I am now glad to provide this edition of Hello Investors summarizing our activities in the first quarter of 2021.
Key highlights include:
- Great progress in initiating a dedicated marketing campaign;
- The acquisition of two silver properties (Silverknife and Amy) that collectively with Rancheria South, provide 3,500 hectares of highly prospective claims. We have named the project “Rancheria South” and we are actively seeking a joint venture partner for the project. Being within 25 km driving distance of the Coeur Silvertip mill, these projects offer the potential for near term development;
- The recognition that the resource grades on our properties are some of the highest in the industry – in this business “grade is king”;
- The contracting of an airborne geophysical survey that will cover all 5 of our silver properties in Yukon and BC;
- The contracting of a drilling company for Silver Hart this summer;
- Initiation of the filing of permits for our BC properties;
- Since September 1, 2020, 10,662,500 common shares have been issued from the the exercise warrants, providing $666,250 to our treasury.
Recent news and findings include:
- CMC was one of the best performing silver explorers in 2020;
- Our recently completed 43-101 Resource Estimate at Silver Hart demonstrated that the average grade of our silver-lead-zinc mineralization at 584 g/t (18.84 oz/t) silver equivalent. This grade is well above industry averages - it is 40% above existing silver mines globally and approximately 140% greater than the average grades of properties owned by silver explorers / developers (see attached figure on “Relative Grade Profile”);
- The 43-101 report was completed and indicated that:
- there is a significant opportunity to increase resources within the known areas of mineralization in the Main Zone at depth - - our drilling to date has only served to explore known mineralized areas to an average depth of 60 meters and our geophysics shows strong conductivity to depths of up to 200 meters or more (silver is conductive). Simply put there is huge upside exploration potential at depth at all known mineralized zones;
- there are significant areas within the Main Zone that are anomalous and are yet to be drilled;
- our recent expansion of our exploration footprint by 400% at Silver Hart has identified significant anomalies that need to be drill tested;
- we have investigated less than 15% of the prospective terrain at Silver Hart through drill investigation (see attached map) and there are large areas that require examination through geochemical and geophysical means that we expect will generate numerous drill targets - - the South and KW zones that are highly anomalous and require further investigation;
- Results from our geophysical surveys have now been compiled into a 3D inversion model, combined with the drill data, and have proven to us that the geophysical methods selected are highly effective tools that can be used to identify (i) key geological contacts that are critical to the loci of mineralization; (ii) areas that are mineralized through key geophysical signatures; and (iii) prospective areas for new mineralization that have been previously unexplored and where mineralization is not exposed at surface due to overburden;
- The Silver Hart area has the potential to generate deposits that could host up to 50-100 million silver equivalent ounces of high-grade silver-lead-zinc potential in vein systems;
- The Silver Hart Project has the potential to host carbonate replacement or “manto” style deposits that if found, can add significant tonnages of silver-lead-zinc mineralization. CRD deposits are typically 15-100 million silver equivalent ounces in size, form in clusters and are one of the most common form of silver-lead-zinc deposits in the world; and,
- Zinc and lead mineralization is economically as important to the “bottom line” as is the silver content.
New Marketing Initiatives
On the marketing side we have started efforts to increase our market awareness and to help inform investors on our exploration success and plans to achieve further growth:
- Completed Phase 1 of website development – the website will continue to evolve but all property information (with the exception of the recent acquisitions) has been fully updated and placed on our website. There is always room for improvement and if you have any suggestions please fee free to send them to us for consideration;
- Red Cloud Webinar: On February 11, 2021 - Red Cloud Securities organized our first webinar and it was well attended by existing and new potential shareholders. If you missed it you can watch a replay of the webinar in the “presentations” portion of our website at www.cmcmetals.ca;
- Participation in the Pre-PDAC seminar series organized by Red Cloud – consisted of a presentation and several one-on-one presentations to institutional fund groups and other investors;
- German Mining Inc: have been organizing one-on-one meetings with high net-worth investors based in Europe. The goal behind this effort is to attract greater investment from investors based in Europe;
- Social media campaign: We are now initiating social media marketing efforts on sites such as Twitter, Tweet, Linked- In and Facebook.
