CMC Options the Silverknife and Amy Claims in the Rancheria Silver District
Vancouver, BC.: CMC Metals Ltd. - (“the Company”) (TSX-V: CMB) is pleased to announce that it has acquired an option to earn up to a 100 percent working interest in the Silverknife and Amy mineral properties in the Rancheria Silver District, north-central British Columbia (the “Property”), subject to an option agreement (the “Agreement”) with Mr. Steven Scott (the “Prospector”). The Agreement is subject to approval by the TSX Exchange.
Pursuant to the terms of the Agreement, the Company will earn a 100% working interest in the Silverknife and Amy Claims (the “Property”, see attached map) with the completion of the following:
- At signing, $15,000 cash, $5,000 of which was paid to the Prospector on signing of a Letter of Intent dated February 4, 2021, and issue 100,000 common shares in the capital stock of the Optionee;
- At the first year anniversary date of this Agreement, pay $15,000 cash, and issue 200,000 common shares in the capital stock of the Optionee;
- At the second year anniversary date of this Agreement, pay $20,000 cash, and issue 400,000 common shares in the capital stock of the Optionee;
- At the third year anniversary date of this Agreement, pay $40,000 cash, and issue 500,000 common shares in the capital stock of the Optionee.
In addition, the Property is subject to a 2% net smelter royalty which can be reduced to 1% upon the payment of $1,000,000 to the Prospector.
The Rancheria Silver District is located approximately 300 kilometers east of Whitehorse, Yukon in a 130 km long by 50 km wide belt that straddles the Yukon and British Columbia border. CMC has been actively exploring this silver district on the northern end at its Silver Hart and Blue Heaven properties. From those efforts the Company has identified successful exploration strategies and knowledge of the district that helped to identify the significant prospectivity of the Rancheria South area.
The road accessible Silverknife Property lies just south of the British Columbia-Yukon border. The property claims are immediately adjacent, and to the west of, the claims owned by Coeur Mining that host the Silvertip deposit. Silverknife comprises of 2 mineral tenures covering approximately 538.3 hectares. Silverknife mineralization represents a zone of known silver-lead-zinc mineralization distal to, and stratigraphically lower than the Silvertip Deposit and more proximate to the Cassiar Batholith (heat source). This presents opportunities for the discovery of mineralization associated with chimney-type feeders and mantos that may be related to the SilverTip mineralizing event.
The road accessible Amy Property lies 8 kilometers to the west of the Silvertip Mine complex. The Amy claims comprising of 16 mineral tenures (approximately 908.4 hectares) cover part of the Cassiar Batholith, a satellite plug and surrounding calcareous and non-calcareous sediments which in this area is a multikilometer extension of the same geological units that are mineralized in our Silver Hart Property. This highly prospective target stratigraphy extends southwards from our Rancheria South claims and transects the entire Amy claim block that is contiguous with the Rancheria South claims. A total of 7 mineralized showings have been identified within the Amy property comprising of high-grade silver veins and silver-lead-zinc carbonate replacement occurrences. The primary showing comprises of the Amy Showing which is a developed prospect comprising of a galena, sphalerite, pyrite, arsenopyrite, argentite, and friebergite “manto” body formed by replacement mineralization in folded Cambro-Ordovician Kechika Group metasediments. The property has been subjected to geological mapping, geochemical sampling, geophysical surveys and 742 meters of drift/adit development and approximately 33 diamond drill holes focussed on a mineralized zone with a known strike length of 170 meters (BC Minfile 104O 004).
Other mineralized zones and areas within the Amy claims include:
- Cub Zone: a channel sample graded 1.88 oz/t (53.3 g/t) silver, 4.6% lead and 3.42% zinc;
- Zone 2: trenching produced two samples grading (i) 11.4 oz/t (323.2 g/t) silver, 10.5% lead and 13% zinc; and (ii) 150.5 oz/t (4266.7 g/t) silver, 47.4% lead and 1.9% zinc;
- NE anomaly: a soil anomaly measuring 500 by 300 meters where sampling have produced up to 9,200 g/t lead, 4,250 g/t zinc and >20 g/t silver and mineralized float found in the same area grading from 29.82-74.10 oz/t (845.4-1817.2 g/t) silver, 4.6-31.4% lead and 0.33-5.4% zinc;
- Breccia Zone: mineralized float sample graded 22.29 oz/t silver (631.9 g/t), 4.82% lead and 2.22% zinc; and,
- Unnamed Zone: mineralized float graded 47.1 oz/t (1,335.3 g/t) silver.
Note: The information on these showings and related non 43-101 compliant historic resources are summarized by the BC Minfile and were included in information provided by the Prospector to the Company prior to acquisition. The Company has also not verified these results at this time nor conducted a field visit due to winter conditions.
Mr. John Bossio, Chairman noted, “With the acquisition of the Silverknife and Amy claims, CMC has now acquired the rights to earn up to a 100% working interest in 3,454 hectares of prospective geology in the southern part of the Rancheria silver district. All of these claims are within 25 kilometers of Couer’s SilverTip mine and mill complex. We are extremely pleased to have secured this amount of highly prospective ground in close proximity to Silvertip. This package of three properties presents numerous new targets for high grade silver-lead-zinc deposits and we are entertaining offers for a joint venture arrangement to advance these properties, as our key focus will remain the Silver Hart Project.”
Kevin Brewer, President and CEO noted, “From our extensive knowledge of the Rancheria Silver District and other major silver districts in places like Coeur d’Alene in Idaho and silver deposits in northern Mexico, we are confident that the Rancheria South Properties will be a significant asset for growth of our company in the future. These properties are in the target geological setting and in a good jurisdiction (British Columbia) proven to be highly supportive of exploration and mine development. We have developed successful exploration techniques at Silver Hart that will now be utilized to generate exploration success in the Rancheria South area. This package of three properties, acquired in the past two fiscal quarters, has significantly added to our portfolio of silver prospects in a time of escalating global interest in silver.”
Kevin will be presenting an update of activities of CMC Metals in a webinar on Thursday February 11, 2021, 11AM Pacific Standard Time. The webinar can be accessed at https://www.redcouldfs/rcwebinar-cmb/
Replays of the webinar should also be available through our website.
About CMC Metals.
CMC Metals Ltd. is a growth stage mineral exploration company focused on opportunities in Yukon, British Columbia and Newfoundland. Our silver-lead-zinc projects include Silver Hart, Blue Heaven and the Rancheria South Properties (Rancheria South, Silverknife and Amy). Our polymetallic projects with gold potential include Logjam, Bridal Veil and Terra Nova.
Kevin Brewer, a registered professional geoscientist in BC and Yukon, is the Company’s President and CEO, and Qualified Person (as defined by National Instrument 43-101). 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:
Kevin Brewer, P. Geo.
President, CEO and Director
Tel: (604) 605-0166
To be added to CMC’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.”