Metallis Resources Inc.
TSX VENTURE : MTS

Metallis Resources Inc.

January 16, 2015 09:30 ET

Metallis Receives Results on Kirkham Work Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 16, 2015) - Metallis Resources Inc. (TSX VENTURE:MTS) (the "Company") is pleased to announce the receipt of a report summarizing the results of geochemical sampling and geological mapping on the Company's Kirkham Property in the Golden Triangle of northern British Columbia, carried out in August 2014.

The Kirkham property covers 125 km2 within the Unuk River area of northwestern British Columbia. Reconnaissance mineral exploration has identified a number of gold-bearing occurrences on the property. Within 50 km of the Kirkham property, numerous deposits have been identified which host total resources exceeding 100 million ounces of NI 43-101 compliant gold. Examples are Snip, Eskay Creek, KSM, Brucejack and Snowfield.

The objective of the work was to follow up on a coincident conductive and magnetic anomaly (referred to hereafter as the King Anomaly) identified by an airborne geophysical survey completed in 2013. The bedrock geology in the vicinity of the King Anomaly is very poorly exposed due to overburden and thick vegetation. Surface geochemical results directly over the King Anomaly were not anomalous in pathfinder elements of interest, however, silt, soil and rock samples taken from an area ~300 m east and in the direction of glacial advance revealed anomalous results for multiple elements (Au, Ag, As, Zn, Pb, Mo). The distribution of anomalous soil geochemistry results at the King Anomaly may be an off-set or transported anomaly due to the regions glacial history and steep topography with abundant slides.

Given the lack of outcrop exposure within the King Anomaly, geological constraints on a possible mineral deposit model are minimal. Based on the exploration results, a VMS model is plausible though a vein-hosted gold deposit such as those at Snip, Scottie Gold, and Johnny Mountain (Intrusion Related Gold-Pyrrhotite Vein Model - B.C. Mineral Deposit Profile #I01) seems more likely given these observed characteristics:

  • indications of polymetallic enrichment in soils
  • EM anomaly with coincident magnetic trough
  • well defined faults and shears control the mineralization. Veins are peripheral to and spatially associated with Early Jurassic porphyritic intrusive rocks which may host porphyry copper mineralization

The typical Intrusion Related Gold-Pyrrhotite vein deposit exhibits gold/silver ratios close to 1:1. Copper may be a recoverable by-product. Typical gold grades are high (10 to 20 g/t). Representative examples in British Columbia include Scottie Gold, Snip, Johnny Mountain, War Eagle, Le Roi, Centre Star. The nearby Snip Mine produced 1,267,642 tonnes of ore containing 1,031,836 ounces of gold during the period from 1991 to 1999.

Metallis plans to follow-up these results with a proposed drill program.

David Dupre (Vice President of Exploration) states that these encouraging results have defined an excellent target that warrants drilling.

Qualified Person

Technical aspects of this news release have been reviewed and approved by David Dupre, P.Geo., designated as a qualified person under National Instrument 43-101.

On behalf of the Board of Directors:

Fiore Aliperti, Chief Executive Officer, President and Director

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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 as a result of various 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.sedar.com. 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 anticipated, estimated or intended. 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.

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