Metallic Minerals Corp. (MMG-TSXV, MMNGF-USOTC) on Wednesday announced details of an exploration program that it is launching at its flagship Keno Silver Project, which is located in the Canadian Yukon.
The move comes after the company recently raised over $4.6 million from a $617,820 private placement comprised of 1.47 million units priced at 42 cents per unit. On June 9, 2022, the company said it had closed a private placement financing that raised over $4 million by issuing 9.6 million units at 42 cents per flow through unit.
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 July 12, Metallic shares closed at 36.5 cents and currently trade in a 52-week range of 58 cents and 31 cents.
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 Alexco Resources Corp.’s (AXR-TSX, AXU-NYSE), a company that is being acquired by Hecla Mining [HL-NYSE], the largest silver producer in the U.S.
Metallic Chairman and CEO Greg Johnson said the company is in a position to complete the important follow-up programs at its Keno Silver and the La Plata projects (in Colorado).
At Keno Hill, the 2022 exploration program is expected to consist of at least 3,000 metres of diamond core drilling, focused on resource definition 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.
Step out drilling is also planned for several new discoveries. Additionally, a LIDAR survey will be flown in a bid to provide greater precision in survey and topographic control while aiding in lineament detection in the search for new Keno-style high grade silver discoveries.
Metallic Minerals President Scott 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.
The region has produced over 200 million ounces of high-grade silver.
Metallic has said it is also planning a robust campaign of follow-up drilling and geophysical surveys for the La Plata project this year. The objective is to expand the 2022 resource and advance new targets.