Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

April 02, 2012 09:00 ET

Strategic Metals Options Scarlet East Project From Rackla Metals

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 2, 2012) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") is pleased to announce that it has signed a binding letter of intent with Rackla Metals Inc. granting Strategic the option to acquire an undivided 60% interest in the Scarlet East claim block. Strategic can exercise the option by making $5,000,000 in exploration expenditures on the property as follows:

  • $500,000 on or before December 31, 2013;
  • an additional $1,000,000 on or before December 31, 2014;
  • an additional $1,500,000 on or before December 31, 2015; and
  • an additional $2,000,000 on or before December 31, 2016.

Strategic is also required to complete not less than 1,000 meters of drilling on or before December 31, 2012. Upon exercising the option, Strategic and Rackla will respectively hold 60% and 40% interests in the property.

The Scarlet East Claims

The Scarlet East property consists of 230 claims (47.8 sq km) covering prospective stratigraphy in the newly-defined Nadaleen Trend, an emerging district of Carlin-type gold prospects located in east-central Yukon. The property directly abuts claims held by ATAC Resources and lies approximately 10 km southeast of its major Osiris, Conrad and Isis East discoveries.

Soil geochemical surveys and first pass geological mapping done by Rackla Metals in 2011 have confirmed a favourable setting for Carlin-type gold mineralization at the Scarlet East property. Soils collected from the eastern portion of the claim group returned encouraging gold-arsenic-antimony-mercury values with a distinct Carlin-type signature. A series of north-northwest-trending anomalies, measuring up to 1,500 m long by 500 m wide, contain arsenic values from 100 to 8,468 ppm together with gold values from 20 to 221 ppb. The anomalous areas are underlain by favourable off-shelf carbonate stratigraphy, including gossanous silty limestone, within a prominent southeast-trending antiform.

The Scarlet East property compliments Strategic's other claim holdings in the area, which comprise its wholly-owned, 1,200 sq km Midas Touch project. A comprehensive exploration program is planned for the Midas Touch project in 2012, involving at least two drills to test large-scale Carlin-type hydrothermal systems at the Crag, Crag East and other realgar-bearing prospects in the area. Strategic will simultaneously complete follow-up prospecting and detailed sampling of numerous other geochemical anomalies throughout the project, in order to rapidly advance new discoveries to the drill stage.

Qualified Person

Roger Hulstein, BSc, P.Geo., is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is the Company's Qualified Person as defined by National Instrument 43-101. Mr. Hulstein is responsible for the accuracy of the technical information in this news release.

About Strategic Metals Ltd.

Strategic is a pre-eminent explorer and claimholder in the Yukon, with an exceptional portfolio of 160 property and royalty interests. The Company also owns marketable shares of other resource companies, including 9.7% of ATAC Resources Ltd., 18.8% of Silver Range Resources Ltd., 26.1% of Rockhaven Resources Ltd., 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. - Investor Inquiries
    Richard Drechsler
    Corporate Communications
    (604) 687-2522 or NA Toll-Free: (888) 688-2522
    rdrechsler@strategicmetalsltd.com

    Strategic Metals Ltd.
    Bruce A. Youngman
    Chairman
    (604) 687-2522
    www.strategicmetalsltd.com