Metallum Resources Inc.
TSX VENTURE : MRV

Metallum Resources Inc.

February 14, 2012 09:00 ET

Metallum Resources Inc. Announces High Grade Gold Results from Channel Sampling and Trenching Program on Its M-18 Gold Property, Argentina

Highlights of 38.5 Metres at 1.26 g/t Gold and 2.0 Metres at 15.4 g/t Gold

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2012) - Metallum Resources Inc. (TSX VENTURE:MRV) ("Metallum" or "Company") announces that it has completed its four month program of systematic bedrock channel sampling, trenching, and geologic mapping over its previously identified zone of high grade epithermal gold mineralization on its M-18 property in Argentina. The objective of the program was to systematically map and sample in detail, as well as expose additional strike and width, to the known gold/silver mineralization.

Results of the program showed multiple high grade gold zones (with minor silver values) over significant lengths. Table 1 (below) illustrates some of the more impressive gold grades/widths of both the channel sampling and trench sampling distributed along a 1.4 kilometer ("km.") strike length, and approximately 0.4 km. width. Two such highlights are Trench 15 showing 38.5 meters ("m") of 1.26 grams/tonne ("g/t") gold and Trench 12 showing 2.0 m of 15.4 g/t gold. A total of 3,555 bedrock samples were taken from this mapping and sampling program - 2,881 samples were taken from the trenches and 674 samples were taken from the outcrop.

Metallum's President and CEO, Greg Lipton, states "Metallum is excited by the results of the trenching and channel sampling program. It shows that there is continuity of gold mineralization on surface for over a kilometer in strike with the zone being wide open in both directions. We are looking forward to testing these impressive gold values at depth, as well as our significant geophysical targets, in our phase 1 drilling program planned for Q2, 2012. It is also noteworthy that Metallum has still only explored less than 10 % of its 6,300 hectare M-18 property."

TABLE 1: SELECTED SAMPLE INTERVALS IN TRENCHES & CHANNELS (at 0.2 g/t cut-off)
Trench (TR) /Channel (Ch) from (m) to (m) Interval (m) Au g/t
Ch1 0.0 5.0 5.0 1.06
Ch2 incl. 9.0 12.0 3.0 1.23
Ch3 0.0 6.0 6.0 1.25
Ch3 Incl. 1.0 5.0 4.0 1.75
Ch7 9.0 14.5 5.5 2.89
Ch8 0.0 3.0 3.0 3.60
Ch9 0.0 3.5 3.5 3.51
Ch17 36.2 41.7 5.5 1.11
Ch22 233.0 240.0 7.0 1.00
Ch27 0.0 27.0 27.0 1.07
incl. 1.0 7.0 6.0 1.24
incl. 20.0 27.0 7.0 1.88
TR_0 336.00 340.00 4.00 0.89
TR_03 146.00 152.00 6.00 0.90
TR_03 176.00 182.00 6.00 0.90
incl. 177.00 180.00 3.00 1.49
TR_03 198.00 202.00 4.00 1.90
TR_03 214.00 218.00 4.00 0.95
TR_06 302.00 306.00 4.00 0.76
TR_09 39.00 73.00 34.00 0.56
TR_09 282.00 287.00 5.00 1.29
TR_12 25.00 30.00 5.00 1.12
TR_12 39.00 43.00 4.00 1.68
TR_12 214.00 240.00 26.00 1.15
incl. 224.50 226.00 1.50 5.45
TR_12 246.00 255.50 9.50 1.13
TR_12 263.00 265.00 2.00 15.4
TR_12 296.00 306.00 10.00 1.32
incl. 296.50 301.00 3.50 2.49
TR_7 39.50 48.00 8.50 0.75
TR_7 45.00 48.00 3.00 2.10
TR_7 184.00 187.00 3.00 1.21
TR_8 114.00 118.00 4.00 1.38
TR_8 221.50 225.50 4.00 1.02
TR_21 53.00 66.00 13.00 1.21
incl. 63.00 65.00 2.00 1.48
TR_15 126.00 164.50 38.50 1.26
TR_15 incl. 126.00 131.00 5.00 1.99
incl. 132.00 139.00 7.00 1.54
TR_10 19.00 24.00 5.00 1.35
TR_16 119.00 137.00 18.00 1.09
incl. 126.50 128.50 2.00 3.50
TR_17 103.00 123.00 20.00 1.04
incl. 103.50 106.50 3.00 1.68
incl. 112.00 116.50 4.50 2.85
incl. 117.50 120.00 2.50 2.69
TR_18 96.00 111.50 15.50 1.06
incl. 100.00 105.00 5.00 2.21
TR_19 96.00 104.00 8.00 1.68
TR_22 57.00 58.50 1.50 0.83

