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Go to any mining convention and also youre prone to hear this adage: one of the best place to discover a new mine is close to an outdated mine. Its true. Its much more probably when metals costs are wholesome and trending increased. One junior is in search of to stipulate assets in two former mining camps. The chances and metals costs simply is likely to be on its facet.
With spot costs for silver, gold, and copper buying and selling close to their respective five-year highs, Metallic Minerals Corp. (MMG:TSX; MMNGF:OTCQB) goes forward with the primary useful resource estimate on its La Plata silver-gold-copper undertaking in southwestern Colorado after exploration drilling confirmed historic drill outcomes by Rio Tinto, Freeport, and for good measure, added some gold, platinum, and palladium knowledge.
The Vancouver-based junior has tasked geological consulting agency SGS Geoscience to place collectively the Nationwide Instrument 43-101-compliant estimate for La Plata.
Excessive-grade gold and silver veins at greater than 90 small-scale mines and prospects within the La Plata district have been mined intermittently from the 1870s by means of the Nineteen Forties. Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) and Freeport-McMoRan Inc. (FCX:NYSE) (by way of Phelps Dodge) drilled greater than 15,000 meters on the property and outlined a large-scale mineralized porphyry system (sometimes decrease grade however with higher grade continuity).
One of many deepest holes drilled on the property intersected 378 meters of porphyry-style mineralization grading 0.62% copper equal (CuEq) [0.52% copper, 6.2 gram per tonne silver (6.2 g/t silver), and 0.06 gram per tonne gold (0.6 g/t gold), including 110 meters grading 0.82% copper equivalent (0.64% copper, 7.4 g/t silver, and 0.13 g/t gold)] with the opening ending in mineralization.
Primarily based on holes like that and La Plata having seen little exploration work since Phelps Dodge bought the claims in 2002 (earlier than it was acquired by Freeport in 2007), Metallic administration believes the undertaking has extra secrets and techniques to disclose.
“The mining occurred across the flip of the century, after which it was explored by among the large miners, Rio Tinto and Freeport, within the Nineteen Fifties by means of the Seventies. And we’re sort of the primary to come back in and have a look at (La Plata) from a contemporary perspective,” Metallic CEO and Chairman Greg Johnson advised Streetwise.
Administration believes it might probably quickly develop the recognized historic mineral useful resource at La Plata and develop the higher-grade zones within the broader porphyry and epithermal mineralized techniques.
Metallic is working with Goldspot Discoveries Inc. (SPOT:TSX.V), a Vancouver-based a software program developer that makes use of geological and geophysical knowledge, in tandem with synthetic intelligence, to raised “perceive” and study gold and different metallic deposits. Collectively they’ve recognized 16 high-grade epithermal-style and porphyry-style mineralized zones throughout La Plata for follow-up work in the course of the 2022 area season.
Metallic’s 2021 exploration work included 1,980 meters of diamond drilling; resampling of historic drill core; underground sampling from the Allard tunnel, a key space of earlier exploration; and mapping and taking floor samples throughout the property.
Drill gap LAP21-01 intersected 380 meters of 0.27% CuEq (0.21% copper, 2.08 g/t silver, 0.025 g/t gold), together with a number of vital intervals of higher-grade mineralization, whereas LAP21-02 intersected 416 meters of 0.28% CuEq (0.23% copper, 2.57 g/t silver, 0.026 g/t gold), together with, 128 meters of 0.45% CuEq (0.38% copper, 4.19 g/t silver, 0.042 g/t gold).
Sampling within the Allard tunnel returned 98 meters of 0.55% CuEq (0.46% copper, 4.75 g/t Ag, 0.03 g/t Au), together with 61.6 m of 0.65% CuEq (0.55% Cu, 5.55 g/t Ag, 0.03 g/t Au).
The mineralized system stays absolutely open to enlargement at depth and alongside strike.
“The modelling work for the useful resource estimate on the Allard goal is underway, and we stay up for reporting the outcomes over the approaching weeks, in addition to additional drill outcomes from the Keno Silver undertaking,” Johnson stated.
Keno District Wealthy in Historical past, Wealthy in Silver
Keno is a silver “district” in Yukon plagued by high-grade silver-lead-zinc veins, a few of them outcropping at floor, stretching throughout roughly 35 kilometers.
The western third of the district is managed by Alexco Useful resource Corp. (AXU:NYSE.MKT; AXR:TSX), which simply restarted its Keno Hill silver mine, among the many highest-grade silver mines on the planet. Its reserve grades are 804 g/t silver or 1,035 g/t silver equal (AgEq).
Keno Hill is slated to supply greater than 4 million ounces (4Moz) in 2022, with reserves in place for eight extra years of manufacturing. Its life-of-mine, all-in sustaining prices are US$11.60 — increased than common — however a part of that is because of a metals streaming contract with Wheaton Valuable Metals Corp. whereby silver ounces have been ahead bought to fund development.
