Sterling Metals Announces Results of 2022 Regional Drilling and Orion 3D Geophysical Survey at Sail Pond
Sterling Metals Announces Results of 2022 Regional Drilling and Orion 3D
Geophysical Survey at Sail Pond
May 8, 2023 – Toronto, Ontario – Sterling Metals Corp. (TSXV: SAG) (OTCQB: SAGGF) (“Sterling Metals” or
the “Company”) is pleased to announce the completion of the Deep Orion 3D geophysical survey and report
the balance of results from its 2022 drilling on the Sail Pond Silver and Base Metal Project in the Great Northern
Peninsula of Newfoundland. Drilling results are f rom the regional exploration program focused on the North
and Central Zones.
Highlights:
Orion Survey
• Four new exploration targets discovered.
• Favorable geology mapped to depth of 2 kilometres.
• Strong anomaly beneath newly discovered Heimdall North Zone and SP-22-064.
• Surveyed 1.5 km of the 14 km trend as a test before large-scale application.
• Permits for summer drilling submitted.
• Plans to test identified anomalies in coming months.
• Airborne survey planned to scan entire property based on drill results.
2022 Regional Exploration Results
• Intercepted wide zones of brecciated dolostones showing variably developed polymetallic mineralization
along ~4 km of strike.
• Discovery of a new mineralized system at depth, the Central Ridge Zone , which has the potential to be
another pearl along the ~12 km trend , marking the fourth area of mineralization discovered on the
property in two years.
• Sail Pond North revealed new pockets of mineralization, including the highest grade to date in the area at
18.55 m downhole in SP-22-066 at 496 g/t AgEq over 0.25 m (259 g/t Ag, 1.44% Cu, 0.27% Pb, 0.26% Zn,
0.39% Sb).
• Intervals intersected at Sail Pond North appear to be the upper portions of a larger mineralized system,
exhibiting similar host geology and mineralization to the top of the Heimdall Zone.
• Better understanding of the orientation of the structures will provide better targeting in future drill
programs.
Jeremy Niemi, Senior Vice President of Exploration and Evaluation stated, “During our 2022 drilling campaign
at Sail Pon d, the discovery of new zones of high -grade silver -copper mineralization was a cause for great
satisfaction among our team. Close examination of the core revealed that our drilling may have intersected the
edges of a more extensive mineralization system. This encouraged our team to deploy the best -in-class high
resolution 3D geophysical survey to guide our next exploration steps towards potentially larger zones. It is
fantastic that four new targets have emerged where we would expect to see larger bodies of mineralization.
The targets fit very well with our regional geological interpretation; we eagerly anticipate the opportunity to
drill them in the coming months. This is a v ery exciting time for the Sail Pond Pr oject and the Sterling Metals
team.”
2023 Orion Survey
The Deep Orion 3D Swath DCIP and MT Survey employed state-of-the-art 3D ground geophysical techniques on
a priority area which includes the Heimdall and Heimdall North Zones. The survey was designed w ith 200 m
spaced lines and readings between lines to generate a 3D interpretation of key structural controls on
mineralization and to identify potential high -grade feeder zones as exploration targets . The survey utilized 3
km long lines for deep viewing me asuring IP (chargeability) to locate potential sulphide mineralization bodies
to 500 m depth, and MT (resistivity) to map favorable host geology to 2 km depth.
The deep-looking Orion survey uncovered s everal new IP anomalies and successfully mapped the favorable
anticline geology of the host dolostone unit to 2 km depth. Cross -cutting north-east trending structures,
potentially mineral-bearing, were also identified. In total 1.5 km of the 14 km trend at Sail Pond was surveyed
as a test before covering larger sections of the property. The results of this survey have isolated four new
exploration targets, including a strong IP anomaly coincident with a resistivity high discovered beneath the new
Heimdall North Zone and SP-22-064. Permits for summer drilling have been submitted, and plans are underway
to test these anomalies in the coming months. Additionally, an airborne geophysics survey is planned to scan
the entire property based on drill results. As shown in Figure 1, the final footprint of the Orion survey was
focused on the most prospective area surrounding the Heimdall and Heimdall North Zones. Two of the new
targets are in proximity to the Heimdall North Zone and displayed in Figure 2.
