Metalla Provides Update of New Discovery on the Santa Gertrudis Gold Property
Metalla Provides Update of New Discovery on
the Santa Gertrudis Gold Property
TSXV: MTA
OTCQX: MTAFF
Frankfurt
: X9CP
VANCOUVER
, Nov.13, 2018 /CNW/ -
British Columbia
: Metalla Royalty & Streaming Ltd.
("
Metalla
" or the "
Company
") (TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to
provide an update on its recently acquired 2% net smelter return ("NSR") royalty covering the
Santa
Gertrudis
gold property owned by Agnico Eagle Mines Limited. ("Agnico"; NYSE: AEM), as
disclosed by Agnico by way of a news release on
October 24, 2018
(the "
Agnico Eagle
Disclosure
").
Brett Heath
, President and Chief Executive Officer of Metalla commented, "We are very encouraged
by the exploration success at
Santa Gertrudis
and the new discovery of the high-grade Centauro
Zone. We eagerly await the results of the remainder of Agnico's 2018 drill program that will be
focused on mineral resource expansion and exploring new target areas. In addition, Agnico expects
to release an initial mineral resource estimate in
mid-February 2019
."
SANTA GERTRUDIS
– DRILLING OF THE NORTH AND SOUTH DEPOSITS CONFIRMS
HISTORIC MINERAL RESOURCES WITH POTENTIAL FOR EXPANSION; AND THE
DISCOVERY OF A HIGHER-GRADE ZONE
Agnico Eagle acquired its 100% interest in the
Santa Gertrudis
gold property in November 2017.
The 42,000-hectare property is located approximately 180 kilometres north of
Hermosillo
in
Sonora,
Mexico
. The property was the site of historic heap leach operations that produced approximately
565,000 ounces of gold at a grade of 2.1 g/t gold between 1991 and 2000, and includes substantial
surface infrastructure already in place including pre-stripped pits, haul roads, water sources and
buildings.
Three favourable geological trends with a potential strike length of 18 kilometres have been identified
on the property with limited drilling between deposits. In addition, the previous owner reported high-
grade mineralization along northeast-trending structures.
Drill results for the
Santa Gertrudis
project were last reported in the Agnico's news release dated
July 25
, 2018. This news release presents the drill results at the project in the third quarter of 2018
using portable and skid-mounted drill rigs, with the purpose of confirming and extending the historic
mineral resources (estimated by previous owners) and exploring new concepts.
In the third quarter of 2018, 13,120 metres were drilled in 89 holes mainly in the Becerros, Toro,
Escondida, Viviana and
Trinidad
zones. The third quarter drilling almost completes 2018's program
to validate and confirm the most recent historical mineral resource estimates. The 2018 exploration
program at the project consists of 28,000 metres at a budget of
$7.2 million
. Drilling is now focused
on mineral resource expansion and exploring new target areas.
Selected recent drill results from the
Santa Gertrudis
project are set out in the table below, and drill
hole coordinates are set out in a table in the Appendix of the
October 24, 2018
news release. Drill
collars are also shown on the Santa Gertrudis Project Local Geology Map. All intercepts reported
for the
Santa Gertrudis
project show uncapped gold grades over an estimated true width and depth
of midpoint below surface (metres), based on a preliminary geological interpretation that will be
updated as new information becomes available with further drilling.
SELECTED RECENT EXPLORATION DRILL RESULTS FROM THE
SANTA GERTRUDIS
PROJECT
Drill Hole
Zone
From
(metres)
To
(metres)
Depth of
midpoint
below
surface
(metres)
Estimated
true
width
(metres)
Gold
grade
(g/t)
(uncapped)
SGE18-067
Centauro
41.0
45.0
43
4.0
7.0
SGE18-068
Becerros
180.0
191.0
137
11.0
1.8
and
Becerros
197.0
200.0
151
3.0
2.2
SGE18-072
Toro
123.0
145.0
134
18.0
2.2
SGE18-076
Toro
96.0
100.0
98
4.0
1.1
and
Toro
140.9
152.7
145
11.8
3.3
SGE18-082
Toro
88.0
104.6
95
16.6
1.5
SGE18-087
Escondida
20.0
37.0
26
12.5
1.8
SGE18-089
Trinidad
103.0
110.0
30
7.0
2.8
and
Trinidad
123.0
133.0
38
10.0
10.5
including
125.6
129.0
37
3.4
19.5
SGE18-098
Viviana
80.0
99.0
89
8.9
4.8
SGE18-102
Viviana
49.0
52.0
51
3.0
3.0
and
Viviana
96.6
102.0
99
5.4
0.7
*No capping factor was used for these composites. The cut-off grade for these intervals is 0.3 g/t
gold. Recent assay results from the Becerros, Toro, Escondida, Viviana and
Trinidad
zones have
confirmed mineralization and the potential for extensions in these areas, as well as the continuity of
structurally-controlled feeders.
