US OTC: MMNGF Metallic Minerals Corp. Provides Update on Planned 2017 Exploration Program and Recent Sample Results From Keno-Lightning Property in Yukon Territory
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Metallic Minerals Corp. Provides Update on Planned 2017 Exploration Program and Recent
Sample Results From Keno-Lightning Property in Yukon Territory
March 6, 2017, Vancouver, B.C., Metallic Minerals Corp. (TSX -V: MMG; US OTC: MMNGF) (the “Company”)
is pleased to provide an update on the Company’s ongoing compilation and exploration target definition program
along with initial surface sampling results from three of the twelve priority target areas identified at the Keno -
Lightning property; a brownfields exploration project, located in the historic Keno Hill silver district of Canada’s
Yukon Territory.
In the fall of 2016, Metallic Minerals completed a preliminary surface sampling program, gathering material from
three primary target regions across the greater Keno -Lightning property , namely the Caribou, Gold Hill and
Homestake Targets. Though these select surface samples may not be representative of the entire target areas
they show the style and grade of mineralization that is found elsewhere in the Keno Hill silver district and
support follow up exploration activity to be conducted commencing in Q2 2017.
Highlights:
Caribou Vein
Sample Ag g/t Au g/t Pb % Zn % Ag Eq. g/t
1501201 6,284 1.07 57.49 0.71 8,490
1501202 5,015 0.53 71.33 1.38 7,698
1501209 8,807 1.58 58.51 0.04 11,063
Gold Hill Vein
Sample Ag g/t Au g/t Pb % Zn % Ag Eq. g/t
1501153 1,922 0.04 18.14 2.47 2,687
Homestake Vein
Sample Ag g/t Au g/t Pb % Zn % Ag Eq. g/t
1501203 6,562 1.30 3.30 17.83 7,534
1501210 370 10.62 12.13 0.06 1,551
Ag Eq. calculated using the following metals prices in USD: Ag $18.00; Au $1250; Zn $1.00; Pb $0.95; Cu $2.75 and 100% recovery.
Greg Johnson, CEO & Chairman stated, “Metallic Minerals has made a number of key advancements over the
last six months , including the appointment of our experienced management team in September, an institution-
led flow-through financing in November, and property acquisitions announced in January, which nearly doubled
the size of our Keno Hill silver district land position to 112.5 square kilometres.”
“Throughout this period, the Company has been undertaking a comprehensive assessment of the geological
structures and conditions present at Keno Hill in order to determine priority targets on our ground with the
highest potential to host high -grade silver mineralization similar to that which is present in Alexco Resource
Corp’s adjacent property. These encouraging, recent surface sampling results support our understanding of the
geology and settings for these high -grade Keno Hill type deposits 1. A dditional follow up exploration will be
designed to allow us to further refine and prioritize the best targets for drilling in 2017 among at least twelve
target areas that have already been identified. Exploration expenditures are anticipated to be a minimum of $1.1
million in 2017 including additional geophysics, stratigraphic mapping, rock and soil sampling and drill testing of
the highest priority targets.”
Keno Hill Silver District Geology and Deposits
Keno Hill type silver deposits consist of high -grade silver veins typically 1-5 metres in width grading from 200 g/t
to >5,000 g/t silver, with associated lead and zinc sulphides. The largest individual deposits in the district, which
range from 10 million to 100 million ounces of contained silver 1, are associated with northeast trending,
southeast dipping fault/vein structures which form major ore shoots in the main quartzite and greenstone host
rocks. To date, there are twelve known mineralized trends in the Keno Hill silver district , eight of which continue
through the eastern portion of the district , which hosts Metallic Minerals’ Keno Lightning property (see Figure 1
below).
1CATHRO, R. J. (Bob). Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver Camp, Yukon Territory.
