Strategic Metals Ltd.

Strategic Metals Ltd.

June 06, 2006 11:55 ET

Strategic Metals to Drill Eureka Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 6, 2006) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to announce that it has signed an agreement with StrataGold Corporation, its partner in Eureka Joint Venture, that will allow Strategic to earn a 100% interest in the Eureka gold property by performing excavator trenching and reverse circulation drilling. The road accessible Eureka property is located within the Klondike Gold Fields near Dawson City, Yukon. The exploration program is scheduled to begin immediately.

Under terms of the agreement, Strategic can earn a 100% interest in the property by spending between $250,000 and $300,000 on the trenching and drilling program. Upon receiving a report describing the results, StrataGold will have the right to earn back a 50% interest by making a cash payment to Strategic equal to 1.25 times its expenditures or by making exploration expenditures during 2007 that total twice the amount Strategic expended. If StrataGold elects not to earn back, it will be granted a 1% net smelter return royalty on any production from the property.

The Eureka property straddles the watersheds of Eureka and Black Hills Creeks, two of the most productive placer gold producers in the southern part of the Klondike Gold Fields.


Robert C. Carne, President.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information

  • Strategic Metals Ltd.
    Graham Downs
    Investor Relations
    (604) 688-2568
    CHF Investor Relations
    Heather Colpitts
    Associate Account Manager
    (416) 868-1079 x 223