CMC Metals up 60% on Yukon drilling news
CMC Metals Ltd. [CMB-TSXV] shares jumped near 60% on Wednesday as investor reacted to drilling results from the company’s Silver Hart project in the Canadian Yukon.
The company said drilling produced multiple high-grade-silver-lead-zinc intersections in the TM West Vein, including 2.3 metres of 4,910 g/t silver equivalent (AgEq).
The shares rallied on the news, rising 59% or $0.05 to 13.5 cents on volume of 4.36 million. That made CMC the volume leader on the TSX Venture Exchange. The shares have been trading in a 52-week range of 26.5 cents and $0.075.
CMC Metals is a growth-stage exploration company with a focus on high grade polymetallic deposits in the Yukon, British Columbia, Newfoundland and Labrador. Its silver-lead-zinc prospects in the Rancheria Silver District include the Silver Hart Deposit and Blue Haven claims (the Silver Hart Project) in the Yukon, and Rancheria South, Amy and Silverknife claims in British Columbia.
Its polymetallic projects with potential for copper-silver gold and other metals include Logjam (Yukon), Bridal Veil and Terra Nova, both of which are located in Newfoundland.
On Tuesday, the company said 2,100 metres (19 holes) of diamond drilling was completed at Silver Hart. It said the majority of that drilling focused on the TM West vein in the Main Zone. Drilling also resulted in an extension of the TM West Vein structure for 360 metres.
In its press release, the company said the Main Zone requires a lot of additional drilling to fully evaluated the resource that exists within it. CMC notes that there is considerable opportunity to further extend the TM West vein and extend other known mineralized vein systems within the Main Zone.
“This work will be incorporated into the planning and implementation of future drilling programs,” the company said.
CMC Chairman John Bossio said further resource delineation at the Main Zone and preliminary testing of targets such as T1, T4 and the hockey stick anomaly will require a minimum of 10,000 metres of drilling. “We have a lot of work to do yet to truly understand the resource potential of Silver Hart,” he said.
CEO Kevin Brewer said there remains over 10 areas in the Main Zone alone that are yet to be drill tested. “As a result of successful drilling in 2019 and 2021, we are very confident that further drilling in the Main Zone will result in connectivity, down-dip and lateral extensions of the known mineralized areas and the possibility also remains to identify new mineralization.”
“In addition, we have not even started to investigate the new targets at Silver Hart, including possible extensions of the Main Zone, KW Zone, South Zone and Ridge Zone.”