Metallis Resources Enters Option to Acquire Past-Producing Greyhound Silver/GOLD MINE IN Idaho, USA
METALLIS RESOURCES ENTERS OPTION TO
ACQUIRE PAST-PRODUCING GREYHOUND
SILVER/GOLD MINE IN IDAHO, USA
VANCOUVER, BC
,
Feb. 27, 2024
/CNW/ -
Metallis Resources Inc.
(TSXV: MTS) (OTCQB:
MTLFF) (the "Company" or "Metallis") is pleased to announce that it has entered into an option
agreement (the "Agreement") with Greyhound Mining & Milling, Inc., (the "Optionor"), to acquire a
100% interest in the Greyhound Property (the "Property"), located in the mining friendly state of
Idaho, USA
. The Property encompasses the past producing, Greyhound and Bulldog high-grade
silver/gold mines along with multiple historic workings. The Agreement is subject to customary
regulatory approvals.
Fiore Aliperti
, President, and CEO of Metallis stated
,
"Although we are seeing an overall change for
the better in investor sentiment, it's important to recognize the current market conditions and
understand the cost and dilution implications of large-scale exploration in the Golden Triangle at this
time. As the market continues to find its feet, it's critical for Metallis to add value in alternative ways,
despite the fact that our principal project remains the Kirkham Property. With that in mind, we
started the process in 2023 to look at possible acquisitions and the group that owned the Greyhound
stood out. It is important that if we are to add a second project to the MTS portfolio, not only does
the project need to show economic potential, the optionor needs to hold the same values as us.
These include putting the project, the Company, and the investors first."
He went on to add, "This option agreement demonstrates the confidence both parties have in this
high-quality resource asset as it favours long term success with low upfront costs. Metallis can
efficiently put funds into the ground, with resources and services more accessible than operating in a
remote access location. The Agreement for staged compensation over a 10-year period is
structured to reward both parties as the project advances through the stages of exploration and
development."
About the Property:
The 124 hectare Greyhound Property encompasses two past producing silver/gold mines
(Greyhound and Bulldog) in central
Idaho
. The claims outlined in the Agreement comprise 12
patented mining claims and 3 patented mill site claims with 1 patented pending mining claim and 8
patented pending mill site claims. The Property is road accessible via paved and gravel road and is
located 41 km from
Stanley
and 225 km from
Boise
, the state capital.
Greyhound property location with surrounding mineral deposits (CNW Group/Metallis Resources
Inc.)
The Property is hosted in granites and granodiorites of the
Idaho
batholith and contains a 3.6 km
long mineralized shear zone highlighted by two past producing mines as well as multiple historic
surface workings. This shear zone, measuring up to
12 m
across, contains multiple quartz-sulphide
veins. Other parallel mineralized shears have been identified on the Property, but sill require
evaluation.
Greyhound property outlining multiple showings and mines along the 3.6 km shear (CNW
Group/Metallis Resources Inc.)
Ongoing compilation of historic assays by the Metallis geological team has suggested a robust
system that demonstrates consistent mineralization at multiple historic workings including the two
most developed underground operations at the Greyhound and the Bulldog mine.
In 1979 a 2,663kg bulk sample was taken from the lower Rufus Adit at the Greyhound Mine.
This sample returned a grade* of
: 2.39g/t Au, 1953 g/t Ag, 3% Pb and 2% Zn
and exemplifies
the high-grade nature of this target.
In 1991, channel sampling across the mineralized vein in the Rufus Adit, taken at systematic
intervals, returned an arithmetic average grade* for "ore-shoot 1350" of:
1.85 g/t Au, 785 g/t
Ag over a length of
36.88m
.
In 1999 a grade summary was prepared by Robert Longe to assess grade potential along the
Greyhound shear. His work on the Rufus Adit demonstrated average grades* for well
documented "ore-shoots" to be
684 g/t Ag and 0.85 g/t Au including 3% Zn and 1%
Pb
.
A long section along the shear zone demonstrating the consistent surface mineralization (CNW
Group/Metallis Resources Inc.)
*The reader is cautioned that all measurements and metal grades are derived from previous
reports and
the company has not independently confirmed the results.
The similarity of values and
conservative approach does lend confidence to these values. They are presented for
completeness.
Property History
Initial exploration in the late 1800's led to multiple claims being staked along the Greyhound shear as
prospectors and miners discovered the high-grade silver mineralization at surface on Greyhound
Ridge. Five adits were driven into the mountain from 1896 to 1910 as local miners commenced small
scale mining at the Greyhound and the Bulldog with multiple other pits and shafts being sunk across
the Republican, the Buckhorn and the
Idaho
prospects. These prospects, along with the Greyhound
and the Bulldog, provided high grade silver/gold/lead mineralization to a smelter built on site, until
mining ceased with the decline of metal prices in 1910.
Since then, the Property has been privately owned with patented mining claims dating back to 1921.
It has seen little activity except for a period of minor production on a trial basis in 1979 when the
Lower Rufus Adit (Greyhound Mine) was driven
309 m
along the mineralized shear zone. It was
further extended to
458 m
in 1991. Several minor underground and surface sampling programs have
been completed, although the Property has never been explored by any modern techniques. Good
quality concentrates are reported to have been produced from the Greyhound mine.
Next Steps
The Greyhound Property provides large upside potential due to a lack of modern exploration being
performed over the Property's entire history. In the last 45 years, the Property has been held by a
family-owned business as part of a larger asset portfolio. This has left a well-endowed property off
the market, during a period where geological methodologies and approaches have changed, and
exploration technologies have evolved. This allows Metallis to leverage its exploration experience to
unlock the mineralized potential through geological mapping, drone arial surveys, geophysical
surveys, and diamond drilling.
