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METALLIS INTERSECTS SIGNIFICANT, NEAR SURFACE, PORPHYRY COPPER/GOLD MINERALIZATION AT THE CLIFF ZONE ON THE KIRKHAM PROPERTY

METALLIS INTERSECTS SIGNIFICANT, NEAR SURFACE, PORPHYRY COPPER/GOLD MINERALIZATION AT THE CLIFF ZONE ON THE KIRKHAM PROPERTY

January 17, 2020                                                                                             

Vancouver, BC: Metallis Resources Inc. (TSX-V: MTS; OTCQB: MTLFF) (the “Company” or “Metallis”) is pleased to announce the first set of assay results from the Company’s 2019 drilling campaign (the “Program”) which targeted the Cliff Zone of the 7.5km Hawilson Monzonite. The 100%-owned Kirkham Property (the “Property”) is in the prolific Eskay Camp of the Golden Triangle, northwestern British Columbia.

 

The Program was designed to better understand the controls on mineralization and infilling some substantial gaps in the geologic model. Building on the success of the 2018 drilling campaign at the Cliff Zone, the exploration team has successfully confirmed and extended shallow bulk-tonnage-style copper/gold mineralization. Rarely, does this advantageous configuration exist in B.C. which could yield greatly improved mine economics.

2019 Drilling Highlights – Cliff Zone

  • The 2019 drilling assays combined with previous results have confirmed a 1,800m-long zone of near surface gold-rich mineralization (Click here to view map).

 

  • Extensive intervals of gold-rich mineralization such as 126m of 0.52 g/t AuEq in KH19-30 are associated with potassic altered Monzodiorite porphyry intrusions, to be targeted at deeper levels.

 

  • Higher grade gold intercepts, as in KH19-28, correlates with intense silicification and massive sulphide veins along syn-mineral tensional faults, identified as future exploration targets

 

The 2019 drill program at the Cliff Zone comprised three deep holes totaling 1,464 meters. These drill holes formed part of a larger comprehensive 11-hole (4,460m) drilling program designed to evaluate the porphyry copper/gold and epithermal gold targets throughout the 7.5 kilometer-long Hawilson Monzonite Intrusive Complex. Results from the other eight holes will be released upon further assaying, verification and data analysis.

 

All three holes intersected significant mineralization, highlighted by KH19-30, which returned 126.5m @ 0.52 g/t gold equivalent* associated with the core potassic altered porphyry. Higher grade gold intercepts, as in KH19-28, correlates with intense silicification and massive sulphide veins along syn-mineral tensional faults, identified as future exploration targets (Click here to view long section). The intensity of alteration, veins and chalcopyrite-pyrite ratios increases with depth. This pattern vectors towards a deeper, high temperature potassic core to be tested in future exploration programs. The 2019 results, together with previous results, are tabulated below.

 

Summary of the Assay Results from the Cliff Porphyry Zone.
2019 Drill Results
Hole ID From (m) To (m) Length (m) AuEq (g/t)* Au(g/t) Cu(%) Mo(g/t)
KH19-28 2.4 59.9 57.5 0.51 0.31 0.14 39
KH19-28 109 170 61 0.3 0.27 0.02 16.6
KH19-29 2.75 151.25 148.5 0.34 0.18 0.11 35.4
Incl. 2.75 74 71.25 0.48 0.22 0.19 37.9
KH19-30 34.5 200 165.5 0.43 0.21 0.16 36.7
Incl. 34.5 161 126.5 0.51 0.24 0.19 38
Previous Drilling Results
Hole ID From (m) To (m) Length (m) AuEq (g/t)* Au(g/t) Cu(%) Mo(g/t)
MD09-01 3.04 334.67 331.63 0.35 0.18 0.13 15.4
Incl. 3.04 54.05 51 0.39 0.21 0.14 7.8
Incl. 154 334.67 180.67 0.53 0.26 0.2 26.1
MD09-02 70 147.44 77.44 0.62 0.24 0.28 51.8
KH17-06 174 176.9 6.9 0.48 0.21 0.2 40.9
KH17-07 88 168.3 80.3 0.4 0.17 0.17 27.9
KH17-08 3.9 439.4 435.5 0.41 0.25 0.11 37.5
Incl. 3.9 176 172.1 0.57 0.3 0.2 32.4
Incl. 86 166 90 0.8 0.44 0.27 33.7
Incl. 310 356 46 0.52 0.32 0.1 135.6
Incl. 380 394 14 0.78 0.65 0.07 89.5
KH18-11 203.5 276 74.5 0.37 0.12 0.19 17.6
KH18-12 335 381 46 0.48 0.42 0.04 16.2
KH18-13 222 248 26 0.54 0.49 0.04 5.4
KH18-13 323 568.5 245.5 0.40 0.21 0.12 21.2
KH18-14 36 95 59 0.51 0.44 0.03 63.2
KH18-14 306 404.8 98.8 0.65 0.62 0.02 11.3
KH18-15 61 155 94 0.31 0.23 0.05 40.6
Incl. 61 96 35 0.38 0.29 0.04 74.3
KH18-15 214 264 50 0.49 0.39 0.06 50.8
KH18-15 321 339 18 0.52 0.5 0.01 4.6
KH18-15 494 502.9 8.9 0.51 0.5 0.01 2
KH18-16 6.7 315 308.3 0.42 0.26 0.12 20.6
Incl. 6.7 148 141.3 0.71 0.4 0.23 25.3