Geoscience Canada, [S.l.], Sept. 2006. ISSN 1911-4850
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Keno-Lightning Project and Prospectivity
The Keno-Lightning project is a district scale, brownfields exploration property with multiple historic mines, four
of which had average production grades above 5,000 g/t silver. 1 The property is adjacent to and on -trend with,
Alexco Resource Corp’s operations, which hosts one of the world’s highest -grade silver resources with an
estimated production grade exceeding 750 g/t Ag. 2 Keno-lightning covers the eas tern portion of the district and
is a continuation of the same geological structures and host rock associated with the demonstrated
mineralization occurring to the west. However, this area has seen little modern exploration due to the
longstanding, fragmented, private land ownership structure, which has now been largely consolidated by
Metallic Minerals.
Figure 1 – Keno Hill Silver District Geological Trends and Deposits
The schematic cross sections shown below (Figure 2 ,3, and 4) show the geology and deposits from 3 of the 12
known mineralized trends in the Keno Hill silver district. Figure 2 highlights the major producers and recent
discoveries along the Bermingham – Calumet Trend. Historic production figures described therein are detailed
in CATHRO, R. J. (Bob). Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver
Camp, Yukon Territory. Geoscience Canada , [S.l.], Sept . 2006. ISSN 1911 -4850. Further historic production
specifics are available in the Technical Report on the Keno -Lightning Project dated July 31, 2010 and available
under the Company’s profile at Sedar.com.
Bermingham is a major new high -grade silver discovery by Alexco in the Keno Hill silver district . The deposit
remains open to expansion at depth and along trend, and has been the focus of an intensive drill campaign by
the Alexco exploration team. The Bermingham d iscovery demonstrates the potential for major new finds along
trend and down dip from past producing m ines in this prolific, historic district . Lesser explored parts of the
district, particularly to the east on Metallic Minerals ground , have similar geologic settings for potential new
discoveries with some of these target settings highlighted in sections 2 and 3 below.
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2Alexco Resource Inc., December 10, 2014; Updated Preliminary Economic Assessment for the Keno Hill Silver District Project – Phase 2,
Yukon, Canada; Alexco News Release: January 3, 2017: Alexco Expands Bermingham Indicated Resource to 17 Million Ounces Silver,
Remains Open.
Figure 2 – Bermingham – Calumet Trends
The cross sections below (Figures 3 and 4) depict the continuity of these structural trends across to the eastern
portion of the Keno Hill silver district and host historic producing mines and mineralized prospects in similar
settings to some of the largest producers in the district.
Figure 3 – Bellekeno – Keno Summit Trend
Figure 4 – Homestake – Keno Summit Trends
Bellekeno – Keno Summit Mineralized Trend
Figure 3, above, looking to the northwest, outlines significant historic production from the Bellekeno and Keno
Hill deposits hosted in both Keno Hill Quartzite and Triassic Greenstones , respectively. Mineralization continues
at surface along this proven productive trend in similar host settings. Past producing mines on Metallic Minerals’
ground includes the Vanguard, Duncan and Caribou mines which had average grades exceeding 5,000 g/t
silver1 and are hosted in Keno Hill Quartzite along with the Gold Hill target . The Avenue and Beauvette targets
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(discussed below on the Homestake Trend) are hosted in greenstone s in similar settings to the Keno Hill 12.6
Moz and Sadie Ladue mines 12.7 Moz, which were two of the largest producers in t he district . Collectively,
these target areas all coincide with the Bellekeno -Keno Summit mineralized trend and present themselves as
immediate targets for field investigation to define priority drill targets for testing in 2017. Key target areas along
these trends are described in further detail below from west to east , along with results from 2016 surface
sampling, where applicable.
Vanguard Target Area
The Vanguard area (see Figure 3) was first staked in 1920 and saw production exceeding 8,000 g/t silver 1
starting in 1934 with 4 shafts excavated until 1949 , with no known subsequent modern exploration .
Mineralization at Vanguard is hosted in the Keno Hill quartzite and is thought to be associated with secondary
cross structure as is commonly seen in the district. Additional work is planned at Vanguard in 2017.
Gold Hill Target Area
The Gold Hill target (see Figure 3) is defined by an intense vein system referred to as the Porcupine vein ,
thought to be one of the longest and most continuous vein systems in the district . This mineralized zone
continues east from the main Keno Hill deposit , which historically produced 12.6 million ounces of silver .
