Strategic Metals Ltd.
TSX VENTURE : SMD

Strategic Metals Ltd.

December 20, 2011 08:30 ET

Strategic Metals Summarizes Midas Touch 2011 Exploration Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2011) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic" or "the Company") is pleased to provide an overview of final 2011 exploration results from its wholly owned Midas Touch project in Yukon Territory. The nearly 1,000 sq km Midas Touch Project is situated within the Rackla Gold District, where diamond drilling by ATAC Resources Ltd. has identified a number of Carlin-style gold zones including its Osiris, Conrad and Isis East discoveries. Strategic's Midas Touch properties adjoin the south side of the ATAC land package and cover down-dip extensions of the favourable carbonate-bearing off-shelf stratigraphy.

Highlights

  • Initial drilling at the Crag property returned anomalous gold (up to 2.07 g/t) and extremely high pathfinder elements, consistent with the upper portions of a Carlin-style system. Elevated gold values increase in intensity and abundance with depth. A larger drill will be mobilized in 2012 to test deeper in the hydrothermal system. A 700 m long soil geochemical anomaly with the highest gold values on the property has been outlined 1,200 m to the south of the Crag drill area. This new area will be followed-up with reconnaissance drilling in 2012.
  • At the Crag East property, situated 14 km to the southwest of the ATAC discoveries, six reconnaissance drill holes returned higher Carlin-style pathfinder elements than were obtained from the Crag holes. These intercepts contain strong orpiment/realgar within favourable carbonate stratigraphy that includes debris flow breccias. Two large (3.3 and 1.5 sq km) arsenic±mercury±thallium±gold soil geochemical anomalies (with values to 2.41 g/t gold) have been outlined. Both anomalies are open-ended. Full soil geochemical results were not received until after the completion of drilling and the strongest parts of these extensive geochemical anomalies remain to be drill tested.
  • Drilling at the Rod property returned numerous silver-rich intercepts and discovered a new zone of sulphide nickel-molybdenum mineralization (see following tables).
  • Nine discrete geochemical anomalies have been identified on the Midas Touch properties to date. Limited prospecting has already identified new zones of orpiment and realgar mineralization.

Maps and cross-sections related to the Midas Touch project can be viewed at the Company's website at www.strategicmetalsltd.com.

Crag Property

Twelve diamond drill holes totalling 3,168 m were completed on three section lines at the Trent Zone on the Crag Property. All holes hit thick sections of carbonate breccia with fracture filling and disseminated orpiment/realgar. Numerous intervals within the holes returned anomalous gold (20 to 2,070 ppb), together with very strong Carlin-style pathfinder elements (arsenic 5,000 to 15,300 ppm, mercury 50,000 to 367,000 ppb, and thallium 20 to 60.9 ppm). Overlapping silica-lead-zinc-antimony-silver mineralization is also present. Many Carlin-style deposits characteristically feature broad pathfinder halos above and around high grade gold zones. At Crag, gold values are increasing in abundance and intensity with depth on all three section lines. The Company is planning a substantial follow-up drill program next year, utilizing larger capacity drill rigs capable of testing the Crag hydrothermal system to depth.

A second zone of even stronger gold-in-soil values has been located about 1,250 m to the south of Crag. This anomaly, measuring about 700 m in length and 250 m in width contains gold values from 20 to 372 ppb and very strong pathfinder elements including arsenic values from 200 to 4,960 ppm. These results will be followed-up with reconnaissance drilling in 2012.

Crag East Property

Six broadly spaced drill holes totalling 1,399 m were completed at the Crag East Property in 2011. These holes were drilled beneath newly discovered soil geochemical anomalies and realgar showings in a well vegetated area of limited relief, located 14 km west of ATAC's Osiris discoveries. Four of the holes intersected orpiment/realgar bearing, debris flow breccias in mixed carbonate-siltstone stratigraphy. The other holes cut a pyritic silica horizon below an arsenic-rich gossan. The soil geochemical anomalies at the Crag East property are much larger, more continuous and stronger for key pathfinder elements than those at the Crag property. Drill holes produced thicker and much better mineralized intervals. The best interval averaged 1.03% arsenic, 57,400 ppb mercury and 50.6 ppm thallium across 60.8 metres. Gold values are subdued but, as observed at the Crag area, appear to be strengthening at depth.

Soil geochemistry to date at Crag East has defined two large and open ended, northwest trending anomalies. The western anomaly measures about 3,000 m in length and 1,100 m in width and contains very strong pathfinder elements including arsenic values from 100 to 6,950 ppm. The eastern anomaly is 2,300 m long by 100 to 650 m wide, contains gold values from 10 to 2,410 ppb with very strong pathfinder elements including arsenic (200 to 11,700 ppm), mercury (10 to 18.5 ppm), antimony (10 to 55.3 ppm) and thallium (10 to 56.7 ppm). This anomaly has not yet been tested by drilling and is also open-ended. The Company is planning on drilling more holes in 2012 to test beneath the extensive soil geochemical anomalies at Crag East.

