US OTC: MMNGF Metallic Minerals Drills Bonanza Grade of 2,851 g/t Silver Equivalent at Caribou Target on the Keno Silver Project in the Yukon Territory
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Metallic Minerals Drills Bonanza Grade of 2,851 g/t Silver Equivalent at Caribou Target
on the Keno Silver Project in the Yukon Territory
December 13, 2017, Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic
Minerals” or the “Company”) is pleased to announce diamond drill results from seven holes drilled on the Caribou
and Duncan targets in the Keno Summit area at its 100% owned Keno Silver Project in Canada’s Yukon Territory. A
total of 1,320 meters of diamond drill core was collected from 14 holes in 2017 on areas prioritized during initial
exploration work, namely Caribou, Duncan and two vein targets at Homestake (see Figures 1 and 2). The results
clearly show that the Caribou target is a classic Keno-type high-grade system with bonanza grades, such as hole
CH017-023, which intercepted 1.6 meters grading 2,851 g/t silver equivalent (1,405 Ag g/t, 26% Pb, 3.7% Zinc and
0.28 g/t Au), and that the system is open to further expansion down dip to the north and south. Final results from
2017, including the drilling from two priority targets on the Homestake block, are anticipated in the coming weeks.
The objective at the Caribou and Duncan targets was to drill below the shallow historic mining and sampling on the
structure to determine the potential of the systems to host significant high-grade silver-lead-zinc deposits and to
provide vectors to assist follow-up exploration. The Company completed six drill holes that intersected the Caribou
structure, with highlight assay results shown below in Table 1. One hole was drilled at the Duncan target that
intersected three mineralized structural zones within Keno Hill quartzite, one of the district’s preferred host rocks,
down dip from the historic mine confirming the presence of the main structural corridor. Both areas are expected to
priority targets for the planned 2018 exploration program.
Table 1: Highlighted 2017 Caribou Target Area Drill Results
Hole From (m) To (m) Width (m) Ag g/t Pb % Zn % Au g/t Ag EQ g/t
CH17-021 39.35 42.0 2.65 407 3.39 6.35 0.834 972
including 39.35 39.80 0.45 1,607 15.47 1.70 0.759 2,487
39.80 40.85 1.05 194 0.94 9.95 0.718 827
40.85 42.00 1.15 132 0.89 4.89 0.971 512
CH017-23 40.7 42.3 1.6 1,405 25.98 3.72 0.282 2,851
including 40.70 41.50 0.80 2,408 47.30 4.69 0.108 4,898
41.50 42.30 0.80 402 4.65 2.74 0.456 804
CH17-026 48.62 50.85 2.23 59.1 0.82 4.99 0.960 440
including 49.90 50.85 0.95 104 1.55 9.76 1.641 828
Silver Equivalent (Ag Eq g/t) values assume Ag $16/oz, Pb $1.10/lb, Zn $1.25/lb, Au $1,250/oz, and 100% recovery.
Greg Johnson, Metallic Minerals Chairman & CEO stated, “We are very pleased with the first drill results from the
Keno Silver Project, which support our strategy of systematic exploration to rapidly advance targets to drill stage and
potential resource delineation. At the Caribou target, our results confirm the existence of high-grade silver and that
we have a well-mineralized structure that is open to depth, with widths of 1-3 meters that are typical of the Keno Hill
silver district. We now have 14 intercepts grading more than 800 g/t silver equivalent on the Caribou structure with
the system open to expansion to the north and south (see Figure 3 - Caribou Long Section below). To put this in
context the average reserve grade for primary silver deposits in the industry is 300 g/t silver or 500 g/t silver
equivalent1 with the average resource grade in the Keno district at 400-500 g/t silver. Future work at the Caribou
target will focus on step out drilling of the higher-grade zones to determine the ultimate scale of the mineralized
system. We anticipate conducting a robust 2018 exploration program and to continue development of the 12 priority
targets, along with several new priority targets that were added through acquisitions in the district this year.”
Caribou Target Area
The Caribou target, located on the east side of Caribou Hill, was discovered and worked in the 1920s and 30s and
produced 87 tons of high-grade material grading 6,072 g/t silver produced from the collective workings. A limited
amount of shallow drilling and surface trenching was previously completed on the prospect between 2008 and 2011
with significant high-grade results reported (see Table 2 and 4 below).
