Metallic Minerals Corp. (MMG-TSXV, MMNGF-USOTC) on Tuesday announced the signing of a production royalty agreement involving alluvial gold claims in the Klondike Gold District of Canada’s Yukon Territory.
It said the agreement is with Parker Schnabel and Little Flake Mining of Discovery Channel’s Gold Rush television series. The agreement covers a roughly 12-kilometre portion of Metallic’s Australia Creek alluvial gold claims, which are part of the historic Klondike gold district that is estimated to have produced over 20 million ounces of gold since the initial discovery in 1898.
Metallic owns a 100% interest in 36.4 square kilometres of mining rights along the Australia Creek drainage south of Dawson City.
Under the agreement, Little Flake will be granted exclusive rights to extract gold from the Australia Creek property, with Metallic Minerals receiving a percentage of the production as a royalty. The agreement is effective immediately with production targeted to begin by June, 2023.
Schnabel is recognized as a highly experienced miner and in December, 2022, was granted the Robert E. Leckie Award for Excellence in Environmental Stewardship by the Yukon Government for reclamation work in the Klondike gold fields.
“Our award-winning team looks forward to working with Metallic Minerals and we plan to hit the ground running on Australia Creek,’’ said Schnabel. “Planning is underway for a 400-hole drill program this winter on the property and we anticipate beginning mining operations this spring,’’ he said.
Under the agreement, Little Flake must complete a $1 million minimum annual work commitment and pay Metallic Minerals an annual advance royalty plus a variable royalty on all gold production.
On January 24, 2023, Metallic shares closed at 24 cents after gaining 6.7% or $0.015 on volume of 238,610. The shares are currently trading in a 52-week range of 49 cents and 20 cents.
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.
Metallic recently announced the first in a series of drill results from the company y’s 2022 exploration program at Keno Hill, which included 3,265 metres of diamond core drilling in 23 holes.
It said drilling has focused on the expansion of advanced stage, “resource-ready” targets in anticipation of an inaugural NI 43-101-compliant mineral resource estimate in 2023.