US OTC: MMNGF Metallic Minerals Receives First Royalty Payment from Dominion Creek Alluvial Gold Mining Project in Yukon, Canada
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Metallic Minerals Receives First Royalty Payment
from Dominion Creek Alluvial Gold Mining Project in Yukon, Canada
November 9th, 2017, Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic
Minerals” or the “Company”) is pleased to announce it has received the first royalty payments from test work
conducted by the operators at the Company’s Dominion Creek alluvial gold project (“Dominion Creek” or the
“Property”) in the Klondike Gold District near Dawson City, Yukon.
In a news release dated September 25, 2017, Metallic announced that it had granted an experienced alluvial mining
operator exclusive rights to mine the Company’s 10 claims, totaling 1 mile (1.6 km), along a bench of Dominion Creek
(see Figure 1) in exchange for a 15% royalty on all gold production payable to Metallic Minerals. Mining equipment
was mobilized to the road-accessible site in September and Metallic Minerals has been paid a production royalty on
the gold produced from the processing of the material from a test pit located on the eastern end of the property.
Greg Johnson, CEO and Chairman of Metallic Minerals, noted, "We are pleased to have received the first royalty
payment so soon after acquiring the Property this past September. Going forward, the proceeds from these royalty
payments will be used to offset some of the corporate and operating expenses related to Metallic’s Yukon exploration
activities. Though the royalty from Dominion Creek was from a modest amount of test material in 2017, it confirms
the presence of recoverable alluvial gold on the Property. Additional ground preparation has been completed at
Dominion Creek to facilitate an early start to work in 2018.”
Metallic Minerals further reports that it has closed the agreement announced in a news release dated September 11,
2017 regarding the acquisition of a 100% interest in 36.4 square kilometres (“km2”) of mining rights along the Australia
Creek drainage, a tributary to the Indian River, in the Klondike gold district near Dawson City, Yukon.
Mr. Johnson commented, “In addition to Dominion Creek, the Company also holds 26 miles of creek and bench
alluvial mining rights along Australia Creek and has similarly entered into a production royalty agreement with respect
to a 2-mile portion thereof. Activities at Australia Creek in 2017 included mobilization of equipment to the site in
September, completion of an access road for exploration and future mining, geophysical surveys, trenching and
development of a test pit with materials stockpiled for future processing. Discussions with additional operators
interested in the remaining 24 miles of claims are ongoing and we anticipate expanding the number of production
royalties on our Klondike Gold District holdings.”
Figure 1 – Metallic Minerals’ Alluvial Gold Properties
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About Dominion Creek
Dominion Creek is part of the historic Klondike gold district 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 channel of Dominion Creek was mined by floating dredges by Yukon
Consolidated Gold Company (YCGC), which also conducted exploration churn drilling along the benches of Dominion
Creek, but never mined the benches in this area1. Auger drill holes on these claims have returned values for gold in
the gravels similar to other parts of Dominion Creek.
About Australia Creek
Australia Creek its benches are now recognized by Yukon Geological Survey as an eastern continuation of the
Klondike Gold District’s highly-productive Indian River drainage, which is the largest placer gold producing area in
the Yukon. Mining on the Indian River began in the late 1970s and has produced about 250,000 ounces of gold, or
more than 40% of all placer production in the Yukon through 2015. With the expansion of larger-scale, open-pit
operations, production on the Indian River has doubled since 2010 and accounted for 46% of the Yukon’s total placer
gold production in 20151.
Australia Creek itself was never historically mined, despite extensive mining activity nearby, due to its importance as
a source of water and hydro-electric power for supporting the broad scale, floating dredge operations that were being
conducted in the area by YCGC which operated in the Klondike Region between the 1920s and 1960s. The dams
on Australia Creek have been removed with only the historic diversion channels now remaining. YCGC did limited
exploration churn drilling at the mouth of Australia Creek, but no further exploration up the drainage. The mouth area
is being actively mined at present and auger drill holes on Lower Australia Creek have returned values in the gravels
similar to other parts of the Indian River, with initial test pits in 2015 to 2017 confirming the presence of alluvial gold.
1Yukon Geological Survey (“YGS”) Yukon Placer Mining Industry Report 2010-2014
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 proven 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
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
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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.