*Gold Equivalent Formula: Au g/t+(Cu%*1.27) +(Mo g/t*0.0005)                                             Metal Prices Used: Gold - US$ 1470/oz, Copper - US$ 2.75/lb, Molybdenum - US$10/lb

 

The Cliff results demonstrate the continuity of Cu-Au Porphyry mineralization for at least 1.8km. The mineralization remains open in most directions, with potential along strike to the north. Two mineralized holes drilled by a previous operator, extend the Cliff Zone a further 500m to the north. Of significance is the tabular distribution of mineralization down the topographic slope representing an ideal open-pit extraction scenario.

The geological characteristics, metallogeny and copper-gold grades of the Cliff porphyry system are like several porphyry copper-gold deposits in British Columbia, including the Kerr Deposit of Seabridge Gold’s KSM project.

Metallis Resources’ Vice President of Exploration, David Dupre stated

This season’s drilling has been very successful. We have shown that the copper-gold mineralization occurs close to the surface slope and have linked these zones with copper-gold mineralization intersected in previous drilling.

Mr. Dupre added,

We are excited about these results and plan to further define the higher grade mineralization as well as test the northern continuation of the Cliff Zone.

Metallis’ Chief Geologist, Dr. Razique added,

The structural traps with focused fluid flow along syn-mineral tensional faults host some of the unusually high-grade gold mineralization in the Cliff zone, this will be targeted in future exploration programs.

Dr. Eric Grunsky has been engaged to carry out a geostatistical study which utilizes porphyry vectoring and fertility tools (“PVFTs”). These use the chemical compositions of hydrothermal alteration zones to predict the likely direction and distance to mineralized centers. Our existing hyperspectral surveys will augment this work – particularly, to discover higher grade, core zones which can be masked by distal propylitic blankets.

In 2020, Metallis plans to expand the known higher-grade zones at Cliff and to evaluate targets generated by our PVFT studies.

QAQC Procedure

Metallis Resources has implemented a rigorous quality assurance / quality control (QA/QC) program to ensure best practices in sampling and analysis of diamond drill core. All assays are performed by ALS Canada Ltd., with sample preparation carried out at the ALS facility in Terrace, BC, and assays at the North Vancouver laboratory. Assay values are uncut. For gold, fire assays are performed as per ALS method Au-AA26 (0.01- 10.00 g/t Au) using 50 grams of sample measured by atomic absorption (AA). Assays equal to or greater than 10 g/t Au are reanalyzed gravimetrically by method Au-GRA22. Silver and copper are analyzed by ALS method ME-MS61 with a 4-acid digestion followed by ICP-MS analysis.

Qualified Person

David G. Dupre, P.Geo., Vice President, Exploration for Metallis Resources Inc. and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this press release.

About the Kirkham Property

The 106 sq. km Kirkham Property totals 10,610 Hectares and is located about 65 km north of Stewart, B.C., in the heart of the Golden Triangle’s prolific Eskay Camp. The Property is 100% owned by the Company and is prospective for multiple deposit types and is in the prolific Eskay Camp of the Golden Triangle, northwestern British Columbia.

 

The northern border of Kirkham is contiguous to Garibaldi Resources’ E&L Nickel Mountain Project.  The northeast corner of Kirkham is within 12 km of the Eskay Creek mine while the eastern border is within 15 - 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 symbol MTS on the TSX Venture Exchange and currently has 36,155,767 shares issued and outstanding.

 

On behalf of the Board of Directors:

 

“Fiore Aliperti”

Chief Executive Officer, President and Director

 

For further information:

 

Tel: 604-688-5077

Email: info@metallisresources.com

Web: www.metallisresources.com

 

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

 

This Press Release may contain statements which constitute ‘forward-looking’ statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities’ regulatory authorities, including quarterly and annual Management’s Discussion and Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, 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 be as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

 

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