Happy Creek options Silver Dollar to Explorex

May 14, 2016

Mr. David Blann of Happy Creek reports

HAPPY CREEK OPTIONS SILVER DOLLAR PROPERTY TO EXPLOREX RESOURCES INC.

Happy Creek Minerals Ltd. has granted an option to Explorex Resources Ltd. for the Silver Dollar property, located in the Camborne mining camp, approximately 45 kilometres southeast of Revelstoke, B.C.

Under the terms of the option agreement, Explorex can earn a 100-per-cent interest in the property, subject to a 1-per-cent net smelter royalty retained by the company, by making the following payments, share issuance and exploration work commitment:

$20,000 cash within five days of TSX Venture Exchange approval for closing of a proposed Explorex financing;
A minimum $100,000 work commitment within six months of signing;
Three hundred thousand shares within 20 days after due diligence period;
Three hundred thousand shares within 12 months after the due diligence period;
One million shares within 18 months after the due diligence period.

David Blann, PEng, president of Happy Creek Minerals, stated: “The Silver Dollar property contains documented historical production, drill and surface results with high gold grades that we have largely confirmed with our own work. With the positive results that are near surface and part of a large-scale, well-defined structural corridor, the potential of this property is excellent, and we look forward to Explorex’s success.”

About the Silver Dollar property

The Silver Dollar property is 3,160 hectares (31.6 square kilometres) in area and located approximately 45 kilometres southeast of Revelstoke, B.C. It is situated within the historical Camborne mining camp dating from around the early 1900s. A number of mineral showings and past-producing gold-silver-lead-zinc and gold-silver prospects are in spatial proximity to the Camborne fault and occur over a distance of approximately 12 kilometres. There is road or access trails through most of the length of the property.

The reader is cautioned that historical data have not been verified by a qualified person under NI 43-101 (1). In 1933, the Gillman shipped between one and 14 tonnes of ore grading 62 grams per tonne gold and 62 grams per tonne silver. In 1947, the Silver Pass development syndicate processed six tonnes of ore and recovered 9,860 grams of silver, 1,378 kilograms of lead and 1,009 kilograms of zinc. In 1984, a drill hole on the Silver Dollar zone returned 2.10 metres grading 229.0 grams per tonne silver, 1.0 g/t gram per tonne gold, 10.95 per cent zinc, 4.04 per cent lead and 0.29 per cent copper. Initial due diligence by the company in 2013 returned samples containing 50.30 g/t gold, 216 g/t silver, and 4.49 g/t gold and 4,496 g/t silver. Important base-metal results include a 1.8-metre chip sample returning 16.8 per cent zinc, 3.9 per cent lead, 1.67 g/t gold and 241.0 g/t silver. These results have largely confirmed those found in historical reports.

At the north end of the property, historical production and shipment (1) from the Goldfinch in 1903 were 1,316 tonnes averaging 15.9 g/t gold and 4.3 g/t silver. Granges Exploration Ltd. conducted drilling between 1985 and 1989. A number of encouraging drill results included 41.2 metres of 2.32 g/t gold starting from 4.57 metres downhole, with a higher-grade portion of 3.4 metres of 23.0 g/t gold. A review of historical drill logs suggests that between higher-grade zones, there are broad intervals containing geochemically elevated gold values often ranging from 0.5 to 1.0 g/t gold. Other drill holes report intervals of up to 0.85 metre containing 141.58 g/t gold, and visible gold is noted in drill logs.

In 2015, Happy Creek Minerals conducted a detailed soil sampling program to the south of the Goldfinch, which identified two subparallel and strongly positive zones of gold in soil extending 500 metres that remain open in extent. On the southernmost grid line, nine of 10 continuous samples were over 111 parts per billion gold and up to 2,500 ppb gold. This corresponds to a zone, approximately 225 metres in width, that remains open to the south and east. Two adjacent lines to the north contain similar values up to 868 ppb gold over a 175- and 100-metre width, respectively. Refer to the news release dated Jan. 27, 2016.

David Blann, PEng, is a qualified person as defined by National Instrument 43-101 and is responsible for the preparation and approval of the technical information disclosed in the news release.

(1) Historical results are published within B.C. government assessment reports 9137, 16753, 17929, 31445, government of B.C. production report 082KNW076, and Minfile 082KNW076. Historical data for the prospects were performed under supervision of a professional engineer or a geologist, and believed to be of good quality, with drill core and underground sampling results from fire assay analyses by B.C. Certified Assayers. However, under NI 43-101 policy, historical information has not been verified by a QP and, as such, cannot be relied upon and must be treated as historical in nature.

https://www.happycreekminerals.com/news/2016