Strategic Metals Ltd. [SMD-TSXV; SMDZF-OTC] shares rallied Wednesday August 21 after the company announced partial results from the first two phases of its 2019 exploration program at the Mount Hinton property, which is located in the southern portion of the Keno Hill District of central Yukon.
The property covers an extensive system of high-grade gold and silver-rich quartz veins and breccias, situated four to 15 kilometres by road south east of Alexco Resources Corp.‘s [AXR-TSX; AXU-NYSE] mill at Keno City.
Alexco’s key asset is the 100%-owned United Keno Hill Mine, which ranks as Canada’s second largest producer of silver, behind Cobalt, Ontario.
During an illustrious history, it produced 217 million ounces of the precious metal. Studies have indicated that the former mine is capable of producing 4.0 million ounces of silver in concentrate over a lifespan of eight years.
Strategic Metals is a project generator with interests in more than 120 properties. It also holds equity stakes in a number of Yukon and Nunavut exploration companies, including Atac Resources Ltd. [ATC-TSXV] and Rockhaven Resources Ltd. [RK-TSXV].
Strategic’s wholly-owned Mount Hinton property covers an 83 km2 area. The company has previously said that although silver mineralization is found in veins on the property, gold is the most significant component in many of the bedrock showings and float occurrences that have been discovered so far.
On Wednesday, Strategic Metals said the multi-phase 2019 program is designed to follow-up on promising gold values obtained from soils and rocks collected in 2018.
Phase one expanded soil sample coverage and initiated prospecting within the recently identified soil anomalies in the headwaters of a productive placer creek. Phase two involved geological mapping, more detailed prospecting, infill soil sampling and follow-up of rock samples collected during the first phase.
Highlights from phase one rock sampling include:
- The discovery of a linear train of vein quartz and brecciated vein, extending 230 metres northeasterly from a talus sample that assayed 2,340 g/t gold and 597 g/t silver to an outcrop of altered and oxidized breccia grading 33.3 g/t gold and 654 g/t silver.
- The identification of a parallel train of vein quartz breccia, located 150 metres to the east, where float samples returned 6.11 g/t gold and 165 g/t silver; 1.64 g/t gold and 363 g/t silver, and 2.03 g/t gold and 306 g/t silver.
Strategic shares advanced on the announcement, rising 15.38% or $0.06 to 45 cents on volume of 404,100. The shares are currently trading in a 52-week range of 28 cents and 47 cents.
Strategic said prospecting during phase one of the exploration program focused on a 3.5 kilometre long by up to 1.5 kilometre wide gold-in-soil anomaly located on the eastern side of Granite Creek, where little to no rock sampling had previously been done.
Mapping and prospecting during phase two also discovered numerous other mineralized veins elsewhere with the Granit Creek drainage.
The company said phase three of the 2019 program will include excavator trenching, road construction and more mapping and prospecting. “This work will commence later this month and continue until freeze-up,” the company said.