The Calumet-Sud project consists of 21 claims (12.1 km2). It is located in the Pontiac regional county municipality of southwestern Quebec. An option and joint venture agreement has been signed with SOQUEM granting SOQUEM the option to acquire an undivided 50% interest in the Project. Upon the exercise of the option, a joint venture would be created between Sphinx and SOQUEM. The project is adjacent to Sphinx’s owned 100% Green Palladium project.
Under the terms of this agreement SOQUEM can acquire a 50% interest in the Project by carrying out exploration work totaling $450,000 over an option period of four (4) years and by making cash payments in the amount of $93,000 to Gardin Inc. (“Gardin”, wholly owned by Michel Gauthier, a director of Sphinx) and $7,000 to Sphinx. The two payments have been made.
The Project is currently owned 100% by Sphinx as a result of a purchase by the Corporation from Gardin in 2015. The Corporation is committed to issue 4,769,308 shares to Gardin under certain conditions. The Project is adjacent to Sphinx’s wholly-owned Green Palladium project. Sphinx is committed to complete $384,240 of exploration work on the Green Palladium project by January 2018.
The Project covers volcano-sedimentary rocks with a significant potential for various types of mineralization including:1) zinc, lead, gold and silver-rich volcanogenic massive sulphide deposits, 2) layered platinum group element-bearing reef and related nickel-copper deposits associated with the Obwondiag layered igneous complex and; 3) high-grade zinc beds hosted in carbonates. The Project is adjacent to, and south of, the former New Calumet mine that produced 3.8 million tonnes at 5.8% Zn, 1.6% Pb, 65 g/t Ag and 0.4 g/t Au from 1943 to 1968 (see map by clicking here). In the 1980s, Lacana Mining Ltd. discovered significant gold mineralization immediately below the underground workings of the former New Calumet mine. In the Obwondiag layered igneous complex, Sphinx discovered a platinum group elements-bearing reef on its Green Palladium project (see press release of June 18, 2015).
An exploration program operated by SOQUEM, in collaboration with Sphinx, commenced in June 2016. The program consisted of:
- helicopter-borne magnetic, spectrometer and electromagnetic surveys;
- ground induced polarization and gravimetric surveys;
- soil geochemical sampling (1,034 soil samples, B Horizon); and
- diamond drilling (13 holes, 1,098 m) over a surface area of 1.5 km2.
High grade zinc intervals (Table 1 below) were returned from dolomitic marble rocks within four (4) newly interpreted horizons. These horizons are defined by strongly anomalous zinc values and the presence of massive sphalerite bands ranging from one centimeter to several centimeters in thickness, as well as both stringer and disseminated sphalerite. The best interval intersected was from drillhole 1400-17-03 that returned 4.11% zinc over 3.0 m drilled width (2.93 m true width) from 12.0 to 15.0 m in the Sonny horizon. Figure 1 provides the geographical information. Sphinx and its partner SOQUEM are planning an exploration program to further investigate these results.
Table 1: Summary of drillhole assay results. Length weighted composite intervals.
true width (m)