Temex Files NI 43-101 Technical Report on Whitney Gold Project, Timmins, Ontario

TORONTO, Feb. 27, 2014 /CNW/ - Temex Resources Corp. (TSX-V: TME, FWB: TQ1) ("Temex" or "the Company") announces that it has made the regulatory filing of the report entitled "Technical Report and Resource Estimate on the Upper Hallnor, C Zone, and Broulan Reef Deposits, Whitney Gold Property, Timmins Area, Ontario, Canada". The report, dated February 26, 2014 was authored by P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario, in accordance with National Instrument 43-101 ("NI 43-101") and describes the resource estimate on the Upper Whitney portion (above -650 metres vertical) of the Whitney Gold Property (the "Property") located in Timmins, Ontario.

The Whitney Property is held under a joint venture in which Temex owns 60% and is the 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.).

Ian Campbell, President and CEO of Temex Resources Corp., commented, "The Whitney high grade gold resource is an exciting development as we transition towards advanced exploration and pre-development. The higher grade zones are robust and similar to those zones mined from the historic producers on the property, and sensitivity analysis at lower cut-off grades demonstrates potential for bulk underground mining in certain areas. Importantly, many of the vein structures in the resource extend to the bedrock/overburden contact enhancing the ease of access and making them potentially amenable to cheaper mining methods. The anticipated low capital cost to production in conjunction with its premier location in the heart of the Timmins gold camp sets this project apart from many other gold development projects. Furthermore, there is significant potential on numerous target areas to further expand the resource base. These include the Lower Hallnor where historic mining operations terminated at previous property boundaries but recent drilling has demonstrated that these zones are wide open for expansion, with results including 21.10 g/t gold over 6.55 metres and 1377 g/t gold over 2.9 metres. Our shareholders can look forward to an exciting year as we accelerate the necessary steps to prepare the project for advanced exploration and production, including ongoing permitting and engineering work required for a preliminary economic assessment this year."

The resource is summarized below (the estimate parameters are detailed later in this release; shown on 100% basis).


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 5.0 g/t gold cut-off results in Measured and Indicated resource of 502,200 ounces at 10.12 g/t gold in 1,544,000 tonnes and Inferred resource of 88,700 ounces at 8.50 g/t gold in 325,000 tonnes.

he 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 Resource Sensitivity to Au Cut-Off Grade

Capped	MEASURED			INDICATED			MEASURED + INDICATED			INFERRED
Cut-off Au g/t	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz
8.0 g/t	222,000	14.88	106,100	482,000	14.71	228,100	704,000	14.77	334,200	124,000	12.21	48,600
5.0 g/t	481,000	10.22	158,100	1,063,000	10.07	344,100	1,544,000	10.12	502,200	325,000	8.50	88,700
3.0 g/t	966,000	7.02	218,100	2,253,000	6.77	490,500	3,219,000	6.85	708,600	995,000	5.34	170,700
1.0 g/t	2,394,000	3.90	300,500	6,177,000	3.61	716,400	8,571,000	3.69	1,016,900	3,157,000	2.90	294,500

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)}

Capped	MEASURED			INDICATED			MEASURED + INDICATED			INFERRED
Cut-off Au g/t	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz
3.0	966,000	7.02	218,100	2,253,000	6.77	490,500	3,219,000	6.85	708,600	995,000	5.34	170,700

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 exploration potential for discoveries along the mine trend and throughout the property and as such, an initial exploration program with 25,000 metres of diamond drilling has been recommended.

In the Upper Hallnor area, numerous targets within and adjacent to the existing resources 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.

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.

Recommendations from the Technical Report

P&E considers that the Whitney Property contains a significant gold resource that merits further evaluation and has excellent potential to define significant additional resources. While the initial resource announced in September 2012 successfully defined a low grade, bulk tonnage, potentially open-pit mineable resource at a cut-off grade of 0.30 g/t gold, the current resource study demonstrates a high grade gold resource amenable to underground mining and more selective open pit mining methods at a 3.0 g/t gold cut-off grade. P&E recommends that Temex continue to prepare for an advanced exploration / bulk sample program comprised of a combined open pit / underground project. It is recommended that this work continue with the approach of incorporating it into a Preliminary Economic Assessment ("PEA") of the entire Upper Whitney. P&E further recommends that additional resource work be undertaken to evaluate the Lower Hallnor and Lower Broulan Reef Mines (collectively "Lower Whitney") and that a minimum 25,000 metres of exploration diamond drilling be conducted to explore along strike and to depth of favourable mineralized structures and targets.


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 includes 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 grade material 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.

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.


Temex at PDAC 2014

Please visit the Temex management and project team at PDAC 2014 in the Investors Exchange Level 800 Booth 2412A on March 2-3, and in the Core Shack Level 700 Booth 5025 March 4-5 where high grade core will be on display from the Whitney Gold Project in Timmins, Ontario. The Company will be presenting at the Corporate Presentation Forum for Investors in Room 802AB at 10:40 am on Monday March 3.


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 Gold Project has NI 43-101 compliant resources of 26.6 million tonnes at a grade of 1.28 g/t gold for 1,090,400 ounces of gold in the Indicated category and 96.2 million tonnes at a grade of 0.94 g/t gold for 2,908,800 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. Information regarding the mineral resource estimate on the Upper Whitney is in the Company's news release dated January 14, 2014 and the technical report filed on SEDAR on February 27, 2014. 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 Gold Project is in the Company's news releases dated April 29, 2013 and January 15, 2014 and the technical report filed on SEDAR February 26, 2014. 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, P.Geo., "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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