Significant Additions to Our Silver Portfolio
We acquired two silver-lead-zinc properties in British Columbia – Amy and Silverknife – that have extended our existing holdings (i.e., Rancheria South claims) and we now refer to these holdings as the “Rancheria South Project”. Our focus remains to expand resources at the Silver Hart Project so we have initiated the pursuit of a joint venture partner to help finance exploration efforts on the Rancheria South Project. We are hopeful that we will be successful in securing this investment due to the significant exploration potential of these properties and the strong current and projected market interest in silver and base metals as developing countries will focus on advancing “green economic initiatives.” Silver is required in numerous industrial applications including EV, solar panels, electrical systems, and many other uses, all of which are expected to significantly increase the current demand for silver over the next decade.
The Amy claims (908.4 hectares) are adjoined to the south of the Rancheria South claim block and host the Amy Prospect, a developed prospect with an historic non-compliant 43-101 resource of 72,431 tonnes grading 366.7 g/t silver, 6.03% zinc, and 2.84% lead (i.e., 1.8 million ounces of silver equivalent at a grade of 790 g/t). It has been subjected to geologic mapping, geochemical sampling, geophysical surveys and 742 meters of drift/adit development and 33 diamond drill holes that to date have identified a mineralized zone with a strike length of 170 meters (BC Minfile 104O 004). The Amy Showing is fully road accessible and only 8 kilometers from Coeur’s Silvertip mill. The Amy claims provide a multi-kilometer extension from the Rancheria South property that shares all of the geological and regional structural features that we have proven to be the key factors of the loci of mineralization at Silver Hart. Besides the Amy Deposit, there are an additional 7 mineralized showings and/or occurrences of high-grade silver-lead-zinc veins and silver-lead-zinc carbonate replacement occurrences that were note in our press release of February 10, 2021 (see in www.cmcmetals.ca).
The Silverknife claims (538.3 hectares) are immediately adjoined to the west of Coeur Mining Ltd claim block which hosts the SilverTip silver-lead-zinc mine. The property is fully road accessible. It is considered to have the potential for the discovery of mineralization associated with chimney-type feeders and mantos that may be related to the SilverTip mineralizing event (BC Minfile 104O 048). It also partially includes a drilled prospect called Silverknife (located 1 km east of the SilverTip mill) which appears to be a similar deposit to that of SilverTip (a carbonate replacement deposit or “CRD”). The prospect is located in an area covered with glacial till but modern geophysics will serve to identify possible extensions of the prospect and other drill targets as these type of deposits generally form in clusters.
In addition, we had previously announced in Q4, 2020 the acquisition of the Rancheria South Property. The Rancheria South Property hosts 9 showings and the Halliday Prospect which as an historic non-compliant 43-101 resource of 36,287 tonnes grading 427.2 g/t silver, 20.78% zinc, and 14.95% lead (i.e., 2,441,730 million ounces of silver equivalent at the phenomenal grade of 2.039 g/t).
In summary the Rancheria South Properties:
- Proximal to the SilverTip Mill: all are within less than 30 kilometers driving distance from Coeur’s Silvertip mill;
- Significant Land Position: Comprise over 3,500 hectares and with the Silver Hart Project, our total land holdings in the Rancheria Silver District are now approximately 7,500 hectares in total – more than a 350% increase in land holdings;
- Contain two 43-101 non-complaint historic resources that collectively have an estimate of 4,281,384 of silver equivalent ounces at a grade range of 790-2093 g/t;
(Note: A Qualified Person has not done sufficient work to classify the historical estimates regarding the Rancheria South Property as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves);
- Supportive Jurisdiction: in the past decade British Columbia has approved several mine developments that are now operating and has a reasonable and transparent regulatory environment;
- The Right Geological and Geophysical Characteristics: the known geology, mineralization style, regional structural features, and geophysical characteristics share many of the characteristics of the Silver Hart Deposit and the Silvertip Mine with the potential to host target deposit types in the Rancheria Silver district comprising of high-grade silver-lead-zinc veins, carbonate replacement deposits, and skarns; and,
- Reasonable Cost: were all obtained at reasonable cost with cash and/or share payments, back-ended and with low exploration expenditure requirements.
Additional News – Upcoming Events
- In late March-early April SkyTEM will complete approximately 700 line-kilometers of airborne geophysical surveys over all of the claims at our Silver Hart and Rancheria South projects. This data will be instrumental in providing us with key geophysical data and will significantly advance our knowledge of the geology and potential mineralization on all of our silver properties in the Rancheria district.