Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

February 22, 2011 11:55 ET

Strategic Metals Announces Midas Touch Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2011) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to announce that it has significantly expanded its wholly owned Midas Touch Project, located in east-central Yukon. The Midas Touch Project now covers more than 600 sq km of prospective stratigraphy in the Rau Gold District, where ATAC Resources Ltd. recently discovered Carlin-type gold mineralization at its Osiris prospect. Most of Strategic's properties cover drainages with anomalous values for gold pathfinder elements (such as arsenic, antimony and mercury), which are similar in magnitude to reported values in the Osiris area. Little or no prospecting or close-spaced geochemical sampling has been done to follow up these anomalies.

The Midas Touch Project includes the Crag property, which hosts the only occurrence of realgar and orpiment (arsenic-sulphide minerals) reported in the district, other than ATAC Resources' Osiris Discovery located 40 km to the east. The Osiris prospect was discovered in summer 2010 by following up results of government-funded stream sediment geochemical surveys. Descriptions of the Osiris prospect emphasize the presence of realgar and orpiment within gold-rich limestone host rocks. These arsenic-sulphide minerals are important because they often occur with gold in mines within the Carlin Trend of Nevada.

The Crag property was staked by Strategic in fall 2008 to cover a series of previously-drilled lead-zinc-silver showings. At the Trent Zone of the Crag property, realgar and orpiment were observed in all four holes drilled by McIntyre Mines Limited in 1977. Three of those holes are on a section line and the other hole was drilled 170 m to the west (as shown on maps that will be available at www.strategicmetalsltd.com). Two of the holes cut long intervals (92.4 and 83.8 m) of arsenic-sulphide bearing limestone, while the other two holes intersected shorter intervals that bottomed in mineralization. None of the realgar and orpiment bearing rocks at the Crag property have been analyzed for gold.

"Given the historical occurrences of realgar and orpiment in what is now recognized as a Carlin-type setting, Strategic plans to commence drilling at the Crag property by mid-May," states Doug Eaton, President and CEO. "This drilling will be just one part of what we expect will be a very exciting exploration season. Strategic has budgeted an initial $3 million for its Midas Touch Project in 2011, with additional funding to follow-up positive results."

About Strategic Metals Ltd.

Strategic is a pre-eminent explorer and landowner in the Yukon, with 50 properties under option to other companies, 15 properties subject to sales or joint venture agreements, and more than 90 wholly-owned properties. Strategic also holds royalty interests in 8 projects, including a net smelter return royalty on part of the Wolverine Deposit which is scheduled to commence production in 2011. Strategic currently has approximately $27 million in cash and owns marketable shares of other resource companies with a total value exceeding $80 million. Strategic recently announced a spin-out transaction that will transfer its highly prospective Silver Range and Mint projects into a separate company, shares of which will be distributed to shareholders of record on a pro-rata basis. For more information please visit www.strategicmetalsltd.com.

Technical information contained in this news release includes information summarized from historical assessment reports. Heather Smith, P.Geo, has reviewed and approved the technical information contained in this news release. Ms. Smith is a qualified person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD

W. Douglas Eaton, President and Chief Executive Officer

For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com.

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.

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.

Contact Information

  • Strategic Metals Ltd. - Corporate Information
    W. Douglas Eaton
    President and C.E.O.
    (604) 688-2568
    or
    Strategic Metals Ltd. - Corporate Information
    Bruce A. Youngman
    Chairman
    (604) 687-2522
    or
    Strategic Metals Ltd. - Investor Inquiries
    Richard Drechsler
    Corporate Communications
    (604) 687-2522 or NA Toll-Free: (888) 688-2522
    rdrechsler@strategicmetalsltd.com
    www.strategicmetalsltd.com