Sterling Metals Drills Newly Discovered Heimdall Zone at Sail Pond Silver and Base Metal Project
Sterling Metals Drills Newly Discovered Heimdall Zone at Sail Pond
Silver and Base Metal Project
- Multiple Intercepts of Over 1000 Gram-Meter Silver
Equivalent Along 400m Strike Length
February 23, 2022 – Toronto, Ontario – Sterling Metals Corp. (TSXV: SAG) (“Sterling Metals”
or the “Company”) is pleased to report results from its phase 2 drilling on the south zone of the
Sail Pond Silver and Base Metal Project in the Great Northern Peninsula of Newfoundland. The
company will be hosting a zoom webinar at 10am EST on Thursday February 24, 2022, to
discuss these findings in more detail. Registration for the event can be found at:
https://us02web.zoom.us/webinar/register/WN_VlXZp4TGSZmyrSkg_eIM2g.
Significant drill results are listed below:
• 144.0 g/t Ag Eq over 12.2 m (52.6 g/t Ag, 0.019 g/t Au, 0.21% Cu, 0.93% Pb, 0.06% Sb, &
0.33% Zn) in hole SP-21-034 beginning at 148.8 m downhole; and
• 851.98 g/t Ag Eq over 1m (300.17g/t Ag, 0. 077 g/t Au, 1.34% Cu, 1.21% Pb, 0.35% Sb,
4.80% Zn) within a broader interval of 78.8 g/t Ag Eq over 19.8m (28.51 g/t Ag, 0.01 g/t
Au, 0.13% Cu, 0.1 5% Pb, 0.0 3% Sb, & 0. 40% Zn) in hole SP -21-038 beginning at 75.5 m
downhole; and
• 1202.1 g/t Ag Eq over 0.75m (485.3 g/t Ag, 0.18 g/t Au, 1.75% Cu, 3.77% Pb, 0.59% Sb, &
4.10% Zn) within a broader interval of 94.72 g/t Ag Eq over 13.75m (38.27 g/t Ag, 0.014
g/t Au, 0.14% Cu, 0.29% Pb, 0.046% Sb, 0.32% Zn) in hole SP-21-040 beginning at 173.77
m downhole; and
• 963.0 g/t Ag Eq over 1.0 m (378 g/t Ag, 0.133 g/t Au, 1.20% Cu, 6.29% Pb, 0.38% Sb, &
2.41% Zn) within a broader interval of 74.44 g/t Ag Eq over 16.09m (29.22 g/t Ag, 0.011
g/t Au, 0.092% Cu, 0.45% Pb, 0.029% Sb, & 0.21% Zn in hole SP-21-039 beginning at 99.47
m downhole.
Mathew Wilson, CEO of Sterling Metals, commented: “With the high silver equivalent grades
returned from the final holes of the 2021 drill program, we continue to take steps towards the
discovery of a significant silver and base metal district. The Sail Pond project lends itself to a
deposit model analogous to a string of pearls with several deposits situated along the 12km
anomaly. We believe that in just our first program we have discovered the top of the first pearl.
The next steps are to follow these structurally controlled higher-grade structures down plunge
and along strike, and then to repeat this process along the entirety of the trend.”
Sail Pond Drilling
Sterling’s maiden drilling program on Sail Pond was designed to test several regional targets
defined by soil sampling, trenching, prospecting, and geophysics along ~12 km of prospective
strike length, subdivided into the North and South Zones. Today’s results come from drillholes
targeting a significant zone of mineralization within the South Zone (see Sterling press releases
dated September 27 & October 7, 2021). The zone, which is hosted by dolostone, occurs in close
proximity to a structural kink or jog in the contact of the host dolostone and the footwall argillite.
Today’s results show the correlation of mineralization within this flexure zone. A large
mineralized system, now called the Heimdall Zone, is becoming apparent and characterized by a
broad zone of low grade precious and base metals associated with breccia -style or veinlet-style
sulfide mineralization. The current dimensions of the lower grade zone are approximately 400
metres of strike, 200 metres of depth, and 80 metr es of width . The Heimdall Zone plunges
shallowly to the northeast, starting from surface. Within this broad zone, high grade quartz-vein-
hosted mineralization form veins and/or lenses which are currently correlated between drillholes
over distances up to 100m. An example of such veins is shown with core photos in Figure 1. Figure
2 shows a plan map of the drilling completed to date, while Figure 3 shows the correlation of
these intercepts on a longitudinal section looking at the Zone from underground.
The primary host rock for mineralization identified to date 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 included metallic mineralization is best
developed in areas of combined brecciation and veining, especially towards the western contact
of the host dolostone unit and an underlying argillite sequence. The structural evolution and
metallogenic sequencing are very complex, and mineralization has been identified in association
with a multitude of structural events.
Sterling hired SRK Consulting of Toronto, ON, to conduct a detailed structural study of outcrops
and drill core. The results of this study have been incorporated in Sterling’s targeting model and
will be utilized for the 2022 program.