Archival reports of the Porcupine vein from underground workings indicate the vein averaged more than 2,000
g/t silver over more than 2 metres width , with the best grades existing where the vein was hosted by shattered
greenstones. Select surface sampling in 2016 at Gold Hill returned 1,921.5 g/t silver, 0.043 g/t gold, 18.14%
lead and 2.47% zinc 1. These select samp les are not necessarily representative of the mineralization on the
entire target area but show the presence of Keno style mineralization. The Gold Hill target has potential to host
both quartzite and greenstone hosted targets and additional exploration is planned at this highly prospective
target in 2017.
Sample no. Location Ag g/t Au g/t Pb % Cu % Zn % Ag Eq. g/t
1501151 Gold Hill #2 228 0.06 2.47 0.04 1.49 383
1501152 Gold Hill #2 333 0.05 3.47 0.04 1.17 511
1501153 Gold Hill #2 1,921 0.04 18.14 0.11 2.47 2,687
Duncan Target Area
The Duncan area (see Figure 3) had historic production of 11.8 tons grading 25,462 g/t silver and 22.4% lead 1.
A highly prospective target at the Duncan area exists where the vein, hosted in quartzite, intersects an overlying
schist contact. The schists can act as a fluid cap to the vein and ore shoots are known to occur across the
district in this setting. The Duncan target is thought to be a continuation of t he Porcupine vein system that hosts
the Keno Hill and Gold Hill systems. Selective sampling from surface exposures at the Duncan prospect in 2009
returned silver values ranging from 66.9 g /t to 3,964 g /t, including up to 5.13 g/t gold (see Technical Report on
the Keno -Lightning Project dated July 31, 2010 available under the Company’s profile at Sedar.com ). These
samples may not necessarily be representative of all the mineralization hosted in the entire area but are similar
to other areas in the district. The historic Duncan mine was the host of the highest -grade production in the Keno
Hill silver district with only very limited exploration since making it highly prospective for follow up exploration in
2017.
Caribou Target Area
The Caribou target area (see Figure 3) includes the Caribou veins and cross -cutting Alice veins. The showing
was first discovered in the early 1920’s and opened up by shafts, an adit, prospect cuts and hand trenches. The
vein consists of silver rich galena in a gangue of carbonates, oxides and quartz hosted in the Keno Hill
Quartzite. About 120 tons of ore form the Caribou adit was shipped between 1925 and 1927 grading more than
6,000 g/t silver1.
In 2008, six shallow diamond drill holes tested the Caribou and Alice vein systems, following trenching and RAB
drilling programs. Follow -up drilling in 2011 targeted strike and depth extensions of the Caribou vein system.
Eleven of the fourteen holes drilled at C aribou intersected mineralization, and three of the eleven returned
results in excess of 1,000 g/t Ag. Results of the program defined 300 m of continuous silver minera lization at
>100 g/t between 11m and 35 m down-hole that remains open at depth and along trend. The most significant
results are highlighted below:
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Hole From To Interval (m) Ag g/t Au g/t Pb % Zn % Ag Eq. g/t
CH11-07 15.9 17.2 1.3 770 3.40 893
CH11-08 13.4 14.8 1.4 493 10.50 4.93 875
CH11-09 15.5 16.9 1.4 1,696 0.457 9.40 0.94 2,068
CH11-17 22.9 23.4 0.5 1,787 1.394 18.70 1.29 2,610
CH11-18 24.1 25 0.9 1,151 7.20 1.03 1,451
CH11-18 34.7 36.3 1.6 1,183 12.50 0.08 1,638
In the fall of 2016 , select grab samples were collected along the Caribou vein. The results of this sampling
program show high grades of silver and elevated gold values occur at surface in this area and additional work
will focus on refining potential targets for follow up drilling in 2017. These s amples are not necessarily
representative of all the mineralization hosted in the area.
