Metallic eyes resource expansion at Yukon silver project
Metallic Minerals Corp. (MMG-TSXV, MMNGF-USOTC) said it sees clear opportunities to grow a recently announced resource estimate for its Keno Silver project.
Metallic is an exploration and development stage company with a focus on silver and gold in the high-grade Keno Hill and Klondike districts of the Yukon. It’s portfolio also includes copper, silver, and critical minerals in the La Plata mining district of Colorado.
The Keno Hill project covers 166 square kilometres and is located in the historic Keno Hill Silver District, where Metallic has consolidated the second largest land position directly adjacent to the operations of Hecla Mining [HL-NYSE], the largest silver producer in the U.S.
Back on February 26, 2024, the company released a combined underground and in-pit total resource estimate from four separate deposits (Formo, Fox, Caribou and Homestake) at the Keno project. Together, they are estimated to contain an inferred resource of 2.5 million tonnes at 223 g/t silver equivalent (AgEq), amounting to 18.16 million ounces of contained AgEq.
The company said significant resource expansion is anticipated with further drilling as each of these deposits are contained within 250 metres depth from surface and are open along strike in all directions and at depth where grades typically trend higher.
The underground inferred resource includes the Formo deposit, which contains 12.77 million ounces of AgEq (7.11 million ounces of silver, 3,000 ounces of gold, 36.02 million pounds of lead, and 66.1 million pounds of zinc) within 1.08 million tonnes of grade 369 g/t AgEq (206 g/t silver, 0.08 g/t gold, 1.52% lead and 2.79% zinc). The Formo deposit directly adjoins Hecla’s Keno Hill property, where Hecla is mining the nearby Bermingham deposit.
Formo is also directly adjacent to the Silver Trail highway and power lines that feed the central Keno Hill mill, which is operated by Hecla.
The in-pit inferred resource includes Caribou, Fox, and Homestake and contains 5.40 million ounces of AgEq (2.70 million ounces of silver, 5,500 ounces of gold, 8.86 million pounds of lead, and 32.95 million pounds of zinc) within 1.46 million tonnes of grade 115 g/t AgEq (58 g/t silver, 0.12 g/t gold, 0.28% lead, and 1.02% zinc).
Metallic said the 2024 resource estimate represents the equivalent of several years of production through the Keno area mill based on production guidance provided by Hecla, which is planning to mine up to 4.0 million ounces of silver at Keno in 2024.
Metallic President Scott Petsel said he sees clear opportunities to grow the 2024 resource estimate quickly and efficiently with additional drilling, while the company continues to advance early-stage targets and new discoveries.
“The project team is currently working to finalize the next phase of exploration to include additional resource expansion drilling in 2024,’’ said Petsel. “Additionally, we anticipate reporting results from our 2023 drill campaign at our La Plata project and providing an update on our alluvial royalty projects over the next few weeks.”
On Friday Metallic shares were unchanged at 34 cents and trade in a 52-week range of 44 cents and 23.5 cents.