Figure 1. Final Orion 3D Survey Area at the Sail Pond Project
Figure 2. Cross section from Orion 3D survey at Heimdall North showing two of four new targets.
Mathew Wilson, CEO of Sterling Metals stated, “ Typically, numerous mining cycles and efforts from many
companies working on a new discovery are required to reach the stage that has been achieved at Sail Pond. It
is with great excitement that we anticipate to drill these highly encouraging anomalies which exist below the
1km footprint of Heimdall and Heimdall North. With nearly $8 million in the bank, the start of the Sail Pond drill
program marks the initial phase of shareholder value creation, as we intend to undertake drilling activities at
both Sail Pond and Adeline this summer.”
2022 Regional Exploration Results
Sterling’s 2022 drilling program successfully completed 34 new holes for over 7,500 m of drilling at new targets
and the Heimdall Zone. Highlights of the program are the expanded mineralization at Heimdall and newly
identified mineralized zone 500 m to the north. The gap between Heimdall and the new zone to the north is
virtually wide open and considered very prospective , especially due to the presence of new Orion 3D targets.
Targeting for the 2022 program incorporated a detailed structural interpretation by SRK and a comprehensive
study by Goldspot which utilized an exploration targeting matrix of 6 geological and geophysical factors which
included: presence of silver and copper mineralization at surface, prominent regio nal north -east trending
structures in proximity (as interpreted by SRK), a warp in the argillite contact, distinct breaks in high
chargeability anomalies and coincident highs in resistivity.
Today’s results come from drillholes testing regional targets along the ~14 km of prospective strike length and
focused grab sampling from regional target generation and project enhancement. Figure 3 shows a plan map
of drillhole and grab sample locations. Prospecting and geological mapping was focused on several highly
prospective targets that were identified using our updated exploration targeting matrix.
Figure 3: Plan map showing drill hole locations and grab samples at the Sail Pond North and Central Ridge
Zones
Across the Sail Pond Project structural complexity is associated with the localization of polymetallic
mineralization. The drilling in the Sail Pond North and Central Zone concentrated on locations with similar
structural complexities where obliquely converging faults/lineaments intersect the ma in foliation in the area,
often associated with anomalous samples. The regional targets were successful in intercepting wide zones of
brecciated dolostones showing variably developed polymetallic mineralization along ~4 km of strike.
The regional target generation and drilling resulted in the discovery of a new mineralized system at depth, the
Central Ridge Zone (Central Ridge) , which has the potential to be another pearl along the ~12 km trend.
Occurring in close proximity to a structural kink or jog , the Central Ridge is c haracterized by a wide zone of
mineralized brecciated dolostone with clots of sulphides and sulfosalts. The thick veins and massive portions of
the system are yet to be discovered, and the area is wide open in all directions. This marks the fourth area of
mineralization discovered on the property in two years. In addition, Sail Pond North continued to reveal new
pockets of mineralization, including the highest grade to date in the area at 18.55 m downhole in SP-22-066.
The intervals intersected appear to be the upper portions of a larger mineralized system, exhibiting similar host
geology and mineralization to the top of the Heimdall Zone. An example of core from the North and Central
Zone is shown in Figure 4 & 5.
The mineralization at Sail Pond, especially the high -grade veins, is structurally controlled and understanding
the orientation of the structures is vital to expanding zones and identifying potential new zones along preferred
structural trends. The Co mpany has completed an extensive down hole optical televiewer study to measure
the orientation of high -grade veins and other structural features in important drill holes across the property.
This data and the enhanced geological model will play a significa nt role in the targeting for the next drill
programs.
The primary host rock for mineralization identified is a thick sequence of highly altered and often brecciated
dolostone of the Cambro-Ordovician Saint George Group. Mineralization encountered to date typically consists
of tetrahedrite-tennantite, chalcocite, sphalerite, galena, pyrite, and potentially additional sulfosalt minerals.
