Strategic Metals Ltd.

TSX VENTURE : SMD


Strategic Metals Ltd.

October 08, 2009 11:44 ET

Strategic Metals Ltd. Announces Gold Discovery on Its Wholly Owned GK Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2009) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to announce results of recent surface exploration conducted at its wholly owned GK property located in northwestern British Columbia. Highlights from the program include:

  • Discovery of highly prospective, undrilled gold showings grading up to 35.00 g/t gold in rock samples and 12.90 g/t gold over 1.9 m in chip samples;
  • Identification of large areas of geochemically anomalous soil that returned values up to 6.18 g/t gold; and
  • Expansion of the property by nearly four times to cover 68.9 sq km of favourable geology.

The GK property is well situated, lying on the north side of the road connecting the communities of Telegraph Creek and Glenora in northwestern B.C. In August, a three week exploration program of soil sampling, prospecting and geological mapping was carried out by a three person crew on an 18.7 sq km area comprising six mineral tenures. Following receipt of positive assays, another 13 mineral tenures were acquired increasing the total area of the property to 68.9 sq km.

The GK property covers an elongate Triassic-Jurassic, high level alkalic pluton that contains numerous roof pendants and large xenoliths of the surrounding Upper Triassic Stuhini Group intermediate volcanic country rocks. Large zones of gossanous, pyrite-altered volcanics on the southwestern flank of the pluton have been explored intermittently for copper since 1917; however, little effort by earlier workers was directed towards precious metals.

A property-wide soil geochemical survey conducted during 2009 identified three gold +/- copper anomalies, which lie primarily in the volcanic rocks flanking the pluton, and a linear silver anomaly within the pluton. Very high gold, copper and/or silver values were also obtained from a few samples outside the main anomalies. Prospecting and rock sampling were done before soil geochemical results were received and were only done within one of the soil anomalies. The effectiveness of these techniques was limited by steep terrain and areas of thick talus cover, but in spite of this, favourable results were obtained. The results of soil and rock sampling in the main areas of interest are described in more detail in the following paragraphs.

Anomaly A is the largest and strongest of the four soil anomalies and is the only one that has been prospected in detail. It is characterized by moderately to very strongly elevated gold and copper values within a 1600 by 700 m area that covers most of the historical showings. Typical samples within this anomaly returned between 100 and 500 ppb gold, but three samples yielded between 1895 and 6180 ppb (1000 ppb = 1 g/t). Most gold-enriched samples also returned high copper values between 500 and 6890 ppm (10,000 ppm = 1%). Prospecting and related rock sampling outlined four clusters of high values. Two of these areas correspond to the historical WC1 and WC2 copper showings, which are located 650 m apart. The other two areas, known as Hungry Bear and Baby Bear showings, lie approximately midway between the WC showings with Hungry Bear situated 90 m uphill of Baby Bear. A representative sample of the gossanous, pyrite-altered volcanic within Anomaly A returned 0.26 g/t gold with negligible copper. The showings are described below.

WC1 Showing consists of lenticular, replacement-style mineralization with massive sulphide lenses of pyrrhotite and chalcopyrite intermixed with quartz-calcite veins, as described by previous workers who blast trenched in the area. Slumps have reburied the blast trenches but mineralized talus is abundant. Four samples of this material averaged 8.98 g/t gold and 4.69% copper. A weakly mineralized vein was exposed in outcrop for a length of 15 m and two chip samples across that exposure averaged 2.70 g/t gold and 0.66% copper over 0.80 m.

Mineralization at WC2 Showing is hosted in shears and fractures and comprises disseminated and blebby chalcopyrite with weak to moderate malachite. Four rock samples taken in this area, three from outcrop and one from talus, averaged 13.33 g/t gold and 3.83% copper.

Hungry Bear Showing consists of a 68 m long, limonite +/- pyrite +/- pyrrhotite +/- chalcopyrite +/- malachite bearing calcite vein that was discovered beneath rusty soil. The vein ranges from 0.45 to 1.9 m in width. It projects under talus cover to the east and branches out into several narrower, but better mineralized veins that were traced for an additional 19 m to the west. Seven shallow hand trenches were dug across the vein and chip samples were collected from each of them. These chip samples averaged 6.22 g/t gold and 1.67% copper over an average length of 1.0 m, including one sample that returned 12.90 g/t gold and 4.76% copper over 1.9 m. Four samples from the westerly veins yielded values from 4.37 to 35.00 g/t gold and 1.98 to 15.85% copper. This showing is open to extension along strike in both directions.

Baby Bear Showing comprises an area of mineralized vein float and two 15 cm thick veins exposed below soil and talus cover. These veins are similar in mineralogy to the vein at Hungry Bear. Rock samples from them ranged from 2.35 to 7.99 g/t gold with up to 1.29% copper.

Anomaly B encompasses an 800 by 350 m area with several moderate to strong gold values between 100 and 977 ppb and accompanying copper values between 500 and 1550 ppm. This anomaly lies 700 m west of Anomaly A, below a cliffy, gossanous, pyrite-altered exposure of volcanic and intrusive rocks with minor ferricrete precipitates near contacts. Samples of the gossan and ferricrete returned only background values, which suggests that the source of the metals in soil may be hidden under talus.

Anomaly C comprises an 850 by 100 m area typified by moderately to strongly elevated silver values along, and parallel to, a linear feature within the pluton. It is located immediately west of Anomaly B. Two samples collected near the top of this anomaly yielded 43.5 and 59.9 ppm silver. Throughout the remainder of the area, silver values range between 2.0 and 10.8 ppm. Values for other metals are surprisingly low.

Anomaly D is a 900 by 500 m area of mostly moderate gold and copper values that lies to the northwest of the pluton, 3.5 km from Anomaly A. Strong gold values between 200 and 1475 ppb and copper values between 1000 and 2710 ppm occur sporadically within this anomaly.

Results of the 2009 work program are considered to be very encouraging and the property will receive more detailed follow-up in 2010, likely including diamond drilling.

Multi-element determinations for soil and rock samples were carried out at ALS Chemex in North Vancouver, B.C. Soil samples were dried and sieved to -80 mesh. The fine fraction was then analyzed for gold using fire assay followed by atomic absorption (AA) finish and for 34 other elements using a nitric acid-aqua regia digestion and ICP analysis. Rock and chip samples were dried, fine crushed to better than 70% passing -2 mm and then a 250 g split was pulverized to better than 85% passing 75 micron. The fine fraction was analyzed for gold and 34 other elements using the same procedures as were used for the soil samples.

The technical information in this news release has been reviewed by W.A. Wengzynowski, B.Sc., P.Eng., a qualified person for the purpose of National Instrument 43-101.

Strategic Metals Ltd. is a well funded Tier 1 company that trades on the TSX Venture Exchange. Its primary activities involve exploring for metals and minerals using a project generative business model, but it also makes selective investments in other resource companies. It currently has interests in over 70 properties, which are mostly wholly owned but also include royalty interests in three advanced projects. Strategic Metals Ltd. has a strong balance sheet with about $15 million in cash and short-term financial instruments (T-Bill, GIC's, etc) and more than $10 million in marketable securities of other companies. The Company's largest share holding is a block of 8,860,283 shares and 1,000,000 warrants (exercisable at $0.35) of ATAC Resources Ltd.

STRATEGIC METALS LTD.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

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