Rod Property

Exploration at the Rod property in 2011 consisted of soil sampling, mapping and 2,213 m of diamond drilling in twelve holes. Results from the soil sampling outlined two trends, both of which contain strongly anomalous values for several metals, most notably silver. The southerly trend is relatively continuous over a 6,500 m strike length in the footwall of the Dawson Thrust. The other lies 1,100 m to the north and much lower in the valley. It has been intermittently traced for a distance of 3,750 m. The southerly trend is higher in lead and zinc while the northerly trend features strong molybdenum, gold and tin.

Ten of the twelve diamond drill holes were located within a 400 by 450 m area, targeting the southerly soil anomaly. These holes intersected pyrite+galena+sphalerite-bearing quartz veinlets. The other two holes, located 3 km and 5 km to the west of the main drill area, tested along the northerly geochemical trend. Very elevated nickel and molybdenum values were intersected in a blind discovery in drill hole Rod-11-12. The most significant drill intersections are summarized in the following table.

Rod Property - Main Geochemical Anomaly
Hole # From
(m)
To
(m)
Interval
(m)
1
Ag
(g/t)
Pb
(%)
Zn
(%)
ROD-11-01 82.30 85.34 3.04 18.15 0.75 1.63
ROD-11-032 93.80 102.11 8.31 101.91 4.76 4.44
ROD-11-04 107.66 112.78 5.12 19.39 0.78 2.52
ROD-11-05 110.31 111.25 0.94 59.50 3.32 0.83
ROD-11-06 41.15 48.77 7.62 22.84 0.16 0.02
and 67.06 79.25 12.19 19.29 0.17 0.02
and 124.97 128.02 3.05 53.90 1.89 0.53
ROD-11-07 32.00 35.05 3.05 21.40 0.10 0.01
and 92.96 96.01 3.05 42.30 0.03 0.05
and 114.30 117.35 3.05 18.50 0.54 2.69
and 129.54 132.59 3.05 19.10 0.40 0.44
ROD-11-08 53.05 56.39 3.34 30.94 1.11 0.22
ROD-11-09 21.34 24.38 3.04 34.00 1.33 0.05
and 51.82 60.96 9.14 34.46 1.52 0.02
ROD-11-10 154.35 164.03 9.68 25.35 0.74 0.42
incl. 162.94 164.03 1.09 108.00 3.10 1.22
1 The reported intersections are drilled thicknesses and true widths have not yet been determined.
2 Previously reported.
Rod Property - Northern Geochemical Anomaly
Hole # From
(m)
To
(m)
Interval
(m)
1
Ag
(g/t)
Pb
(%)
Zn
(%)
Mo
(ppm)
Ni
(ppm)
ROD-11-12 30.48 41.15 10.67 3.36 0.00 0.10 195 1512
incl. 33.53 35.05 1.52 5.11 0.00 0.05 376 4870
and 131.06 135.64 4.58 18.95 1.15 0.84 13 166
1 The reported intersections are drilled thicknesses and true widths have not yet been determined.

Other Geochemical Results:

In addition to the Crag, Crag East and Rod geochemical anomalies, reconnaissance surveys have outlined sizeable geochemical anomalies elsewhere within the nearly 1,000 sq km project. These include the Hag anomaly, situated 9 km to the southwest of the Crag Zone and the Staff anomaly, located 18 km to the west of ATAC's Tiger Zone. Many other soil and stream sediment anomalies have been detected and will require more systematic sampling and prospecting in 2012.

All analyses for the 2011 program were performed by ALS Chemex with sample preparation in Whitehorse and assays and geochemical analyses in North Vancouver. Core samples were fine crushed before a 250 gram split was pulverized to better than 85% passing 75 microns. Soil samples were dried and screened to -180 microns. All core samples are initially analyzed for gold by fire assay followed by atomic absorption (Au-AA26) and 48 other elements by inductively coupled plasma-mass spectrometry (ME-MS61). Over-limits are assayed for silver, lead and zinc by inductively coupled plasma -- atomic emission spectroscopy (Ag/Pb/Zn-OG62). Soil samples were routinely analyzed for 51 elements by aqua regia digestion followed by inductively coupled plasma - atomic emission spectroscopy and mass spectrometry (ME-MS41). Gold values were determined by aqua regia digestion followed by inductively coupled mass spectrometry (Au-TL43).

Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the drill core sample stream to ensure integrity of the assay process.

The 2011 exploration program at the Silver Range Project was conducted by Archer, Cathro & Associates (1981) Limited. Matthew R. Dumala, P.Eng, has reviewed and approved the technical information contained in this news release. Mr. Dumala is a qualified person as defined by National Instrument 43-101.

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. Strategic currently has approximately $30 million in cash, and will receive an additional $13.8 million pending the sale of royalties. 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