US OTC: MMNGF Metallic Minerals Acquires La Plata Silver-Gold-Copper Property in Southwest Colorado and Initiates Property-Wide Exploration Program
TSX-V: MMG
US OTC: MMNGF
Metallic Minerals Acquires La Plata Silver-Gold-Copper Property in Southwest Colorado
and Initiates Property-Wide Exploration Program
September 10, 2019 - Vancouver, B.C., Metallic Minerals Corp. (TSX -V: MMG; US OTC: MMNGF) (“Metallic
Minerals” ) is pleased to announce that it has entered into an option agreement to acquire a 100% interest in the
La Plata silver -gold-copper property (the “Property”) in southwest Colorado from two private vendors. The road
accessible property covers 32.7 square kilometers (km 2) approximately 26 kilometers northwest of Durango ,
Colorado within the historic high-grade La Plata mining district (the “District”) located at the southern end of the
prolific Colorado Mineral Belt. The La Plata property hosts a large-scale precious-metals-rich porphyry system with
associated high-grade silver and gold epithermal deposits.
The La Plata district has a long and rich history of mining with the first silver deposits discovered in the 1700s by
Spanish explorers. High-grade silver and gold production has been documented from the 1870s through the early
1940s from vein structures, replacement bodies and breccia zones at over 90 individual mines and prospects. From
the 1950s to 1970s, major miners Rio Tinto, Exxon and Freeport-McMoRan explored in the District focusing on the
significant potential for bulk-tonnage disseminated and stockwork porphyry-hosted copper mineralization1.
During this period of exploration, 49 holes were drilled on the Property, totaling 12,700 meters. Drill holes and
trenches confirmed the presence of a large-scale, multi-phase, precious-metals-rich alkalic copper porphyry system
grading up to 1% copper with significant silver and other precious metals . Covering at least 3 km by 1 km the
porphyry system is exposed over 1 km of vertical relief and remains open to expansion . This large-scale system
centers on a 10 km 2 magnetic anomaly and is highlighted by an intense hydrothermal alteration signature.
Surrounding the porphyry system is an associated high -grade silver and gold-rich epithermal system measuring at
least 8 km by 2 km that hosts 56 identified vein, replacement and breccia structures. Historical production from
some of these high-grade structures exceeded 500 grams per tonne (“g/t”) silver and over 30 g/t gold with some of
the richest deposits exceeding several hundred ounces per ton gold and over a thousand ounces per ton silver2.
Within the porphyry system several higher-grade areas have been identified with the largest at the Allard target
area, measuring approximately 1 km long by 200 m wide, and a second at the Copper Age target that is 500 m by
200 m. Both targets remain open to expansion at depth and along strike. One of the deepest holes drilled on the
Property intersected 378 m of porphyry style mineralization grading 0.62% copper equivalent (0.52% Cu, 6.2 g/t Ag,
and 0.06 g/t Au) including 110 m grading 0.82% copper equivalent (0.64% Cu, 7.4 g/t Ag and 0.13 g/t Au) with the
hole ending in mineralization. Only a limited number of holes were analyzed at the time for silver, gold and platinum
group metals. However, samples from within the porphyry system indicate potential for significant additional value
from silver and other precious metals with select samples returning multi -gram values of gold, platinum and
palladium2,3.
Greg Johnson, President and CEO of Metallic Minerals, stated, “We are very excited to add the La Plata property in
southwestern Colorado to our portfolio of high-quality silver and gold properties that include our flagship Keno
silver, McKay Hill silver and Klondike gold properties in the Yukon . Geologically the La Plata system has many
similarities to the precious-metals-rich Galore Creek porphyry system owned by Newmont and Teck in British
Columbia’s “Golden Triangle”. We believe the Metallic Minerals team is uniquely suited to take on this compelling
exploration opportunity at La Plata based on the experience of its key members who are credited with the major
resource expansion of the Galore Creek deposits following their acquisition from Rio Tinto in the early 2000s. Our
team also brings additional specific expertise in high-grade, structurally controlled silver and gold deposits both in
the region and from exploration in the high-grade Keno Hill silver district.”
