Strategic Metals Announces Acquisition of Vanadium Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/06/11 -- Strategic Metals Ltd. (TSX VENTURE: SMD) ('Strategic' or 'the Company') is pleased to announce that it has staked eight mineral claims to reacquire 100% ownership of the Flat Lakes vanadium prospect, located 14 km by road northwest of the Cantung Mine in the southwestern corner of the Northwest Territories.
The Flat Lakes prospect is hosted in mudstones of Ordovician to Silurian age. It was discovered in 1966 by Placer Development Limited, which completed systematic outcrop sampling and five diamond drill holes between 1967 and 1971. Placer held the prospect until the 1990s when it was restaked by Nordac Resources Ltd. (which was later reorganized to become Strategic).
The vanadium-rich mudstones occur within a tight syncline that is about 20 km long. The core of the prospect has been tested for a length of 700 m and is defined by four diamond drill holes and outcrops along creeks, which cut through pervasive overburden cover. The main mineralized horizon typically ranges between 50 and 60 m in true thickness and grades about 0.6% V2O5 (vanadium pentoxide). Chip sampling by Placer and Nordac also identified a second mineralized horizon in overlying mudstones. Limited data from this upper horizon suggest that it grades between 0.5 and 0.6% V2O5 over a true thickness of 8 to 17 m. The mineralized horizons are open to extension along strike in both directions and to depth.
Vanadium pentoxide is used in the manufacturing of some types of steel while refined vanadium has potentially important applications in battery technology.
'The Flat Lakes prospect has demonstrated size potential and exhibits grades that are similar to deposits which are being mined or are currently going into production elsewhere in the world,' states Doug Eaton CEO and President of Strategic. 'Proximity to established infrastructure greatly enhances the significance of this project.'
About Strategic Metals Ltd.
Strategic is a pre-eminent explorer and claim holder in the Yukon, with 38 properties under option to other companies, 8 properties subject to a sales agreement, and approximately 100 wholly-owned properties. Strategic also holds royalty interests in 8 more projects, including a net smelter return royalty on part of the Wolverine Deposit which is scheduled to commence production in 2011.
Technical information contained in this news release was summarized from historical assessment reports submitted on behalf of Nordac Resources Ltd. and Placer Development Limited. The data was reviewed and approved by Heather Smith, P.Geo., who is the qualified person as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD
W. Douglas Eaton, President and Chief Executive Officer
For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com.
This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
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.
Contacts:
Strategic Metals Ltd. - Corporate Information
W. Douglas Eaton
President and C.E.O.
(604) 688-2568
Strategic Metals Ltd. - Corporate Information
Bruce A. Youngman
Chairman
(604) 687-2522
Strategic Metals Ltd. - Investor Inquiries
Richard Drechsler
Corporate Communications
(604) 687-2522 or NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
www.strategicmetalsltd.com