US OTC: MMNGF Metallic Minerals Corp. Acquires Additional Klondike Gold District Claims and Enters Second Royalty Agreement on Alluvial Gold Production
TSX-V: MMG
US OTC: MMNGF
Metallic Minerals Corp. Acquires Additional Klondike Gold District Claims
and Enters Second Royalty Agreement on Alluvial Gold Production
September 25, 2017, Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF)
(“Metallic” or the “Company”) is pleased to announce that it has entered into an agreement to acquire a
100% interest in mining rights (the “Property”) consisting of 10 claims totaling 1 mile (1.6 km) along a bench of
Dominion Creek, a tributary to the Indian River, in the Kl ondike gold district near Dawson City, Yukon. Metallic
has also entered into a production royalty agreement with respect to these claims under which the Company
has granted exclusive mining rights to an experienced alluvial mining operator in exchange for a 15% royalty on
all gold production. The property is road accessible and permitted for alluvial gold production. Mining equipment
has been mobilized to site in order to conduct test work during the remainder of the 2017 northern field season.
Figure 1: Klondike Gold District Properties
Dominion Creek is part of the historic Klondike gold dist rict that is estimated to have produced over 20 million
ounces of gold since its discovery in 1898. Approximately 2.7 million ounces have been produced on Dominion
Creek by hand mining, dredging and, more recently, modern mechanized mining that continues today with
numerous large scale open pit operations. The main cha nnel of Dominion Creek was mined by floating dredges
by Yukon Consolidated Gold Company (YCGC), which operated in the Klondike Region between 1920s and
1960s. YCGC also conducted exploration churn drilling along the benches of Dominion Creek, but never mined
the benches in this area 1. Auger drill holes on these claims have returned values in the gravels similar to other
parts of the Dominion Creek, confirming the presence of alluvial gold on the property.
Greg Johnson, CEO and Chairman of Metallic Minerals, noted, "We are very pleased to have acquired these
additional claims in the Klondike gold district and to ha ve entered into our second production royalty agreement
this year. Like our first acquisition and royalty at Australia Creek which we announced earlier this month, test
work on the Dominion property is anticipated to commence in late September and continue through the
remainder of the 2017 northern field season. The alluvi al mining operator is expected to make a decision
regarding full-scale pr oduction, with respect to thes e Dominion claims, in early 201 8. Metallic is currently in
discussions with potential operators for production royalties agreements on additional blocks from the
Company’s large Australia Creek property package.”
1Yukon Geological Survey (“YGS”) Yukon Placer Mining Industry Report 2010-2014
The Dominion Creek acquisition and royalty adds to Meta llic Minerals’ Klondike gold district holdings, which
includes another 26 miles of creek & bench mining rights along the Australia Creek drainage, a major eastern
tributary to the Indian River (see figu re 1). Metallic previously entered into a production royalty agreement with
an experienced alluvial mining operator with respect to a 2 mile portion of lower Australia Creek for a 12%
royalty on all gold production. The Company is exploring the potential for additional royalty arrangements on the
remaining 24 miles of at Australia Creek. Australia Creek and its benches are now recognized by Yukon
Geological Survey as an eastern c ontinuation of the highly-producti ve Indian River drainage, which
produces nearly 50% of all placer gold in the Yukon1.
Metallic is purchasing a 100% interest in the Dominion Creek claims with no underlying royalties for an initial
cash payment of $35,000 and a final cash payment of $45,000 on December 31st 2017.
About Metallic Minerals Corp.
Metallic Minerals Corp. is a growth stage explorat ion company focused on the acquisition and development of
high-grade silver and gold in the Yukon within underexplore d districts proven to produce top-tier assets. Our
objective is to create value through a disciplined, system atic 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 Yu kon Territory, a region whic h has produced over 200 million ounces of silver
and currently hosts one of the worl d’s highest-grade silver resources. 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 Klondi ke 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.
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 disc losure contained herein. Mr. Petsel has reviewed the
results of the sampling program and confirmed that all procedures, protocols and methodologies used in the drill
program conform to industry standards.
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, statement s
regarding potential mineralization, historic production, estimation of mineral resource s, the realization of mineral resource
estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activit ies
generally, the timing and results of future resource estimate s, permitting time lines, metal prices and currency exchange
rates, availability of capital, government regulation of exploration operations, env ironmental risks, reclamation, title, and
future plans and objectives of the company are forward-look ing statements that involve va rious risks and uncertainties.
Although Metallic Minerals believes the expectations expre ssed in such forward-looking statements are based on
reasonable assumptions, such statement s are not guarantees of future performan ce and actual results or developments
may differ materially from those in the forward-looking st atements. Forward-looking stat ements 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 estima tes, future metal prices, availability of capital and financing on
acceptable terms, general economic, ma rket or business conditions, risks associ ated with regulatory changes, defects in
title, availability of personnel, materi als and equipment on a timely basis, acci dents or equipment breakdowns, uninsured
risks, delays in receiving government approvals, unanticipat ed environmental impacts on operations and costs to remedy
same, and other exploration or other risks det ailed 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 fo rward-looking statements. For more information on Metallic
Minerals and the risks and challen ges of their businesses, investors should revi ew their annual filings that ar e 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.