Metallic Minerals Announces 2018 Exploration Program at Keno Silver Project in the Yukon Territory
VANCOUVER, British Columbia, May 09, 2018 (GLOBE NEWSWIRE) -- Metallic Minerals Corp. (TSX-V:MMG) (US OTC:MMNGF) (“Metallic Minerals” or the “Company”) is pleased to announce its 2018 exploration program at its 100%-owned Keno Silver Project in Canada’s Yukon Territory. Plans for 2018 follow on the success of the inaugural program in 2017, which advanced three targets to the resource delineation stage, six targets to drill-ready status, and identified a number of earlier stage priority targets for advancement. Drilling is anticipated to commence in early June along with concurrent exploration work on all priority targets.
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Metallic Minerals has acquired a 166 km2 land position in the prolific Keno Hill Silver District, which has produced over 200 million ounces of high-grade silver1. With over 100 years of mining history, the geological controls to mineralization are well understood, and the recent discovery of several major new deposits in the district demonstrates the excellent potential for new world-class discoveries through systematic exploration along the known mineralized structural corridors. With 10 of these known mineralized trends traversing Metallic Minerals’ holdings, the Company is focused on identifying and rapidly advancing the most prospective targets toward resource definition.
Exploration at the Keno Silver Project for 2018 will focus on three stages of targets as a priority:
- Resource Delineation-Stage Targets – A top priority for 2018 will be to complete step out drilling on the three identified resource delineation targets at Caribou, Homestake and the recently acquired Formo target to determine the potential scale of the mineralized systems. The well-mineralized structures at each of these targets have been defined by trenching, channel sampling and shallow drilling that is open at depth and along strike, allowing for further expansion and the potential to define new silver resources;
- Advanced Surface Targets – Our second priority will be the first phase drill testing of up to six advanced surface targets, which have returned high-grade values from surface sampling - Gold Hill, Bounty, Duncan, Silver Basin, Vanguard and Silver Queen. Drilling on these targets will be designed to test vertically under the known surface mineralization to demonstrate the potential of these targets to move to a resource delineation stage; and
- Earlier Stage Targets – The Company has prioritized 20 earlier stage targets in the less explored parts of the property that show potential to host significant high-grade Keno-type silver mineralization along recognized mineral trends. These targets will see follow-up work including drone-based geophysics, soil sampling, detailed stratigraphic mapping and trenching with the objective to advance the most prospective areas to a first phase drill testing stage.
Greg Johnson, Metallic Minerals Chairman & CEO stated, “We are excited to be launching our second year of exploration on the Keno Silver Project, building on the successes of the past 18 months for the Company. Following a very systematic approach, we have been able to move from land acquisition through our inaugural field programs, the results of which demonstrated our ability to rapidly advance from target identification to new discoveries in these under explored areas of the prolific Keno Hill Silver District. Results from 2017 confirmed the existence of high-grade silver in Keno-type structures beginning at surface and that those systems are open at depth and along strike. These new targets show very high grades and stratigraphic settings that are comparable with some of the largest deposits in the district. Our plans for 2018 are to undertake a robust drill-focused program, following and expanding upon the same systematic exploration methodology as 2017. We are confident our ongoing exploration efforts can add significantly to the overall silver resources of the Keno District, which has potential to be world-class in scale.”
