Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

December 08, 2006 11:31 ET

Strategic Metals Ltd. Announces Northern Dancer Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 8, 2006) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to announce results from the remaining nine holes of a 4,000 m diamond drill program that Largo Resources Ltd. recently completed at the Northern Dancer Tungsten-Molybdenum property located in the Yukon.

In April 2006, Largo Resources Ltd. acquired the right to earn a 70% interest in the Northern Dancer property. In order to earn 70%, Largo must: (1) issue Strategic 4,000,000 of its shares (2,000,000 upon regulatory approval); (2) perform $5,000,000 in work expenditures over a three year period; and (3) grant Strategic a 1% net smelter return royalty. Upon earning a 70% interest in the project, Largo will have the right to purchase the remaining 30% in the property for a $5,000,000 cash payment or an equivalent value in stock (at Strategic's election). Whether or not the remaining 30% is sold, Strategic will retain its 1% net smelter return royalty.

Highlights from the remaining nine holes are as follows:

Significant Molybdenum-rich (MoS2) intervals include:

- 134.51 metres grading 0.13% MoS2 and 0.04% WO3 in hole LT-06-70

- 52.00 metres grading 0.14% MoS2 and 0.07% WO3 in hole LT-06-63

Significant Tungsten-rich (WO3) intervals include:

- 114.95 metres grading 0.16% WO3 and 0.08% MoS2 including 12.22 metres grading 0.54% WO3 and 0.19% MoS2 in hole LT-06-66

- 83.89 metres grading 0.20% WO3 and 0.04% MoS2 in hole LT-06-68

The Northern Dancer property straddles the Yukon-British Colombia border 290 kilometres east of Whitehorse and is 115 kilometres east of Adanac Moly Corp.'s Ruby Creek Molybdenum Deposit. The Northern Dancer property hosts widespread molybdenum-tungsten porphyry style mineralization and was originally outlined by 51 diamond drill holes and 496 metres of underground workings completed by AMAX Minerals between 1977 and 1980.

This mineralization, which is open laterally, along strike to the south and to depth, has a published resource of 162 million tonnes grading 0.13% WO3 and 0.052% MoS2 (MoS2 equivalent of 0.108%) (Economic Geology, 1984, vol.79, p.849). This resource is an historic estimate that does not conform to standards prescribed in National Instrument 43-101 and investors are cautioned not to rely on this estimate. The present program has confirmed previous results and provided sufficient new geological and assay data to prepare a mineral resource estimate compliant with NI 43-101 standards.

Higher-grade tungsten mineralization occurs within an extensive sheeted quartz vein system that cross-cuts lower grade stockwork style mineralization in the deposit. This vein system extends for at least 500 metres along strike, to a depth of at least 500 metres and varies from at least 20 metres to possibly more than 100 metres in width. It trends northeast-southwest, dips near vertical and is open in all directions. Previous historical drilling did not adequately test this zone because the holes were all steeply inclined to vertical.

The molybdenite is associated with stockwork porphyry styled mineralization. The higher grade MoS2 values are spatially related to a quartz feldspar porphyry stock. The porphyry system covers an area 500 metres by 500 metres and has been tested to a vertical depth of 500 metres. The system remains open at depth and along strike.

The drill program was managed by Archer, Cathro & Associates (1981) Limited, a well known consulting firm that has over 35 years of experience in mineral exploration in the Yukon.

Assaying was carried out by Acme Analytical Laboratories Ltd. in Vancouver, British Columbia. The samples were crushed to 70% passing 10 mesh, split to 250 g and pulverized to 95% passing 150 mesh. A 0.5-gram split was analyzed for Mo and W using a phosphoric acid leach followed by ICP-emission spectrometry. A second 0.5-gram split was then analyzed for 36 elements by ICP-mass spectrometry using a hot (95 degrees centigrade) aqua regia leach. Routine check assays were performed at SGS Minerals in Lakefield, Ontario on sample rejects. W.A. Wengzynowski, P.Eng. of Archer, Cathro, is the Qualified Person as defined under National Instrument 43-101 for the program.



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Hole Number From To % MoS2 % WO3 Interval
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LT-06-61 2.79 320.04 0.05 0.04 317.25
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Inc. 210.00 320.04 0.07 0.04 110.04
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Inc. 297.00 320.04 0.14 0.03 23.04
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LT-06-63 5.20 321.26 0.07 0.05 316.06
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Inc. 127.00 321.26 0.09 0.05 194.26
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Inc. 233.00 285.00 0.14 0.07 52.00
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LT-06-64
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abandoned 0.00 6.10
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LT-06-65 4.61 234.00 0.03 0.07 229.39
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Inc. 123.25 234.00 0.04 0.09 110.75
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Inc. 215.08 234.00 0.06 0.14 18.92
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LT-06-66 4.80 242.30 0.06 0.11 237.50
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Inc. 19.00 133.95 0.08 0.16 114.95
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Inc. 76.00 88.22 0.19 0.54 12.22
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LT-06-67 3.00 249.95 0.02 0.07 220.77
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Inc. 21.00 159.70 0.05 0.08 138.70
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Inc. 121.00 159.70 0.08 0.11 38.70
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LT-06-68 10.36 229.82 0.04 0.12 219.46
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Inc. 10.36 94.25 0.04 0.20 83.89
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LT-06-69 72.50 82.00 0.12 0.10 9.50
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Inc. 156.70 166.00 0.07 0.14 9.30
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LT-06-70 151.00 207.00 0.07 0.11 56.00
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Inc. 151.00 173.00 0.05 0.15 22.00
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184.92 319.43 0.13 0.04 134.51
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Hole Number Northing Easting Elevation Azimuth Dip
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LT-06-61 6,655,046 355,012 1598.55 310 -45
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LT-06-63 6,655,173 354,867 1513.25 138 -68.5
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LT-06-64 6,654,970 354,511 1529.47 133 -69
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LT-06-65 6,654,970 354,511 1529.46 133 -69
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LT-06-66 6,655,066 354,774 1501.59 0 -90
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LT-06-67 6,655,022 354,641 1491.22 0 -90
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LT-06-68 6,654,991 354,673 1507.65 135 -62
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LT-06-69 6,655,279 354,711 1452.08 292 -45
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LT-06-70 6,654,851 355,013 1520.92 292 -55
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Strategic Metals is a junior mining company with an attractive exploration portfolio comprising nearly 50 properties. It currently has 13 properties optioned out and holds royalty interest in four other projects. The Company has a strong balance sheet with approximately $2.5 million in working capital plus approximately $13 million worth of common shares in other companies at today's prices.

STRATEGIC METALS LTD.

Robert C. Carne, President

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

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