Well we have been a bit quieter than usual but that does not mean we have not been busy…in fact quite the opposite. And I also have some exciting news on possible new developments with critical minerals and what our neighbor Coeur Mining have been announcing at Silvertip and the significant implications their findings have on our exploration efforts at Silverknife.

Wrapping up the 2022 Exploration Season

Spring in the exploration sector is often a time to get assessment reports done so that we get credits for the exploration expenditures on our property claims. Over the last two months we have submitted assessment reports for most of our properties including Rodney Pond, Terra Nova, Bridal Veil, Blue Heaven, Amy and Silverknife. These credits help us secure the rights of our claims for many years to come.

Updating Silver Hart

As previously noted we also contracted Ronacher-Mckenzie Geosciences that have both extensive geological and geophysical expertise to conduct a review of the Silver Hart project. Phase 1 of this project was to compile the extensive database of exploration results that has been accumulated since 2010. This now enables us to examine new opportunities that may exist within the Silver Hart-Blue Heaven project and plan steps forward for that property in 2024 and beyond. Phase 2 of the project now will include an interpretation of that data with the aim of identifying opportunities beyond those that exist ion the property to expand resources.

Silverknife – Our Focus for the 2023 Exploration Season

In addition, this time of year is all about getting ready for what we believe will be the most exciting exploration season we have undertaken since the inception of CMC Metals Ltd. Our focus will be on the Silverknife Property where we are commencing an initial 3,000-meter drill program. 

But first of all a bit of background…

Our interest in this property was stimulated from the highly positive airborne electromagnetic survey results from the 2021 SkyTEM survey that we flew on all of our properties in the Rancheria Silver District (north-central British Columbia). We then contracted McKeown Exploration Services and Intelligent Exploration to conduct a ground gravity survey to provide us with additional insight into the possible merit of the conductive anomalies. This survey resulted in a discovery of significant gravity anomalies (see Figure 1).

In a simplistic explanation a gravity anomaly identifies areas where subsurface material is denser than other surrounding rocks. Minerals like lead and zinc have a high density and therefore a gravity anomaly is a highly positive indicator that those minerals may exist in the area of the anomaly. The anomalies were found in the northernmost portion of the Silverknife property over an area of approximately 600 meters by 300 meters in dimension. The interpretation of the data collected resulted in a recommendation for a drill program to be undertaken to further investigate Silverknife for the potential to host carbonate replacement silver-lead-zinc deposits (“CRD’s”).

Figure 1: Gravity Anomaly Identified in 2022 At Silverknife Property, North-Central BC.What else did we know about the Prospectivity of the Silverknife Property?…

• CRD’s tend to 
  • form in clusters 
  • get hosted in limestones and other sediments 
• The Silverknife property is immediately adjacent to the Silvertip Mine Property owned by Coeur Mining Inc. which already hosts one of the highest-grade underground CRD silver-lead-zinc deposits in the world and recent exploration efforts have significantly expanded resources in that region.
• The Silverknife Prospect on the eastern border of our property was known to host significant mineralization in limestone units from drilling conducted in the 1980’s. The Silverknife Prospect comprises of a non 43-101 compliant resource of 362,800 tons with an average weighted assay value of XX g/t silver, XX g/t gold, XX% lead, and XX% zinc. 
  • The deposit remains wide open in all directions 
  • drilling was conducted on the edge of a major conductor identified through the SkyTEM survey (see Figure 2)

Figure 2: Historical Drilling on the Silverknife Prospect Possibly Missed the Conductivity Target in Pink/Red

• The Skytem survey showed a broad band of conductivity through the central portion of Silverknife (see Figure 3) that is also linked to the conductivity belt that hosts the Silvertip Deposit (see Figure 4)

Figure 3: Zone of High Conductivity through the Central Portion of the Silverknife Property and also note the areas of conductivity in the north (associated with the gravity anomaly) and the Conductivity Zone in the southernmost portion thought to be associated with the McDame Lime.