Sample no. Location Ag g/t Au g/t Pb % Cu % Zn % Ag Eq. g/t
1501201 Caribou Vein 6,284 1.07 57.49 0.23 0.71 8,490
1501202 Caribou Vein 5,015 0.53 71.33 0.12 1.33 7,696
1501205 Caribou Vein 604 0.20 6.69 0.03 2.29 950
1501206 Caribou Vein 640 0.16 0.99 0.08 2.22 780
1501207 Caribou Vein 886 0.27 8.12 0.04 0.62 1,226
1501208 Caribou Vein 1,314 0.26 6.83 0.15 0.44 1,612
1501209 Caribou Vein 8,807 1.58 58.51 0.26 0.04 11,063
Homestake Trend
Two kilometers southeast and parallel to the Bellekeno-Keno Summit trend, the Homestake trend (see Figure 4)
shows several similar features that are recognized between the two distinct mineralized trends, including the
continuation of the Keno Hill Quartzites and Triassic Greensto nes known to host mineralization across the
district. This mineralized trend is primarily controlled by Metallic Minerals and is defined by several highly-
prospective areas, namely the Homestake, Divide, Faith, Segworth and Beauvette mineralized showings. Two
prominent target areas in the Homestake trend are discussed below. Three additional parallel trends are
identified further east of the Homestake trend as defined by the Cobalt, Gram, Gustavus and McMillan
showings.
Homestake Target Area
The Homestake target area (see Figure 4) represents one of the primary exploration targets on the Keno -
Lightning property . The Homestake prospective area , originally staked in 1920, is underlain by Keno Hill
Quartzite and phyllitic schists of the Earn group, and locally intruded by greenstone sills. Significant grades have
been returned from each of the four Homestake veins, known separately as the Homestake #1, 2, 2a veins and
the Shaft vein. Between 1928 and 1931 , the area was explored by a 26.8 m shaft and 38 .4 m of drifting , from
which a few tons of high-grade direct shipping ore were sent to a smelter. Open-pit excavation and trenching on
the showing were conducted through the 1960s and ‘70s. Previous trenching at the Homestake No.1 vein
(trench H-TR4) intersected 2,844 g/t Ag, 0.30 g/t Au, 25.9% Pb and 6.1% Zn across 4m . Highlighted samples
are not necessarily representative of all mineralization hosted in the area. See Technical Report on the Keno -
Lightning Project dated July 31, 2010 available under the Company’s profile at Sedar.com for detailed
exploration data.
The Homestake Area was an area of focus for more recent work in 2007 and 2011 including trenching, soil grid
sampling, structural mapping and drilling. This work ret urned encouraging results with Keno style mineralization
encountered from drilling in 2011 with grades of 1,696 g/t Ag over 1.4 m, 1,787 g/t Ag over 0.5 m and 1,183 g/t
Ag over 1.6 m in three different holes. In total, 9 holes from the 2011 drilling campa ign at Homestake returned
grades of over 300 g/t Ag.
The predominate mineralization style at Homestake is typical of the Keno Hill district but with significantly higher
gold content in some areas including the Homestake #2 vein . Trench sampling of the Homestake #2 vein in
2011 returned channel samples up to 11.5 g/t Au over 0.35 m. Surface sampling in 2016 also returned grades
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of 10.62 g/t gold, 370 g/t Ag, 12.13% lead and 0.062% Zn. Selective surface sampling along the Homestake #1
vein during the fall of 2016, returned the following positive results:
Sample_no Location Ag g/t Au g/t Pb % Cu % Zn % Ag Eq. g/t
1501203 Homestake #1 6,562 1.3 3.30 0.79 17.834 7,534
1501210 Homestake #1 370 10.62 12.13 0.02 0.062 1,551
1501211 Homestake #1 340 0.08 0.28 0.02 1.413 412
Divide and Faith Target Areas
The Divide and Faith target areas (see Figure 4) show at least four veins and cover the projected southern
extensions of the Caribou and Avenue Veins. The presence of multiple veins that intersect each other and are
offset by faults, sets up favourable conditions for Keno Hill oreshoots. The Divide and Faith targets have
received little modern exploration outside of prospecting and soil sampling and have more cover than other
targets areas on the property.
A soil geochemical survey over the area in 2011 returned an 800 x 900 m gold, silver and pathfinder element
anomaly. The area is a priority for further soil sampling, detailed geological mapping and trenching.