Exploration by Metallic Minerals on the Caribou target in 2017 followed up on the historic surface work with detailed
stratigraphic mapping, magnetic and VLF geophysical surveys, as well as the extension of soil sample grids over the
broad target area. Diamond drilling was focused on testing down dip, along the structure below the shallow historic
sampling, to determine the potential depth extension of the open-ended mineralization. The results of the drilling
show a shallow dipping, well mineralized structure hosted in Keno Hill Quartzite, which hosts the majority of historic
production and resources in the Keno Hill silver district (See Table 3 and Figure 3 below).
Footnote 1: New Explorer for High-Grade Silver Resources in the Prolific Keno Hill Silver District of Yukon, Canada; Michael Fowler, Loewen,
Ondaatje, McCutcheon Ltd (LOM), September 2017.
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Figure 1: Keno Silver Project Priority Targets Map
Figure 2: Caribou and Duncan Target Drill Hole Location Map
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The drilling further shows that the Caribou structure is open to expansion and there remains significant exploration
upside with the potential to develop a resource on this target (see long section in Figure 3 below). Drill holes are
shown, with their respective grades, where they pierce the plane of the vein. Planned work for 2018 would include a
continuation of step-out drilling of the shallow-dipping vein along the best mineralized shoots to the north and to the
south where the high-grade mineralization remains open.
Figure 3: Caribou Vein Long Section Showing Contoured Silver Equivalent Values
Table 2: Caribou Comprehensive 2008-2011 Drill Results
Hole From (m) To (m) Width (m) Ag g/t Pb % Zn % Au g/t Ag EQ g/t
08CH001 33.30 35.30 1.15 116.2 0.96 0.18 0.12 180
Including 34.30 34.50 0.2 958 8.44 1.22 0.78 1482
08CH002 28.90 31.40 1.77 87.8 0.74 0.16 0.19 146
Including 18.60 19.80 1.2 432 4.17 0.21 1.00 718
08CH004 33.60 34.60 0.96 84.2 0.64 0.39 0.59 181
08CH005 35.00 35.50 0.48 1046 3.39 1.44 0.77 1,343
08CH006 34.60 39.40 4.61 69.5 0.58 0.47 0.19 137
08RCH002 27.43 28.95 1.5 76.3 1.6 0.03 0.03 156
08RCH003 18.29 19.81 1.49 198 1.75 0.42 0.23 321
CH11-007 14.60 18.50 3.85 314.8 27.8 0.53 0.17 1,667
Including 14.60 15.80 1.2 94.3 85.56 0.01 0.23 4,146
CH11-008 14.80 17.70 2.88 162.5 3.15 0.58 0.16 355
Including 14.80 15.50 0.7 493 10.49 0.93 0.4 1069
CH11-009 15.50 16.90 1.38 1,696.3 9.42 0.94 0.85 2,257
CH11-010 30.30 31.00 0.63 447 2.34 3.07 0.35 749
CH11-011 39.70 42.10 2.37 59.7 0.79 0.79 0.46 175
CH11-013 16.50 20.10 3.38 168.9 1.37 0.62 0.1 274
Including 16.50 17.70 1.2 401 2.95 1.02 0.2 610
CH11-014 20.90 25.70 4.02 31.4 0.41 0.39 0.15 83
CH11-015 13.50 18.40 4.84 129.1 0.9 0.11 0.02 179
CH11-017 22.90 23.40 0.49 1,610.8 16.83 1.16 1.26 2,565
CH11-018 24.10 25.00 0.85 1,151 7.16 1.03 0.05 1,548
CH11-019 23.10 25.60 2.44 20.3 0.45 1.06 0.13 108
CH11-020 21.30 23.50 2.17 213.5 1.38 1.06 0.18 349
Silver Equivalent (Ag Eq g/t) values assume Ag $16/oz, Pb $1.10/lb, Zn $1.25/lb, Au $1,250/oz, and 100% recovery. Widths
believed to approximate true width.
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Table 3: Caribou Comprehensive 2017 Drill Results
Hole From (m) To (m) Width (m) Ag g/t Pb % Zn % Au g/t Ag EQ g/t
CH17-021 39.35 42.0 2.65 407 3.39 6.35 0.834 972
including 39.35 39.80 0.45 1,607 15.47 1.70 0.759 2,487
39.80 40.85 1.05 194 0.94 9.95 0.718 827
40.85 42.00 1.15 132 0.89 4.89 0.971 512
CH017-23 40.7 42.3 1.6 1,405 25.98 3.72 0.282 2,851
including 40.70 41.50 0.80 2,408 47.30 4.69 0.108 4,898
41.50 42.30 0.80 402 4.65 2.74 0.456 804
CH17-024 54.40 55.00 0.60 15.2 0.06 0.42 0.380 70
CH17-025 53.15 55.2 2.05 52.3 0.44 0.02 0.125 84
including 54.9 55.2 0.3 247 1.38 0.09 0.331 343
CH17-026 48.62 50.85 2.23 59.1 0.82 4.99 0.960 440
including 49.90 50.85 0.95 104 1.55 9.76 1.641 828
CH17-027 51.66 54.43 2.77 0.07 0.49 6.58 0.412 57
Silver Equivalent (Ag Eq g/t) values assume Ag $16/oz, Pb $1.10/lb, Zn $1.25/lb, Au $1,250/oz, and 100% recovery. Widths
believed to approximate true width.
