CMC Contracts Drilling Firm for the Silver Hart Project and Receives $666,250 from the Exercise of Warrants
Vancouver, BC.: CMC Metals Ltd. - (“the Company”) (TSX-V: CMB) is pleased to report that it has signed a contract with Ardor Exploration Ltd., a drilling company based in Kelowna, British Columbia. The contract provides for a minimum of 5,000 meters of diamond drilling to be completed at the Silver Hart Project.
Modelling, including the integration of ground geophysical data with previous drilling and geochemical surveys, has resulted in the identification of several significant drill targets at Silver Hart. The targets consist of:
- Deeper drill targets within known mineralized areas in the Main Zone: Modelling has indicated that on average the current average drill extent is only to a depth of 60 meters. Geophysical data shows very good potential for the continuation of the high grade silver-lead-zinc vein mineralization at depths of up to 200 meters or more in these areas;
- Infill drilling within the Main Zone: Modelling and geophysics has indicated that there are several areas in the Main Zone that merit drilling and are yet to be investigated. Also, in the resource estimation process there were known mineralized portions of the existing veins that did not have sufficient drilling to be able to generate a resource estimate and/or generate continuity of the high-grade silver-lead-zinc veins;
- Highly anomalous new areas: Expansion of our exploration footprint at Silver Hart by over 400% in 2020 served to identify highly anomalous areas through geochemical and trenching methods that have now been further verified as being significantly prospective through ground geophysics;
- Areas with potential for Carbonate Replacement Deposits (“CRD”): the potential for CRD deposits has been known at Silver Hart for decades but there has never been a concerted exploration effort to target these deposit types. Silvertip, the only developed deposit in the Rancheria Silver District, is a CRD type deposit. An extensive belt of carbonate rocks exists in the north central part of the Silver Hart property and extends further southeast into the Blue Heaven claims for a strike length of over 6 kilometers and its close proximity to intrusive rocks and geophysical features within the belt have identified CRD targets at Silver Hart. CRD’s are the world’s primary sources for zinc+/-silver+/- lead mineralization and comprise of ore bodies that range from 0.5-20 million tonnes or more, typically come in clusters, and their high grade nature results in extremely profitable mines.
The current catalyst for the Company’s growth plan, is to complete a 700-line km airborne geophysical survey on all five silver properties in British Columbia and Yukon and a spring drilling program at the wholly-owned Silver Hart property in the Rancheria Silver District. The airborne survey is expected to be completed by early April and it is the most cost-effective method to provide the Company with extensive knowledge of property geology and key geophysical features which have been identified as being prospective for exploration of silver-lead-zinc mineralization. Planning and drill hole targeting is also in process for an expected start up in early May.
Kevin Brewer, P.Geo, President and CEO noted, “What is particularly exciting to us is that with minimal geophysics and modelling we have identified so many targets that merit drilling. The identification that new areas show stronger anomalies than the Main Zone (which has been the focus of exploration for over 30 years and yet comprises less than 10% of the property area), the potential for CRD deposits and the potential at depth, all have the potential to add significant resources to the Silver Hart Project. The possible existence of a CRD deposit(s) at Silver Hart and Blue Heaven outlines the potential to generate significantly larger resources than the current high-grade veins that have been the focus of exploration to date. We are confident that by advancing our successful exploration techniques within the extension of the same geology from Silver Hart southeastwards into the Blue Heaven property will generate a pipeline of drill targets for 2022 and beyond. We also expect that our airborne survey will generate numerous new areas of prospectivity at both Silver Hart and Blue Heaven that we can ground truth in the 2021 season. The great aspect of all of our silver-lead-zinc is that we are dealing with some of the highest-grade silver resources being explored in the world and with success that can add resources quickly.”
The Company is also preparing for exploration programs at its Rancheria South Project (i.e., Rancheria South, Amy and Silverknife claims) in north-central British Columbia. The Company is actively seeking a joint venture partner for the Project with the aim of securing sufficient funding to complete a variety of exploration efforts including up to 4,500 meters of diamond drilling.
The Company has also received $666,250 from the exercise of share purchase warrants resulting in the issuance of 10,662,500 common shares since September 1, 2020. The warrants were originally issued to placees pursuant to the Company’s last three placements which closed September 5, 2019; June 4, 2020; and July 27, 2020. The funds received from the warrant exercise will be available to augment the remaining proceeds from previous financings by the Company to help fund the airborne geophysics and proposed drill program.
About CMC Metals
CMC Metals Ltd. is a growth stage exploration company focused on opportunities for silver in Yukon and British Columbia and polymetallic deposits in Yukon and Newfoundland. Our silver-lead-zinc prospects include the Silver Hart Deposit and Blue Heaven claims (the “Silver Hart Project”) and the recently acquired Rancheria South, Amy and Silverknife claims (the “Rancheria South Project”). Our polymetallic projects with potential for copper-silver-gold and other metals include Logjam (Yukon), Bridal Veil and Terra Nova (both in Newfoundland).
Kevin Brewer, a registered Professional Geoscientist, is the Company’s President, CEO and Director and is the Qualified Person (as defined by National Instrument 43-101) for this release and its contents. He has approved the technical information reported herein. The Company is committed to meeting the highest standards of integrity, transparency and consistency in reporting technical content, including geological reporting, geophysical investigations, environmental and baseline studies, engineering studies, metallurgical testing, assaying and all other technical data.
On behalf of the Board:
John Bossio, Chairman
CMC METALS LTD.
For further information concerning the CMC Metals Ltd., or its exploration projects, please contact:
President, CEO and Director
Tel: (604) 605-0166
To be added to the Company’s news distribution list, please send an email to email@example.com . Also please visit our website at www.cmcmetals.ca for more up-to-date news and information on our projects.
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.
“This news release 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 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 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, 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.”