The central third accommodates many mines from the past-producing Keno Hill camp. Greater than 10 mines, led by the Hector-Calumet mine with about 96 Moz silver (initially two separate mines that labored the identical vein from each ends), produced greater than 150 Moz silver within the district.
Metallic’s 16,600-hectare flagship undertaking, Keno Silver, occupies primarily the japanese half of the district, with extra claims to the south of Alexco on the west. Johnson says the well-defined, high-grade mineralized techniques within the central and western components of the district proceed onto its land bundle, however Metallic administration now believes there may be vital potential to piece collectively deposits that may very well be mined as low-cost open pits.
“We’re mainly seeing the identical geologic setting does not cease on the declare boundary as these buildings proceed. However the brand new factor is the popularity by our workforce, that not solely do we have now these tremendous high-concentration (silver) buildings, which might contain comparatively slender selective vein mining, however we have broad areas that could be amenable to bulk tonnage,” Johnson advised Streetwise.
He added: “So surrounding these high-grade deposits, you’ve got acquired materials that is at decrease grades, however there’s much more of it. We made these bulk-tonnage discoveries in 2020, and we adopted them up in 2021.”
32 Drill Holes Intersect Silver Mineralization
Vancouver-based Couloir Capital covers Metallic and sees promise within the preliminary drill outcomes on Keno Silver. “MMG accomplished two units of main drilling applications in 2021, for which it has but to launch full assay outcomes. On condition that Keno Silver displays related mineralization traits as Alexco’s belongings to the west, we see a possible upcoming catalyst in constructive drill outcomes,” a Couloir analyst wrote in a analysis report.
Metallic printed outcomes from 37 reverse-circulation holes totalling virtually 3,000 meters into the Central Keno goal space. Outcomes are pending from the opposite 26 holes accomplished within the into East and West Keno in 2021.
Thirty-two of the 37 reverse-circulation holes intersected silver mineralization. Two ended wanting their goal depth as a consequence of floor situations.
Highlights embody: Gap KS21-47, which intersected 27.4 meters of 146 g/t silver equivalent1 (“AgEq”), together with a high-grade interval of three.05 meters at 1150.8 g/t AgEq (562.06 g/t silver, 1.48 g/t gold, 3% lead, 6.96% zinc).
And gap KS21-55 intersected 19.8 meters grading 119.1 g/t AgEq, together with a high-grade interval of 1.52 meters at 1009.8 g/t AgEq. (147 g/t silver, 3.24% gold, 0.99% lead, 10.9% zinc).
Metallic is now updating its three-dimensional mannequin primarily based on the Central Keno outcomes. The corporate is within the technique of finalizing an inventory of high drill targets for what is anticipated to be a strong 2022 drilling season.
Metallic Might Develop into Takeover Goal
Johnson spent years growing and drilling off NOVAGOLD Assets Inc.’s (NG:TSX; NG:NYSE.MKT) mammoth Donlin Creek gold undertaking, now a 50-50 three way partnership with Barrick Gold Corp. (ABX:TSX; GOLD:NYSE).
If Metallic can drill off sufficient ounces, Johnson sees Keno Silver — and probably the whole district — changing into a takeover goal.
“If we discover one thing actually attention-grabbing, Alexco turns into an apparent candidate for wanting to accumulate it outright or to companion (with us). If we discover one thing larger, it most likely attracts an even bigger silver participant and maybe they even consolidate the entire district — purchase each items to create a consolidated district,” Johnson advised Streetwise.
Metallic additionally has a portfolio of unmined alluvial gold claims within the Klondike area of Yukon, the sort of properties mined on Discovery Channel’s Gold Rush. Metallic will license the properties and guide a royalty on any gold mined. Johnson says this may proceed to be a supply of non-dilutive financing.
Metallic is a part of the Vancouver-based Metallic Group, which consists of three publicly traded mining exploration corporations: Group Ten Metals Inc. (PGE:TSX; PGEZF:OTCQB; 5D32:FSE), a progress stage nickel and platinum group parts explorer with a just lately introduced inaugural useful resource estimate on its Montana asset; Granite Creek Copper Ltd. (GCX:TSX; GCXXF:OTCQB), a high-grade copper play in Yukon’s Minto Copper District with a just lately up to date useful resource and upcoming PEA; and Metallic.
Couloir has a “purchase” ranking on Metallic with a 12-month goal of CA$0.68.
Metallic has about $2.6 million money and trades in a 52-week vary of CA$0.75 and CA$0.32.
1) Brian Sylvester compiled this text for Streetwise Reviews LLC and gives companies to Streetwise Reviews as an impartial contractor. He or members of his family personal securities of the next corporations talked about within the article: None. He and members of his family are paid by the next corporations talked about on this article: None. His firm has a monetary relationship with the next corporations referred to on this article: None.
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