Strategic Metals announces the start of a 7,000 m drill program at its Mt Hinton gold and silver project, Yukon
Strategic Metals announces the start of a 7,000 m drill program at its
Mt Hinton gold and silver project, Yukon
Vancouver, BC – July 27 , 2020 – Strategic Metals Ltd. (TSX -V: SMD) (“Strategic” or the
“Company”) is pleased to announce that a 7 ,000 m diamond drill program has begun at its
wholly-owned Mt Hinton gold -silver project, located in the Keno Hill district of central Yukon.
The 2020 exploration program started in mid -June and has comprised camp construction, road
building, geological mapping, prospecting and sampling, all in preparation for drilling. The
program is fully funded with adequate contingency to double the amount of drilling, if results
and weather permit.
The Mt Hinton project hosts numerous high -grade, gold -silver veins developed in a series of
east-north-easterly and northerly trending structural zones, which cut the same quartzite unit that
hosts uncommonly high -grade silver veins elsewhere in the Keno Hill district. The 2020 drill
program is the first large-scale diamond drill program ever done on the Mt Hinton property. The
program is designed to test potential for both high-grade veins, like those historically mined from
underground workings on an adjoining claim block now owned by Alexco Resources Corp
(“Alexco”), and for bulk tonnage, vein and sheeted veinlet style mineralization similar to that
being mined by Victoria Gold from open pits at its Eagle Deposit, 50 km northwest of Mt.
Hinton. The location of Mt. Hinton project relative to the properties of Alexco and Vi ctoria
Gold is shown on Figure 1.
One of the two drills on the property is currently situated in the Granite North Zone, where a
rock sample collected from talus in 2019 returned bonanza -grade assays of 2,340 g/t gold and
597 g/t silver, and a recent chip sample across bedrock exposed in a hand trench yielded 26.9 g/t
gold and 49 g/t silver across 1.22 m . The Granite North Zone is a complex feature comprising
multiple, sub-parallel bands of altered and veined quartzite. The initial drill holes will form a
section line across this more than 300 m wide zone (see Figure 2).
The other drill is located in the Northern Structural Corridor, an up to 750 m wide zone that
comprises more than 50 veins and vein segments, which have been traced in outcrop and talus
over a combined strike length nearly 4 ,000 m. Historical sampling in this zone focussed on
sulphide-rich vein exposures, and little sampling was done across weakly mineralized veins or
adjacent wall rock. Planned holes in this area are each expected to cr oss three or more veins,
including the 19 vein where historical samples collected along 24 m of exposed strike reportedly
had a weighted average of 6.51 g/t gold and 68.57 g/t silver over average width of 1.7 m, the 21
vein where samples taken over a 22 m long exposure yielded a weighted average of 42.5 g/t gold
and 319 g/t silver across an average 1.05 m width, and the 24 vein where samples collected over
a 24 m length had a weighted average of 17.5 g/t gold and 1546 g/t silver across an average
0.49 m width.
2
A road is currently being built to access drill targets is the South West Zone. This zone is about
100 m wide and has been traced for more than 2 ,000 m along strike. It consists of known veins
and parallel, talus -covered, linear gullies identified by a 2019 LIDAR survey, which are
suspected to host buried veins. Prospecting done in 2020 identified a new vein exposure where
two chip samples, situated 10 m apart along strike, yielded 200 g/t gold and 90 g/t silver over 1.2
m and 80.3 g/t gold and 72 g/t silver over 1 m. Chip samples taken from other exposures in this
zone graded 30.5 g/t gold and 53.1 g/t silver across 1.2 m and 8.82 g/t gold and 63.48 g/t silver
across 1.95 m.
Other targets elsewhere in the 6 km by 4.5 km area of mineralization and st rongly anomalous
gold-in-soil geochemistry are expected to be drilled later in the season. These targets include a
vein zone that was discovered in 2019 on a mostly till covered valley floor, where a chip sample
assayed 24 g/t gold and 36.1 g/t silver across 1.25 m, and a vein in the northwestern corner of the
area of mineralization and anomalous soil geochemistry, which was intersected in a 2011 reverse
circulation drill hole. This intercept was never followed up despite assaying 31.7 g/t gold and 23
g/t silver over 1.52 m. The area of mineralization and anomalous soil geochemistry is shown on
Figure 3.
The 2020 field program on the Mount Hinton property is being managed by Archer, Cathro &
Associates (1981) Limited ("Archer Cathro"). Technical information in this news release has
been approved by Heather Burrell, P. Geo., a senior geologist with Archer Cathro and a qualified
person for the purpose of National Instrument 43-101.
About Strategic Metals Ltd.
Strategic is a project generator with a portfolio of more than 130 projects that are the product of
over 50 years of focussed exploration and research by a team with a track record of major
discoveries. Current projects include more than 80 properties where precious metals are a major
component. Projects available for option, joint venture or sale includ e drill-confirmed prospects
and drill -ready targets with high -grade surface showings, geochemical anomalies and
geophysical features that resemble those at nearby deposits.
Strategic has a current cash position of over $ 12 million and large shareholdings in a number of
active mineral exploration companies including 46.3% of GGL Resources Corp., 36.3% of
Rockhaven Resources Ltd., 19. 6% of Precipitate Gold Corp., 18.7% of Silver Range Resources
Ltd., 9.9% of Trifecta Gold Ltd., and 4.0% of ATAC Resources Ltd . Strategic also holds a
53.5% interest in Terra CO2 Technologies Holdings, Inc. a private Delaware corporation which
is developing an environmentally-friendly, cost-effective alternative to Portland cement.
ON BEHALF OF THE BOARD
"W. Douglas Eaton"
President and Chief Executive Officer
3
Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568
Investor Inquiries
Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
http://www.strategicmetalsltd.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain forward looking statements based on assumptions and judgments of
management regarding future events or results that may prove to be inaccurate as a result of exploration
and other risk factors beyond its control, and actual results may differ materially from the expected
results.
4
5