Strategic Metals Ltd.

Strategic Metals Ltd.

June 11, 2008 11:12 ET

Strategic Metals Ltd. Options-Out Five Tungsten Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Strategic Metals Ltd. (TSX VENTURE:SMD) is pleased to announce that it has entered into an agreement with Yankee Hat Minerals Ltd. concerning its interests in five tungsten properties located in various parts of Yukon Territory.

Under the terms of the agreement, Yankee Hat can earn a 100% interest in the five tungsten properties by incrementally issuing 10 million of its common shares to Strategic and incurring $5 million in work expenditures on the properties over three years. The property names, exploration status and Net Smelter Return ("NSR") Royalties attached to the properties are as follows:

Boot: Drill ready property (subject to a 1% NSR payable to Strategic);

Hidden: Drill ready property (subject to a 1% NSR payable to Strategic);

Track: Drill ready property (subject to a 1% NSR payable to Strategic and a 1% NSR payable to StrataGold Corp.);

Meloy: Grass roots exploration property (subject to a 1% NSR payable to Strategic); and

Obvious: Grass roots exploration property (subject to a 1% NSR payable to Strategic).

The following is a discussion of the properties including Yankee Hat's general plans for 2008 exploration.

The Boot

The Boot property is situated 30 kilometres south of the Robert Campbell Highway. It was tested with 2,646 meters of diamond drilling in 20 holes during 1979-80 by Chevron Minerals Ltd. Numerous intersections ranging between 0.5% and 1.5% tungsten trioxide were obtained. The best interval averaged 1.95% tungsten trioxide and 0.6 g/t gold over 5.18 meters. The discovery surface exposure graded 5.88% tungsten trioxide and 1.7 g/t gold across 1.8 metres. Drilling to date is too wide-spaced to allow for a resource calculation. Yankee Hat plans to diamond drill at least 1000 m at the Boot property.

The Hidden

The Hidden property is located 15 kilometres west of the South Canol Road in the southern Yukon. It contains stockwork- and skarn-hosted tungsten mineralization that appears to be localized by fault structures. Soil geochemical and panning surveys have identified a 2,000 meter by 800 meter area of strong anomalous results within which is a 600 meter by 250 meter area of extremely anomalous values. Previous diamond drilling mostly tested around an area of skarn float that averaged about 1.2% tungsten trioxide. Holes drilled from uphill to test for a flat-lying source did not cut significant mineralization but the only hole drilled from downhill, directly beneath the skarn float, returned 0.95% tungsten trioxide over 2.13 meters from a clay altered fault that may be a feeder to the skarn. The core of the geochemical panning anomaly has never been drilled and will be Yankee Hat's main target for a 900 m drill program.

Meloy, Obvious and Track Properties

The Meloy and Obvious properties are grass root prospects that host undrilled, but attractive tungsten showings. For example on the Obvious property, numerous scheelite-bearing magnetite skarn samples grading between 1.0% to 6.0% tungsten trioxide have been collected from float and outcrop. Yankee Hat intends to spend approximately $150,000 in exploration on the Meloy and Obvious prospects during the summer of 2008.

The Track property is drill ready. A 2007 geophysical survey identified a pronounced magnetic low extending south from a previously drilled skarn showing. The anomaly is in an overburden covered area that has not been drill tested. Previous drilling at the north end of the anomaly returned an intersection grading 0.34% tungsten trioxide over 12.8 m. No work is planned at the Track property for 2008.

Please note that a mistake was made in the Company's announcement on April 8, 2008 relating to the REE/Lancer project that was optioned to Yankee Hat. The correct allocation of the shares under the terms of the option agreement has Strategic and Ron Berdahl receiving 4,000,000 and 2,666,666 common shares respectively, to be issued one-third upon TSX Venture Exchange approval of the acquisition, one-third on February 10, 2009 and the final installment on February 10, 2010.

This news release has been reviewed by Robert C. Carne, M.Sc., P.Geol., a qualified person for the purpose of National Instrument 43-101.

For further information concerning Strategic Metals Ltd. or its various exploration projects please visit our website at


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

Contact Information