Strategic Metals Ltd. Provides Update at Its Midas Touch and Silver Range Projects
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/12/11 -- Strategic Metals Ltd. (TSX VENTURE: SMD) ('Strategic') is pleased to provide the following update of exploration activities.
Midas Touch Project
At the 100% owned Midas Touch project located in central Yukon, diamond drilling is progressing well at both the Crag and Rod properties, while surface exploration is underway at a number of Strategic's other properties in the area.
The first-phase program of diamond drilling at the Crag property is nearing completion. When the current hole finishes, 11 holes (approximately 2600 m) will have tested the Trent Zone along a 400 m strike length and to a maximum depth of 230 m below surface (see drill hole location map at www.strategicmetalsltd.com). This drilling has intersected orpiment-realgar mineralization in all holes, thus confirming historical descriptions of core from holes drilled in 1977 by McIntyre Mines Limited. Assay results will be reported after receipt and compilation. A second-phase program of diamond drilling will be designed and implemented after results are interpreted. Realgar and orpiment often occur with gold in mines within the Carlin Trend of Nevada and are key indicator minerals at ATAC Resources' Osiris discovery 40 km to the east of the Crag property.
The diamond drilling program at the Rod property is scheduled to include 10 to 15 holes totalling about 3000 m. These holes are located within a 1500 by 500 m zone of anomalous gold soil results accompanied by very high silver, antimony, arsenic, mercury and lead values (see Strategic news release dated Dec. 9, 2010). The Rod property is situated in a favourable structural and stratigraphic setting for Carlin-type deposits. The nature of the geochemical response coupled with silver-bearing veins and fractures within shale host rocks suggest that the Rod Anomaly may represent leakage of fluids from a gold-rich system in underlying carbonate strata.
Reconnaissance-scale exploration is systematically progressing on the extensive Midas Touch properties which encompass approximately 79,600 hectares (796 square km). More than 5500 soil and stream sediment samples have been collected so far. Detailed mapping, prospecting and grid soil sampling are planned to follow-up anomalous results from the reconnaissance work. If time permits, priority targets will be drilled later this summer.
Silver Range Project
The comprehensive 2011 exploration program at the Silver Range project in the Faro District of south-central Yukon is in full operation. To date, four diamond drills have completed 8 holes (3000 m) in the main part of the Keg Zone, 4 holes (1140 m) in the eastern part of the Keg Zone and 2 holes (490 m) in the Drex Zone (see maps located at www.strategicmetalsltd.com). Four widely-spaced holes drilled at the Keg Zone in 2010 all intersected broad intervals of porphyry-style, disseminated and stockwork mineralization. These holes partially tested a 550 m strike length of a 4 kilometre long by several hundred metre wide geochemical and geophysical anomaly. The Drex Zone is one of five other large-scale mineralized zones identified to date on the Silver Range project, and has not been previously drilled.
Rapid progress is being made on soil geochemical sampling across the 700 sq km Silver Range project, with more than 10,000 samples collected this year. This program is expanding the 2010 coverage and is designed to identify additional mineralized zones. During the 1970s and 1980s, the Faro District was the site of the largest open-pit lead-zinc-silver mining operation in Canada, and the area still has excellent but now under-utilized infrastructure.
The Silver Range project is the subject of a Plan of Arrangement that will be voted on at a special general meeting of Strategic shareholders scheduled for July 15, 2011 (see Strategic news release dated June 13, 2011). If the Plan of Arrangement is approved, Strategic shareholders will receive shares and tradeable warrants of a spin-out company, Silver Range Resources Ltd., which will hold the Silver Range and Mint projects. Full details of the spin-out transaction are contained within a management information circular dated June 2, 2011 that was mailed to Strategic shareholders and can be reviewed at www.sedar.com. No assay results from the Silver Range project will be released, nor received by Strategic or Silver Range Resources Ltd., until after the Plan of Arrangement has been completed.
Strategic shareholders who, as a result of postal disruptions in Canada, have not received proxy materials for either the special general meeting to be held on Friday, July 15, 2011 regarding the proposed Plan of Arrangement with Silver Range Resources Ltd. or for its Annual and Special General Meeting to be held on Wednesday, July 22, 2011 may obtain a copy of the materials at www.sedar.com. Registered shareholders and non-objecting beneficial owners may obtain their personal voting information as well as the means through which their shares can be voted by calling Computershare Investor Services Inc.'s shareholder investor centre line at 1-800-564-6253.
About Strategic Metals Ltd.
Strategic is a pre-eminent explorer and claim owner in the Yukon, with an exceptional portfolio of more than 160 property and royalty interests. Strategic currently has approximately $29 million in cash and owns marketable shares of other resource companies with a total value exceeding $105 million. An additional $14.8 million in cash is held by Silver Range Resources Ltd., which is currently a wholly-owned subsidiary of Strategic.
Technical information contained in this news release includes information summarized from historical assessment reports. Heather Smith, P.Geo, has reviewed and approved the technical information contained in this news release. Ms. Smith is a 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