RCS - Metallic Minerals - Metallic Minerals Intercepts 816 Meters 0.41% CuEq

Bureau Veritas SAAnnouncement

28/02/2023 13:45

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RNS Number : 3052R  Metallic Minerals Corp.  28 February 2023

Metallic Minerals Intercepts 816 Meters of 0.41% CuEq, Ending in 3.53% CuEq
Over Final 9.75 Meters in Newly Discovered High-Grade Zone at its La Plata
Project, Colorado, USA

VANCOUVER, BC / ACCESSWIRE / February 28, 2023 / Metallic Minerals Corp.
(TSX.V:MMG)(OTCQB:MMNGF) ("Metallic Minerals" or the "Company") is pleased to
announce final results from its 2022 exploration program at the La Plata
copper-silver-gold-platinum group element ("Cu-Ag-Au-PGE") project in
southwestern Colorado. Two holes totaling 1,730 meters ("m") were drilled to
test lateral extensions of the existing 985-million-pound copper equivalent NI
43-101 mineral resource(1). Hole LAP22-04, drilled to the north of the
resource area, intercepted the longest and highest-grade interval ever
encountered at La Plata at 816 m of 0.41% Recovered Copper Equivalent ("CuEq")
(see Table 1 footnote). This is one of the top intersections for any North
American copper project in the past several years. Significant high-grade
gold-platinum-palladium ("Au+PGE") mineralization associated with copper and
silver represents the discovery of a new style of mineralization in the
resource area that has not been previously recognized or explored for.

The porphyry style mineralization in LAP22-04 strengthens through the hole,
transitioning from chalcopyrite dominated at surface to bornite-rich at depth.
The hole ended in mineralization with the final 5.2 m of copper plus precious
metals rich mineralization grading 5.39% CuEq (2.44% Cu, 18.7 grams per tonne
("g/t") Ag and 5.0 g/t Au+PGE (see Figure 1) but did not reach full target
depth due to mechanical issues. The last sample in the hole, representing the
deepest material, graded 5.42% Cu, with 47.0 g/t Ag and 11.0 g/t Au+PGE for a
total of 11.54% CuEq. Mineralization remains completely open to expansion of
the current resource area and outward from drill hole LAP22-04 (see Figure 2).
Both drill holes intercepted continuous porphyry style mineralization starting
from surface and ending in mineralization at 914 and 816 meters depth,
respectively. Hole LAP22-03 shows that the shallow porphyry style
mineralization is weakening to the south and west of the resource but still
open at depth (see Figure 3).

Drilling Highlights

·      Drill hole LAP22-04 intersected 816 m of 0.41% CuEq (0.30% Cu,
2.47 g/t Ag, 0.186 g/t Au+PGE) from surface, with multiple higher-grade
intercepts (See Table 1).

·      The interval starting at 304.8 m returned 511.2 m at 0.51% CuEq
(0.36% Cu, 2.83 g/t Ag, 0.275 g/t Au+PGE).

·      Higher-grade zones include 0.90% CuEq over 55.8 m (0.70% Cu, 5.44
g/t Ag, 0.369 g/t Au+PGE and 1.5% CuEq over 29.57 m (0.69% Cu, 5.64 g/t Ag,
1.268 g/t Au+PGE).

·      The drill hole bottomed in 5.39% CuEq over 5.2 m (2.44% Cu, 18.7
g/t Ag, 5.0 g/t Au+PGE).

·      The precious metals component of LAP22-04 (silver, gold, platinum
and palladium) adds 50% in value above the copper only values. The inclusion
of Au+PGE values that were not previously analyzed for in historical drilling
represents a significant future upside value opportunity for the project.

·      The 2022 drilling will be incorporated into an updated NI 43-101
mineral resource estimate for the La Plata project, which is expected to
expand significantly based on these results.

The Company will host a live webcast on March 2, 2023, at 10am PT | 1pm ET to
discuss the La Plata project, along with a general overview and update on the
Company. To register, click here (https://pr.report/YuPWktTQ) .

