Pasinex Announces Option to Acquire 80% of the Gunman High Grade Zinc (Silver) Project in Nevada and Substantially Increases the Surrounding Ground Holding

(firmenpresse) - Pasinex Announces Option to Acquire 80% of the Gunman High Grade Zinc (Silver) Project in Nevada and Substantially Increases the Surrounding Ground Holding


TORONTO, ON - December 7, 2017 - Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The Company or Pasinex) is pleased to announce that, through its wholly-owned subsidiary Pasinex Resources Nevada Limited, it has entered into an option agreement with Cypress Development Corp (TSX.V: CYP) (Cypress) and Silcom Systems Inc. (Silcom) to earn up to an 80% interest in the Gunman zinc project (Project or Gunman) located in White Pine County, Nevada (Option Agreement). In essence, Pasinex has acquired the option by honouring the terms of Silcoms original option agreement to acquire an 80% interest from Cypress in the Gunman zinc project.

The Option Agreements total consideration to acquire the 80% interest is staged over four (4) years and is approximately US$1.5 million payable in a combination of cash and Pasinex common shares (assuming a share price of C$0.22 per share and exchange to US dollars of $0.79 using the December 5, 2017 closing price and rate, respectively). In addition, the Company must incur minimum exploration expenditures totalling US$2,950,000 over the same four (4) year period. The Company can accelerate payments to acquire ownership sooner and also has no obligation to continue payments if the Company decides not to proceed in exercising the option.

The spending and associated ownership over the four years is as follows:

Stages US$ Cash Common US$ explora
Shares tion
expenditur
es

Upfront payment already $25,000
paid

Payable upon execution of O$100,000 2,200,000
ption
Agreement

September 11, 2018 $200,000 2,200,000
Prior to December 5, 2018 $250,000

September 11, 2019 $100,000 200,000
Prior to December 5, 2019 $800,000
Prior to December 5, 2020 $800,000
Option to exercise and acquire initial 51% of the Project,
followed by
a
Joint Venture Agreement with Cypress
Prior to December 5, 2021 $250,000 200,000 $1,100,000
Option to exercise and acquire remaining 29% of the
Project

for 80% ownership interest
Total $675,000 4,800,000$2,950,000

President and CEO of Pasinex,Steve Williams said: We want to grow Pasinex into a mid-tier zinc company and acquiring this new zinc project is the next step towards that objective. Our 50% owned Pinargozu zinc mine in Turkey has exceeded our expectations and that is a testament to a great team and high grade generating profitability in a relatively short time. We recently received our full dividend related to 2016 profits from the joint venture company Horzum A.S. of approximately US$1 million. This represents the first cash coming out of Turkey. Expected future cashflows from Pinargozu underpins the reason to enter into the option to acquire this high grade zinc prospect in Nevada that shows many similarities to what we have in Turkey.

The Technical Report for the Project can be viewed on Sedar here.

The Project is in White Pine County, Nevada in the northern half of the Basin and Range physiographic province called the Great Basin. The Project area is 106 kilometres south of Elko Nevada, 48 kilometres northeast of the town of Eureka.

Reverse circulation drilling programs totalling 12,250 metres have intersected zinc grades between 5% to 33% and silver between 15g/t to 465g/t over substantial widths. The deposit style at Gunman is carbonate replacement (CRD) with central zones of massive, strongly oxidized mineralization and halos of partial replacement and veining. The mineralization is within 125 metres of the surface. Pasinex is attracted by the high grades and the deposit style with striking similarities to the Companys Pinargozu high grade CRD zinc mine in Turkey.

Figure 1:

Drill From To Lengt% Ag
Hole (fee (feeh Zn ppm
t) t) (fee
t)


BC-16 125 185 60 10.9645
BC-24* 20 65 45 4.02 40

GM04-3240 210 170 15.13145

GM-01 160 210 50 9.47 60
GM-01 355 375 20 14.96121
GM-07 105 165 60 9.88 57
GM-07 180 205 25 12.5082
GM-09 130 195 65 6.78 49
GM-09 225 285 60 5.98 39
GM-26 50 225 175 15.66149
GM-27 60 205 145 5.11 37
GM-28 5 175 170 9.97 51
GM-29 15 85 70 5.96 33
GM-29 140 180 40 6.47 33
GM-32 45 165 120 8.73 51

GMRC-4 20 175 155 8.70 48
GMRC-5 5 205 200 8.87 63
GMRC-9 50 225 175 11.99121
GMRC-110 150 150 3.06 18
GMRC-11165 215 50 7.87 126
GMRC-1580 185 105 19.33103
GMRC-1645 225 180 16.74105
GMRC-2040 185 145 9.52 79
GMRC-22105 150 45 21.3841

* Apart from BC-24, in the RH South zone, all intersections are from the main RH zone.
Note: True widths of the drill hole intersections reported in the Figure 1 cannot be determined from the information available.