Sterling also continues to utilize the geological modelling and machine learning tools from
Goldspot Discoveries Corp., who are also a significant shareholder of the Company. Using the IP
and gravity surveys, along with the results from this last summer’s drill program, Goldspot has
been able to highlight the exploration areas along the 12km trend line seen in Figure 4.
Kelly Malcolm, Technical Advisor to Sterling, commented “We are very pleased to have identified
a clear body of mineralization on the first ever drilling program at Sail Pond. The Heimdall Zone
is showing substantial strike length & width, along with a strong background of silver and base
metal mineralization. The higher-grade vein-hosted mineralization within the lower grade zones
are starting to show correlation between holes and we are excited to continue to advance and
grow the Zone. On the regional exploration front, the identified flexure at the contact of the host
dolostone and the footwall argillite that h as a control on the size of the mineralized system at
Heimdall has generated a number of targets in both the north and south zones that have never
seen any drilling. In addition to continued expansion and definition of the new Heimdall Zone
announced today, Sterling will drill test each of the additional structural features that have been
identified through geophysics, prospecting, and geochemical surveys. The Company is planning
its 2022 exploration program and expects to be back on the ground towards the end of the
Spring.”
Table 1: Assay results from the Sail Pond Project, Newfoundland. Core lengths are presented, and
true widths are unknown. The silver equivalency calculation used in this press release is described
below under separate heading.
Hole ID
From
(m) To (m)
Length
(m)
AgEq
(g/t)
Ag
(g/t)
Au
(g/t)
Cu
(%) Pb (%)
Sb
(%)
Zn
(%)
SP-21-034 69.1 69.6 0.5 445.5 74.5 0.028 0.342 0.280 0.120 5.570
and 148.8 161 12.2 144.0 52.6 0.019 0.211 0.931 0.063 0.334
inc 152.8 153.2 0.4 644.0 227.6 0.094 0.982 2.370 0.280 2.640
inc 155 155.6 0.6 361.6 132.4 0.063 0.480 2.690 0.160 0.730
inc 159.9 161 1.1 392.7 123.8 0.034 0.393 4.000 0.140 1.060
inc 195 195.5 0.5 398.7 172.4 0.003 0.743 0.810 0.200 1.030
SP-21-038 75.5 95.3 19.8 78.8 28.5 0.010 0.126 0.149 0.030 0.398
inc 85.5 95.3 9.8 145.9 51.0 0.017 0.222 0.300 0.054 0.796
inc 90.25 91.25 1 852.0 300.2 0.077 1.314 1.212 0.350 4.795
SP-21-040 173.77 187.52 13.75 94.7 38.3 0.014 0.142 0.287 0.046 0.320
inc 179.25 187.52 8.27 150.4 62.0 0.021 0.229 0.455 0.074 0.470
inc 179.25 179.5 0.25 915.1 402.0 0.52 1.640 2.560 0.460 1.910
inc 186.77 187.52 0.75 1202.2 485.3 0.179 1.75 3.77 0.59 4.10
SP-21-039 99.47 115.56 16.09 74.4 29.2 0.012 0.092 0.454 0.029 0.206
inc 99.47 105.93 6.46 167.1 67.2 0.023 0.21 1.04 0.067 0.406
inc 101.95 102.95 1 963.0 378.0 0.133 1.195 6.285 0.380 2.413
inc 101.95 102.2 0.25 1923.8 715.0 0.356 2.480 9.700 0.760 6.970
SP-21-032 145.75 154 8.25 75.7 29.0 0.010 0.120 0.328 0.033 0.228
inc 145.75 146 0.25 587.2 211.0 0.080 0.896 3.820 0.210 1.490
inc 148.62 148.87 0.25 1159.9 479.0 0.122 2.080 3.810 0.550 2.710
and 113.39 113.64 0.25 555.6 106.6 0.085 0.720 1.250 0.260 4.850
and 130.62 130.87 0.25 843.5 433.0 0.040 1.440 2.060 0.540 0.490
SP-21-031 130.14 136.5 6.36 144.4 41.6 0.015 0.174 0.628 0.046 0.919
inc 133.8 136.5 2.7 290.1 86.8 0.028 0.350 1.193 0.085 1.848
inc 135.5 135.75 0.25 789.5 291.0 0.072 1.210 4.740 0.300 2.080
inc 135.75 136 0.25 606.1 180.0 0.051 0.660 2.720 0.160 4.020
inc 136.25 136.5 0.25 553.1 150.0 0.048 0.696 1.600 0.160 4.190
SP-21-030 76.5 96.85 20.35 45.7 12.72 0.008 0.045 0.305 0.012 0.266
Inc 81.35 81.6 0.25 417.1 170 0.036 0.748 0.47 0.23 1.47
inc 94.15 96.85 2.7 251.5 68.2 0.041 0.236 1.881 0.057 1.444
inc 94.4 94.65 0.25 1154.9 348.0 0.150 1.310 10.600 0.300 4.040
inc 94.65 94.9 0.25 648.7 225.0 0.069 0.691 5.500 0.200 1.990