Figure 4: Conductivity Belt in the SilverTip Region Linked to the Conductivity Belt Central portion of Silverknife Property

We also knew that we had geochemical anomalies associated with this central conductivity zone and that the geology on the Silverknife Property was a mirror image of the geological and structural setting of the Silvertip Deposit (see Figure 5).

Figure 5: Geological Setting of the Silvertip Deposit Extends onto the Silverknife Property, the Geological Sequence is Repeated, with associated North-South Structures.

What are the recent Developments At Silvertip?

Our neighbor Coeur Mining Inc. have provided a lot of news and insight into their perspectives on the significant prospectivity of the Silvertip area and mineralization at the Silvertip Mine and new discoveries, all of which have served to greatly improve the prospectivity of CMC’s Silverknife property.

Highlights are:

• Regional Potential: Couer have indicated the potential of the region, not limited to the immediate SilverTip deposit, as being highly prospective for CRD mineralization:
  • The resources at Silvertip are now considered to be a “likely small part of a larger mineralizing  system” “…we firmly believe Silvertip has the possibility to be a much larger resource and be a future source of high growth for the Company”

(Aoife McGrath – Senior VP Exploration, Coeur Mining Inc.)

• Hub and Spoke Model: Coeur have noted that the potential of the Silvertip region can be described like a hub and spoke model. In this model (for further information refer to our recent presentation in www.cmcmetals.ca) Silverknife falls on one of the major spokes and is therefore considered to be an area of prospectivity in that model:
  • “there is evidence that the resources outlined to date are only one of several potential mineralizing spokes…” (Aoife McGrath – Senior VP Exploration, Coeur Mining Inc.)
• Potential for Critical Minerals: Coeur have identified the presence of critical minerals such as germanium, gallium and indium at SilverTip and they have applied for inclusion in the Canadian Critical Minerals Strategy.
• New Mineralization Model for Silvertip: Couer have presented a new mineralization model that significantly expands the potential for mineralization in other sedimentary sequences (see figure below) . Potential host rocks include units above and below the McDame Formation with a total thickness of approximately 2,500 meters.

WHAT ARE THE IMPLICATIONS ON CMC’S SILVERKNIFE PROPERTY FROM RECENT DEVELOPMENTS IN THE SILVERTIP REGION?

Recent developments in the SilverTip Region have significant implications on the prospectivity of the Silverknife Property as follows:

Significant Increase in Prospective Horizons for CRD Mineralization: Other sedimentary units such as the Earn, Atan, Road River and possibly others occur on the Silverknife Property and can now be considered to be prospective horizons while before they were not considered as potential host units for CRD Mineralization. IN particular this increases the prospectivity of the Silverknife Propsect and units in the central and southern portions of the property.

Geophysical Linkages May Bear Fruit: The conductivity belt in the central portion of the Silverknife Property appears to be the same conductivity belt hosting the Silvertip deposits.

Critical Minerals: Further research has indicated that critical minerals such as germanium were found in other mineral occurrences in the Silvertip region and Coeur’s application to the critical mineral s strategy suggests some significance in their content at SilverTip. As a result, we will be testing for critical minerals in our sampling program at Silverknife this season.

It is a lot to digest but superb news. The bottom line is that drilling has commenced and we are very hopeful that the upcoming gravity survey will identify new potential deposits in the central portion of the Silverknife Property. Mapping efforts will also be targeting a better understanding of the property geology in the south targeting previously unknown prospective horizons. We will inform everyone of any results as quickly as possible so please stay tuned. This is going to be an exciting exploration season at Silverknife.

Kevin Brewer, P.Geo
President and CEO
CMC Metals Ltd.

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 newsletter.

“This newsletter may contain certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, statements that address the timing and content of upcoming work programs, geological interpretations, receipt of property titles and exploitation activities and developments. In this release disclosure regarding the potential to undertake future exploration work comprise forward looking statements. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects, to carry out the work and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, the impact of the constantly evolving COVID-19 pandemic crisis and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company’s filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.”