MMG sees 'District-Scale' Project in Colorado In releasing the
final results from its 2023 drilling campaign at its La Plata copper-silver-gold-platinum group element (Cu-Ag-Au-PGE) project in southwestern Colorado,
2024/4/19 3:43:08
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Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) announced that all four holes intersected porphyry-style mineralization from the surface and over their entire lengths.
Three of four holes in the 4,530-meter program intercepted continuous porphyry style Cu-Ag-Au-PGE mineralization over 500 meters in width at 0.3% Cu, including significant intervals exceeding 0.5% to 0.7% Cu Eq (copper equivalent) with associated Ag, Au and PGEs. Drill hole LAP23-05 intersected 909 meters of continuous mineralization from surface, grading 0.26% Cu Eq over the entire hole length with a 550-meter-wide higher-grade zone.
The intensity of the mineralization in the drill holes varies based on the "veining and concentration of associated sulfides that carry the copper, silver, gold, platinum, and palladium," Metallic Minerals noted in a release.
"Our emerging vision for the La Plata project is that we have the potential for a district-scale system with multiple porphyry centers in addition to the Allard resource area," said President Scott Petsel. "This is supported by the multi-kilometer scale metal-in-soil values that extend well beyond the area of drilling and correspond with strong alteration responses in our detailed district-scale airborne hyperspectral survey."
Newmont Corp. (NEM:NYSE) — formerly Newcrest Mining Ltd. — invested CA$6.34 million in Metallic primarily to advance La Plata.
"Newcrest was one of the first to recognize the potential (of La Plata) following the announcement of our discovery drill results in early 2023," Metallic Minerals Chief Executive Officer Greg Johnson said.
These resources and results, combined with those from its flagship Keno property in the Yukon and an alluvial gold production royalty agreement signed with Parker Schnabel of the Discovery Channel's "Gold Rush," led Couloir Capital to rate the stock a Buy last year. In an updated research note on September 27, it set a fair value per share estimate of CA$0.74.
The company announced an expanded NI 43-101 resource in July 2023 for La Plata of 1.2 billion pounds copper (Cu) and 17.6 Moz silver (Ag) at an average grade of 0.41% Cu Eq, 0.37% Cu, and 3.72 g/t Ag, using a 0.25% Cu Eq cutoff grade.
The inaugural resource was based largely on historical drilling from which gold and platinum group element assays were not available. Metallic has stated it expects to add the full suite of precious metals to future resource updates.
These resources and results, combined with those from its flagship Keno property in the Yukon and an alluvial gold production royalty agreement signed with Parker Schnabel of the Discovery Channel's "Gold Rush," led Couloir Capital to rate the stock a Buy last year.
In an updated research note on September 27, it set a fair value per share estimate of CA$0.74.
Petsel said the company expects to grow the resource for the La Plata project. "Our drill results indicate a significant opportunity for resource expansion and have continued to return both broad zones of mineralization and internal higher-grade zones with considerable precious metal associations showing elevated gold, platinum, and palladium values," he said.
The Catalyst: Open at Depth, Along Trend
Metallic Minerals said the main Allard deposit area at La Plata remains open to expansion at depth and along trend. Defining the geometry of the mineralization remains an important focus of follow-up drilling this year. Significant high-grade results were also received in surface rock samples taken from more than 20 different target areas elsewhere across the La Plata project area during the 2023 field season as part of a surface mapping initiative. Three of these areas have advanced to a drill testing stage.
"The 2023 exploration program was a major step forward in our understanding of the higher-grade controls to mineralization in the Allard resource area and in the advancement of several exciting surface target zones that demonstrate percent level copper with precious metals that have never been drill tested," Petsel said.
There has been excitement in the silver market recently, and some analysts are bullish on the metal. After recently correcting from fresh highs of US$29.80, silver rebounded to US$28.78 on Wednesday.
Total drilling so far has extended mineralization vertically from surface to more than 1.5 kilometers and 1 kilometer along trend and, as noted, is anticipated to allow for inclusion of both gold and platinum group elements in future mineral resource estimates, along with copper and silver, the company said.
An advanced airborne hyperspectral survey covering 157 square kilometers has also been completed at the project, allowing for detailed mineral and alteration mapping across the entire district.
Metallic Minerals said the U.S. Geologic Survey has identified the La Plata mining district as a potential critical minerals resource area under the Earth Mapping Resources Initiative program.
Yukon Flagship Gets Technical Report
Metallic Minerals also recently filed the National Instrument 43-101 technical report for its inaugural mineral resource estimate for its 100%-owned flagship Keno silver project in the Yukon.
The estimate noted a combined underground and in-pit total from four deposits for the inferred resource of 2.5 million tonnes (Mt) at 223 grams per tonne silver equivalent (g/t Ag Eq), equating to 18.16 million ounces (Moz) of contained silver equivalent.
According to the company, underground inferred mineral resources include the Formo deposit, which contains 12.77 Moz Ag Eq (7.11 Moz Ag, 3,000 ouches gold (Au), 36.02 million pounds (Mlbs) lead (Pb), and 66.14 Mlbs zinc (Zn) within 1.08 Mt grading 369 g/t Ag Eq (206 g/t Ag, 0.08 g/t Au, 1.52% Pb, and 2.79% Zn).
The Formo deposit is directly adjacent to the highway and power lines that feed the central Keno Hill mill, which is operated by Hecla Mining Co. (HL:NYSE), the largest primary silver producer in Canada and the U.S.A., Metallic Minerals said. The Formo deposit directly adjoins Hecla's Keno Hill property, where Hecla is actively mining the nearby Bermingham deposit.
https://www.streetwisereports.com/article/2024/04/18/vancouver-explorer-sees-district-scale-project-in-colo.html