AUX Resources Corp. Reports High-grade Results from Independence and Silver Crown

Highlights

• Epithermal gold and silver mineralization at Independence and Silver Crown
• Gold-silver-zinc-lead-copper mineralization at Silver Crown extends for 1,600 metres along strike with a width of 300 metres with 2020 grab sample grades up to 33 g/t gold, 552 g/t silver and 24% zinc (Table 1)
• High gold and copper values at Independence with 2020 grab samples up to 104 g/t gold, 872 g/t silver, 2.9% copper and 2.2% zinc (Table 1) suggests a style of mineralization similar to the historic Red Cliff copper-gold mine where drill intercepts have been reported of up to 49 g/t gold over 18.45 metres

"We are encouraged by the Independence and Silver Crown results from the 2020 field season", comments Ian Slater, Chief Executive Officer. "Many of the known mineralized structures have never been tested by drilling and these results give us a better understanding for planning the 2021 drill program."

Exploration in 2020 consisted of geological reconnaissance, prospecting, and channel/chip sampling across mineralized structures. Locations of historic adits and drill hole collars were documented with high-precision GPS instruments, and a drone-borne LiDAR survey was flown. This survey produced orthophotos, bare earth images, and detailed topographic information. The objective of the exploration program was to improve understanding of mineralization. AUX plans to conduct additional mapping and prospecting, as well as IP surveying, over the length of the Silver Crown and Independence mineralized systems in 2021, followed by drilling of structural and geophysical targets.

The geology of the Independence and Silver Crown properties consists of volcanic and sedimentary units belonging to the Lower Hazelton Group, which are cut by dioritic to granodioritic dikes. Similar geology hosts significant precious and base metal deposits elsewhere in the Golden Triangle, including the Silbak Premier, Brucejack, Silver Coin, Sulphurets, Red Mountain, Scottie Gold and Eskay Creek deposits. At Independence and Silver Crown, mineralization occurs dominantly as polymetallic Au-Ag-Cu-Pb-Zn replacement veins along fault structures. Preliminary reconnaissance on the Independence and Silver Crown properties in 2019 yielded grab samples with results up to 51 g/t Au, 9,300 g/t Ag, 14% Cu, 19% Pb and 20% Zn (see news release of September 8, 2020 for complete 2019 results).

Independence surrounds the historic Red Cliff gold-copper mine, which was in production from 1910 to 1912, and has recorded drill intercepts of up to 49 g/t Au over 18.45 metres. The property includes the Independence, Daly-Sullivan and JT targets. The most concentrated mineralization on the Independence Property is proximal to the Independence occurrence (Figure 2), where several Ag-Au-Zn-Pb-Cu replacement style veins occur in a 450 metre by 200 metre area. Banded sulphide-quartz-jasper-magnetite-limonite veins are variably brecciated to laminated with local colloform textures and vary in width up to 5 metres. Grab samples collected in 2020 returned values up to 104 g/t Au, 872 g/t Ag, 2.9% Cu and 2.2% Zn.

The Silver Crown Property includes the Slippery Ian, MJ, and Silver Crown targets (Figure 3), which host a north-trending zone of polymetallic vein mineralization that stretches over 1,600 metres along strike and 300 metres width. Au-Ag-Zn-Pb-Cu mineralization occurs within and along variably textured quartz-carbonate ± barite ± sulphide veins associated with north-northwest trending sinistral shear zones. Grab samples collected in 2020 returned values up to 33 g/t Au, 552 g/t Ag and 24% Zn.

Figure 1. Location of Independence and Silver Crown.

Table 1. Significant grab samples from Independence and Silver Crown.

Figure 2. Independence - gold and silver values from all samples collected in 2019 and 2020.

Figure 3. Silver Crown - gold and silver values from all samples collected in 2019 and 2020.

Quality Assurance and Control

Samples collected in 2020 were analyzed by MSALABS (an ISO 17025 and ISO 9001 accredited facility). Samples were stored in AUX's secure field office until their transportation by AUX personnel to MSALABS's sample preparation facility in Terrace, BC. Pulps were sent to MSALABS's main analytical laboratory in Langley, BC. Gold was analyzed by fire assay with AAS finish; samples with >9 g/t Au were re-analyzed by fire assay with gravimetric finish. Other elements were analyzed by ICP-AES/MS. Samples with Ag >100 g/t were re-analyzed by fire assay with gravimetric finish. Samples with base metal values in excess of 1% were re-analyzed by the ore grade ICP-AES technique. Standards and blanks were regularly inserted into the sample stream.

About AUX Resources

AUX holds more than 27,000 hectares of strategic claims in the Stewart Mining Camp in the Golden Triangle of British Columbia, which is among the world's most prolific mineralized districts, including the high-grade Georgia Project and the past-producing Georgia River Mine. The Georgia River Mine, which last operated in 1939 with a head grade of 23 g/t gold, contains 1.2 kilometres of underground access on three levels. AUX is also actively consolidating in the Stewart Mining Camp.

The technical disclosures in this release have been read and approved by Dr. Thomas Mumford, Ph.D., P.Geo., a qualified person as defined in National Instrument 43-101.

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. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although AUX 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, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions and regulatory and administrative approvals, processes and filing requirements. 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.

SOURCE AUX Resources Corp.



Contact
For further information please visit www.auxrc.com or contact: Ian Slater, Chief Executive Officer, +1 604 638 2545, info@auxrc.com; Mars Investor Relations, +1 604 715 6845, aux@marsinvestorrelations.com