VANCOUVER, BC, Sept. 28,
2021 /CNW/ - Metallis Resources
Inc. (TSX-V: MTS) (OTCQB: MTLFF) (FSE:
0CVM) (the "Company" or "Metallis") provides this midseason
update on its 2021 drill program and the concurrent field
exploration campaign at its 100%-owned Kirkham Property (the
"Property"). The Property is situated in the prolific Eskay Camp of
the Golden Triangle, northwestern British
Columbia, a district well-known worldwide for the past
producing Eskay Creek and Snip gold mines, Seabridge's KSM porphyry
deposits and Pretium's producing Brucejack gold mine.
Drill Program Update
The planned 8,000 meter ("m") 2021 drill program (the
"Program") is focused on two overlapping distinct
types of mineralization at the 4 km long Cliff-Miles Porphyry
corridor; the primary stage copper-gold mineralization which
extends down to an approximate 800m
depth and the central 2 km long gold-rich zone. The company is
currently drilling its fifth hole with over 3,000 m drilled. The four completed holes have
encountered long sections of stockwork and disseminated
mineralization ( Click Here to View Map
). David Dupre P.Geo.,
Metallis' VP of Exploration commented, "We are very pleased by the
progress the team are making in the field; a turning point has been
reached with our understanding of the Cliff-Miles Porphyry and
these first holes look very prospective. Long intercepts of highly
siliceous and pyritic monzonite and siltstones seem to be visually
identical to the gold-rich zones we encountered in previous
stand-out holes."
Stockwork and disseminated Cu-sulphide mineralization has
been intersected in all holes. The visuals of mineralization,
supported by systematic portable X-ray Florescence (or "pXRF") spot
probing of background host-rock, has indicated a gradual increase
in copper content with depth. The pXRF** has only been done on two
holes (KH21-41 and KH21-42) and is presented on one section
( Click Here to View Section ). The
encouraging copper-gold mineralization constrained within the
highly silicified porphyry and clastic rocks is also coincident
with IP resistivity-highs and gold-in-soil geochemical
anomalies.
The initial two drill holes, KH21-39 and KH21-40
encountered wide mineralized zones like nearby KH18-13 (intersected
245.5m @ 0.40 CuEq*) and KH20-36
(intersected 490.8m @ 0.33 g/t AuEq*
including 56.2m @ 0.50 g/t
AuEq*).
The third drill hole KH21-41 cut across the central
Cliff-Miles zone and has highlighted an interplay of Feldspar
Porphyry ("FP"), highly silicified and well-mineralized Medium
Porphyry ("MP") and host siliciclastic rocks. These altered rocks
are known to carry significant amounts of gold as intersected last
year in drill hole KH20-37, which returned 83.0m @ 0.68 g/t AuEq including 32.0m @ 1.24 g/t AuEq*. (See NR March 23, 2021).
The fourth drill hole, KH21-42, is one of the most
encouraging holes to date. The hole was designed to test below the
promising results of KH21-41 into a highly silicified, chalcopyrite
bearing, quartz-vein-stockwork contained within Hawilson porphyry
and clastic rocks. Most of the drill core from KH21-42 contained
highly siliceous rocks while a 150 m
section exhibited some of the best chalcopyrite concentrations
observed to date. KH21-42 will also serve to improve the Company's
understanding of the geometry and evolution of the porphyry as well
as delineating further potential at depth.
*Gold equivalent grades ('AuEq.") are for comparative
purposes only. Calculations are uncut and recovery is assumed to be
100% as no metallurgical data are available. The metal prices
including: US$1,700/oz Gold,
US$20/oz Silver, US$3.0/lb. Copper & $9.0/lb. Mo. were used for AuEq g/t. Drilling
data to date is insufficient to determine true width of the
mineralized zone. Composites are determined using a notional 0.20
g/t AuEq cut-off, a maximum of ten meters of internal dilution for
porphyry-style mineralization and no top cut is
applied.
**Visual and pXRF data cannot replace assay data and
should not be considered as an alternative to analytical data using
industry laboratory techniques. The pXRF spot analysis targets the
background host-rock, making attempts to avoid obvious sulphide and
veining.
All the drill core samples for the holes drilled to date
have now been delivered to the laboratory and the Company is
waiting for assay results. Again, this year, due to a massive
increase in drilling activity in the Golden Triangle, all labs are
facing unprecedented volumes of samples and backlogs are
anticipated.
