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Overview

Property Overview

The Keno Silver Project is a highly-prospective, district scale, brownfields exploration property consisting of 166 square kilometres in the world-class Keno Hill Silver District of Canada’s Yukon Territory, which has produced over 200 million ounces of high-grade silver over the past 100 years at an average grade exceeding 1,300 grams per tonne. The property is adjacent to, and on-trend with, Alexco Resource Corp’s operations, one of the highest-grade primary silver operations in the world featuring an estimated life of mine production grade of 804 grams per tonne with 30.5 million ounces proven and probable, along with over 74 million ounces of silver (M&I) and a further 24 million ounces silver (Inferred)1. The area features excellent infrastructure, with well-developed and maintained roads, as well as access to the Yukon power grid that supplies Keno City.

Metallic Minerals' land package covers the eastern portion of the district, along with portions on the western and southern sides, and represents a continuation of the same geological structures and host rock associated with the demonstrated mineralization occurring on Alexco’s ground to the west. The Keno Silver Project, which consists of the West (Bermingham, Elsa and Husky trends), Central (Flame & Moth, Lucky Queen and Keno Summit trends) and East Keno target areas, was host to eight historic silver mines with some of the highest-grades in the district and five that had average production grades above 5,000 g/t.

The Company’s West and Central Keno packages occur along extensions of major structural corridors that host Alexco's Silver King, Elsa, and Hector-Calumet, Flame & Moth and Lucky Queen deposits, which are some of the largest silver producers in the district. These largest deposits in the district are hosted primarily in the Keno Hill quartzite and Triassic greenstones along major structural corridors where the structural setting allows for the development of significant Keno Hill type high-grade silver-lead-zinc rich vein deposits.

Soil sampling and geophysical surveys over the past two years at East Keno identified 12 multi-kilometer-scale anomalies which indicated potential for large-scale mineralization in an underexplored part of the district. The largest of these target areas extend up to five kilometers in length and two kilometers in width with values exceeding 100g/t silver equivalent (“AgEq”) in soils. A total of 30 shallow reverse circulation (“RC”) holes totaling 2,644 meters (8,674 ft) were drilled in 2020, testing just a small fraction of these recently defined targets, with results confirming the presence of high-grade Keno-style mineralization within broad continuous zones of potential bulk-tonnage silver mineralization. These results expand the known extent of drill-defined Keno-style mineralization by 10 kilometers to the east and south of the historic Keno Hill mine and open this major new area of prospective stratigraphy for exploration.

The occurrence of mineralization within broad areas of brecciation and pervasive silicification has expanded the potential favorable host rock settings beyond the main Keno Hill quartzite and greenstones in this area. In addition, the identified multi-kilometer-scale soil anomalies spatially correspond with large geophysical magnetic low features that may represent magnetite destructive alteration zones or proximal, buried mineralizing intrusive bodies.

This geologic setting is potentially similar to that hosting some of the world’s largest bulk-tonnage silver deposits, including Newmont’s Peñasquito, Fortuna’s Caylloma, and SSR’s Chinchillas deposits, which are hosted in breccia, fracture, and stockwork structural zones, as well as higher-grade sheeted veins and structures.

Keno Hill Silver District Geology and Deposits

Keno Hill-type silver deposits consist of high-grade silver veins, typically 1-5 metres in width, grading from 200 g/t to >5,000 g/t silver, with associated lead and zinc sulphides. The largest individual deposits in the district, which range from 10 million to 100 million ounces of contained silver2, are associated with northeast trending, southeast dipping fault/vein structures that form major ore shoots in the preferred host rocks: quartzite and greenstone. To date, there are twelve known mineralized trends in the Keno Hill Silver District, eight of which continue through the eastern portion of the district, which hosts Metallic Minerals’ Keno Silver Project (see Figure 1 below).

Figure 1 – Keno Hill Silver District Geological Trends and Deposits

Figure 1

The schematic cross sections shown below (Figure 2 and 3) show the geology and deposits from three of the twelve known mineralized trends in the Keno Hill Silver District, ten of which transverse across Metallic Minerals’ Keno Silver Project. Figure 2 highlights the major historic producers as well as recent discoveries along the Bermingham–Calumet Trend and provides evidence of Keno-type mineralization occurring where the above-noted geological conditions are present. The major, new high-grade Bermingham discovery demonstrates the potential for significant new finds along trend and down dip from past producing mines in this prolific, historic district. More information on these areas is available by clicking here.

Lesser explored parts of the district, particularly the eastern portion of the Metallic Minerals ground, have similar geologic settings and also host historic producing mines and mineralized prospects with the potential to host significant new mineral resources.. Figures 3 and 4 depict the continuity of these key structural trends across the eastern portion of the Keno Hill Silver District and identify former operations which represent priority exploration targets. Each of these sections includes a detailed description of the associated target areas.

Work to date at the Keno Silver project has advanced three targets to step out drilling stage, 6 additional targets to a drill-ready status, in the Central and Western parts of the district, and has identified 10 priority kilometer scale early stage targets for reconnaissance drilling in the Eastern part of the district. The Company will be refining these targets with the receipt of remote multi-spectral studies, geophysical survey interpretation and results from geochemical sampling in preparation for drilling in 2020.

Footnotes

1See Alexco Resource Corp. website for delineation of current mineral reserves and resources and Alexco Resource Prefeasibility Report.

2Cathro, R. J. (Bob). Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver Camp, Yukon Territory. Geoscience Canada, [S.l.], Sept. 2006. ISSN 1911-4850; Boyle, R.W., 1965. “Geology, Geochemistry, and Origin of the Lead-Zinc-Silver Deposits of the Keno Hill–Galena Hill Area, Yukon Territory”. Bulletin 111, Geological Survey of Canada.

*References to adjoining properties are for illustrative purposes only and are not necessarily indicative of the exploration potential, extent or nature of mineralization or potential future results of the Company’s projects. The Company does not have access to such project or underlying information and has not independently verified any of the scientific, technical or exploration information related to such third-party project.

The scientific and technical information in this presentation has been reviewed by Scott Petsel, P.Geo., a non-independent qualified person as defined in NI 43-101.

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