Mr. Greg Johnson reports
METALLIC MINERALS DRILLING EXTENDS KNOWN EXTENT OF MINERALIZATION AT KENO HILL SILVER DISTRICT BY 10 KILOMETRES, INCLUDES NEW DISCOVERIES OF HIGH-GRADE SILVER VEINS WITHIN BULK TONNAGE SILVER INTERCEPTS
Metallic Minerals Corp. has provided results from the first drilling program ever completed on the eastern part of the Keno Hill silver district. Soil sampling and geophysical surveys over the past two years at East Keno identified 12 multikilometre-scale anomalies which indicated potential for large-scale mineralization in an underexplored part of the district. The largest of these target areas extend up to five kilometres in length and two kilometres in width with values exceeding 100 grams per tonne silver equivalent (AgEq) in soils. A total of 30 shallow reverse circulation (RC) holes totalling 2,644 metres (8,674 feet) were drilled in 2020, testing just a small fraction of these recently defined targets, with results confirming the presence of high-grade Keno-style mineralization within broad continuous zones of potential bulk-tonnage silver mineralization. These results expand the known extent of drill-defined Keno-style mineralization by 10 kilometres to the east and south of the historic Keno Hill mine and open this major new area of prospective stratigraphy for exploration.
2020 East Keno exploration program
Metallic Minerals' 166 square km Keno silver project is the second-largest land position in the historic Keno Hill silver district, directly adjoining Alexco Resource Corp.'s mining operations. Keno Hill is one of the world's highest-grade silver districts, with nearly 300 million ounces of silver in past production (1) and current measured and indicated resources (2), as well as excellent existing infrastructure including grid power, road access and nearby community services.
This initial drill campaign at targets in the East Keno area has confirmed both the continuation of the geologic and structural setting for high-grade Keno-style vein structures from the more developed western part of the district, as well as the potential for shallow bulk-tonnage silver mineralization which has never previously been recognized in this part of the district. The occurrence of mineralization within broad areas of brecciation and pervasive silicification has expanded the potential favourable host rock settings beyond the main Keno Hill quartzite and greenstones in this area. In addition, the identified multikilometre-scale soil anomalies spatially correspond with large geophysical magnetic low features that may represent magnetite destructive alteration zones or proximal, buried mineralizing intrusive bodies.
This geologic setting is potentially similar to that hosting some of the world's largest bulk-tonnage silver deposits, including Newmont's Penasquito, Fortuna's Caylloma and SSR's Chinchillas deposits, which are hosted in breccia, fracture and stockwork structural zones, as well as higher-grade sheeted veins and structures. They are typically associated with proximal source intrusives and volcanics, which often have a strongly contrasting magnetic signature. These large-scale deposits have bulk silver grades from 25 to 100 g/t and up to a few per cent combined lead and zinc over bulk-tonnage widths. The results from the shallow 2020 East Keno drilling program are similar in tenor to the silver grades of these model deposits and share a number of common geologic characteristics. These initial shallow drill holes (less than 100-metre depth) test only a small portion of these multikilometre soil and geophysical anomalies and are believed to define the surface expression of major structural corridors. Follow-up RC and diamond core drilling will be initiated in 2021 to determine the potential width, depth and extensions along these new trends.
2020 East Keno reconnaissance drilling highlights
Silver mineralization and structure were successfully intercepted in 26 of 30 reconnaissance RC drill holes testing broad-scale soil and geophysical anomalies, with six holes intersecting silver mineralization over 10 to 28 metres of continuous width with 30 separate higher-grade drill intervals exceeding 100 g/t AgEq, including seven intervals of over 500 g/t AgEq (see complete results in attached table).
- KE-20-01, in the Fox target area, part of a five-kilometre-long by two km wide soil and geophysical target, intersected multiple higher-grade zones including 0.77 m at 1,416.9 g/t AgEq (1,145 g/t Ag, 2.19 per cent lead and 3.72 per cent zinc) and additional intervals of 0.76 m of 343.2 g/t AgEq and 0.76 m at 318.6 g/t AgEq within a 28.2 m interval of continuous mineralization from 41.2 to 69.3 m grading 70.1 g/t AgEq.
- KE-20-02, also at the Fox target area, intersected three separate zones of mineralization with 22.1 m of continuous mineralization from 48 to 70 m grading 52.3 g/t AgEq including 0.76 m of 683.5 g/t AgEq.
- KE-20-11, in the Zone 2 target area, 1.2 kilometres south of Fox, intersected multiple higher-grade zones including 0.76 m 571.3 g/t AgEq, 1.52 m of 174.5 g/t AgEq and 5.34 m of 134 g/t AgEq within 18.3 m of continuous mineralization from 22.86 to 41.15 m assaying 63 g/t AgEq.
- KE-20-12 in the UKHM target area, 1.1 kilometres south of zone 2, intersected 4.6 m of continuous mineralization containing 254.7 g/t AgEq and including 0.76 m of 509.9 g/t AgEq and 0.76 m of 809 g/t AgEq.
