Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

September 07, 2010 08:30 ET

Strategic Metals Ltd. Announces Additional Positive Drill Results From Its Keg Property in Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") announces results for three additional diamond drill holes that were completed at its wholly owned Keg property in central Yukon. Results from the first of four holes drilled into a newly discovered, porphyry-style silver-zinc-lead-copper zone were previously announced (see news release dated August 10, 2010) and are expanded upon in the following table.

Hole No. From
 (m)
To
(m)
Length+
 (m)
Ag
 (g/t)
Zn
(%)
Pb
(%)
Cu
(%)
Sn*
(ppm)
In*
(ppm)
Keg-10-01 59.30 185.00 125.70 50.09 1.20 0.65 0.14 217 9.55
Keg-10-02 7.62 139.00 131.38 28.10 1.39 0.21 0.22 534 5.94
Keg-10-03 150.75 231.70 80.95 15.67 0.64 0.26 0.07 114 4.21
Keg-10-04 24.92 144.27 119.35 32.48 1.08 0.32 0.18 333 8.33

+ True widths of mineralized intervals are approximately 85% of intersected lengths.
* Tin (Sn) and indium (In) are potential bi-product metals.

The four hole drill program partially tested soil geochemical and geophysical anomalies that collectively define an area approximately 4000 m long. Two of the holes (Keg-10-01 and -04) were drilled on a section line aligned perpendicular to the strike of the zone. Keg-10-01 was collared in the hangingwall of the zone and was lost in broken ground before reaching the footwall. Keg-10-04 started in the zone and appears to have reached the footwall contact. Based on this information plus structural measurements from drill core and rare outcrops, the true width of the zone is approximately 155 m where crossed by the section line.

Keg-10-02 and -03 were drilled parallel to the other holes and were collared 200 m to the east and 350 m to the west respectively. Keg-10-02 was mineralized from the collar and, given its position relative to the soil geochemical anomaly, likely started well into the zone. Keg-10-03 intersected the weakest mineralization and has an ambiguous relationship with the soil geochemical and geophysical data. It may be located near the western terminus of the zone or it may have been drilled off the mineralized trend, possibly due to offset along a crossfault. While the primary metals of interest are less abundant in Keg-10-03, some metals (molybdenum, gold and tungsten) that are present in only trace amounts in the other holes appear in greater but subeconomic amounts in Keg-10-03. These trends may indicate large-scale metal zonation.

The strongest parts of the soil geochemical and geophysical anomalies lie 100 to 400 m east of the drill area. The mineralized zone, nearby anomalies and other strong soil geochemical and geophysical anomalies that have been identified elsewhere on the property will all be explored by a comprehensive drill program in 2011. Plans and sections showing the drill holes and nearby soil geochemical data can be viewed at http://www.strategicmetalsltd.com/.

The mineralization is mostly hosted in stockwork fractures that cut intensely silicified, fine-grained clastic sediments and cherts. Disseminated mineralization is also locally present within skarnified limestone horizons. No intrusive rocks have been identified to date within the zone but small plugs have been mapped nearby. The Anvil Batholith lies 5 km to the southwest and a caldera related to the South Fork Volcanics is mapped 10 km to the northeast. These Cretaceous-age intrusive events cut various Palaeozoic-age strata that have been juxtaposed by a complex series of high angle and thrust faults, which appear to have acted as conduits for mineralizing hydrothermal fluids.

The Keg property is very favourably situated in regards to infrastructure. It lies 35 km north of the town of Faro, which formerly serviced the mines and mill of the Anvil zinc-lead-silver district. A heavy duty haulage road and a high voltage power line extend to the Anvil mill site, which is 25 km south of the Keg discovery through gentle terrain.

Preparations for the 2011 drill program are well underway. A five year, Class III land use permit has been approved and construction of a drill camp has started. A bulldozer/excavator is scheduled to be mobilized to the property this week, along with all-terrain vehicles that will be used for on-site transport of crews and supplies. The bulldozer will be used to dig trenches and to construct trails between the camp and drill areas. Linecutting and induced polarization surveys are scheduled for later this month. At least 10,000 m of diamond drilling are planned to systematically grid test the mineralized zone in 2011.

Strategic is following rigorous sample handling and analytical procedures in regard to core from the Keg property. Core samples are being processed in 36 sample batches with each batch including two assay standards, two blank samples, and one duplicate sample. Analytical work is being done by ALS Chemex with sample preparation in Whitehorse and assays and geochemical analyses in North Vancouver. All core samples were initially analyzed for gold by fire assay followed by atomic absorption (Au-AA24) and 35 other elements by inductively coupled plasma-atomic emission spectroscopy (ME-ICP41). All samples in mineralized intervals were subsequently assayed for silver, zinc, lead and copper by Ag/Zn/Pb/Cu-OG62 and selected samples were further checked by Ag/Zn/Pb and/or Cu-OG46. All of the samples were also geochemically analyzed for 51 other elements (which include common refractory elements) by aqua regia digestion followed by inductively coupled plasma combined with mass spectroscopy or atomic emission spectroscopy (ME-MS41) and were analyzed for tin and tungsten using pressed pellet XRF (Sn/W-XRF05). The average grades reported for silver, zinc, lead and copper in this news release are calculated from the assay results, while reported grades for tin and indium were calculated using Sn-XRF05 and ME-MS41 values, respectively. All standard, blank and duplicate samples passed QAQC reviews.

Work at the Keg property is being conducted by Archer, Cathro & Associates (1981) Limited. H. Smith, P. Geo. is the qualified person for purposes of National Instrument 43-101.

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

STRATEGIC METALS LTD.

Per: W. Douglas Eaton, President and Chief Executive Officer

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