Metallic Minerals Corp. (TSXV:MMG) (US OTC:MMNGF)
(“Metallic Minerals” or the “Company”) is pleased to provide an
exploration update on progress at its ongoing drill programs at the
Company’s Keno Silver Project, and the results of historic data
compilation and geologic modelling work at its recently-acquired
Formo property.
2018 Drill Program Update
Building on the successful exploration and drill
campaigns of 2017, exploration activities at the Keno Silver
Project began in June, 2018. First stage drill testing has been
successfully completed at the Gold Hill target in the Keno Summit
area where four initial diamond core holes successfully tested the
extension of the target structures down dip from the high-grade
surface trench results. Core samples have been sent to the lab for
analysis with results expected within the coming weeks.
Resource delineation drilling is currently
underway at the nearby Caribou target, where step-out drilling is
designed to extend the known depth and strike of mineralization
following the bonanza grade drill results from 2017. Drilling at
Homestake, followed by Formo, will begin after completion of the
work at Caribou.
In addition to drilling at Gold Hill, Formo,
Caribou and Homestake, the Company plans to complete first stage
drill testing at additional advanced surface targets, which have
returned high-grade values from surface sampling but have not been
previously drilled. Work on another 20 earlier stage target areas
will follow up on geochemical and geophysical targets with the
objective to advance some of these targets to first stage drill
testing in 2019.
Formo Modelling Results and Planned
Drilling for 2018
Metallic Minerals acquired the advanced Formo
property, which hosts the historic Formo mine (also known as the
Yukeno mine), in the fall of 2017. Since its acquisition, work has
focused on compilation of historic underground sampling, trenching
and drill data to develop a 3D geologic model of the known
high-grade silver-lead-zinc veins on the property. Modelling
results are being used to guide the 2018 exploration effort,
intended to confirm the historic data and test the potential to
extend mineralization at depth and along strike.
The Formo deposit was first discovered in 1921
with open pit and underground production from high-grade vein
structures occurring at various times since the 1930s with the bulk
of two substantial drifts along the Formo veins excavated in the
early 1950s. At least three vein structures, hosted primarily by
greenstones below the main Keno Hill Quartzite unit, have been
identified at Formo in underground workings, drilling and
trenching.
The Formo structures are located 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. The Formo deposit occurs along a
splay of the Hector-Calumet structure where it intersects the Elsa
structural trend, which is the second largest producer in the
district1. Historic production from the Formo veins graded an
average of 1,673 g/t silver with the majority of the historic
production from an open pit adjacent to the Silver Trail highway
between the Elsa townsite and Keno City.
More recent work on the Formo target includes
six diamond core holes along with 54 percussion holes in 1980-1981.
The best intersection from the core drilling program assayed 4,958
g/t silver, 57% lead and 10.7% zinc across 48 cm with reported gold
values up to 17.1 g/t. A limited sampling program was
completed in 2008 on the deposit to confirm reported historic
mineralization. Select rock samples from the dump at the 2700 level
adit contained up to 3,025 g/t silver, 19.5% lead and up to 39.8%
zinc2.
Modelling results at Formo have revealed at
least six well-defined mineralized shoots of high-grade silver
grading over 800 g/t. Figure 2 illustrates two of the main Formo
target veins in long-section view. Between surface exposures and
the historic 2600 level drift, the vein has been delineated for
approximately 100 metres vertically. These mineralized shoots,
which contain an historic resource, remain open to expansion at
depth and along strike and will be the targets of the 2018 drilling
program. Drilling at the Formo target is expected to commence
later in the summer once all permits have been received and
preliminary baseline work is completed.
Greg Johnson, Metallic Minerals’ Chairman &
CEO stated, “We are excited about the potential that is being
highlighted by our ongoing exploration on the Keno Silver Project,
where we have been able to move quickly from land acquisitions and
target identification to delivering confirmatory drill results from
these under-explored areas of the prolific Keno Hill Silver
District. Results to date have 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, in
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.”
“With the successful completion of four initial
diamond core holes in the Gold Hill target, drilling will move to
the priority Caribou, Homestake and Formo targets with a focus on
continued expansion of the identified mineralization. These
three targets were all areas of shallow, historic high-grade
production primarily in the 1920s and 30s. The drilling and
underground sampling results at these three target areas
demonstrate that mineralization at surface continues to depth in
multiple high-grade shoots and show the potential to quickly
advance these targets to resource stage. This is a similar history
to the recent major discoveries in the district by Alexco Resources
at Bermingham and Flame & Moth, which followed up on areas of
modest high-grade historic production with systematic modern
exploration that resulted in defining much larger mineralized
systems below the areas of historic production. Metallic
Minerals will be following a similar systematic approach to
exploration to test and advance its priority targets with the
objective of building significant new silver resources in the
historic Keno Hill Silver District.”
Figure 1 is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/8ff24738-a761-430c-9788-6f26a25981f1
Figure 2 is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/2c7c896f-46f0-43ad-9943-6e4b8c45599b
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: 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 the Keno Silver
Project
Metallic Minerals has acquired a 166 km2 land
position in the prolific Keno Hill Silver District, which is one of
the world’s highest-grade silver districts, with 300 million ounces
of past production and current resources. Based on the past
shallow depth of production, recent major discoveries and the
prospective geology the Keno Hill Silver District shows the
potential to become one of the world’s premier silver
producers. Recent major discoveries demonstrate the excellent
potential for delineation of new world-class deposits 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.
Plans for 2018 include a drill-focused program
to 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 commenced in June
on the advanced stage exploration targets along with concurrent
follow up exploration work on the earlier stage targets.
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,
which is one of the world’s highest-grade silver districts. 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:
604-629-7800Toll 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.
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