Avenue and Beauvette Target Areas
Beauvette Hill, the location of the Avenue and Beauvette targets (see Figures 3 and 4), has seen little historic
work but is directly on -trend with several productive mineralized structures from the Keno Summit area and
appears to be underlain by what may be a signifi cant array of greenstone bodies . In addition to the Keno Hill
deposit, the Sadie Ladue mine, which produced 12.7 Moz of silver, is an example of a greenstone hosted
deposit in a similar structural setting located on the north side of the Keno Summit area. 1
Avenue is an area of quartzite and greenstones that is intermittently exposed over a strike length of 1.2
kilometres which has a coincident lead, zinc and silver soil anomaly in areas typified by shallow cover. The
Avenue target is on -trend with several hi ghly-mineralized veins where they continue into what is believed to be
an array of significant parallel greenstone bodies, masked under shallow cover.
Surface sampling in 2016 at Beauvette Hill area resulted in the discovery of a new sulphide -rich vein showing at
a quartzite and greenstone contact.
Next Steps
The eastern part of the Keno Hill silver district had seen little modern exploration due to the previously
longstanding fragmented, private land ownership structure, which has now been largely consolidated by Metallic
Minerals. This presents a district scale, brownfields exploration opportunity and the potential for new discoveries
in this proven prolific district. The Metallic Minerals technical team is currently implementing the 2017 work
program which is expected to consist of:
Continuation of compilation and interpretation of historic exploration data from drilling, trenching, and
channel sampling along with existing soil and rock sampling.
Refinement and prioritization of targets using additional geophysical and geochemical su rveys, stratigraphic
mapping, and trenching.
Drill testing of highest priority targets to test down -dip and along -strike extensions of previously identified
mineralization along the known mineralized trends, including at the historic producing mines on t he property,
and in areas that show significant potential to host Keno type deposits but that may not have seen historic
focus due to soil and vegetation cover.
The Company will provide updates to this proposed exploration program as they develop, includin g potential
commencement dates and specific targeting.
About Metallic Minerals Corp.
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Metallic Minerals Corp. is a growth stage exploration company, focused on the acquisition & development of
high-grade silver resources in under -explored districts of mining-friendly jurisdictions proven to produce top -tier
assets. Our objective is to create value through a disciplined, entrepreneurial approach to exploration, reducing
investment risk and increasing the probability for long -term success. Our core Keno -Lightning property is
located in the historic Keno Hill silver district of Canada's Yukon Territory, a region which has produced over 200
million ounces of high -grade silver over the past 100 years 1 and has excellent existing infrastructure, including
grid power, highway & road access, and two nearby communities with services. 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
References
Boyle, R.W., 1965. “Geology, Geochemistry, and Origin of the Lead -Zinc-Silver Deposits of the Keno Hill -- Galena Hill Area,
Yukon Territory”. Bulletin 111, Geological Survey of Canada.
Cathro, R.J., 2006. “The History and Geology of the Keno Hill Silver Camp Yukon Territory.” Geoscience Canada, Volume
33, Number 3.
Alexco Resource Inc., December 10th, 2014; Updated Preliminary Economic Assessment for the Keno Hill Silver District
Project – Phase 2, Yukon, Canada
Alexco News Relea se: January 3, 2017 : Alexco Expands Bermingham Indicated Resource to 17 Million Ounces Silver,
Remains Open.
Quality Assurance / Quality Control
Analytical work was done by Bureau Veritas Commodities Canada Ltd. with sample prep and geochemical analysis in
Vancouver, British Columbia. Each rock (grab) sample was analyzed for silver using a 30 -gram fire assay fusion with a
gravimetric finish (FA530 -Ag). Gold was assayed using a 30 -gram fire assay fusion with atomic absorption spectroscopy
(AAS) finish (FA430). In addition, 34 other elements were analyzed using an Aqua Regia digestion with inductively coupled
plasma-atomic emission spectroscopy (ICP -AES) and inductively coupled Plasma -mass spectrometry (ICP -MS) (AQ-270).
Over-limit lead and zinc samples have b een analyzed by ICP MA410. All results have passed the QAQC screening by the
lab.
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. 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, 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
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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 Metallic
Minerals 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.