Scott Petsel, President of Metallic Minerals, stated, "We have had no doubt
about the strength of the mineralized system in the La Plata district, based
on its 10 km(2) alteration footprint and high-grade past production from the
surrounding epithermal silver and gold deposits. Our work since 2020 has
rapidly demonstrated the significance of the porphyry system, with the
definition of our inaugural copper-silver resource in early 2022. Now, with a
major new high-grade discovery from step out drilling in hole LAP22-04, we are
uncovering how richly mineralized that porphyry system is. The intensity of
alteration and mineralization in this drilling indicates we are vectoring to a
higher-grade portion of the La Plata porphyry system with overlapping
mineralization styles and a transition to high-grade bornite-rich copper
mineralization with associated high precious metals values."

"While it is not uncommon to have elevated platinum group metals in alkalic
porphyry systems associated with copper, silver and gold, the level of
enrichment at La Plata, with wide intervals of greater than 0.8% copper and up
to multi-gram gold, platinum and palladium values, is truly exceptional. The
occurrence of other anomalous critical minerals, including tellurium and rare
earth elements ("REE"s), is also an intriguing value-adding opportunity. Other
major alkalic magmatic systems in the region include Rio Tinto's Bingham
Canyon and Newmont's Cripple Creek mines, which also include enrichment in
tellurium, PGEs and other critical minerals."

2023 Prospectors and Developers Convention (PDAC) - Booth, Presentation &
YMA Core Shack

Metallic Minerals will be attending PDAC 2023 and attendees are invited to
visit the Company at Investors Exchange Booth #3024. Additionally, President
Scott Petsel will be providing a corporate presentation at a Forum for
Investors during the 2023 Prospectors and Developers convention in Toronto
Monday March 6(th) in the silver-focused session, Room 803, between 10:00 am
and 12:00 pm at the Metro Toronto Convention Center. For more information,
visit here (https://pr.report/RN64tV1G) .

The Company will also be participating in the inaugural Yukon Mining Alliance
Invest Yukon Core Shack to be held in the Investors Exchange exhibit hall in
Booth #3314, adjacent to the main PDAC Core Shack. Our technical team will be
on hand to display core from La Plata (including Hole LAP22-04) and our Keno
Silver project.

Table 1. La Plata Project 2022 Drill Results

 Drill Hole  From (M)  To      Length  CuEq(1)  Cu    Ag      Au      Pt (g/t)  Pd (g/t)  Au+PGE

                       (M)     (M)     (%)      (%)   (g/t)   (g/t)                       (g/t)
 LAP22-04    0.00      815.95  815.95  0.41     0.30  2.47    0.038   0.055     0.093     0.186
             141.73    239.27  97.54   0.31     0.29  2.51    0.029   0.004     0.015     0.048
             304.80    815.95  511.15  0.51     0.36  2.83    0.044   0.057     0.100     0.275
 including   449.58    505.36  55.78   0.90     0.70  5.54    0.056   0.114     0.199     0.369
 including   547.12    576.07  28.95   0.83     0.62  4.84    0.052   0.158     0.191     0.401
 including   612.65    644.65  32.00   0.85     0.60  4.60    0.129   0.123     0.196     0.448
 including   786.38    815.95  29.57   1.50     0.69  5.64    0.160   0.455     0.753     1.368
 including   806.2     815.95  9.75    3.53     1.59  12.46   0.338   1.064     1.833     3.235
 including   810.77    815.95  5.18    5.39     2.44  18.70   0.467   1.755     2.778     5.000
 ending in   815.34    815.95  0.61    11.54    5.42  47.00   0.622   5.016     5.393     11.031
 LAP22-03    0.00      913.79  913.79  0.12     0.11  1.11    0.017   0.001     0.006     0.024
             518.46    594.67  76.21   0.24     0.22  1.83    0.034   0.002     0.006     0.042