- KE-20-16 in the Cobalt Hill target area, 4.7 kilometres northeast of Fox, intercepted multiple higher-grade zones including 3.81 m of 594.3 g/t AgEq within 12.2 m of continuous mineralization grading of 27.9 g/t AgEq.
Greg Johnson, chairman and chief executive officer of Metallic Minerals, stated: "The results from this first phase of wide-spaced RC drilling at East Keno has successfully demonstrated proof of concept with the discovery of multiple high-grade Keno-style mineralized zones, as well as identified broad continuous zones of bulk-tonnage styles of silver mineralization in a previously untested part of the historic Keno Hill silver district. These new drill-based discoveries, with 26 of 30 holes yielding significant intercepts, have confirmed the effectiveness of our systematic geochemical and geophysical exploration techniques and opened a huge area of prospective stratigraphy for exploration to the east of the Keno Hill mine. We believe there is excellent potential to build and extend on these results through step-out core and RC drilling based on the scale of the geochemical and geophysical signatures, and we look forward to an expanded program to follow up on this work. Subsequent news releases will report additional drill results from the advanced-stage West Keno area where an additional 12 diamond core holes totalling 2,674 metres (8,772 feet) were completed at the Formo and Silver Queen targets in 2020."
2021 Keno silver exploration drilling program
Exploration in 2021 will continue to evaluate these areas for their potential to host both bulk-tonnage and high-grade Keno-style vein targets. Planning is under way on an expanded exploration program focusing on follow-up step-out core and RC drilling to test more of these multikilometre-wide targets down dip and along trend, as well as to complete additional reconnaissance drilling on the remaining untested multikilometre-scale targets at East Keno. The program will also expand the soil and geophysical surveys to cover the remaining untested areas.
Live webinar
Metallic Minerals will be hosting a live webinar event on Monday, Feb. 22, at 1 p.m. PST/4 p.m. EST during which chairman and chief executive officer Greg Johnson will discuss the results from the first phase of 2020 drilling and the company's plans moving into Q2, including the upcoming 2021 exploration season.
SIGNIFICANT DRILL RESULTS FROM THE EAST KENO TARGET AREAS OF THE KENO SILVER PROJECT
Hole Area From m To m Width m AgEq g/t Ag g/t Au g/t Pb % Zn %
KE20-01 Fox 41.15 69.34 28.19 70.1 44 0.011 0.14 0.39
incl. 41.15 41.91 0.76 318.6 64 0.133 0.23 4.83
54.1 54.86 0.76 343.2 236 0.003 2.01 0.63
67.81 68.58 0.77 1416.9 1145 0.029 2.19 3.72
KE20-02 Fox 22.86 23.62 0.76 70.1 40 0.002 0.24 0.42
48 70.1 22.1 52.3 18 0.012 0.05 0.63
incl. 48 48.77 0.77 165.9 48 0.057 0.05 2.27
63.24 64 0.76 683.5 301 0.132 0.68 7.14
83.82 84.58 0.76 79.5 37 0.163 0.05 0.50
KE20-03 Fox SW 21.33 22.1 0.77 149.2 88 0.006 0.02 1.22
78.48 82.29 3.81 74.4 5 0.006 0.00 1.41
incl. 81.53 82.29 0.76 305.7 20 0.006 0.01 5.91
KE20-04 Fox SW 18.29 19.05 0.76 98.1 62 0.004 0.41 0.41
99.82 100.58 0.76 126.2 28 0.029 0.00 1.93
KE20-08 Fox N 41.91 42.67 0.76 387.2 293 0.010 0.03 1.89
70.86 71.62 0.76 108.9 19 0.003 0.04 1.80
KE20-10 Fox W 1.52 19.81 18.29 25.8 6 0.017 0.01 0.32
18.29 19.81 1.52 91.1 18 0.057 0.03 1.36
KE20-05 Zone 2 16.76 17.53 0.77 65.7 59 0.004 0.15 0.02
57.15 58.67 1.52 62.7 57 0.001 0.13 0.01
incl. 57.91 58.67 0.76 86.4 80 0.001 0.14 0.01
76.96 83.82 6.86 37.5 22 0.004 0.05 0.26
incl. 80.01 80.77 0.76 165.3 76 0.026 0.09 1.70
94.48 95.25 0.77 78.5 48 0.000 0.48 0.23
KE20-06 Zone 2 61.72 62.48 0.76 250.1 153 0.015 1.56 0.75
83.82 94.48 10.66 52.1 26 0.003 0.19 0.37
incl. 84.58 85.34 0.76 228.0 130 0.005 1.04 1.19
99.06 99.82 0.76 108.7 82 0.033 0.59 0.02
KE20-11 Zone 2 22.86 41.15 18.29 63.0 54 0.02 0. 19 0.01
22.86 24.38 1.52 174.5 161 0.051 0.23 0.00
35.81 41.15 5.34 134.0 113 0.026 0.47 0.01
incl. 35.81 36.57 0.76 188.3 153 0.031 0.81 0.02
38.86 39.62 0.76 571.3 493 0.074 1.82 0.02
KE20-07 UKHM 56.39 57.91 1.52 97.0 84 0.035 0.13 0.09
KE20-09 UKHM 115.06 115.82 0.76 370.9 353 0.038 0.23 0.10
KE20-25 UKHM 21.33 23.62 2.29 125.3 117 0.015 0.16 0.01
22.86 23.62 0.76 316.3 301 0.042 0.26 0.02
30.48 31.24 0.76 126.7 80 0.005 0.25 0.74
KE20-12 UKHM 85.34 89.91 4.57 254.7 139 0.018 0.89 1.63
86.1 86.86 0.76 509.9 246 0.005 2.53 3.45
