whitney Sensitivity to Global Resource

Ian Campbell, President and CEO of Temex Resources Corp., commented, "The resources announced today are an exciting development for our shareholders as the transition toward pre-development accelerates. Although a larger, low grade envelope amenable to large scale open pit extraction was highlighted in the initial estimate, a decision was made to revisit the project model as an underground project."

"Sensitivity analysis at lower cut-off grades demonstrates potential for bulk underground mining in certain areas, while the robustness of the higher grade zones is similar to that mined from the historic producers centered on the property with the Hallnor Mine being the highest grade past producers in the entire Timmins camp. Importantly, many of the 40 vein structures in the resource announced today extend to the bedrock/overburden contact enhancing their ease of access and with an average width of 3.5 metres making them amenable to cheaper mining methods. Along with the anticipated low capital cost to production, the premier location in the heart of the Timmins gold camp sets this project apart from many other gold development projects in the region."

"It is also important to note," Mr. Campbell continued, "that the resources announced today are only to an average depth of 500 metres. I believe there is significant potential on numerous targets to further expand the resource. For example, previous drill results from the Lower Hallnor includings 21.1 g/t gold over 6.5 metres and 1371 g/t gold over 2.9 metres indicate that the zone remains open for expansion. In addition our work at the Broulan Reef area in 2013 has extended the mineralized strike length of the Whitney Project to 3 kilometres. The current resource does not include either of these prospective target areas."

About the Resource
The mineral resource statement was prepared in accordance with NI 43-101 standards by P&E Mining Consultants Inc., ("P&E") of Brampton, Ontario, with a database incorporating 340 surface diamond drill holes (79,992 metres) drilled by Temex between 2005 and 2013, 10,841 historic drill holes (499,674 metres) drilled by previous operators and 32 surface diamond drill holes (1,470 metres) drilled in 2013 by the Joint Venture partner for geotechnical purposes. Measured, Indicated and Inferred mineral resources have been delineated within 40 domains on the Upper Whitney covering an area of 3,000 metres long by 250 metres wide by 650 metres deep.

Table 2: Upper Whitney Resource Estimate ^{(1)(2)(3)(4)(5)(6)(7)(8)}

Resource Estimate Notes and Parameters

1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although the Company is not aware of any such issues.
2. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
3. The mineral resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
4. Variable grade capping by mineralized domain was accomplished at Au values ranging from 5 g/t to 80 g/t
5. The Gemcom block model is defined by 2.5m x 1.25m x 2.5m blocks. A bulk density of 2.84 t/m3 was used for all tonnage calculations.
6. A gold price of US$1,200/oz and a corresponding exchange rate of US$0.95=CDN$1 was utilized in the Au cut-off grade calculations of 3.0 g/t for a potentially economic underground mining operation. A mining cost of $60/t, process cost of $32.25/t and G&A of $4.50/t were used. Mining dilution was estimated at 20%. Process recovery was assumed at 95% and smelter payable at 99.8%. Gold refining was estimated at US$8/oz.
7. Values in the table may differ due to rounding.
8. The search ellipse dimensions for the Measured category were 12.5m x 10m x 5m from a block centroid, with a minimum 3 drill holes and maximum of 12 samples; the area of influence of the Indicated category is 25m x 20m x 10m from a block centroid with a minimum of 2 drill holes and maximum of 20 samples; remaining blocks within the constraining domain wireframes were coded as Inferred.

Resource Expansion and Exploration Upside Potential

Excellent potential exists to expand the current resources in the Upper and Lower Hallnor Mine and Broulan Reef Mine areas along with outstanding exploration potential for discoveries in numerous areas particularly along the mine trend and throughout the property.

Upper Hallnor
Numerous targets within and adjacent to the existing resources reported today which will be drill tested for expansion and potential inclusion into future resource updates include the following:

• Upper Hallnor Main Vein extension which yielded 19.77 g/t gold over 13.80 metres including 31.64 g/t gold over 8.30 metres, at the bedrock/overburden interface and within 17 metres from that surface (news release July 11, 2013)
• 238 Zone discovered in January 2013 which intersected 7.33 g/t gold over 5.75 metres including 60.40 g/t gold over 0.50 metres within 35 metres from surface (news release February 12, 2013)
• Q Zone previously drilled by Temex with results including 68.70 g/t gold over 0.50 metres, 17.71 g/t gold over 2.90 metres including 90.35 g/t gold over 0.50 metres, and 29.21 g/t gold over 1.40 metres at Hallnor and 122.85 g/t over 0.50 metres 800 metres along strike at Hugh Pam with no drilling in between.

Lower Hallnor
The Lower Hallnor contains multiple mined zones which were terminated due to pre-existing property boundaries during the time of mining operations and was subject to an underground exploration program in the 1990s prior to shut down due to low gold prices. Previously mined zones which remain wide open for expansion due to subsequent property consolidation have drill intersections which include but are not limited to:

• 21.10 g/t gold over 6.55 metres drilled by Temex extending the down plunge direction of the previously mined 19 Vein system (400,000 ounces mined gold at 14.4 g/t gold)
• 1377 g/t gold over 2.9 metres drilled by previous operators which remains wide open
• 221 g/t gold over 2.2 metres drilled by previous operators extending the 12 Vein system down plunge and remains wide open.

