Page 46 By Gregory Reynolds Good diamond drill results has put SGX Resources Inc in a position where it can anticipate a mineral re sources technical report will be pre pared this year for its gold deposit in T ully T ownship Dale Ginn president and CEO of SGX reported on Sept 26 that recent stepout drilling has substantially in creased the known strike length of the T ully Deposit to more than 1000 me tres 1 km in length SGX is currently focussed on dia mond drilling exploration for gold mineralization in the T immin s region of Ontario Operations focus on three properties T immins South T immins North and DavidsonT isdale The T ully Deposit is part of T immins North This property is locate d east of the Kidd Creek base metal mine and immediately to the north of the City of T immins W e have now managed to success fully extend the limits of the deposit in all direction s from the main body of the T ully Deposit with our drill programs Our last press release of Aug 28 established T ully s potential to depths of over 600 metres and we now have frmly demonstra ted the length potentia l to the west and east with this latest round of drillin g said Ginn SGX Resources is also undertaking evaluation programs on its T immins South property including its wholly owned Edleston Zone discovered in 2010 and located 60 km south of T im mins An additional drill program has been completed on the Grenfel project lo cated west of Kirkland Lake in order to follow up on historical shaft level development and diamond drilling by previous owners SGX also holds a position in the DavidsonT isdale Deposit and other strategic lands to the west and south of T immins near current and past pro duction At T ully stepout drilling at approxi mately 300 metres to the west of pre viously establi shed limits of the de posit encountered high grade gold in drill hole 1338 cutting 367 gtonne uncut over 63 metres at 200 metres below surface Coarse visible gold was observed within a broad zone of mineralized quartz and carbonate veinin g within the host altered volcanic tuf f identical to the main T ully Deposit to the east This drilling took place on the border ing Creighton claims which were 100 acquired under a threeyear op tion agreement beginning in 201 1 The host volcanic tuf f unit is readily identifable by geophysics and has been traced by the company for over 2 km in both the eastern and western di rections away from the main deposit Drilling has also extended the zone by another 150 metres to the east beyond previously established limits identi fed recently as demonstrated by drill hole 1326 The T ully Deposit and adjoining claims are jointly owned 5050 by SGX and San Gold Cor poration with SGX being the operator The T ully Deposit does not outcrop and is overlain by overburden and till The host mafc volcanic tuf f unit is readily identifable by geophysics and has been traced along strike further to the east and west Initial shallow drill holes such as 13 36 were designed simply to locate the tuf f so that follow up drillin g as in 1338 could focus on locating min eralization within the tuf f The T ully Deposit is interpreted to be a series of shallow dipping ex tensional or ladder stacked vein sets within a sub vertical competent mafc tuf f host that is bounded by ultramafc volcanic rocks to the south and sedi ments to the north This host sequence of rocks all lie within a regional eastwest fault corri dor a northern splay from the Destor Porcupine Fault The T ully Deposit has been drille d over a 1000 metre strike length to date and to depths of over 600 metres remaini ng open along strike and to depth T rue inter section widths are interpreted to be 65 to 80 of drilled widths Assay intersections are uncut as an appropri ate cutting factor has not yet been de termined for this deposit Pr omising drill r esults has SGX eyeing 2013 r esour ces r eport