Continued compilation of historic reports will help the team determine the true grade and tonnage
potential outside of the historic workings. To date, approximately
600 m
of horizontal workings have
been documented across the
3,600 m
shear zone leaving significant underexplored strike length left
for further testing. The last ore shoot encountered in the Lower Rufus Adit returned some of the best
grades on the Property that are comparable to many of the operating mines in the state. A further
3,000 meters of untested ground remains across multiple high-grade silver/gold surface showings
and pits. The system also remains open to depth as mineralization has been demonstrated over 500
vertical meters from the Rufus Adit to mineralization on top of Greyhound Ridge.
This region has recently seen exploration success where historic silver camps have been able to
outline sources at depth and this will be factored into the team's exploration programs. During initial
exploration, the team will be assessing the Property for source intrusions or disseminated
mineralization. The Property's location, within the
Great Falls
tectonic zone and the
Central Idaho
batholith also lends itself to the potential for porphyry mineralization due to mapped Tertiary aged
intrusions on the Property.
Agreement Terms:
The Agreement requires staged payments of
US$670,000
, which commence on the date of signing
the Agreement being
February 26, 2024
(the "Effective Date"), and exploration expenditures of
US$10 million
over a ten-year period. At any time during the option period, the Company may
exercise the option to acquire a 100% interest in the Property by paying
US$7.5 million
, plus the
balance remaining of the
US$670,000
at the time of exercise. In addition, the Company will issue a
share purchase warrant to the Optionor for the purchase of up to 1,000,000 common shares of
Metallis at a price of CAD
$0.34
per share for a three-year period. The following table specifies the
above noted obligations:
Date
Option payment (US)
Minimum exploration
expenditures (US)
On the Effective Date
$20,000
-
1
st
anniversary
$35,000
-
2
nd
anniversary
$55,000
$90,000
3
rd
anniversary
$75,000
$200,000
4
th
anniversary
$85,000
$400,000
5
th
anniversary
$100,000
$900,000
6
th
anniversary
$60,000
$1,610,000
7
th
anniversary
$70,000
$1,700,000
8
th
anniversary
$80,000
$1,700,000
9
th
anniversary
$90,000
$1,700,000
10th anniversary
-
$1,700,000
Total
$670,000
$10,000,000
Any reference to the term "anniversary" in the above schedule or anywhere in this news release
refers to the anniversary of the Effective Date for paying by the Company of balance of the staged
payments of
US$670,000
and exploration expenditures of
US$10 million
.
The Optionor retains a 2% Net Smelter Returns Royalty, which may be reduced to 1% by the
payment of
US$5 million
during the term of the Agreement.
Qualified Person
David Dupre
, P.Geo, Vice President - Exploration and the Qualified Person, as defined by National
Instrument 43-101, has reviewed and approved the technical information contained in this release.
Historic assays cannot be verified by Metallis as they are historical in nature although there is no
reason to believe they are inaccurate.
About Metallis
Metallis Resources Inc. is a
Vancouver
-based company focused on the exploration of gold, copper,
nickel, and silver at its 100%-owned flagship Kirkham Property situated in northwest
British
Columbia's
Golden Triangle. Metallis trades under the symbols MTS on the TSX Venture Exchange,
MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Stock Exchange. The Company has
60,544,312 common shares outstanding.
About the Kirkham Property
The wholly owned, 106 sq. km Kirkham Property is located about 65 km north of
Stewart, B.C.
, in
the heart of the Golden Triangle's prolific Eskay (Sulphurets) Camp. The Property is contiguous to
Garibaldi Resources Corp.'s E&L Nickel Mountain Project to the north and Eskay Mining Corp. to the
east. It is located along a strategic geological boundary – the "Red-line" exposed on the western
margin of the Eskay Rift system and is prospective for multiple mineral deposit types. The Kirkham
Property is within 20 km of the past producing
Eskay Creek
mine while the eastern border is within
12 – 20 km of Seabridge Gold's KSM deposits and Newcrest Mining's producing Brucejack mine.
On behalf of the Board of Directors:
/s/ "Fiore Aliperti"
Chief Executive Officer, President, and Director
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Press Release may contain statements which constitute 'forward-looking' statements, including
statements regarding the plans, intentions, beliefs and current expectations of the Company, its
directors, or its officers with respect to the future business activities and operating performance of
the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" and similar expressions, as they relate to the Company, or its management, are
intended to identify such forward-looking statements. Investors are cautioned that any such forward-
looking statements are not guarantees of future business activities or performance and involve risks
and uncertainties, and that the Company's future business activities may differ materially from those
in the forward-looking statements because of numerous factors. Such risks, uncertainties and
factors are described in the periodic filings with the Canadian securities' regulatory authorities,
including quarterly and annual Management's Discussion and Analysis, which may be viewed on
SEDAR at
www.sedarplus.ca
. Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking statements prove incorrect, actual results may
vary materially from those described herein as intended, planned, anticipated, believed, estimated,
or expected.
Although the Company has attempted to identify important risks, uncertainties and factors which
could cause actual results to differ materially, there may be others that cause results not to be as
intended, planned, anticipated, believed, estimated, or expected. The Company does not intend, and
does not assume any obligation, to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release. The TSX-V Stock Exchange has neither approved nor disapproved the contents of this
news release.
SOURCE
Metallis Resources Inc.
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For further information:
Tel: 604-688-5077, Email: [email protected], Web:
www.metallisresources.com
CO: Metallis Resources Inc.
CNW 09:00e 27-FEB-24