Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

September 15, 2015 08:30 ET

Strategic Metals Intersects 43.6 g/t Gold in a Metre Wide Skarn Horizon at Hopper Project, Yukon Territory

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 15, 2015) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to announce additional results from a nine hole, 3,227 m diamond drill program that was recently completed at its wholly-owned road-accessible Hopper Project, located in southwestern Yukon Territory. Results from the first two holes were announced on August 6, 2015 and included 12.15 g/t gold and 0.95% copper over 2.65 m. Highlights from the other seven holes include:

  • 43.6 g/t gold over 1.00 m,
  • 0.17% copper over 162.5 m and,
  • 2.4 g/t gold and 1.03% copper over 4.48 m.

"Results from the 2015 program have significantly expanded the area of known skarn mineralization and provide evidence of a porphyry centre coring this very large hydrothermal system," states Doug Eaton, CEO of Strategic. "A sizeable area of mineralization southwest of the main pluton is now ready for systematic grid drilling and many soil geochemical and geophysical anomalies elsewhere on the property offer excellent potential for additional discoveries."

Details concerning the highlight intervals and other significant intercepts are shown on Table 1, while the drill hole locations are illustrated on attached Figure 1. Historical work at the property is described in Technical Report on the Hopper Project by J. Pautler, P.Geo. which is filed at www.sedar.com. The following paragraphs summarize the historical work and describe the significance of the 2015 drill holes.

Prior to 2015, all diamond drilling on the property was done near a copper-rich skarn zone that outcrops in a creek bed, about 1,000 m southwest of the Hopper pluton. Most of the historical holes were short and many of them were not analyzed for gold. Recent geochemical surveys outlined very strong copper, gold and molybdenum soil anomalies that cover a 3,600 by 2,500 m area. Only a small fraction of these anomalies have been tested by diamond drilling.

Collectively, the historical drill holes identified three laterally extensive skarn horizons (now named JG, AM and LV). These horizons are about 50 m apart stratigraphically and typically range from 2 to 20 m in thickness. The horizons strike northerly and dip shallowly (approximately 15°) to the east. They are locally cut by various types of steep intrusive dykes, some of which are weakly mineralized with copper or molybdenum. Many of the historical skarn intercepts are moderately to strongly mineralized with copper and gold. The best historical interval graded 1.94% copper and 0.87 g/t gold across 18.59 m (true thickness approximately 12 m).

A few of the historical drill holes extended somewhat deeper into the stratigraphic section and cut other copper-gold bearing skarn horizons. Most of these intercepts have not yet been assigned to specific horizons because they are too widely spaced for reliable correlations. Significantly, one of the deeper holes cut a skarn with a much higher gold content than has been reported from any of the upper horizons. This intercept returned 9.44 g/t gold with only 0.01% copper over 2 m within a broader interval that averaged 3.35 g/t gold and 0.43% copper across 7.5 m.

Seven of the 2015 holes (15-01 through 15-07) tested north and west of the historical holes, while the other two holes (15-08 and 15-09) re-entered and deepened historical holes (Figure l). Mineralized skarn horizons have now been discovered in scattered outcrops and widely-spaced drill holes over a 3,000 m strike length.

Table 1: Significant intercepts in 2015 drill holes, Hopper Project

Hole From (m) To (m) Interval (m)+ Au (g/t) Cu (%) Ag (g/t) Mo (ppm)
15-01 90.59 92.26 1.67# 0.119 0.57 4.44 0.31
284.29 286.94 2.65# 12.15 0.95 5.45 3.24
15-02 82.07 91.09 9.02# 0.120 0.24 1.55 32.15
113.13 128.14 15.01# 0.500 0.50 1.64 3.59
incl. 121.7 128.14 6.44# 1.013 1.00 3.86 3.99
136.6 138.6 2.00# 0.142 0.70 4.44 2.11
150.85 151.85 1.00# 1.000 0.45 2.08 5.54
204.9 205.9 1.00# 0.723 0.79 4.24 3.78
15-03 26.92 28.91 1.99 0.109 0.31 1.37 80.70
125.3 128.29 2.99 0.344 0.28 1.65 135.00
266.61 276.15 9.54 1.010 0.35 1.79 45.43
15-04 39.09 52.1 13.01 0.334 0.41 1.70 6.53
196.97 211.4 14.43 1.109 0.60 2.86 183.88
incl. 202.52 207.00 4.48 2.40 1.03 3.98 253.12
325.24 498.91 173.67 0.002 0.01 0.09 157.57
15-05 113.88 276.73 162.85 0.017 0.17 2.08 34.26
incl. 149.74 150.74 1.00 0.257 5.00 17.10 2730
and incl. 275.73 276.73 1.00 0.062 2.40 17.45 61.30
15-06 79.14 84.25 5.11 0.001 0.32 4.35 8.41
110.73 112.15 1.42 0.021 0.36 4.08 3.44
186.23 188.98 2.75 0.031 0.78 3.68 63.96
15-07 48.07 58.64 10.57 0.197 0.49 3.32 6.91
incl. 54.07 55.64 1.57 0.649 1.39 9.28 23.80
60.96 70.42 9.46 0.013 0.12 2.21 3172
349.17 351.98 2.81 0.075 1.25 0.23 1.76
369.35 370.71 1.36 0.294 0.46 1.56 2.57
11-05/15-08* 126.93 128.05 1.12# 1.830 0.46 1.74 7.69
336.66 337.66 1.00 43.6 0.06 1.07 53.30
341.49 342.63 1.14 0.204 0.31 1.91 45.40
11-04/15-09* 57.39 62.53 5.14# 0.740 0.95 5.64 1.54
174.86 182.87 8.01# 0.840 1.58 14.82 43.56
339.33 340.33 1.00 0.171 0.67 3.93 83.70

* holes 15-08 and 15-09 re-entered and deepened holes 11-05 and 11-04, respectively.