Current Work and Next Steps

Compilation and resource estimation has begun for the Lower Hallnor and Broulan Reef mines that will complete the property-wide compilation and initial resource estimates. Engineering work continues on assessing an advanced exploration program and a Preliminary Economic Assessment (PEA) of the Upper Whitney has been initiated that will assess medium to long term selective small scale open pit and underground potential.

Further definition diamond drilling is also planned to support the assessments. Environmental permitting baseline work is ongoing and will follow through from the 2013 program including hydrogeological, geotechnical, and ore and waste rock characterization. Further metallurgical testwork is planned to support the PEA and in anticipation of custom milling requirements.

Preliminary metallurgical testwork conducted in 2013 by SGS Canada Inc. on lower grades concluded that cyanide leaching on whole ore at various grinds produced excellent gold leach recoveries ranging between 93% and 98% on calculated head grades ranging between 0.94 to 2.32 g/t gold respectively (news release February 27, 2013). More work is planned for anticipated higher grade material.

About Whitney
The Whitney Property is held under a joint venture in which Temex owns 60% and is operator, and Goldcorp Canada Ltd. ("Goldcorp") owns 40% (as manager and on behalf of the Porcupine Joint Venture, a joint venture between Goldcorp Inc. and Goldcorp Canada Ltd.).

The contents of this news release have been reviewed and approved by Qualified Persons R. Kim Tyler, P.Geo., Project Manager for Temex Resources Corp.; Ian Campbell, P.Geo., President and CEO of Temex Resources Corp.; Karen Rees, P.Geo., Vice President, Exploration of Temex Resources Corp.; and Eugene Puritch, P.Eng., President of P&E Mining Consultants Inc. An NI 43-101 technical report will be filed on SEDAR within 45 days of this news release.

About Temex Resources Corp.
Temex is a Canadian based exploration company focusing on its portfolio of precious metals properties in the world class mining district of northeastern Ontario. Temex (60% interest) is advancing the Timmins Whitney Gold Project, in partnership with Goldcorp Canada Ltd. (40% joint venture interest; no back-in rights), and exploring the Juby Gold Project (100% Temex).

The Whitney Property has a NI 43-101 compliant resources on the Upper Whitney of 0.97 million tonnes at a grade of 7.02 g/t gold for 218,100 ounces of gold in the Measured category plus 2.3 million tonnes at a grade of 6.77 g/t gold for 490,500 ounces of gold in the Indicated category and 1.0 million tonnes at a grade of 5.34 g/t gold for 170,700 ounces of gold in the Inferred category at a cut-off grade of 3.0 g/t gold (Note 1).

The Juby Main Zone has NI 43-101 compliant resources of 25.3 million tonnes at a grade of 1.28 g/t gold for 1,041,343 ounces of gold in the Indicated category and 74.2 million tonnes at a grade of 0.91 g/t gold for 2,174,193 ounces of gold in the Inferred category, both at a cut-off grade of 0.40 g/t gold (Note 2).

Temex also has a NI 43-101 compliant resource for tailings material on its Gowganda Silver Project. The tailings piles contain a NI 43-101 compliant resource of 1.94 million tonnes grading 47.5 g/t silver for a contained resource of 2.96 million ounces of silver in the Indicated category (Note 3).

Notes:

1. A technical report will be filed on SEDAR within 45 days of the date of this press release. The Mineral Resource Statement was prepared for Temex by P&E Mining Consultants Inc. of Brampton, Ontario in accordance with NI 43-101 by Richard Sutcliffe, PhD, P.Geo., Eugene Puritch, P.Eng., David Burga, P.Geo., Yungang Wu, P.Geo., Tracy Armstrong, P.Geo., and Antoine Yassa, P.Geo., "independent qualified persons" as defined by NI 43-101.
2. Information regarding the mineral resource estimate on the Juby Main Zone is in the Company's news release dated April 29, 2013 and the technical report filed on SEDAR June 12, 2013. The Mineral Resource Statement was prepared for Temex by GeoVector Management Inc., Ottawa, Ontario in accordance with NI 43-101 by Joe Campbell, BSc, P.Geo., Alan Sexton, MSc, P.Geo., and Duncan Studd, MSc, "independent qualified persons" as defined by NI 43-101.
3. Information regarding the mineral resource estimate in the tailings piles located on the Gowganda Silver Project is in the Company's news release dated June 8, 2011 and the technical report filed on SEDAR July 21, 2011. The Mineral Resource Statement was prepared for Temex by GeoVector Management Inc., Ottawa, Ontario in accordance with NI 43-101 by Allan Armitage, PhD, P.Geol., Alan Sexton, MSc, P.Geo., and Joe Campbell, BSc, P.Geo., "independent qualified persons" as defined by NI 43-101.

Forward-Looking Information:
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, mineral resource estimates, and the development of its projects as well as the timing related thereto. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, general business and economic uncertainties, future mineral prices, uncertainties in mineral resource estimates and adverse market conditions, as well as those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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.

SOURCE Temex Resources Corp.

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