SP-21-033 169.38 209.5 40.12 18.46 5.2 0.003 0.017 0.056 0.005 0.146
inc 169.38 169.63 0.25 734.3 115.4 0.003 0.515 0.126 0.180 9.800
inc 209.25 209.5 0.25 959.8 273.5 0.071 0.677 1.630 0.300 9.100
SP-21-025 206.5 208.4 1.9 120.77 54.5 .0073 0.23 0.7 0.02 0.09
inc 206.75 207 0.25 547.9 269.0 0.029 1.290 1.580 0.044 0.510
inc 207.75 208.4 0.65 131.7 51.3 0.005 0.170 1.430 0.038 0.041
SP-21-037 104.5 105.1 0.6 485.2 65.5 0.129 0.251 0.077 0.060 6.940
SP-21-041 129.6 129.85 0.25 923.1 360.0 0.061 2.060 1.710 0.510 2.090
SP-21-022 35 39.3 4.3 59.4 21.2 0.007 0.080 0.152 0.025 0.317
inc 36.43 37 0.57 125.8 34.8 0.015 0.107 0.310 0.036 1.110
inc 39 39.3 0.3 348.6 154.4 0.016 0.610 0.790 0.210 0.740
and 65 66 1 178.2 67.9 0.009 0.275 0.647 0.091 0.610
SP-21-024 184.9 185.28 0.38 440.8 214.0 0.008 0.897 0.031 0.290 0.740
SP-21-026 147 148 1 134.1 44.6 0.008 0.186 0.271 0.043 0.865
and 278.16 280.06 1.9 66.5 15.3 0.006 0.060 0.166 0.014 0.658
inc 278.66 279.16 0.5 101.8 29.2 0.007 0.129 0.082 0.029 0.870
SP-21-028 111 117.15 6.15 27.7 13.3 0.011 0.038 0.080 0.015 0.046
inc 116.9 117.15 0.25 608.4 310.0 0.073 0.871 1.430 0.350 0.960
SP-21-029 27.7 30.35 2.65 63.5 27.2 0.008 0.101 0.297 0.022 0.139
inc 27.7 28 0.3 267.7 117.0 0.037 0.445 1.030 0.100 0.580
SP-21-021 39.75 40 0.25 349.6 141.6 0.005 0.569 0.036 0.170 1.750
and 52 52.54 0.54 79.8 41.9 0.003 0.167 0.049 0.039 0.076
SP-21-012 42.55 42.8 0.25 126.6 30.8 0.003 0.016 2.860 0.010 0.004
and 89.25 89.75 0.5 198.4 70.5 0.015 0.394 0.076 0.120 0.860
SP-21-036 169 169.57 0.57 91.4 44.7 0.012 0.148 0.330 0.036 0.123
and 250 251 1 63.3 24.1 0.003 0.122 0.028 0.020 0.320
SP-21-011 No Significant Values
SP-21-027 No Significant Values
SP-21-035 No Significant Values
Figure 1: Drill core from the South Zone of the Sail Pond Project showing similar high-grade vein-
hosted mineralization in adjacent drillholes indicating continuity of mineralization . Core size is
NQ3 (45 mm diameter).
A: Quartz -vein hosted semi -massive to disseminat ed sulfide and sulfosalt mineralization,
including tetrahedrite-tennantite, sphalerite, and galena from 90.25 to 91.25 metres in hole SP -
21-038.
B: Close-up of mineralization in hole SP-21-038. The sample returned 1,149.0 g/t Aq Eq comprised
of 441 g/t Ag, 1.93% Cu, 6.14% Zn, 0.099 g/t Au, 0.07% Pb, & 0.51% Sb, over 0.59 metres.
C: Quartz-vein hosted (with breccia -hosted mineralization at margins) semi -massive to
disseminated sulfide and sulfosalt mineralization, including tetrahedrite -tennantite, sphalerite,
and galena from 186.77 to 187.52 metres SP-21-040.
D: Close-up of mineralization in hole SP-21-040. The sample returned 1,257.0 g/t Ag Eq comprised
of 500.0 g/t Ag, 0.46 g/t Au, 1.81% Cu, 4.59% Pb, 0.56% Sb, & 3.86% Zn, over 0.25 m.
Figure 2: Plan map of the Heimdall Zone, showing drillhole locations and traces of holes released
in this press release as well as previously released holes. Also shown is satellite photo-imagery
which highlights the ease of access to the area as well as the historical trenching areas.
Figure 3: Vertical Longitudinal section looking West North West showing assay composites
presented in gram -metres (often referred to as “Metal Factor”) of Silver-Equivalent. Composite
locations presented are the three-dimensional midpoint of the assay composite. Composites used
include all significant intervals from this and previous press releases.
Figure 4: Goldspot targeting results for additional flexure structural traps at the contacts of the
target dolostone and footwall argillite along the 12 km target area.
Silver Equivalent Calculation
Silver equivalent (Ag Eq) values were calculated using the following formula:
((Ag_oz*$USAg_price/oz)+(Au_oz*$USAu_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 February 3rd 2022 were applied and include: Ag - $US
22.37/oz; Au - $US1803.60/oz, Cu - $US4.44/lb; Zn – $US1.62/lb; Pb - $US 0.99/lb. The Sb - $US