Priority Resource Delineation Targets:
Caribou Target
The Caribou target is one of the most advanced targets at the Keno Silver Project. Caribou is a shallow dipping, well-mineralized structure hosted in Keno Hill Quartzite, the rock unit which hosts the majority of historic production and resources in the Keno Hill Silver District. The Caribou target was discovered and worked in the 1920s and 30s and produced 87 tons of ultra high-grade material grading 6,072 g/t silver. The results from Metallic Minerals’ 2017 drill program show that the Caribou target is a classic Keno-type high-grade system with bonanza grades, such as hole CH017-023 which intercepted 1.6 meters grading 2,851 g/t silver equivalent (1,405 Ag g/t, 26% Pb, 3.7% Zinc and 0.28 g/t Au). The objective of exploration was to drill below the shallow historic mining and sampling on the structure to determine the potential of the systems to host significant high-grade silver-lead-zinc deposits and to provide vectors to assist follow-up exploration. Drilling and trenching show high-grade silver, lead and zinc within a well-mineralized structure that is open to depth, with widths of 1-3 meters that are typical of the Keno Hill Silver District. There are currently a total 14 intercepts grading more than 800 g/t silver equivalent on the Caribou structure with the system open to expansion to the north and south (see Figure 1 - Caribou Long Section below). This compares with an average reserve grade for primary silver deposits in the industry of approximately 300 g/t silver or 500 g/t silver equivalent2 with the average resource grade in the Keno Hill Silver District at 400-500 g/t silver.
The Caribou vein structure features at least three well-defined strongly mineralized shoots showing the potential to rapidly develop a resource on this target. Planned work for 2018 at Caribou will include additional drilling to test the down dip continuation of high grade shoots of the shallow-dipping vein identified in 2017 and a continuation of step-out drilling to the south where the mineralized vein remains open and untested. Drill holes and trenches are shown on the longitudinal section below, with their respective grades, where they intersect the plane of the vein.
Figure 1 : Caribou Vein Long Section
A photo accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/357a9db6-cf74-4109-866e-7e5f062eee1d
Homestake Target
The Homestake target is one of the Company’s top priority targets due to its size, historic production, very high grades at surface and its stratigraphic setting within the Keno Hill Quartzite. The results from exploration in 2017 show that the Homestake targets are high-grade Keno-type silver-lead-zinc vein structures within a broad structural corridor nearly 200 metres wide, with both longitudinal and transverse-style veins. The objective of exploration at the Homestake target was to drill below, and along trend of, the shallow historic mining and sampling on the structure to determine the potential of the systems to host significant high-grade silver, lead, zinc and gold, and to provide vectors to assist follow-up exploration aimed at pursuing higher-grade material. The strongest grades to date include assays of 4,027 g/t silver from drilling and 4,717 g/t silver from trenching on the Homestake #1 vein, and 22.1 g/t gold with 332 g/t silver from trenching on the Homestake #2 vein. The exploration results from drilling and trenching confirm the existence of high-grade, well-mineralized 1-3 meter-wide structures that are typical of the Keno Hill Silver District and which remain open to depth and along trend. There are currently 21 vein intersections grading more than 600 g/t silver equivalent on the Homestake structures including five that exceed 10 g/t gold on the Homestake #2 structure (see Figure 2 below).
The structures at Homestake remain open to expansion down dip in the central area near the historic workings with significant additional exploration upside and potential for rapid resource development to the west and to the east where drilling returned well mineralized Keno Hill Quartzite stratigraphy with the potential for the two vein structures to converge in a broader mineralized structural zone. The width of the structure in this eastern target area was particularly notable, extending over 15 meters in three mineralized structures. Planned work for 2018 will include additional drilling to test the down dip continuation of high grade shoots of the shallow-dipping vein identified in 2017 and a continuation of step-out drilling to the west and east.
Drill holes and trenches are shown on the geologic plan map below, with their respective grades, starting from surface.
Figure 2 : Homestake Geologic Plan Map
A photo accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/34036022-6a67-43a7-810b-41f87f885dac
Formo Target
Metallic Minerals acquired the advanced Formo project in the fall of 2017. The project is host to the historic Formo mine, also known as the Yukeno mine, which produced high-grade material from vein structures primarily hosted by greenstones below the main Keno Hill Quartzite. At least 3 vein structures have been identified at Formo in underground workings, drilling and trenching. The Formo structures are two kilometres northeast of the historic Hector-Calumet mine, which was the largest producer in the Keno Hill Silver District producing nearly 100 million ounces of silver1. Historic production from the Formo veins totaled 340 tonnes of 1,673 g/t Silver (48.88 oz/t Ag). An historic resource estimate reported by D. Campbell in 1965 totaled 44,000 tons grading 548.6 g/t silver (16.0 oz/t Ag) 6.9% lead and 10.7% zinc (A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves within the definitions and standards outlined in National Instrument 43-101. The Company is not treating the historical estimate as current mineral resources or mineral reserves and cautions that this estimate should not be relied upon)3.
