Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

August 06, 2015 08:30 ET

Strategic Metals Ltd. Discovers Gold-Rich Skarn Horizon at Hopper Property in Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 6, 2015) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to announce results from the first two holes of a diamond drill program that is currently underway at its wholly-owned road-accessible Hopper property, located in southwestern Yukon Territory. Highlights from the holes are listed below:

  • Confirmation that copper-gold skarn horizons extend north of the area of previous drilling, with an intercept averaging 1.00% copper and 1.01 g/t gold over a true width of 6.44 m; and
  • Discovery of a deeper, more gold-rich skarn horizon grading 12.15 g/t gold and 0.95% copper across a true width of 2.65 m.

"These results substantially expand the area of known skarn mineralization and confirm potential for more gold-rich sections within this very large hydrothermal system," states Doug Eaton, CEO of Strategic. "The current drill program is providing valuable insights concerning alteration and metal zonation, which will guide future drill programs."

Details concerning the highlight intervals and other lower grade intervals 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.

Prior to 2015, all diamond drilling on the property was done near a copper-rich skarn zone that outcrops in a creek bed. Most of the historical holes were short and many of them were not analyzed for gold. Recent geochemical surveys have outlined very strong copper, gold and molybdenum soil anomalies that span a 3,600 by 2,500 m area, most of which has not 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. Most of the historical skarn intercepts are moderately to strongly mineralized with copper and gold. The best interval graded 1.94% copper and 0.87 g/t gold across 18.59 m (true thickness about 12 m).

A few of the historical drill holes extended somewhat deeper into the stratigraphic section and they cut other copper-gold bearing skarn horizons. These intercepts have not yet correlated to specific horizons because they are too widely spaced. One of the deeper holes cut a skarn with a much higher gold content than is 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.

Holes 15-01 and 15-02 are located north and west of the historical drill holes, within stronger portions of the soil geochemical anomaly (see Figure 1). Hole 15-01 lies 342 m north-northwest of the closest historical hole and was collared stratigraphically below the main copper horizon (JG) 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 intercept is located 280 m down dip of surface (see Figure 2).

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. The JG horizon contains a 6.44 m core of well-mineralized skarn grading 1.00% copper and 1.01 g/t gold within a 15 m thick zone 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 (see Table 1 and Figure 3).

Table 1:

Hole From (m) To (m) Length (m)* Au (g/t) Cu (%) Ag (g/t)
DDH-15-01 86.00 89.06 3.06 0.033 0.18 1.24
90.59 92.26 1.67 0.119 0.57 4.44
215.88 218.61 2.73 0.214 0.00 0.11
284.29 286.94 2.65 12.150 0.95 5.45
DDH-15-02 82.07 91.09 9.02 0.120 0.24 1.55
113.13 128.14 15.01 0.500 0.50 1.64
incl. 121.70 128.14 6.44 1.013 1.00 3.86
136.60 138.60 2.00 0.142 0.70 4.44
150.85 151.85 1.00 1.000 0.45 2.08
204.90 205.90 1.00 0.723 0.79 4.24

*Interval lengths are believed to be 95%-100% of true width because the holes were drilled nearly perpendicular to bedding.

The other holes in the 2015 drill program are exploring skarn and porphyry targets, most of which lie further north in the geochemical anomaly. Some of these holes are also positioned to evaluate areas with high chargeability.

The 2015 Hopper drill program is being 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 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 $24 million and significant shareholdings in a number of active mineral exploration companies including 46.78% 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.

Figures are available at the following address: http://media3.marketwire.com/docs/1020379_Figures.pdf

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