Quartz veining and associated mineralization are ubiquitous throughout the dolostone unit, but include d
metallic mineralization is best developed in areas of combined brecciation and veining. The structural evolution
and metallogenic sequencing are very complex, and mineralization has been identified in association with a
multitude of structural events.
Figure 4: Dolostone-hosted breccia-style sulfide mineralization in hole SP-22-066 at 18.63 – 18.71 m
Figure 5: Quartz-carbonate vein-hosted disseminated to semi-massive mineralization within host brecciated
dolostone in hole SP-22-076
Table 1. Reported assay intervals from Sail Pond 2022 drilling.
Drillhole Zone From
(m) To (m) Length
(m)*
AgEq
(g/t)
Ag
(g/t)
Cu
(%)
Pb
(%)
Zn
(%) Sb (%)
SP-22-066 North 18.55 18.8 0.25 496 259 1.44 0.27 0.26 0.39
and 25.5 25.75 0.25 101 48 0.32 0.12 0.067 0.078
SP-22-067 North No Significant Results
SP-22-068 North 3.5 4.15 0.65 340.3 181 0.99 0.31 0.19 0.22
SP-22-069 North 36 37 1 119 60 0.26 0.32 0.35 0.061
inc 36 36.5 0.5 161.3 75 0.32 0.55 0.66 0.086
and 122 122.25 0.25 115.7 69 0.27 0.096 0.061 0.076
SP-22-070 North 16 22.25 6.25 24.2 13.5 0.052 0.051 0.042 0.013
inc 16 16.27 0.27 96 43 0.16 0.22 0.67 0.041
and 99.06 99.89 0.83 96.4 49 0.16 0.15 0.52 0.045
and 123.5 124 0.5 130 65 0.22 0.24 0.70 0.067
SP-22-071 North 65.75 66.25 0.5 284.1 124 0.50 1.26 1.35 0.15
inc 65.75 66 0.25 322.4 150 0.62 1.62 0.83 0.202
and 107.14 107.6 0.46 79.1 41 0.15 0.24 0.26 0.039
SP-22-072 North No Significant Results
SP-22-073 Central 46 46.5 0.5 108.2 60 0.27 0.078 0.071 0.084
56.35 56.6 0.25 183.5 95 0.53 0.035 0.084 0.16
SP-22-074 Central 95.2 95.9 0.7 86.5 40 0.24 0.09 0.196 0.07
and 121.1 121.4 0.3 97 52 0.27 0.045 0.05 0.078
and 123.25 123.55 0.3 150 65 0.36 0.51 0.48 0.093
SP-22-075 Central No Significant Results
SP-22-076 Central 31.5 34 2.5 84.7 38.8 0.22 0.25 0.15 0.059
inc 31.5 32 0.5 260.2 124 0.84 0.072 0.18 0.22
and 57 73 16 24.1 12.3 0.063 0.032 0.029 0.018
inc 62.5 63 0.5 110.2 59 0.29 0.14 0.058 0.085
inc 66 66.5 0.5 287.7 152 0.80 0.22 0.13 0.24
inc 72 72.25 0.25 202 106 0.56 0.27 0.12 0.14
and 127 128 1 193 42 0.19 0.78 3.07 0.0092
SP-22-077 Central 108.9 109.15 0.25 152.2 72 0.36 0.25 0.56 0.089
SP-22-078 Central 40.35 41.85 1.5 94.7 48.3 0.18 0.53 0.13 0.05
inc 40.81 41.18 0.37 263.8 136 0.47 1.92 0.082 0.14
*Mineralized intervals may not reflect the true width of the zones.
Table 2. Reported Sail Pond drillhole locations and orientations.