Notes to reported values:

1.   Recovered Copper Equivalent (CuEq) in Table 1 is determined as follows:
CuEq% = [Cu% x recovery] + [Ag g/t x recovery / 31.103 x Ag price / Cu price /
2,204 x 100] + [Au g/t x recovery / 31.103 x Au price / Cu price / 2,204 x
100] + [Pt g/t x recovery / 31.103 x Pt price / Cu price / 2,204 x 100] + [Pd
g/t x recovery / 31.103 x Pd price / Cu price / 2,204 x 100]

2.   Copper equivalent is presented for comparative purposes using
conservative long-term metal prices (all USD): $3.75/lb copper, $22/oz silver
(Ag), $1,800/oz gold, $1,000/Oz platinum (Pt), $2,200/oz Palladium (Pd).

3.   In the above calculations: 31.103 = grams per troy ounce, 2,204 =
pounds per metric tonne, and 100 converts from g/t to %.

4.   The following recoveries have been assumed for purposes of the above
equivalent calculations: 90% for Cu and all other listed metals, based on
recoveries at similar operations.

5.   Intervals are reported as measured drill intersect lengths and may not
represent true width.

Figure 1 - Drill core photo showing porphyry style mineralization in LAP22-04
from 806.2 to 815.95 m (9.75 m) grading 3.53% CuEq, 1.59% Cu, 12.46 g/t Ag,
0.338 g/t Au, 1.064 g/t Pt, 1.833 g/t Pd (3.235 g/t Au+PGE).

Figure 2 - La Plata 3D Long Section looking northwest, with significant drill
intervals and mineralized grade shells Including, Hole LAP22-04. Shows nearly
1.5 kilometers of vertical mineralization open at depth and along trend to the
north and east and to the west. Note 0.25% CuEq cut-off grade shell and
higher-grade 0.4% CuEq shell.

Figure 3 - Plan map of the Allard Resource Area showing surface projections of
the drill hole traces with CuEq% or Cu% in historic holes without precious
metals assays.

La Plata Property Overview

Metallic Minerals' La Plata project covers 44 square kilometers 20 km
northwest of Mancos, Colorado, within the historic La Plata mining district,
that is in the southwest portion of the prolific Colorado Mineral Belt. Copper
mineralization with associated silver, gold, platinum and palladium is hosted
by a large-scale, Late Mesozoic age, alkalic porphyry system with related
silver, gold, telluride epithermal vein, breccia and replacement deposits
hosted in adjacent sedimentary rocks.

The La Plata district has a long and rich history of mining with the first
silver deposits discovered in the 1700s by Spanish explorers. High-grade
silver and gold production has been documented from the 1870s through the
early 1940s from mineralized deposits at over 90 individual mines and
prospects(2). From the 1950s to 1970s, major miners including Rio Tinto (Bear
Creek) and Freeport-McMoRan (Phelps Dodge) explored the district focusing on
the significant potential for bulk-tonnage disseminated and stockwork hosted
mineralization(3). Freeport-McMoRan retained ownership of claims in the
district until 2002 when they sold their holdings to the current underlying
vendors during the lows of the last metal price cycle.

A total of 58 drill holes totaling 16,930 m have been drilled on the property
from the 1950s to present, this drilling has demonstrated the presence of a
large multi-phase porphyry system with copper, silver, gold with more recent
discoveries highlighting the potential for significant PGEs, rare earth
minerals and tellurium. This large-scale mineralized system is associated with
a 10 km(2) strongly magnetic signature with intense hydrothermal alteration.
Surrounding the central porphyry system is an associated high-grade silver and
gold-rich epithermal system measuring at least 8 km by 2 km that hosts 56
identified vein, replacement, and breccia structures. Historical production
from some of these high-grade structures included bonanza grades for silver
and gold.

