Metallic Minerals Drilling Extends Known Extent of Mineralization at Keno Hill Silver District by 10 Kilometers, Includes New Discoveries of High-Grade Silver Veins within Bulk Tonnage Silver Intercepts
TSX-V: MMG
OTCQB: MMNGF
Metallic Minerals Drilling Extends Known Extent of Mineralization at Keno Hill Silver District by 10 Kilometers,
Includes New Discoveries of High-Grade Silver Veins within Bulk Tonnage Silver Intercepts
February 18, 2021, Vancouver, B.C., Metallic Minerals (TSX.V: MMG | US OTCQB: MMNGF) (“Metallic Minerals” or
the “Company”) is pleased to announce 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
multi-kilometer-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 kilometers in length and two kilometers in width with
values exceeding 100g/t silver equivalent (“AgEq”) in soils. A total of 30 shallow reverse circulation (“RC”) holes totaling
2,644 meters (8,674 ft) 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
kilometers 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’ 166km2 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 production1 and current M&I resources2, 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 favorable host rock settings beyond the main Keno Hill quartzite and greenstones in this area.
In addition, the identified multi-kilometer-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 Peñasquito, 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 percent 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
(<100 m depth) test only a small portion of these multi-kilometer 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 meters 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 Table 1 below).
• KE-20-01 in the Fox target area, part of a five -kilometer-long by two -km-wide soil and geophysical target ,
intersected multiple higher-grade zones including 0.77 m at 1,416.9 g/t Ag Eq (1,145 g/t Ag, 2.19% Pb and 3.72%
Zn) 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.
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• KE-20-11 in the Zone 2 target area, 1.2 kilometers 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, 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 kilometers 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 kilometers 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 CEO 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 totaling 2,674 meters (8,772 ft) 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 underway on an expanded exploration program focusing on follow up step out core
and RC drilling to test more of these multi-kilometer-wide targets down dip and along trend, as well as to complete
additional reconnaissance drilling on the remaining untested multi-kilometer-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, February 22 at 1:00pm PST / 4:00pm EST during
which Chairman & CEO, 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. Click here to register.
Click image to enlarge
Figure 2 - East Keno Target Area Magnetic
Survey and Drill Hole Locations
Figure 1 – East Keno 2020 Drill Hole Locations
and Soil Geochemical Results
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Table 1. Significant drill results from the East Keno Target areas of the Keno Silver Project
Hole Area From (m) To (m) Width (m) Ag Eq 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
57.15 57.91 0.76 143.8 130 0.045 0.14 0.07
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Hole Area From (m) To (m) Width (m) Ag Eq g/t Ag g/t Au g/t Pb % Zn %
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/oz, Pb $1.00/lb, Zn $1.25/lb, Au $1,800/oz and 100% 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 towards initial mineral resources and 12 new
multi-kilometer-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 Peñasquito 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 kilometers to the east, opening
a major new area of prospective terrain controlled by Metallic Minerals in this prolific high-grade silver district. Planning
is underway 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
Metallic Minerals Corp. is a growth-stage exploration company, focused on high-grade silver and gold in underexplored
brownfields mining districts. Our 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
track 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Website: www.metallic-minerals.com Phone: 604-629-7800
Email: [email protected] Toll Free: 1-888-570-4420
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Footnote References
1) Cathro, R. J., 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, NI 43-101 Technical Report “Prefeasibility Study of the Keno Hill Silver District Project,
Yukon, Canada”, Feb.13, 2020. 3) Alexco Resource Corp news release, January 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, P.Geo., Vice President, Exploration, who is Qualified Person as defined by
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
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, British Columbia. Samples with over limit silver and gold were
re-analyzed using a 30-gram fire assay fusion with a gravimetric finish. Over-limit lead and zinc samples were analyzed by multi-acid
digestion and atomic absorption spectrometry. All results have passed the QAQC 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.
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
Group Ten 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.