Ongoing compilation and modelling work by Metallic Minerals at Formo has identified that the mineralized shoots containing the historic resource appear to remain open at depth and potentially along strike. Final results of the modelling work are anticipated to be completed in the near future to allow for planning of a series of drill holes in 2018 to confirm the historic results and to test the potential to extend known mineralization down dip and along strike towards the delineation of a resource at the Formo target.
Metallic anticipates providing further updates on progress at its Keno Silver Project over coming weeks and months.
Footnote 1: Cathro, R. J. (Bob). Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver Camp, Yukon Territory. Geoscience Canada, [S.l.], Sept. 2006. ISSN 1911-4850
Footnote 2: New Explorer for High-Grade Silver Resources in the Prolific Keno Hill Silver District of Yukon, Canada; Michael Fowler, Loewen, Ondaatje, McCutcheon Ltd (LOM), September 2017
Footnote 3: Report on the Geology, Geochemistry and Trenching of the Keno Hill Area Subleases and Working Permits, Dawson Eldorado Mines Ltd., Philip D. Van Angeren (P.Geo) and Paul S. White (P.Eng); February 13, 1987 and 2002 Summary Report on the Keno Mining Leases, for Southern Rio Resources, Jean Pautler, P. Geo, June 20, 2002
About Metallic Minerals Corp.
Metallic Minerals Corp. is a growth-stage exploration company focused on the acquisition and development of high-grade silver and gold in the Yukon within under-explored districts with potential to produce top-tier assets. Our objective is to create value through a disciplined, systematic approach to exploration, reducing investment risk and maximizing probability of long-term success. Our core Keno Silver Project is located in the historic Keno Hill Silver District of Canada's Yukon Territory, a region which has produced over 200 million ounces of silver and currently hosts one of the world’s highest-grade silver resources. The Company’s McKay Hill Project, northeast of Keno Hill, is a high-grade historic silver-gold producer. Metallic Minerals is also building a portfolio of gold royalties in the historic Klondike Gold District. Metallic Minerals is led by a team with a track record of discovery and exploration success, including large scale development, permitting and project financing.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Website: www.metallic-minerals.com
Email: chris.ackerman@metallic-minerals.com
Phone: 604-629-7800
Toll Free: 1-888-570-4420
Quality Assurance / Quality Control
Analytical work in 2017 was done by Bureau Veritas Commodities Canada Ltd. with sample preparation in Whitehorse, Yukon and geochemical analysis in Vancouver, British Columbia. Each rock (grab) sample was analyzed for 36 elements using an Aqua Regia digestion with inductively coupled plasma-atomic emission spectroscopy (ICP-AES) and inductively coupled Plasma-mass spectrometry (ICP-MS) (AQ202). Samples with over limit silver and gold were re-analyzed using a 30-gram fire assay fusion with a gravimetric finish (FA530-Ag, Au). Over-limit lead and zinc samples were analyzed by multi-acid digestion and atomic absorption spectrometry (MA404) or titration (GC516, GC8917). All results have passed the QAQC screening by the lab.
Qualified Person
Scott Petsel, P.Geo, Vice President, Exploration, is a Qualified Person as defined by National Instrument 43-101. Mr. Petsel has reviewed the scientific and technical information in this news release and approves the disclosure contained herein. Mr. Petsel has reviewed the results of the sampling programs and confirmed that all procedures, protocols and methodologies used conform to industry standards.
Forward-Looking Statements
Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals 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 the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
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.