Exploration drilling in the third quarter of 2018 has discovered the high-grade structurally controlled
Centauro Zone, where hole SGE18-067 intersected 7.0 g/t gold over 4.0 metres at 43 metres
depth. Centauro aligns well with, and may represent a projection of, the Camello area (part of
Becerros Zone) 300 metres to the west. Centauro potentially also lies at the intersection of the
Corral
and Toro trends.
In the Becerros Zone, located approximately 1,000 metres southwest of the Centauro Zone, hole
SGE18-068 intersected two intervals that are part of the same mineralized corridor: 1.8 g/t gold
over 11.0 metres at 137 metres depth and 2.2 g/t gold over 3.0 metres at 151 metres depth. The
main mineralized corridor that forms the Becerros deposit can now be traced over 1,500 metres
strike length.
Four recent infill drill holes intersected the Toro Zone along a strike length of 1,660 metres, showing
good correlation with historic drill results. The recent Toro intercepts include hole SGE18-072 that
intersected 2.2 g/t gold over 18.0 metres at 134 metres depth. Sixteen hundred metres to the
southwest, hole SGE18-076 had two intercepts in Toro: 1.1 g/t gold over 4.0 metres at 98 metres
depth and 3.3 g/t gold over 11.8 metres at 145 metres depth. The Toro Zone is located 1,400
metres northwest of the Becerros Zone.
The Escondida Zone is in the northern portion of the project, 2,800 metres northeast of the Toro
Zone. Recent drilling has confirmed the grades and widths of mineralization within the historic
mineral resource area, such as hole SGE18-087 that twinned a historic hole, intersecting 1.8 g/t gold
over 12.5 metres at 26 metres depth.
Seventeen hundred metres northwest of Toro is the Viviana Zone, where hole SGE18-098
intersected 4.8 g/t gold over 8.9 metres at 89 metres depth. Approximately 34 metres to its
southeast, hole SGE18-102 intersected two mineralized intervals: 3.0 g/t gold over 3.0 metres at 51
metres depth and 0.7 g/t gold over 5.4 metres at 99 metres depth. Both exploration holes were
drilled near the historic Viviana open pit.
At the Trinidad Zone, which is located 2,200 metres north-northeast of the Viviana Zone, recent drill
results correlate well with historic drill holes in the area. Hole SGE18-089 intersected two
mineralized intervals: 2.8 g/t gold over 7.0 metres at 30 metres depth (beneath a former open pit
mine) and 10.5 g/t gold over 10.0 metres at 38 metres depth (including 19.5 g/t gold over 3.4
metres). Additional follow-up drilling in this area in 2018 will aim to expand the historic mineral
resources.
An additional 5,800 metres of drilling is planned for the rest of 2018. Agnico expects to report its
initial mineral resource estimate for
Santa Gertrudis
in
mid-February 2019
.
GARRISON ROYALTY
As of
September 30, 2018
, Osisko Mining, the owner of the Garrison Property continues with the
data migration and reinterpretation of the geological plans for the Garrcon, Jonpol and 903 zones.
An additional 90,000 metres of drilling since the previous technical report was published in 2014 has
been completed at the Garrison Property. Osisko is in the process of updating the resource model
with an updated resource estimate expected in
January 2019
.
ABOUT METALLA
Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with
leveraged precious metal exposure through a diversified and growing portfolio of royalties and
streams. Our strong foundation of current and future cash-generating asset base, combined with an
experienced team gives Metalla a path to become one of the leading gold and silver companies for
the next commodities cycle.
