CMC Metals Ltd. Acquires an 80% Interest in the Blue Heaven Property, Yukon, Canada

Rhea-AI Summary

CMC Metals (OTCQB: CMCXF) has finalized the acquisition of an 80% interest in the Blue Heaven Property in the Yukon, Canada, from Strategic Metals The property covers 118 claims (1,975 hectares) contiguous to CMC’s Silver Hart Project and features 13 mineralized areas and 36 showings. Highlights from a 2022 trenching program at the Golden Cross Zone include high-grade samples containing up to 64.56% lead, over 1,500 g/t silver, and 8.5% zinc. Past sampling from 1999 also showed significant mineralization. An exploration permit application is under review to further evaluate the property's potential.

Positive

• CMC Metals has acquired an 80% interest in the Blue Heaven Property, expanding its portfolio.
• High-grade trenching results from the Golden Cross Zone include up to 64.56% lead, over 1,500 g/t silver, and 8.5% zinc.
• The property is contiguous to CMC's Silver Hart Project, potentially enhancing synergies and exploration outcomes.
• A permit application for further exploration has been submitted and accepted for review.

Negative

• Shareholder dilution due to payment of 5,000,000 common shares at $0.03 per share for the final payment.

VANCOUVER, BC / ACCESSWIRE / June 27, 2024 / CMC Metals Ltd. (TSXV:CMB)(Frankfurt:ZM5P)(OTCQB:CMCXF) ("CMC" or the "Company") is pleased to announce that the Company has completed the final payment on the Blue Heaven Property with the optionor Strategic Metals Ltd. ("Strategic") and as a result is now an 80% owner of the Property. The original final payment of the option agreement was amended and subsequently a payment of 5,000,000 common shares at a deemed price of $0.03 per share, with a four month hold period, was provided to Strategic as the final payment for the Property.

The Blue Heaven Property comprises of 118 claims (1,975 hectares) that are contiguous to the Company's Silver Hart Project in south-central Yukon. Blue Heaven is characterized with 13 mineralized areas and 36 showings many of which are yet to be evaluated by the Company. A brief program in 2022 extended previous trenching at the Desire Showing (subsequently renamed as the Golden Cross Zone) with highly positive results including:

• 8.0 meters grading 13.39% lead, 1.57% zinc, 359.25 g/t silver and 1.17% manganese including 1.0 meter of 10% lead, 5.1% zinc, 1,500 g/t silver and 2.3% manganese
• 13.0 meters grading 8.25% lead, 4.22% zinc, 151.57 g/t silver and 9.16% manganese including 1.0 meter of 23.86% lead, 0.9% zinc, 623 g/t silver and 2.3% manganese
• A 14.0 meter mineralized area including 1.0 meter samples containing:
  • 3.61% lead, 3.1% zinc, 199 g/t silver, 12.6% manganese
  • 10% lead, 2.5% zinc, 360 g/t silver and 3.7% manganese
  • 10% lead, 8.5% zinc, 459 g/t silver, and 1.6% manganese
• Several other 1.0 meter length individual samples containing:
  • 49.8% lead, 3.7% zinc, 857 g/t silver and 5.7% manganese
  • 13.4% lead, 5.6% zinc, 167 g/t silver and 10.5% manganese
  • 59.46% lead, 1.8% zinc, 1,076 g/t silver and 3.2% manganese
  • 21.01% lead, 1.1% zinc, 820 g/t silver and 1.4% manganese
  • 16.53% lead, 0.3% zinc, 425 g/t silver and 0.7% manganese
  • 64.56% lead, 5.6% zinc, >1,500g/t silver and 2.3% manganese
  • 29.26% lead, 0.7% zinc, 1,295 g/t silver and 0.5% manganese

These preliminary results demonstrate the potential for stacked manto sequences but require a lot more investigation to be conclusive in this regard. The area around the Golden Cross Zone is also characterized by several outcrops with extensive manganese which has been found to be indicative of silver-lead-zinc CRD-style mineralization on the Silver Hart property. These areas will be further evaluated with trenching and detailed mapping once an exploration permit has been secured for the property

In addition, a bulk sample collected by Nordac Resources Ltd. in 1999 from the Blue and H zones by comprised of 51.47 dry tonnes grading 8,563 g/t silver, 56.2% lead, 9.5% zinc and 1.2 g/t gold. Also, a recent in-depth analysis completed by Ronacher-McKenzie Geosciences on the 2021 SkyTEM airborne electromagnetic survey identified four areas of exploration prospectivity that were deemed to merit detailed evaluation.

A permit application including a renewal for exploration at Silver Hart and proposed exploration activities at Blue Heaven has been submitted and accepted for review by the Yukon Environmental and Assessment Board.

Mr. Kevin Brewer, P.Geo. and President and CEO of the Company noted that "The Golden Zone area, four new areas of exploration prospectivity, and the numerous showings on the Blue Heaven Property indicate significant exploration potential. Combined with the neighboring Silver Hart claims, CMC now has secured a significant interest on over four kilometers of a prospective carbonate belt that is an excellent target for skarn, vein and carbonate replacement high grade silver-lead-zinc mineralization."

Qualified Person

Qualified Person Kevin Brewer, a registered professional geoscientist, is the Company's President and CEO, and Qualified Person (as defined by National Instrument 43-101). He has given his approval of the technical information pertaining 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.

About CMC Metals Ltd.

CMC Metals Ltd. is a growth stage exploration company focused on opportunities for high grade polymetallic deposits in Yukon, British Columbia and Newfoundland. Our polymetallic silver-lead-zinc CRD prospects in the Rancheria Silver District include the Silver Hart Deposit and Blue Heaven claims (Yukon), Amy and Silverknife claims (British Columbia). Our polymetallic projects with potential for copper-silver-gold and other metals include Bridal Veil (central Newfoundland) and Logjam (Yukon).

On behalf of the Board:
"John Bossio"
John Bossio, Chairman
CMC METALS LTD.

For Further Information and Investor Inquiries:
Kevin Brewer, P. Geo., MBA, B.Sc.(Hons), Dip. Mine Eng.
President, CEO and Director
Tel: (+52) 669 198 8503
kbrewer80@hotmail.com
Suite 1000-409 Granville St., Vancouver, BC, V6C 1T2

To be added to CMC's news distribution list, please send an email to info@cmcmetals.ca or contact Mr. Kevin Brewer directly.

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 exploration 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, to carry out the work 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, the impact of the constantly evolving COVID-19 pandemic crisis 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."

SOURCE: CMC Metals Ltd.

View the original press release on accesswire.com

FAQ

What percentage interest did CMC Metals acquire in the Blue Heaven Property?

CMC Metals acquired an 80% interest in the Blue Heaven Property.

What is the size and location of the Blue Heaven Property?

The Blue Heaven Property is located in Yukon, Canada, and covers 118 claims totaling 1,975 hectares.

What are the noteworthy results from the 2022 trenching program at the Golden Cross Zone?

Noteworthy results include samples containing up to 64.56% lead, over 1,500 g/t silver, and 8.5% zinc.

What was the final payment method for the Blue Heaven Property acquisition?

The final payment consisted of 5,000,000 common shares at a deemed price of $0.03 per share.

What is the significance of the Blue Heaven Property's proximity to the Silver Hart Project?

The proximity to the Silver Hart Project may enhance synergies and exploration outcomes for CMC Metals

Has CMC Metals submitted a permit application for further exploration at Blue Heaven?

Yes, CMC Metals has submitted a permit application for further exploration, which has been accepted for review.