89.15 89.91 0.76 809.0 462 0.094 2.18 5.15
KE20-16 Cobalt 15.24 27.43 12.19 27.9 1 0.000 0.03 0.52
incl. 16 16.76 0.76 145.7 9 0.001 0.10 2.77
64.77 68.58 3.81 594.3 28 0.002 0.52 11.41
KE20-18 Cobalt 9.91 13.72 3.81 45.0 5 0.000 0.08 0.77
incl. 12.95 13.72 0.77 73.1 5 0.000 0.135 1.31
22.1 22.86 0.76 130.9 5 0.000 0.09 2.56
Silver equivalent (Ag Eq) values assume Ag $18 per ounce, Pb $1 per pound, Zn $1.25/lb, Au $1,800/oz and 100-per-cent
recovery. Sample intervals are based on measured drill intercept lengths.About the Keno silver project
The Keno silver project is located in the historic, high-grade Keno Hill silver district of Canada's Yukon territory, directly adjacent to Alexco Resource's Keno Hill operations, which rank as one of the world's highest grade primary silver mines. Metallic Minerals has consolidated the second-largest land position in the district, with its holdings including eight shallow, high-grade past-producing deposits as well as the entire eastern portion of the district which had only seen limited exploration due to previously fragmented land ownership, vegetation cover and lack of road access. Six advanced-stage targets along the main productive trends are progressing toward initial mineral resources and 12 new multikilometre-scale targets have been identified on the greenfields areas to the east. Drilling by Metallic in 2020 has confirmed the discovery of both high-grade Keno-style vein structures and potential bulk-tonnage silver similar in style to systems like Newmont's Penasquito deposit. Recent reconnaissance drill tests of the first of these very large soil and geophysical targets at East Keno have expanded the Keno Hill silver district by at least 10 kilometres to the east, opening a major new area of prospective terrain controlled by Metallic Minerals in this prolific high-grade silver district. Planning is under way for a significantly expanded exploration program in 2021 to drill the remaining untested targets as well as to extend these newly discovered zones through step-out core and RC drilling.
About Metallic Minerals Corp.
Metallic Minerals is a growth-stage exploration company, focused on high-grade silver and gold in underexplored brownfields mining districts. The company's objective is to create shareholder value through a systematic, entrepreneurial approach to exploration in the Keno Hill silver district, La Plata silver-gold-copper district and Klondike gold district through new discoveries and advancing resources to development. All three districts have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
Footnote references
(1) R.J. Cathro, Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver Camp, Yukon Territory. Geoscience Canada, Sept. 2006. ISSN 1911-4850.
(2) Alexco Resource Corp., National Instrument 43-101 technical report "Prefeasibility Study of the Keno Hill Silver District Project, Yukon, Canada," Feb. 13, 2020.
(3) Alexco Resource news release, Jan. 21, 2019, "Alexco 2018 reconnaissance drilling confirms continuation of Bermingham mineralization at depth and identifies an offset extension, identifies gold targets."
References to adjoining properties are for illustrative purposes only and are not necessarily indicative of the exploration potential, extent or nature of mineralization or potential future results of the company's projects.
Qualified person
The disclosure in this news release of scientific and technical information regarding exploration projects on Metallic Minerals' mineral properties has been reviewed and approved by Scott Petsel, PGeo, vice-president, exploration, who is qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
Quality assurance/quality control
All samples were assayed by 36-element aqua regia digestion ICP-MS methods at Bureau Veritas labs in Vancouver, with sample preparation in Whitehorse, Yukon, and geochemical analysis in Vancouver, B.C. Samples with overlimit silver and gold were reanalyzed using a 30-gram fire assay fusion with a gravimetric finish. Overlimit lead and zinc samples were analyzed by multiacid digestion and atomic absorption spectrometry. All results have passed the QA/QC screening by the lab and the company utilized a quality control and quality assurance protocol for the project, including blank, duplicate and standard reference samples.
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