For further information, please visit our website at
www.metallaroyalty.com
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
"Brett Heath"
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Technical and third-party information
The disclosure herein and relating to the
Santa Gertrudis
project is based on information publicly
disclosed by Agnico Eagle and information/data available in the public domain as at the date
hereof, and none of this information has been independently verified by the Company. Specifically,
as a royalty holder, the Company has limited, if any, access to the
Santa Gertrudis
project. The
Company is dependent on, (i) Agnico Eagle Mines Limited and their qualified persons to provide
information to the Company, or (ii) on publicly available information to prepare disclosure
pertaining to the
Santa Gertrudis
project and generally has limited or no ability to independently
verify such information. Although the Company does not have any knowledge that such information
may not be accurate, there can be no assurance that such third party information is complete or
accurate. Some information publicly reported by operators may relate to a larger property than the
area covered by the Company's royalty interest. The Company's royalty interest may cover less
than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral
resources and production of a property.
Any financial outlook or future-oriented financial information in this news release, as defined by
applicable securities laws, has been approved by management of Metalla as of the date of this
news release. Such financial outlook or future-oriented financial information is provided for the
purpose of providing information about management's current expectations and plans relating to
the future. Readers are cautioned that such outlook or information should not be used for purposes
other than for which it is disclosed in this news release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within
the meaning of applicable Canadian and U.S. securities legislation. The forward-looking
statements herein are made as of the date of this press release only and the Company does not
assume any obligation to update or revise them to reflect new information, estimates or opinions,
future events or results or otherwise, except as required by applicable law.
Often, but not always, forward-looking statements can be identified by the use of words such as
"plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts",
"projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative
variations) of such words and phrases or may be identified by statements to the effect that certain
actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-
looking information in this press release includes, but is not limited to, statements with respect to
future events or future performance of Metalla, future development or production decision at
Santa
Gertrudis
, statements about possible royalty payments under the Santa Gertrudis NSR and royalty
payments to be paid to Metalla by property owners or operators of mining projects pursuant to net
smelter returns and other royalty agreements of Metalla, continued ramp-up at the Endeavor Mine,
management's expectations regarding Metalla's growth, results of operations, estimated future
revenues, carrying value of assets, future dividends, and requirements for additional capital,
production estimates, production costs and revenue, future demand for and prices of commodities,
expected mining sequences, business prospects and opportunities. Such forward-looking
statements reflect management's current beliefs and are based on information currently available
to management.
Forward-looking statements involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, performance or achievements of the Company to be materially
different from any future results, performance, or achievements expressed or implied by the
forward-looking statements. The forward-looking statements contained in this press release are
based on reasonable assumptions that have been made by management as at the date of such
information and is subject to unknown risks, uncertainties and other factors that may cause the
actual actions, events or results to be materially different from those expressed or implied by such
forward-looking information, including, without limitation: the impact of general business and
economic conditions; the ongoing operation of the properties in which the Company holds a
royalty, stream, or other production-base interest by the owners or operators of such properties in
a manner consistent with past practice; absence of control over mining operations; the accuracy of
public statements and disclosures made by the owners or operators of such underlying properties;
no material adverse change in the market price of the commodities that underlie the asset
portfolio; and other risks and uncertainties disclosed under the heading "Risk Factors" in the
Management's Discussion and Analysis of the Company dated
September 28, 2017
filed with the
Canadian securities regulatory authorities on the SEDAR website at
www.sedar.com
.
Although Metalla has attempted to identify important factors that could cause actual actions, events
or results to differ materially from those contained in forward-looking information, there may be
other factors that cause actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such information. Investors are
cautioned that forward-looking statements are not guarantees of future performance. The Company
cannot assure investors that actual results will be consistent with these forward-looking statements.
Accordingly, investors should not place undue reliance on forward-looking statements or
information.
Readers are cautioned that forward-looking statements are not guarantees of future performance.
All of the forward-looking statements made in this press release are qualified by these cautionary
statements.
SOURCE
Metalla Royalty and Streaming Ltd.
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%SEDAR: 00005157E
For further information:
Contact Information: Metalla Royalty & Streaming Ltd., Brett Heath,
President & CEO, Phone: 604-696-0741, Email: [email protected]; Kristina Pillon, Investor
Relations, Phone: 604-908-1695, Email:
[email protected], Website:
www.metallaroyalty.com
CO: Metalla Royalty and Streaming Ltd.
CNW 07:00e 13-NOV-18