Exploration by Metallic Minerals and Allard Deposit NI 43-101 Resource
Estimate

Metallic Minerals is conducting systematic exploration of the La Plata
property since its acquisition in late 2019. This work has included drilling,
underground sampling, mapping, geochemical soil sampling and 3-dimensional
modeling. Comprehensive geophysical surveys have also been undertaken
including airborne resistivity and magnetics, ground-based induced
polarization surveys, and analysis of multi-spectral remote sensing data to
establish mineralized anomalies and domains for the various styles of
mineralization. This work has identified potential extensions of the main
Allard deposit, as well as 16 untested potential porphyry signatures outside
of the resource area, and has developed targets for high-grade epithermal
silver, gold and tellurium.

Exploration in 2021 included 1,980 meters of diamond drilling, resampling of
historical drill core, underground sampling from the Allard tunnel and mapping
and sampling across the broader property. This work supported the development
of an inaugural NI 43-101 resource in the Allard area. The April 2022
technical report defined the resource as 115.7 million tonnes at an average
grade of 0.39% CuEq (0.35% Cu and 4.02 g/t Ag) using a 0.25% CuEq cut-off
grade(1).

The 1,730-meter 2022 La Plata drill program was designed to test extensions of
porphyry style mineralization beyond the resource area to provide vectors
toward higher-grade parts of the mineral system. Results from that drilling
demonstrate that mineralization remains open to significant expansion.
Modelling work for an updated resource estimate, incorporating the 2022
drilling, has been initiated by SGS and is anticipated to be complete by
mid-2023.

Critical Minerals

The Allard deposit at La Plata is a significant potential source of copper and
silver, both important industrial metals used for modern technologies broadly
and particularly in renewable and clean energy applications. Recent and
historical work has also demonstrated that the broader La Plata district is
also a potential source of other Critical Minerals identified by the U.S.
Government as requirements for economic and national security(4). Drilling by
Metallic Minerals in 2022 returned multi-gram intervals of platinum group
elements with individual grades up to 5.0 g/t Pt and 5.4 g/t Pd, as well as
critical minerals such as vanadium, and rare earth elements. Tellurium,
another element on the critical mineral list, was a by-product of historic
high-grade gold and silver production in the district. The potential for these
critical minerals to add additional economic value to the La Plata project
will be evaluated as part of ongoing exploration.

USGS Earth MRI Program

The U.S. Geological Survey ("USGS") is funding the Colorado Geological Survey
for geological studies in the La Plata Mountains as part of the Earth Mapping
Resources Initiative (https://pr.report/nwjd7eOJ) ("Earth MRI"). The work to
be carried out by the Colorado Geological Survey includes geologic mapping as
well as geochemical and mineralogical studies in the La Plata Mining District
to generate a greater understanding of the area's potential to host critical
minerals. See USGS news release dated January 25, 2023
(https://pr.report/S8WiwV-q) .

Forest Service Plan of Operations Authorization

The U.S. Forest Service ("USFS") has authorized Metallic Minerals' Plan of
Operations for proposed 2023 exploration drilling on USFS lands. The
authorization of these drill sites allows for expanded drill testing
opportunities near the Allard Cu-Ag-Au-PGE resource and for the drilling of
several of the additional porphyry-style targets as defined by the Company's
geological team.

About Metallic Minerals

Metallic Minerals Corp. is a leading exploration and development stage
company, The Company is focused on silver and gold in the high-grade Keno Hill
and Klondike districts of the Yukon, and copper, silver and other critical
minerals in the La Plata mining district in Colorado. Our objective is to
create shareholder value through a systematic, entrepreneurial approach to
making exploration discoveries, growing resources, and advancing projects
toward development. Metallic Minerals has consolidated the second-largest land
position in the historic Keno Hill silver district of Canada's Yukon
Territory, directly adjacent to Hecla Mining's operations, with more than 300
million ounces of high-grade silver in past production and current M&I
resources. Hecla Mining Company, the largest primary silver producer in the
USA and third largest in the world, completed the acquisition of Alexco
Resources and their Keno Hill operations in September 2022.