Table 4: Caribou Comprehensive Trench Results
ID Sample Type Width Ag g/t Pb% Zn% Au g/t Ag EQ g/t
TR-05a Channel 1.32 77.6 0.1 0.16 0.08 97
TR-05b Channel 1.06 119.9 0.18 0.78 0.53 212
TR-06a Channel 1.85 282.5 0.41 0.1 0.17 321
TR-06b Channel 0.26 127.1 1.15 0.26 0.01 196
TR-08b Channel 0.58 84.3 0.42 0.47 0.29 152
TR-08f Channel 0.21 1026 2.75 0.64 0.62 1,238
TR-08i Channel 0.37 981.6 9.33 1.35 0.57 1,538
TR-08j Channel 0.16 1,855.7 41.5 0.05 0.09 3,822
TR-08k Channel 1.43 72.0 0.32 0.06 0.14 101
TR-08n Channel 0.9 3,332.7 13.88 1.07 0 4,044
TR-11f Channel 0.26 57.1 0.26 0.44 0.26 113
TR-11h Channel 0.79 539 2.13 1.05 0.25 715
TR-11i Channel 0.79 954.2 4.81 1.05 0.48 1,275
TR-11j Channel 1.06 2,953.1 8.11 0.64 0 3,370
TR-11l Channel 0.42 138.5 1.35 0.17 0.11 220
Silver Equivalent (Ag Eq g/t) values assume Ag $16/oz, Pb $1.10/lb, Zn $1.25/lb, Au $1,250/oz, and 100% recovery. Widths
believed to approximate true width.
Duncan Target Area
The second area targeted with drilling in the Keno Summit area was an initial test of the structure at the historic
Duncan mine, which had the highest recorded grade of production in the Keno Hill silver district at 25,518 g/t silver
from the shallow workings2. The Duncan vein was staked in 1919 and saw limited development work in 1920s. The
vein is exposed on the steep north face above Silver Basin, which has seen only limited exploration including minor
hand trenching and a few bulldozer cuts since the 1920s. Metallic Minerals completed the first known drill hole on
the target from the plateau south of the prospect. This down dip test confirmed the presence of a broad window of
prospective quartzite and intersected three anomalously mineralized structural zones within the Keno Hill quartzite
ending in 70 g/t silver equivalent material. Drilling difficulties limited the further continuation of the hole, falling short
of testing the full quartzite package. However, these results confirm the presence of the Duncan target structure,
which may have up to 200 vertical meters of Keno Hill Quartzite host rock positioned down dip from the high-grade
Duncan shaft, with open-ended strike potential. Follow up drilling in 2018 will be designed to test the full depth
potential of this highly-prospective target.
Footnote 2: 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
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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 the Yukon within under explored districts with potential to produce top-tier assets. Our
objective is to create value through a disciplined, systematic 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 Yukon Territory, a region which has produced over 200 million ounces of silver and currently
hosts one of the world’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
Klondike 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
Quality Assurance / Quality Control
Analytical work in 2017 was done by Bureau Veritas Commodities Canada Ltd. with sample preparation in Whitehorse, Yukon
and geochemical analysis in Vancouver, British Columbia. Each rock (grab) sample was analyzed for 36 elements using an Aqua
Regia digestion with inductively coupled plasma-atomic emission spectroscopy (ICP-AES) and inductively coupled Plasma-mass
spectrometry (ICP-MS) (AQ202). Samples with over limit silver and gold were re-analyzed using a 30-gram fire assay fusion with
a gravimetric finish (FA530-Ag, Au). Over-limit lead and zinc samples were analyzed by multi-acid digestion and atomic absorption
spectrometry (MA404) or titration (GC516, GC8917). All results have passed the QAQC screening by the lab.
Qualified Person
Scott Petsel, P.Geo, Vice President, Exploration, 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 programs and confirmed that all procedures, protocols and methodologies used 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 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.