The acquisition brings the company’s total district hard-rock land position to 171 square kilometres.
Each of these newly acquired properties have demonstrated the presence of high-grade Keno-style silver-lead-zinc mineralization and are adjacent to or contiguous with Metallic’s Keno Hill silver property and the Keno Hill properties now owned by Hecla Mining [HL-NYSE] following its recent takeover of Alexco Resources.
Acquisition highlights include the Nabob and Faro claims. In the Keno Summit area, the Nabob claim hosts the Keno Hill Main vein and numerous offshoots where drilling in 2012 returned impressive results, including 0.4 metres of 4,090.6 g/t silver equivalent (AgEq) (3,140 g/t silver, 0.86 g/t gold, 22.37% lead and 0.25% copper, leading to the high-grade surface mining of 65 tones of ore material.
The Nabob Main vein was successfully targeted by two Metallic drill holes in its 2022 field program and assay results are pending.
“We are very pleased to have been able to add these significant and very prospective properties to the high-grade Keno Hill silver district and to immediately initiate drill testing of the Nabob vein as a historically drilled, potentially resource-ready target,’’ said Metallic Minerals President Scott Petsel.
“Additionally, Metallic’s 171 square kilometre land position is the second largest in the prolific Keno Hill camp and contains five resource-ready advanced-stage targets, 11-growth stage targets with initial positive drilling and over 20 early- stage drill-ready targets with numerous additional untested soil anomalies of greater than 6.0 g/t AgEq, all in a district with over 100 years of mining history and over 300 million ounces of past silver production and current resources.’’
Metallic recently raised over $4.6 million from a private placement of units priced at 42 cents each. Each unit consists of one flow-through common share and one-half purchase warrant where each whole warrant is exercisable into a flow-through common share for 30 months at 50 cents.
On Thursday, Metallic shares eased 1.4% or $0.005 to 35 cents. The shares are currently trading in a 52-week range of 58 cents and 31 cents.
Petsel said Hecla’s planned acquisition of Alexco is a re-energizing catalyst for the Keno Hill silver district and highlights the quality of existing reserves and resources and the exploration potential of one of the world’s highest grade silver producing regions.
In July, 2022, Metallic launched an exploration program that was expected to consist of 3,000 metres of diamond core drilling, focused on resource definition drilling at multiple advanced-stage targets, including Formo and Caribou deposits in the West Keno and Central Keno areas and the recently discovered Fox target area in East Keno. The company was also planning for step out drilling at several new discoveries.