Field Mapping and Prospecting
In conjunction with the drill program, geologists are
currently mapping the structural setting and dimensions of the
porphyry intrusions at the Cliff-Miles porphyry corridor. The
initial interpretation of the field and drilling data so far
indicates a distinct 030o strike of the mineralized
porphyry intrusions, which has now opened a huge unexplored area to
the north and northwest. This exercise has allowed Metallis'
geologists to optimize the drill collars and continue to tweak the
design of the on-going 2021 drill program.
Reconnaissance geological mapping has now outlined several
areas of sulphide mineralization in the mudstone and rhyolite units
belonging to the Hazelton Group. These rock-types are widely
exposed at Mount Dunn, located in the western part of the property.
Due to being miss-assigned as part of the Stuhini Group by previous
provincial and operator surveys, along with recent glacial retreat,
Mount Dunn represents an underexplored area of Hazelton rocks prospective for hosting
precious metal-rich VMS deposits like the nearby Eskay Creek mine.
The field mapping combined with results from the recent
ZTEMTM and upcoming IP survey will continue to evaluate
the Hazelton rocks and its VMS
potential at the Kirkham Property.
Metallis' VP of Geoscience Dr. Razique stated from the
field, "The VMS model in the Eskay Camp is evolving with input from
recent drilling and airborne geophysical surveys by Metallis and
other operators in the district. The data is currently being
processed and interpreted for concealed porphyry core zones at the
Cliff/Cole porphyry centers and VMS targets in the Hazelton
Group."
Corporate Update
The Company also announces that, pursuant to the terms of
the Company's Stock Option Plan, the Company has granted an
aggregate of 1,900,000 incentive stock options ("options") to its
directors, officers, and consultants at an exercise price of
$0.39 per share (the closing market
price on September 27, 2021, was
$0.30), exercisable for a period of
five years, expiring on September 27,
2026, subject to TSX-V Exchange approval. These options
along with previously granted stock options that remain outstanding
and exercisable total 4,880,000 outstanding stock options. The
total stock options currently outstanding represent approximately
9.2% of the outstanding shares of the Company.
QAQC and Analytical Protocols
Metallis Resources Inc. has implemented a rigorous quality
assurance / quality control (QA/QC) program to ensure best
practices in sampling and analysis of diamond drill core and
surface rocks. The drilling samples, including 1-3m intervals of HQ and NQ drill core, were
delivered to ALS Global prep facilities in Terrace and Langley
BC, where the samples were crushed to 70% pass 2mm fraction,
and then a 250g split was pulverized to better than 85% passed a
75-micron screen. The geochemical analyses were performed by ALS
Global in Vancouver using
multi-element 4-Acid digest ICP-MS package (ME-MS61). Gold was
analyzed by fire assay technique Au-ICP21. Gold grades ≥10 g/t were
analyzed by fire assay and gravimetric finish. In addition to the
internal QAQC program by ALS, Metallis inserted 10% lab certified
standards, field blanks and duplicates into the overall sampling
stream.
ALS is a global testing, inspection and certification
business and is an ISO/IEC 17025:2005 accredited laboratory
independent of the Company.
Qualified Person
David Dupre, P. Geo, Vice
President - Exploration and the Qualified Person, as defined by
National Instrument 43-101, has reviewed, and approved the
technical information contained in this release.
About the Kirkham Property
The wholly owned 106 sq. km Kirkham Property is located
about 65 km north of Stewart,
B.C., in the heart of the Golden Triangle's prolific Eskay
Camp. The Property is prospective for multiple mineral deposit
types and is located along a strategic geological boundary – the
"Red-line" exposed on the western margin of the Eskay Rift system
in the Golden Triangle, northwestern British Columbia.
The Kirkham Property is contiguous to Garibaldi Resources
Corp.'s E&L Nickel Mountain Project in the north and Eskay
Mining Corp. to the east. The property is within 12 km of the Eskay
Creek mine and within 12 – 20 km of Seabridge Gold's KSM deposits
and Pretium Resources' Brucejack mine.
About Metallis
Metallis Resources Inc. is a Vancouver-based company focused on the
exploration of gold, copper, nickel, and silver at its 100%-owned
Kirkham Property situated in northwest British Columbia's Golden Triangle.
Metallis trades under the symbols MTS on the TSX Venture Exchange,
MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Stock
Exchange. The Company currently has 52,839,878 common shares issued
and outstanding.
On behalf of the Board of Directors:
/s/
"Fiore Aliperti"
Chief Executive Officer,
President and Director
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estimated, or expected.
Although the Company has attempted to identify important
risks, uncertainties and factors which could cause actual results
to differ materially, there may be others that cause results not to
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SOURCE Metallis Resources Inc.