Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic Minerals” or the “Company”) is pleased to announce it has received the first royalty payments from test work conducted by the operators at the Company’s Dominion Creek alluvial gold project (“Dominion Creek” or the “Property”) in the Klondike Gold District near Dawson City, Yukon.
In a news release dated September 25, 2017, Metallic announced that it had granted an experienced alluvial mining operator exclusive rights to mine the Company’s 10 claims, totaling 1 mile (1.6 km), along a bench of Dominion Creek (see Figure 1) in exchange for a 15% royalty on all gold production payable to Metallic Minerals. Mining equipment was mobilized to the road-accessible site in September and Metallic Minerals has been paid a production royalty on the gold produced from the processing of the material from a test pit located on the eastern end of the Property.
Greg Johnson, CEO and Chairman of Metallic Minerals, noted, "We are pleased to have received the first royalty payment so soon after acquiring the Property this past September. Going forward, the proceeds from these royalty payments will be used to offset some of the corporate and operating expenses related to Metallic’s Yukon exploration activities. Though the royalty from Dominion Creek was from a modest amount of test material in 2017, it confirms the presence of recoverable alluvial gold on the Property. Additional ground preparation has been completed at Dominion Creek to facilitate an early start to work in 2018.”
Metallic Minerals further reports that it has closed the agreement announced in a news release dated September 11, 2017 regarding the acquisition of a 100% interest in 36.4 square kilometres ("km2") of mining rights along with Australia Creek drainage, a tributary to the Indian River, in the Klondike Gold District near Dawson City, Yukon.
Mr. Johnson commented, “In addition to Dominion Creek, the Company also holds 26 miles of creek and bench alluvial mining rights along Australia Creek and has similarly entered into a production royalty agreement with respect to a 2-mile portion thereof. Activities at Australia Creek in 2017 included mobilization of equipment to the site in September, completion of an access road for exploration and future mining, geophysical surveys, trenching and development of a test pit with materials stockpiled for future processing. Discussions with additional operators interested in the remaining 24 miles of claims are ongoing and we anticipate expanding the number of production royalties on our Klondike Gold District holdings.”
Figure 1 - Metallic Minerals' Alluvial Gold Properties
About Dominion Creek
Dominion Creek is part of the historic Klondike Gold District that is estimated to have produced over 20 million ounces of gold since its discovery in 1898. Approximately 2.7 million ounces have been produced on Dominion Creek by hand mining, dredging and, more recently, modern mechanized mining that continues today with numerous large scale open pit operations. The main channel of Dominion Creek was mined by floating dredges by Yukon Consolidated Gold Company (YCGC), which also conducted exploration churn drilling along the benches of Dominion Creek, but never mined the benches in this area1. Auger drill holes on these claims have returned values for gold in the gravels similar to other parts of Dominion Creek.
About Australia Creek
Australia Creek its benches are now recognized by Yukon Geological Survey as an eastern continuation of the Klondike Gold District’s highly-productive Indian River drainage, which is the largest placer gold producing area in the Yukon. Mining on the Indian River began in the late 1970s and has produced about 250,000 ounces of gold, or more than 40% of all placer production in the Yukon through 2015. With the expansion of larger-scale, open-pit operations, production on the Indian River has doubled since 2010 and accounted for 46% of the Yukon’s total placer gold production in 20151.
Australia Creek itself was never historically mined, despite extensive mining activity nearby, due to its importance as a source of water and hydro-electric power for supporting the broad scale, floating dredge operations that were being conducted in the area by YCGC which operated in the Klondike Region between the 1920s and 1960s. The dams on Australia Creek have been removed with only the historic diversion channels now remaining. YCGC did limited exploration churn drilling at the mouth of Australia Creek, but no further exploration up the drainage. The mouth area is being actively mined at present and auger drill holes on Lower Australia Creek have returned values in the gravels similar to other parts of the Indian River, with initial test pits in 2015 to 2017 confirming the presence of alluvial gold.
1Yukon Geological Survey (“YGS”) Yukon Placer Mining Industry Report 2010-2014
About Metallic Minerals Corp.
Metallic Minerals Corp. is a growth stage exploration company focused on the acquisition and development of high-grade silver and gold in the Yukon within under explored districts proven to produce top-tier assets. Our objective is to create value through a disciplined, systematic approach to exploration, reducing investment risk and maximizing probability of long-term success. Our core Keno Silver Project is located in the historic Keno Hill Silver District of Canada's Yukon Territory, a region which has produced over 200 million ounces of silver and currently hosts one of the world’s highest-grade silver resources. The Company’s McKay Hill Project, northeast of Keno Hill, is a high-grade historic silver-gold producer. Metallic Minerals is also building a portfolio of gold royalties in the historic Klondike Gold District. Metallic Minerals is led by a team with a track record of discovery and exploration success, including large scale development, permitting and project financing.
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Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
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