Metallic Minerals is also one of the largest holders of alluvial gold claims
in the Yukon and is building a production royalty business by partnering with
experienced mining operators, including Parker Schnabel of Little Flake Mining
from the hit television show Gold Rush on the Discovery Channel. At the
Company's La Plata project in southwestern Colorado an inaugural NI 43-101
mineral resource estimate in April 2022 returned a significant porphyry
copper-silver resource with results from the 2023 resource expansion pending.

All of the districts in which Metallic Minerals operates have seen significant
mineral production and have existing infrastructure, including power and road
access. Metallic Minerals is led by a team with a track record of discovery
and exploration success on several major precious and base metal deposits in
the region, as well as having large-scale development, permitting and project
financing expertise. The Metallic Minerals team has been recognized for its
environmental stewardship practices and is committed to responsible and
sustainable resource development.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Website: www.mmgsilver.com (https://pr.report/DzJvwO2G) Phone: 604-629-7800

Email: cackerman@mmgsilver.com (mailto:cackerman@mmgsilver.com) Toll Free:
1-888-570-4420

Foot notes:

1) See Technical Report (https://pr.report/A-nLcCwy) on the Inaugural Mineral
Resource Estimate for the Allard Cu-Ag Porphyry Deposit, La Plata Project,
Colorado, USA with an effective date of April 3, 2022. The Mineral Resource
has been estimated in conformity with CIM Estimation of Mineral Resource and
Mineral Reserve Best Practices Guidelines (2019) and current CIM Definition
Standards - For Mineral Resources and Mineral Reserves (2014). The constrained
Mineral Resources are reported at a base case cut-off grade of 0.25% CuEq,
based on metal prices of $3.60/lb Cu and $22.50/oz Ag, assumed metal
recoveries of 90% for Cu and 65% for Ag, a mining cost of US$5.30/t rock and
processing and G&A cost of US$11.50/t mineralized material. (1) CuEq*
calculations are based on 100% recovery of all metals using the same metal
prices used for the resource calculation. All figures are rounded to reflect
the relative accuracy of the estimate. The current Mineral Resources are not
Mineral Reserves as they do not have demonstrated economic viability. The
quantity and grade of reported Inferred Resources in this Mineral Resource
Estimate are uncertain in nature and there has been insufficient exploration
to define these Inferred Resources as Indicated or Measured. However, based on
the current knowledge of the deposits, it is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.

2) Eckel, USGS Prof Paper 219, Geology and Ore Deposits of the La Plata Mining
District, 1949.

3) Bear Creek Mining (now Rio Tinto), Humble Oil (now Exxon) and Phelps Dodge
(now Freeport-McMoRan) company reports.

4) The US Geological Survey has released a list of 50 critical minerals that
the US economy requires for economic and national security. Earth Mapping
Resources Initiative (https://pr.report/Ru98ozmd) .

Qualified Person

The disclosure in this news release of scientific and technical information
regarding exploration projects on Metallic Minerals' mineral properties has
been reviewed and approved by Jeff Cary, CPG, who is a Qualified Person as
defined by National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").

Quality Assurance / Quality Control

All samples were prepared by Bureau Veritas Sparks, Nevada facility and
analyzed at the Burnaby, B.C. facility. All samples were analyzed using the
AQ-252 EXT procedure using a 30-gram multi-acid digestion with an ICP-ES/MS
finish. Over-limit copper and silver samples were analyzed using the MA-401
procedure using a multi-acid digestion and atomic absorption spectrometry
analysis. Select samples with elevated values of gold, platinum or palladium
were re-analyzed using the FA330 procedure using a 30-gram fire assay fusion
with an ICP-ES finish. All results have passed the QAQC screening by the lab
and the company utilized a quality control and quality assurance program which
included blank, duplicate, multiple standard reference samples and third-party
umpire samples.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

SOURCE: Metallic Minerals Corp.

 

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