# previously announced

+ intersected lengths are believed to represent 95 to 100% of the true widths, except for the long intervals of fracture- filling mineralization intersected in holes 15-04 and 15-05.

Hole 15-01 lies 342 m north-northwest of the closest historical hole and was collared stratigraphically below the main copper horizons to search for underlying, more gold-rich skarn horizons. This hole extended deeper than any of the historical holes and discovered a new well-mineralized skarn horizon (JP). This horizon graded 12.15 g/t gold and 0.95% copper over a true width of 2.65 m. The JP horizon projects to surface in an area covered by glacial overburden, about 280 m up dip of the drill intercept. The up dip projection of the JP horizon has not been explored.

Hole 15-02 is located 435 m north-northeast of hole 15-01. It was a shorter hole that was designed to evaluate only the JG, AM and LV horizons and did not extend deep enough to reach the JP horizon. The best intercept in the hole is believed to be the JG horizon, which contains a 6.44 m thick band of skarn grading 1.00% copper and 1.01 g/t gold within a 15 m section of weak to moderate mineralization. Hole 15-02 also contained other, narrower mineralized skarn intervals, some of which may have been shortened by cross-cutting, post-mineralization dykes.

Holes 15-03 and 15-04 are spaced 136 m apart on a section line located 172 m north of hole 15-02 on the southern flank of the Hopper pluton. Both holes cut a thick gold and copper enriched skarn horizon that is believed to be the extension of the JG horizon intersected in hole 15-02. The deeper part of hole 15-04 tested a small chargeability anomaly, and it encountered a long interval composed of altered wallrocks and closely-spaced dykes, which host fractures and veins containing strongly elevated molybdenum (173.67 m averaging 157.57 ppm).

Hole 15-05 explored beneath a larger chargeability anomaly which straddles the northern contact of the Hopper pluton 1,750 m north of holes 15-03 and 15-04. This hole yielded an interval that averaged 0.17% copper over 162.85 m. Molybdenum values are slightly elevated within this interval but gold values are low. There are many other untested chargeability anomalies within and adjacent to the Hopper pluton.

Hole 15-06 was drilled in a large roof pendant of metasediments, 300 m west of hole 15-05. It cut a few skarn horizons that are moderately enriched for copper.

Hole 15-07, which is located 203 m east of hole 15-01, intersected three shallow intervals that project stratigraphically above the collar of 15-01 and two narrower intervals near the bottom of the hole that may be extensions of the JP horizon.

Hole 15-08 re-entered and extended beneath hole 11-05. It yielded an intercept of 43.6 g/t gold over a width of one metre. This intercept is at approximately the same stratigraphical level as the JP horizon cut in hole 15-01, 367 m to the northwest.

Hole 15-09 deepened hole 11-04, which lies 320 m east of hole 15-08 in the heart of the historical drill area. The top of this hole contained two thick, well mineralized skarn horizons, but the extension cut only narrow, weakly to moderately mineralized intervals. It is possible that this hole did not explore deep enough to reach the projection of the JP horizon.

All of the sulphide mineralization at the Hopper Project is relatively coarse grained. Arsenic and antimony contents are low throughout, but bismuth and tellurium are notably enriched in gold-bearing intervals.

In summary, results from the 2015 drill program at the Hopper Project successfully demonstrated that:

  1. the area of mineralized bedrock is much more extensive than was indicated by historical drilling;
  2. there are areas where gold grades are much higher than were reported by historical drilling or surface sampling;
  3. the drill-tested chargeability highs are underlain by broad zones of disseminated and fracture-filling mineralization that could flank a significant porphyry deposit; and,
  4. the best skarn mineralization is hosted in stacked horizons with consistent, shallow dips.

Analytical work was done by ALS Minerals, with sample preparation in Whitehorse, Yukon and assays and geochemical analyses in North Vancouver, British Columbia. All rock samples were analyzed for gold by fire assay fusion and inductively coupled plasma-atomic emission spectrometry (Au-ICP21) and 48 other elements by four acid digestion and inductively coupled plasma-atomic emission spectroscopy (ME-MS61). Overlimit values were determined for gold by fire assay fusion and gravimetric finish (Au-GRA21) and for copper by four acid digestion and inductively coupled plasma-atomic emission spectroscopy (Cu-OG62).

The 2015 Hopper drill program was 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 the largest claim holder in Yukon, which the Fraser Institute recently rated as the best jurisdiction in the world for mineral potential. Strategic's portfolio of more than 100 projects is the result of 50 years of focussed exploration and research by a team with a track record of major discoveries. Current projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets defined by high-grade surface showings, geochemical anomalies and/or geophysical features.

Strategic has a current cash position of over $23 million and significant shareholdings in a number of active mineral exploration companies including 46.6% of Rockhaven Resources Ltd., 8.6% of ATAC Resources Ltd., 19.9% of Silver Range Resources Ltd. and 12.9% of Precipitate Gold Corp.

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.

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.

To view the figure associated with this release, please visit the following link: http://www.strategicmetalsltd.com/i/maps/HopperGeochemNews2015PlanViewAll.png

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