Mr. Johnson continued, “The La Plata property has been privately held with almost no modern exploration in over
50 years on either the large-scale porphyry system or the surrounding high-grade epithermal zones, both of which
will be a focus for Metallic Minerals. We are initiating on-site exploration to collect geologic, geochemical and
geophysical information covering this historic brownfields district, including synthesis of past exploration and
mining information to systematically refine future targets for drilling. We believe that systematic exploration at the
La Plata property has the potential to not only rapidly enhance the size of the known historic mineral resources but
to identify and expand the higher-grade zones within the broader porphyry and epithermal mineralized systems.”
TSX-V: MMG
US OTC: MMNGF
Under the terms of the agreement, Metallic Minerals has an option to acquire a 100% interest in the Property by
paying to each vendor 5 million units and US$250,000 upon the achievement of certain milestones over a 4-year
period. The Property will be subject to a 1% net smelter returns royalty in favor of each vendor, which may be
reduced to 0.75% for each Vendor upon payment of a total of US$500,000.
Each of the foregoing units will comprise one common share and one -half of a share purchase warrant. Each full
warrant will be exercisable for the purchase of one common share for a pe riod of 36 months from issuance at an
exercise price equal to 120% of the 20 -day volume weighted average trading price of the common shares on the
TSX Venture Exchange (the "TSXV") on the business day immediately preceding the date of issuance. At Metallic
Minerals’ election, the expiry time of the warrants may be accelerated to 30 business days if the closing price for
the common shares on the TSXV is greater than 150% of the applicable warrant exercise price for 10 consecutive
trading days.
Closing of the acquisition is subject to customary closing conditions, including final acceptance by the TSXV.
Notes: 1) Eckel, USGS Prof Paper 219, Geology and Ore Deposits of the La Plata Mining District, 1949; 2) Bear Creek Mining (now Rio Tinto), Humble Oil (now
Exxon) and Phelps Dodge ( now Freeport-McMoRan) company reports; 3) Christoffersen, Geological report on the Allard deposit, La Plata Mining District,
Durango, Colorado, 2005.
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 under-explored districts of mining-friendly jurisdictions proven to produce top-tier
assets. Our objective is to create value through a systematic, entrepreneurial approach to exploration in the Keno
Hill silver district, La Plata silver-gold-copper district, and Klondike gold district. The Keno silver project is located in
the historic Keno Hill silver district of Canada's Yukon Territory, with over 300 million ounces of high-grade silver in
past production and current M&I resources, the La Plata silver-gold-copper project in southwestern Colorado hosts
a large-scale precious-metals-rich porphyry system and associated high-grade silver-gold epithermal deposits, and
the Company is also building a gold production royalty business in the Klondike gold district. All three districts have
existing infrastructure, including grid power, highway and road access. Metallic Minerals is led by a team with a
track record of discovery and exploration success as well as, having large scale development, permitting and project
financing expertise.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio
of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade
producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in
the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Group Ten Metals
in the Stillwater PGM-nickel-copper district of Montana, and Granite Creek Copper in the Yukon’s Minto copper
district. The founders and team members of the Metallic Group include highly successful explorationists formerly
with some of the industry’s leading explorer/developers and major producers. With this expertise the companies
are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries
in these proven, but under-explored, historic mining districts. The Metallic Group is headquartered in Vancouver,
BC, Canada and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Website: www.metallic-minerals.com
Email: [email protected]
Phone: 604-629-7800 Toll Free: 1-888-570-4420
Qualified Person
Scott Petsel, P.Geo , Vice President, Exploration and an employee of Metallic Minerals Corp., 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.
TSX-V: MMG
US OTC: MMNGF
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 explorati on 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 involve risks and uncertainties that are difficult to control or predict. Therefore, actual results or
developments may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance
on such statements. 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 imp acts on
operations and costs to remedy sam e, and other exploration or other risks detailed herein and from time to time in public filings made by
Metallic Minerals in accordance with applicable securities law. For more information on Metallic Minerals and the risks and challenges of its
business, investors should review its annual filings, which are available at www.sedar.com. These forward-looking statements speak only as
of the date on which they are made, and Metallic Minerals undertakes no obligation to upda te them publicly to reflect new information or
the occurrence of future events or circumstances unless otherwise required to do so by law.
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.