HoleID Easting Northing Elevation (m) Azimuth Dip Final Depth (m) Target
SP-22-066 578619 5661414 53.51 300 -45 250 North Zone
SP-22-067 578854 5661279 67 300 -45 241 North Zone
SP-22-068 578379 5661369 49.68 300 -45 217 North Zone
SP-22-069 578864 5662287 74.32 290 -45 233 North Zone
SP-22-070 578961 5662481 77 290 -45 232 North Zone
SP-22-071 578960 5662476 77 50 -60 523 North Zone
SP-22-072 579112 5662528 74 290 -50 251 North Zone
SP-22-073 577263 5659118 70 300 -45 215 Central Zone
SP-22-074 577276 5658982 65 300 -45 197 Central Zone
SP-22-075 577324 5658837 50 300 -45 179 Central Zone
SP-22-076 577202 5659144 76 120 -45 133 Central Zone
SP-22-077 577202 5659144 76 120 -54 131 Central Zone
SP-22-078 577202 5659144 76 100 -50 121 Central Zone
Option Grant
In addition, the Company announces that it has granted an aggregate of 6,280,000 options to purchase common
shares of the Company exercisable at a price of $0.15 per common share for a period of two (2) years to
directors, officers, and consultants of the Company. The common shares issuable upon exercise of the options
are subject to a four month hold period from the original date of grant.
Silver Equivalent Calculation
Silver equivalent (Ag Eq) values were calculated using the following formula:
[(Ag_oz*$USAg_price/oz)+(Cu_lb*$USCu_price/lb)+(Pb_lb*$USPb price/lb)+(Sb
lb*$USSb_price/lb)+(Zn_lb*$USZn_price/lb)]/$USAg_price/oz.
Silver equivalent grade calculations are based on the current spot metal prices and are provided for
comparative purposes only. This approach reflects the polymetallic nature of the mineralization.
Recovery factors of 100% have been assumed for all metals. Metallurgical tests will be required to establish
recovery levels for each element reported. Metal spot prices as at the close of the London Metals Exchange
April 6th, 2023 were applied and include: Ag – $US 24.90/oz; Cu – $US4.02/lb; Zn – $US1.28/lb; Pb – $US 0.96/lb.
The Sb – $US 5. 74/lb price applied was sourced from Argus Media, a recognized provider of energy and
commodity price benchmarks.
Qualified Person
Jeremy Niemi, P.Geo., Senior Vice President of Exploration and Evaluation for Sterling Metals has reviewed and
approved the technical information presented herein.
Laboratory Technical Note
Analytical services were provided by SGS Canada Inc., which is an independent, CALA -accredited analytical
services firm registered to ISO 17025 standard. Drill core was halved by sawing at the Sterling core facility and
half-core samples were securely stored at the facility until being delivered to SGS Grand Falls site by commercial
transport. Samples were crushed to 75% passing 2 mm, split to 250g, and pulverized to 85% passing 75 microns.
Multi-element analyses, including base metals, were conducted on pulverized material using the ICP-AES
method for 34 elements. Laboratory over-limits analysis methods were applied as required. A systematic QAQC
protocol was employed that includes systematic insertion in the sample stream of certified reference materials
and blank samples, plus analysis of duplicate pulp splits and core splits.
About Sterling Metals
Sterling Metals (TSXV: SAG and OTCQB: SAGGF) is a mineral exploration company focused on Canadian
exploration opportunities. The Company is currently advancing its 100% owned Sail Pond Project located in the
Great Northern Peninsula of Newfoundland and recently acquired the Adeline Project in Labrador. The 13,500
ha Sail Pond Project is a brand-new discovery, first discovered in 2016 with no drilling prior and consists of high
grade, silver, copper, lead and zinc associated with quartz-carbonate veining, brecciated dolostone, and 100%
sulfosalt veining. The 29,700 ha Adeline Project is a mid-stage exploration project covering an entire sediment-
hosted copper belt, with demonstrated potential for important new copper discoveries with significant silver
credits. Both projects are easily accessible by road with nearby services and a 30-min flight from one another.
For more information, please contact: Sterling Metals Corp.
Mathew Wilson, President & CEO Tel: (416) 643-3887
Email: [email protected]
Website: www.sterlingmetals.ca
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