Figure 1 extracted as Table 10-1. P40 from Gunman NI 43-101 Technical Report, May 30, 2017 - Report to Silcom Systems Inc. Prepared by Daniel W. Kalmbach, CPG; Gerald E. Ray, PhD., P.Geo. Filed by Silicom Systems, Inc on SEDAR, June 13, 2017. Click here to see Gunman NI43-101 Techical Report.

Detailed Notes on Chemex Assay Procedures Used: A basic aqua regia-ICP multi-element package was run on 50 gram splits from
250-gram master pulps. Intervals assaying >100 grams/tonne silver and/or 1% zinc were rerun using a complete aqua regia
digestion followed by ICP-AES analysis. Intervals assaying greater than 30% zinc following complete aqua regia digestion were
then re-assayed from a fresh 50-gram pulp using classical titration methods.

Discovery History

Western Mining Corporation (WMC"), while initially exploring for gold in the early 1990s, discovered zinc at Gunman quite by accident. A series of reverse circulation holes targeting the mineralized outcrops at Gunman led to the discovery of the main RH (Zinc) Zone. Gold values were low and erratic and as a result WMC allowed the claims to lapse in 1996. White Pine Minerals staked the property in 1999 and vended the claims to Cypress. Cypress began an aggressive RC drill program in May 2000 and discovered greater than 10% zinc over drilled intervals of 18 metres. Multi-ounce silver values occurred with the zinc. The best result was in RC drillhole GM-26 at the RH Zone which cut 65 metres averaging 13% zinc and 126 ppm silver including 30 metres from a depth of 37 metres averaging 23% zinc and 231 ppm silver. Additional discoveries of high grade zinc, lead and silver were made 250 metres south of the RH Zinc Zone.

President and CEO of Pasinex, Steve Williams, commented: We picked up this outstanding high grade zinc asset primarily because of its similarities to our high grade zinc CRD deposit in Turkey. We see this high-grade zinc mineralizing system at Gunman to be an indication that there might be a much larger sulphide body at depth. For that reason, we quickly substantially increased the relatively small land package at Gunman to provide room for a major discovery - see Figure 2 below.
http://www.irw-press.at/prcom/images/messages/2017/41732/Pasinex-Announces-Option-Deal-On-GunmanPRcom.001.jpeg

Figure 2:
Original claims and expanded ground position

Pasinex completed due diligence on the Gunman drilling results in October which involved taking a random mix of 30 pulps and coarse reject samples from the RC drilling for analysis. These samples were submitted to ALS Global in Reno using the same analytical method (code MEICP-41) along with six QA/QC samples and three standards from the same batch used to control the Cypress assay results and three blank samples to check for any contamination. The original samples and Pasinex duplicate samples compared very closely for all elements including silver and zinc.

Dividend Payment from the 50% owned Horzum AS company in Turkey

Pasinex reports that they have just received about US$1 million as a complete payment of a dividend from the 50% owned Horzum AS company which operates the Pinargozu zinc mine. This dividend payment is the first for the joint venture company and reflects the 2016 profit. The dividend payment was received in full last week.

Qualified Person

The Companys Qualified Person is John Barry, who holds a MSc in Geology from the Pennsylvania State University and is a Professional Geologist with the European Geological Society. Mr. Barry is the Senior Technical Advisor to Pasinex Resources with 29 years of extensive global experience in exploration, mining and mine development and is a Qualified Person as defined in National Instrument 43 -101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. He has supervised the preparation of the scientific and technical information that forms the basis for this news release, reviewed and approved its contents.

About Pasinex

The mission of Pasinex (CSE: PSE; FSE: PNX) is to build a mid-tier zinc company by expanding our footprint in the productive CRD district in Turkey, and, at the same time, seek additional zinc assets in other attractive mining jurisdictions. The Company has a strong techincial management team with many years of experience in mineral exploration,mine development and production. The Pinargozu Mine is owned jointly in a 50/50 joint venture between Pasinex and Turkish mining house Akmetal Madencilik San ve Tic. AS, one of Turkeys largest family-owned conglomerates with the nearby past-producing Horzum zinc mine. The Pinargozu mine is producing high grade zinc that ships directly to smelters/refineries under a direct shipping ore (DSO) program.

Pasinex now adds the Gunman zinc property located in Nevada to their portfolio, in which they have an option to own 80% of the property. The Gunman property is similar to the Pinargozu mine with high grade zinc mineralization and attractive silver credits.

Visit our web site at: www.pasinex.com
On Behalf of the Board of Directors
PASINEX RESOURCES LTD.

Steve Williams

Steve Williams
President/CEO
Phone: 416.861.9659
Email: info(at)pasinex.com

Cathy Hume
CHF Investor Relationsc
Phone: 416.868.1079 ext. 231
Email: cathy(at)chfir.com

The CSE does not accept responsibility for the adequacy or accuracy of this news release.

This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements.

All statements within, other than statements of historical fact, are to be considered forward looking. Although Pasinex Resources Ltd. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees 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 forward-looking statements include market prices, continued availability of capital and financing, exploration results, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.

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Datum: 07.12.2017 - 14:39 Uhr
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News-ID 569675
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