Metallic Minerals Announces Modelling Results from the Formo Deposit and Initial Exploration Progress from its Keno Silver Project in the Yukon Territory
VANCOUVER, British Columbia, July 16, 2018 (GLOBE NEWSWIRE) -- 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.
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.
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.
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.
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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.
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: 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.