Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

September 05, 2012 08:00 ET

Strategic Metals Ltd. Provides 2012 Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2012) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to provide an update of its 2012 exploration programs from the Midas Touch, Scarlet East and other projects.

The wholly-owned Midas Touch project covers over 1200 sq km of stratigraphy that is prospective for Carlin-style gold mineralization. The project adjoins the south side of a large claim block where ATAC Resources has recently reported highly significant gold mineralization at its Conrad discovery - 18.44 g/t gold over 42.93 m - localized in an anticlinal fold nose along the contact between reactive limestone and impermeable cap rocks. The Midas Touch project hosts numerous showings of realgar, which is a key indicator mineral for Carlin-style gold deposits, and a series of pathfinder geochemical anomalies. Many of the largest geochemical anomalies occur in areas with low topographic relief and little bedrock exposure. The most extensive geochemical anomalies identified to date occur on the Crag East property where arsenic values in soil are on average greater than 200 ppm over strike lengths of more than 2,000 m and widths of 1,000 m.

At the Trent Zone, continued diamond drilling encountered similar results to 2011 work, which intersected gold mineralization within a package of siltstone and brecciated dolostone. The best 2011 intercept graded 1.33 g/t gold across 3.19 m (see news release dated September 14, 2011). Results from 2012 drilling include 0.4 g/t gold over 7.04 m.

Two holes were drilled at the Crag South Zone to test anomalous gold-in-soil values, which are shown on regional-scale government maps to coincide with a thrust faulted carbonate unit. Both drill holes cut locally sheared, strongly listwaenitized ultramafic rocks with weak gold values, including 0.25 g/t gold over 6.09 m.

Widely spaced drilling at the mostly overburden covered Crag East Zone targeted prospective limestone horizons below a series of multi-element pathfinder soil geochemical anomalies, some exceeding 2 km in strike length. Drilling in 2011 encountered clay altered and decarbonized limestone intervals, the broadest of which graded 1.03% arsenic, 57,400 ppb mercury and 50.6 ppm thallium across 60.8 metres. In 2012 hydrothermally altered limestone with realgar and other arsenic minerals was encountered in a number of holes, but to date no economic grade gold mineralization has been found. Assays are still pending for six holes.

Mapping and drilling at the Scarlet East Option identified favourable host rocks and several structurally complex zones that coincide with 2011 gold and arsenic soil geochemical anomalies. Although realgar was locally identified at surface within one of the soil anomalies, no high gold values have been returned from drill core or surface samples. Assays are still pending for one hole. Strategic can earn a 60% interest in the Scarlet East project from Rackla Metals Inc. by completing at least 1,000 m of drilling in 2012 and incurring $5 million in exploration expenditures prior to the end of 2016.

Property Zone No of
Holes
Drilled
(total metres)
No of Holes
Assays
Pending
Crag Trent 7 (2342.38 m) 0
Crag Crag South 2 (480.67 m) 0
Crag East Shiraz 1 (169.16 m) 0
Crag East Merlot 8 (1947.37 m) 3
Crag East Malbec 6 (798.88 m) 3
Scarlet East -- 5 (1167.68 m) 1

Strategic is about to commence a reverse circulation drill program at its wholly-owned Zakco and Tagai properties located in the Nechako Plateau of central British Columbia. Drilling will systematically test a number of geochemical and geophysical anomalies. Some of the holes will target porphyry copper-gold mineralization while others search for structurally hosted gold zones similar to those at NewGold's Blackwater-Davidson project, about 75 km to the southwest. The Blackwater-Davidson project hosts an Indicated Resource of 5.5 million ounces of gold and an Inferred Resource of 2.3 million ounces of gold.

Maps related to the Midas Touch project can be viewed at the Company's website at www.strategicmetalsltd.com. Sarah Drechsler, P.Geo. has reviewed and approved the technical information contained in this news release. Mrs. Drechsler is a qualified person as defined by National Instrument 43-101.

About Strategic Metals Ltd.

Strategic has interests in over 160 properties, including 65 that are under option to other companies and 20 in which Strategic holds net smelter return royalty interests. Strategic is well funded with a working capital of over $90 million including cash and marketable securities. Strategic's major shareholdings include 9.1% of ATAC Resources Ltd., 18.7% of Silver Range Resources Ltd., 28.0% of Rockhaven Resources Ltd., 19.9% of Precipitate Gold Corp., and 19.9% of Wolverine Minerals 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.

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

  • Strategic Metals Ltd. - Corporate Information
    W. Douglas Eaton
    President and C.E.O.
    (604) 688-2568

    Strategic Metals Ltd. - Corporate Information
    Bruce A. Youngman
    Chairman
    (604) 687-2522

    Strategic Metals Ltd. - Investor Inquiries
    Richard Dreschsler
    Corporate Communications
    (604) 687-2522 or NA Toll-Free: (888) 688-2522
    rdrechsler@strategicmetalsltd.com
    www.strategicmetalsltd.com