METALLA UPDATE: NEW DISCOVERY ON THE SANTA GERTRUDIS GOLD PROPERTY
Metalla Royalty & Streaming Ltd.(TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) ) updates on its recently acquired 2% net smelter return royalty covering the Santa Gertrudis gold property owned by Agnico Eagle Mines Limited. (NYSE: AEM).
Brett Heath, President and Chief Executive Officer of Metalla declared, “We are very encouraged by the exploration success at Santa Gertrudis and the new discovery of the high-grade Centauro Zone. We eagerly await the results of the remainder of Agnico’s 2018 drill program that will be focused on mineral resource expansion and exploring new target areas. In addition, Agnico expects to release an initial mineral resource estimate in mid-February 2019.”
SANTA GERTRUDIS – DRILLING OF THE NORTH AND SOUTH DEPOSITS CONFIRMS HISTORIC MINERAL RESOURCES WITH POTENTIAL FOR EXPANSION; AND THE DISCOVERY OF A HIGHER-GRADE ZONE
Agnico Eagle acquired its 100% interest in the Santa Gertrudis gold property in November 2017. The 42,000-hectare property is located approximately 180 kilometers north of Hermosillo in Sonora, Mexico.
The property was the site of historic heap leach operations that produced approximately 565,000 ounces of gold at a grade of 2.1 g/t gold between Ys 1991 and 2000, and includes substantial surface infrastructure already in place including pre-stripped pits, haul roads, water sources and buildings.
Three favorable geological trends with a potential strike length of 18 kilometers have been identified on the property with limited drilling between deposits. In addition, the previous owner reported high-grade mineralization along northeast-trending structures.
Drill results for the Santa Gertrudis project were last reported in the Agnico’s news release dated July 25, 2018. This news release presents the drill results at the project in Q-3 of Y 2018 using portable and skid-mounted drill rigs, with the purpose of confirming and extending the historic mineral resources and exploring new concepts.
In Q-3 of Y 2018, 13,120 meters were drilled in 89 holes mainly in the Becerros, Toro, Escondida, Viviana and Trinidad zones. The third quarter drilling almost completes 2018’s program to validate and confirm the most recent historical mineral resource estimates. The Y 2018 exploration program at the project consists of 28,000 meters at a budget of $7.2-M.
Drilling is now focused on mineral resource expansion and exploring new target areas.
Selected recent drill results from the Santa Gertrudis project are set out in the table below, and drill hole coordinates are set out in a table in the Appendix of the October 24, 2018 news release. Drill collars are also shown on the Santa Gertrudis Project Local Geology Map.
All intercepts reported for the Santa Gertrudis project show uncapped gold grades over an estimated true width and depth of midpoint below surface, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.
No capping factor was used for these composites. The cut-off grade for these intervals is 0.3 g/t gold. Recent assay results from the Becerros, Toro, Escondida, Viviana and Trinidad zones have confirmed mineralization and the potential for extensions in these areas, as well as the continuity of structurally-controlled feeders.
Exploration drilling in the third quarter of 2018 has discovered the high-grade structurally controlled Centauro Zone, where hole SGE18-067 intersected 7.0 g/t gold over 4.0 meters at 43 meters depth. Centauro aligns well with, and may represent a projection of, the Camello area (part of Becerros Zone) 300 meters to the west. Centauro potentially also lies at the intersection of the Corral and Toro trends.
In the Becerros Zone, located approximately 1,000 meters southwest of the Centauro Zone, hole SGE18-068 intersected two intervals that are part of the same mineralized corridor: 1.8 g/t gold over 11.0 meters at 137 meters depth and 2.2 g/t gold over 3.0 meters at 151 meters depth. The main mineralized corridor that forms the Becerros deposit can now be traced over 1,500 metres strike length.
Four recent infill drill holes intersected the Toro Zone along a strike length of 1,660 meters, showing good correlation with historic drill results.
The recent Toro intercepts include hole SGE18-072 that intersected 2.2 g/t gold over 18.0 meters at 134 meters depth. Sixteen hundred meters to the southwest, hole SGE18-076 had two intercepts in Toro: 1.1 g/t gold over 4.0 meters at 98 meters depth and 3.3 g/t gold over 11.8 meters at 145 meters depth. The Toro Zone is located 1,400 meters northwest of the Becerros Zone.
The Escondida Zone is in the northern portion of the project, 2,800 metres northeast of the Toro Zone. Recent drilling has confirmed the grades and widths of mineralization within the historic mineral resource area, such as hole SGE18-087 that twinned a historic hole, intersecting 1.8 g/t gold over 12.5 metres at 26 metres depth.
Seventeen hundred meters northwest of Toro is the Viviana Zone, where hole SGE18-098 intersected 4.8 g/t gold over 8.9 meters at 89 meters depth. Approximately 34 meters to its southeast, hole SGE18-102 intersected two mineralized intervals: 3.0 g/t gold over 3.0 meters at 51 meters depth and 0.7 g/t gold over 5.4 meters at 99 meters depth. Both exploration holes were drilled near the historic Viviana open pit.
At the Trinidad Zone, which is located 2,200 meters north-northeast of the Viviana Zone, recent drill results correlate well with historic drill holes in the area. Hole SGE18-089 intersected 2 mineralized intervals: 2.8 g/t gold over 7.0 meters at 30 meters depth and 10.5 g/t gold over 10.0 meters at 38 meters depth (including 19.5 g/t gold over 3.4 meters). Additional follow-up drilling in this area in 2018 will aim to expand the historic mineral resources.
An additional 5,800 meters of drilling is planned for the rest of 2018. Agnico expects to report its initial mineral resource estimate for Santa Gertrudis in mid-February 2019.
As of September 30, 2018, Osisko Mining, the owner of the Garrison Property continues with the data migration and reinterpretation of the geological plans for the Garrcon, Jonpol and 903 zones. An additional 90,000 meters of drilling since the previous technical report was published in Y 2014 has been completed at the Garrison Property. Osisko is in the process of updating the resource model with an updated resource estimate expected in January 2019.
Metalla was created to provide shareholders with leveraged precious metal exposure by acquiring royalties and streams. The company’s goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns. Its strong foundation of current and future cash-generating asset base, combined with an experienced team gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle.
For further information, please visit the company website at www.metallaroyalty.com
|HeffX-LTN Analysis for MTAFF:||Overall||Short||Intermediate||Long|
|Neutral (-0.01)||Neutral (-0.16)||Neutral (0.08)||Neutral (0.05)|
To our USA readers, have a Happy Thanksgiving Week!
Latest posts by HEFFX Australia (see all)
- Australian Dollar: AUD/USD (AUD=X) Australian consumer confidence in focus - July 15, 2020
- Australian Dollar: AUDUSD Heading Lower - July 13, 2020
- Euro: EUR/USD Struggles - July 13, 2020