Notes on Table 1:

  1. Samples were sent to ALS Chemex in Mendoza for standard preparation. Original rock samples are reduced to a 250 gram charge. Analytical procedures for samples were 32-element ICP-AES except for gold analysis which underwent Fire Assay with an AA finish on a 50 gram charge. The ICP-AES package included epithermal pathfinders (As, Sb), and common base metals (Pb, Zn, Cu).
  2. 71 certified standards and 71 certified blank samples, as well as 29 duplicated samples were randomly inserted every 20-25 samples. Standards, blanks and duplicates comprised 5% of the samples submitted for analysis. The blanks, certified standards and duplicate assays confirm that all assays used to compile the intersections quoted here have passed Metallum's rigorous QA/QC checks.
  3. "m" defines "metres", "g/t" defines "grams per ton", "Au" defines "gold"

The trenching and sampling program completed to date is centrally located within Metallum's 9km. X 7 km. M-18 property. The juxtaposition of the local geology, trenches, channel sampling, and gold grades is shown on a compilation map here:

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/MRV0214.pdf.

Details of Sampling Program:

A total of 26 trenches comprising 9.78 km. were dug over a strike length of approximately 1.4 kilometres straddling the outcropping ridge of the known gold zone. Trench spacing along strike was at approximately 50 metres ("m") intervals and the depth of trenches varied from approximately 0.5 m to 3.5 m. Rock sample intervals ranged between 0.5 m in areas of visually interesting geology (alteration, quartz veining, etc.) to 3.0 m in less visually interesting geology. Continuous bedrock channel samples were taken in all trenches whereby every third trench was sampled and mapped over its entire length and the remaining trenches were completely mapped but selectively sampled in areas of visually interesting geology.

Similarly, channel samples were taken perpendicular to geologic strike at 25 m spacings for a distance of approximately 1.2 km., covering areas of exposed veining as well as the host rock to the veining. Channel samples were continuous with intervals generally ranging between 0.5 m in areas of visually interesting geology (quartz veining, stockwork veining) to 3.0 m in less visually interesting geology.

The strike potential on the known gold mineralized zone described above is wide open in both directions. Younger, consolidated sedimentary rock partially covers the mineralized zone to the northwest. Inliers of veining and stockwork veining have been discovered by recent reconnaissance mapping by Metallum several hundreds of metres from the nearest outcropping of the known mineralized zone. Detailed mapping and sampling is currently underway in this area. Likewise, the south-eastern strike extent of the gold mineralized zone is covered by these same younger sediments as well as by younger basalt lava flows. This area will become a priority for Metallum's upcoming drilling program as an attempt to extend the gold zone beneath the lavas.

Also, Metallum is continuing its evaluation of the area of broad argillic alteration within a dacite/ rhyolite porphyry with its large (approximately) 2 km. X 600 m. coincident Induced Polarization geophysical anomaly, occurring a few hundred metres to the southwest of the main gold mineralized zone (see Metallum's press release September 26, 2011). Detailed mapping and sampling is underway at this time.

Nivaldo Rojas, of Rojas & Asociados, Mendoza, Argentina is the qualified person for the M-18 project as required under National Instrument 43-101. He is a certified mining engineer and a member of AusIMM.

About Metallum Resources Inc.

Metallum is earning a 70% interest in the M-18 property under an Option and Joint Venture Agreement from Silver Standard Resources Inc.. Previous geological mapping and rock outcrop sampling by Silver Standard identified a gold/silver-bearing epithermal vein system with intense alteration over a strike length of at least 1.2 km with widths of 0.5 km.

Metallum Resources Inc. has 67,574,260 common shares outstanding and in excess of $7 million in cash, with no debt, as of today's date.

Greg Lipton, P.Geo., the Company's President, CEO, and Qualified Person has reviewed and approved the contents of this press release.

Further details may be obtained from our website www.metallumresourcesinc.com.

Forward Looking Information Caution:

This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Metallum to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities.
Although the management and officers of Metallum believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Metallum Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulations 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.

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