CMC Metals Ltd. (the “Company”) is pleased to announce that it has filed an application for a Class 1 Exploration Permit with the Energy Mines and Resources Department of the Government of Yukon to continue exploration at its silver/lead/zinc Silver Hart Property for the coming season beginning in June.
The Company holds a 100% interest in the Silver Hart, situated approximately 132 km west of the Town of Watson Lake in south-central Yukon, Canada. Consisting of 126 claims (2,200 ha), the Property is located 43 km north of the Alaska Highway. Power Grid transmission lines run within one kilometer of the Property. The Silver Hart is thought to be similar to the Bellekeno deposit located in the Keno Hill mining camp in central Yukon, and which is characterized by high grade silver mineralization.
Only a small proportion of the area comprising the CMC claims has been explored on surface, offering potential for further discovery. Historic work by CMC and previous owners has identified at least seven zones of mineralization, four of which are considered ‘significant’ expressions of mineralization (please refer to the Technical Report described below). Some 673 meters of underground workings, 20 trenches and over 8,000 meters of drilling have been completed on the Silver Hart Property. The Company has spent approximately CAD $7 Million on exploration, and a substantial camp has been established on the Property.
The most recent work carried out by the Company at Silver Hart was in 2011-2013, before the Property was placed on care and maintenance during 2013 owing to substantially softened commodity prices and weak equity markets. Prior to the cessation of activity the Company recovered three bulk samples, the products of which (513.5 tonnes) were shipped to China and collectively sold for approximately USD $1 Million. The payments excluded credits for the lead and zinc contained in the shipments, as the Company was paid only for the silver credits.
Throughout the period of inactivity, the Silver Hart Project had been kept on care and maintenance while the Company focused resources on its U.S gold assets in California. Now that commodity prices for silver, lead and zinc have firmed significantly over the last two years, the Company is planning to become re-engaged in the area with a 2017 exploration and drilling program on the Property.
Over the past few years the Company was directed to complete site reclamation work at the Silver Hart Property, and to remove its camp. Failure to do so has resulted in charges being issued under the Yukon Quartz Mining Act. The Company has retained legal counsel to defend the charges, and has advised the Yukon Government of its scheduled exploration program, which includes plans to drill along strike of known mineralization. Since more exploration will be carried out on the Property this summer, the Company does not intend to complete the site reclamation work.
A review of previous historic work and the results of some initial resource estimates for Silver Hart are available on SEDAR in a ‘TECHNICAL REPORT ON THE SILVER HART PROPERTY, (Watson Lake Mining District), Yukon, Canada’ by authors with Dahrouge Geological Consulting Ltd. of Edmonton, AB and dated January 2010.
Please note: there is no current feasibility or pre-feasibility study for the Silver Hart Property. A qualified person has not done sufficient work to classify any historical estimate as current mineral resources or mineral reserves; the Company is not treating the historical estimate as current mineral resources or mineral reserves, and the historical estimate should not be relied upon as an indicator of future resource or reserve potential.
On behalf of the Board:
“Michael C. Scholz”
Michael Scholz, Director
CMC METALS LTD.
For further information please contact Mr. Michael Scholz at Tel: 604-605-0166 email: info@cmcmetals.ca
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 includes 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 next stage of bulk sample operations at Radcliff are expected to commence toward the end of March, weather and access route conditions permitting, and that the company will issue confirmation of progress in the coming weeks 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.”
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