Metallis Completes Vtem Survey & Provides Exploration Update ON the Central Kirkham Area
METALLIS COMPLETES VTEM SURVEY & PROVIDES EXPLORATION UPDATE
ON THE CENTRAL KIRKHAM AREA
March 28, 2018
Vancouver, BC: Metallis Resources Inc. (TSX-V: MTS) (“Metallis” or the “Company”) announce s that
Geotech Ltd. has completed the 2018 airborne versatile time -domain electromagnetic survey (“VTEM
Survey”) over its Thunder North, Thunder South and King areas within its 100% owned Kirkham Property.
Click here for 2018 VTEM area block map.
The high resolution VTEM survey (83.3m line -spacing), within the previous VTEM data set of 250m line-
spacing, covered a 13.3km2 block of the Central Kirkham area and included the King, King East, Cole and
Etta prospects . The VTEM survey was designed to detect conductors related to volcanogenic massive
sulphide (VMS), shear -vein hosted gold and porphyry copper -gold systems. Results will be int egrated
with historical data to prioritize targets for follow up ground work during the 2018 exploration season.
Exploration activities are scheduled to commence as soon as weather conditions allow.
Targets within the Central Kirkham area
The Central Kirkham area is defined as between the King and Terwilligen creeks . This area contains the
regionally significant “Red-line” of Kyba (2014); the Hazelton -Stuhini contact spatially coincident with
several prolific deposits (Eskay C reek, Brucejack, KSM, Red Chris, Snip and others) throughout
Northwest BC.
The western domain is underlain by Jurassic Hazelton group rocks and contains shallow marine
exhalative sulphide showings at the Etta, King and Natt prospects. The stratigraphic position is
interpreted to be similar to the host rocks of the Mid-Jurassic Eskay Creek Mine.
The eastern domain contains the Cole and King East porphyry prospects and is underlain by Triassic
Stuhini group rocks which are intruded by the Hawilson monzonite . The Hawilson monzonite is a ~6km
north-south trending stock assigned to the Texas Creek intrusive suite which contains the Mitchell
Intrusions responsible for Seabridge Gold’s KSM copper gold porphyry deposits.
King
A 2017 drill-hole (KH17-10) revealed that the King geophysical conductor located ~200m west of the
Hawilson monzonite is attributed to g raphitic shale with 5 -8mm wide pyrrhotite bands near the
volcanic/sediment contact . The stratabound sulphides and s everal intervals of anomalous pathfinder
elements including lead, zinc, silver, antimony, arsenic and mercury are interpreted to be a distal
expression of a VMS system.
Etta & Natt
The Etta showing is located ~600m north of the King Target. The showing is hosted in a sequence of
sedimentary rocks including a 20m thick argillite-siltstone unit with a n underlying 2-5m thick argillaceous
chert unit. A 300m long, south trending soil anomaly (Au, Ag, As and Zn ) extends from the outcropping
chert. Historic g rab samples included a pyritic argillaceous chert which returned 0.29 g/t Au, and
gossanous boxworks which returned 1.37 g/t Au.
The Natt showing is located ~500m south of the King Target (outside the 2 018 VTEM Central Kirkham
block) and is hosted in a succession of volcanic flows , coarse pyroclastic rocks , mudstones, minor
limestone and chert beds favorable for VMS style mineralization.
The host lithology and anomalous gold values in soil and rock samples of both the Etta and Natt
prospects are being interpreted and tested as a vent proximal facies with a siliceous, shallow marine
exhalative unit, comparable to the Eskay Creek host stratigraphy. Work during 2018 will integrate VTEM
conductors to refine the targets and prospect model.
King East
The King East target is defined by coincident magnetic and resistivity anomalies . Previous work
highlighted numerous narrow gold -bearing veins, small intrusive stocks and anomalous Au-Cu values in
soil from sub-crop exposed by trenches in the southern target area. The combined geology, geophysical
and geochemical signature patterns identify this area as a copper-gold porphyry target similar to one of
the KSM deposits. Results from the 2018 VTEM survey will assist to refine the deposit model and identify
potential drill targets.
Cole
The Cole prospect is located at the northern extent of the 6km long Hawilson monzonite . During 2017,
exploration work outlined a 400m x 200m wide area of gossanous, quartz-sericite-pyrite (“QSP”) altered
porphyry outcrops. Alteration mapping indicates a zonation of an intense QSP assemblage surrounded by
propylitic, chlorite-epidote-carbonate alteration. Rock grab samples returned values between 0.2 -0.9% Cu
while soil values returned 300 to >600 ppm Cu and 100-500 ppb Au. The Cole target area represents
significant potential for porphyry copper-gold mineralization analogous to the Kerr porphyry Cu-Au deposit
at KSM. The Kerr deposit is hosted by a suite of north-south trending intrusive dikes and narrow stocks
and contains a Measured + Indicated Resource of 378.4 Mt averaging 0.41% Cu, 0.22 g/t Au (source:
Seabridge Gold Resource estimate Feb 2018, http://seabridgegold.net/resources.php).
Moving Forward - 2018 Exploration Program
The 2018 work program is scheduled to include extensive ground work of geological mapping and
geochemical sampling following up known target areas discussed above as well as new priority targets
identified in the VTEM survey results. Dr. Razique, Chief Geologist for Metallis commented, “The Kirkham
Property remains highly prospective for VMS, shear vein hosted gold and porphyry copper -gold deposits.
The VTEM results combined with comprehensive geological understanding will further refine targets and
focus exploration efforts towards discovery. We are also excited to continue exploring the Kirkham
Property for magmatic nickel sulphide prospects similar to the adjoining Garibaldi Resources Nickel
Mountain project”.
Metallis President and CEO Fiore Aliperti commented, “We are eagerly waiting to see the results from the
expanded VTEM s urvey and its implications for the upcoming exploration and drilling program. With the
focus to the north of the Kirkham Property, it’s easy to forget what a fantastic land package Metallis holds .
We are well financed to conduct a comprehensive exploration program this year.”
Qualified Person
Technical aspects of this news release have been reviewed and approved by David Dupre, P.Geo.,
designated as a qualified person under National Instrument 43-101.
About the Kirkham Property
The 106 sq .km Kirkh am Property is located about 65 km north of Stewart , BC within the prolific Golden
Triangle. The northern border of Kirkham is contiguous to Garibaldi Resources’ E&L Nickel Mountain
Project whereas the northeast corner of Kirkh am is within 12km of the Eskay Creek mine and the eastern
border is within 15 - 20km of Seabridge Gold’s KSM deposits and Pretium Resources’ Brucejack mine.
About Metallis
Metallis Resources Inc. is a Vancouver-based company focused on the exploration of gold, copper, nickel
and silver at its 100% owned Kirkham Property situated in northwest British Columbia’s Golden Triangle.
Metallis trades under the symbol MTS on the TSX Venture Exchange and currently has 31,998,629
shares issued and outstanding.
2018 Venture 50
Metallis Resources Inc. was recently included in the 2018 Venture 50 (the “V50”). The V50 is a ranking of
top performers on the TSX Venture Exchange last year. The ranking is comprised of ten companies from
each of five industry sectors selecte d based on three equally weighted criteria: Market capitalization
growth, share price appreciation and trading volume amount. To view the V50 video click here.
On behalf of the Board of Directors:
/s/ “Fiore Aliperti”
Chief Executive Officer, President and Director
For further information:
Tel: 604-688-5077
Email: [email protected]
Web: www.metallisresources.com
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