He went on to add, "This option agreement demonstrates the confidence both parties have in this high-quality resource asset as it favours long term success with low upfront costs. Metallis can efficiently put funds into the ground, with resources and services more accessible than operating in a remote access location. The Agreement for staged compensation over a 10-year period is structured to reward both parties as the project advances through the stages of exploration and development."
About the Property:
The 124 hectare Greyhound Property encompasses two past producing silver/gold mines (Greyhound and Bulldog) in central
The Property is hosted in granites and granodiorites of the
Ongoing compilation of historic assays by the Metallis geological team has suggested a robust system that demonstrates consistent mineralization at multiple historic workings including the two most developed underground operations at the Greyhound and the Bulldog mine.
- In 1979 a 2,663kg bulk sample was taken from the lower Rufus Adit at the
Greyhound Mine . This sample returned a grade* of: 2.39g/t Au, 1953 g/t Ag, 3% Pb and 2% Zn and exemplifies the high-grade nature of this target. - In 1991, channel sampling across the mineralized vein in the Rufus Adit, taken at systematic intervals, returned an arithmetic average grade* for "ore-shoot 1350" of: 1.85 g/t Au, 785 g/t Ag over a length of 36.88m.
- In 1999 a grade summary was prepared by Robert Longe to assess grade potential along the Greyhound shear. His work on the Rufus Adit demonstrated average grades* for well documented "ore-shoots" to be 684 g/t Ag and 0.85 g/t Au including 3% Zn and 1% Pb.
*The reader is cautioned that all measurements and metal grades are derived from previous reports and the company has not independently confirmed the results. The similarity of values and conservative approach does lend confidence to these values. They are presented for completeness.
Property History
Initial exploration in the late 1800's led to multiple claims being staked along the Greyhound shear as prospectors and miners discovered the high-grade silver mineralization at surface on
Since then, the Property has been privately owned with patented mining claims dating back to 1921. It has seen little activity except for a period of minor production on a trial basis in 1979 when the Lower Rufus Adit (
Next Steps
The Greyhound Property provides large upside potential due to a lack of modern exploration being performed over the Property's entire history. In the last 45 years, the Property has been held by a family-owned business as part of a larger asset portfolio. This has left a well-endowed property off the market, during a period where geological methodologies and approaches have changed, and exploration technologies have evolved. This allows Metallis to leverage its exploration experience to unlock the mineralized potential through geological mapping, drone arial surveys, geophysical surveys, and diamond drilling.
Continued compilation of historic reports will help the team determine the true grade and tonnage potential outside of the historic workings. To date, approximately 600 m of horizontal workings have been documented across the 3,600 m shear zone leaving significant underexplored strike length left for further testing. The last ore shoot encountered in the Lower Rufus Adit returned some of the best grades on the Property that are comparable to many of the operating mines in the state. A further 3,000 meters of untested ground remains across multiple high-grade silver/gold surface showings and pits. The system also remains open to depth as mineralization has been demonstrated over 500 vertical meters from the Rufus Adit to mineralization on top of
This region has recently seen exploration success where historic silver camps have been able to outline sources at depth and this will be factored into the team's exploration programs. During initial exploration, the team will be assessing the Property for source intrusions or disseminated mineralization. The Property's location, within the
Agreement Terms:
The Agreement requires staged payments of
Date | Option payment (US) | Minimum exploration |
On the Effective Date | - | |
1st anniversary | - | |
2nd anniversary | ||
3rd anniversary | ||
4th anniversary | ||
5th anniversary | ||
6th anniversary | ||
7th anniversary | ||
8th anniversary | ||
9th anniversary | ||
10th anniversary | - | |
Total |
Any reference to the term "anniversary" in the above schedule or anywhere in this news release refers to the anniversary of the Effective Date for paying by the Company of balance of the staged payments of
The Optionor retains a 2% Net Smelter Returns Royalty, which may be reduced to 1% by the payment of
Qualified Person
Historic assays cannot be verified by Metallis as they are historical in nature although there is no reason to believe they are inaccurate.
The wholly owned, 106 sq. km Kirkham Property is located about 65 km north of
On behalf of the Board of Directors:
/s/ "Fiore Aliperti"
Chief Executive Officer, President, and Director
This Press Release may contain statements which constitute 'forward-looking' statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements because of numerous factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities' regulatory authorities, including quarterly and annual Management's Discussion and Analysis, which may be viewed on SEDAR at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected.
Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as intended, planned, anticipated, believed, estimated, or expected. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Neither
SOURCE
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