CMC Metals Ltd. Plans to Initiate Geophysical Studies to Help Define Potential Drill Targets at Its Silverknife and Amy Properties and Announces Discussions Progressing on Its Silverknife Property

Rhea-AI Summary

CMC Metals (OTCQB:CMCXF) announced plans to initiate geophysical studies at their Silverknife and Amy properties in British Columbia. These studies aim to define potential drill targets for high-grade silver-lead-zinc deposits. The studies will utilize CSAMT and Induced Polarization techniques, building on previous airborne geophysics results. Additionally, CMC is in discussions for an earn-in agreement for the Silverknife Project, with an offer expected by mid-June. The company aims to advance permitting for the Amy project and establish near-term drill targets at Silverknife.

Positive

• Initiation of geophysical studies may help define potential high-grade silver-lead-zinc drill targets.
• Previous airborne surveys identified large conductivity anomalies, indicating promising exploration targets.
• Active discussions on an earn-in agreement for the Silverknife Project, with an offer expected by mid-June.
• Potential to advance permitting for the Amy project and establish near-term drill targets at Silverknife.
• Silverknife and Amy properties are 100% owned, minimizing financial risk associated with joint ventures.

Negative

• Targets identified are still broad and require more definition, indicating a need for further investment in geophysical studies.
• No specific financial terms or project specifics have been discussed, creating uncertainty about the earn-in agreement.
• The success of proposed studies and discussions remains uncertain, posing risks to business development.
• Historical exploration data may not align with current geophysical findings, leading to potential discrepancies.

VANCOUVER, BC / ACCESSWIRE / June 4, 2024 / CMC Metals Ltd. (TSXV:CMB)(FRA:ZM5P)(OTCQB:CMCXF) ("CMC" or the "Company") is pleased to announce that the Company hopes to soon initiate geophysical studies (i.e. CSAMT and/or Induced Polarization) in areas on its Silverknife and Amy properties where airborne geophysics have identified significant high conductivity targets.

The current outcome of an airborne electromagnetic survey completed by SkyTEM in 2021 (see press releases April 20, 2021, May 11, 2022 and April 16, 2024), was the identification of several large areas with conductivity anomalies on the Silverknife and Amy properties in British Columbia, Canada (see Figures 1-3). The potential targets at Silverknife and Amy are high grade silver-lead-zinc carbonate replacement and skarn deposits.

The proposed studies would provide a measure of resistivity. Simply put, material with low resistivity allows electrons to move through it easily and it therefore tends to also be highly conductive. Silver is a very highly conductive elements that makes it suitable for a large number of industrial applications. Therefore, a target from a resistivity survey containing silver would be one characterized by low resistivity.

Resistivity studies may help to define specific contacts between units such as limestones and granites, with the target host being a limestone. Limestones, especially cracked or faulted ones, also typically have low resistivity values, while intrusions like granites will have a much higher resistivity. Resistivity studies can present a lot of information and help to define specific targets, contact relationships, and possible fault structures which are key known controls for mineralization in the Rancheria Silver District

Previous SkyTEM surveys have identified large conductivity anomalies in areas such as Tootsee North and the South-central Zones of the Silverknife Property. In the Tootsee North Zone the conductivity anomaly is coincident with a gravity anomaly (see press release dated August 10, 2022) and preliminary mapping has indicated the presence of limestones in outcrops all of which are positive features for exploration. However, the existing targets are still rather broad targets over an area characterized with a lot of overburden and therefore need more definition.

It is therefore the hope that additional ground geophysical studies and grid based geological mapping will serve to better define near term drill targets to depths of 250-300 meters or more.

The Silverknife and Amy properties are 100% owned by CMC Metals Ltd. They have been the subject of considerable historical exploration dating back to as early as the 1960's by several previous operators. There is a considerable database of geochemical and geological data from this previous work that has been compiled and will also be used.

In addition, CMC has been in active discussions over potential interest expressed in an earn-in agreement for the Silverknife Project. The Company is hopeful that an offer may be tabled on or before mid-June. Discussions to date have not discussed any project specifics or any financial and/or operational considerations. It is therefore not known if any terms when, and if presented, will be acceptable to the Company and therefore this information should not be considered for any possible investment purposes or be construed as a solicitation. This is presented merely to present a full scope of activities ongoing with respect to the Silverknife Project.

Mr. John Bossio, Chairman of the Company noted "We eagerly anticipate a potential offer for our Silverknife Project as it will help to advance the project and allow us to focus on our other emerging projects in the rancheria Silver District and elsewhere."

Mr. Kevin Brewer, P.Geo. and President and CEO of the Company noted that "We are eager to get back to exploring Silverknife this year and to advance permitting for our Amy project. Our post-season work for the Silverknife project resulted in several targets being identified that now merit further evaluation with the objective to establish near-term drill targets."

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 Silverknife and Amy projects (British Columbia) and the Silver Hart Deposit and Blue Heaven claims (Yukon). Our other polymetallic projects include Bridal Veil (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."

Figure 1: Conductivity plot at an elevation of ~950m (approximately 250-350 meters below the 1200-1300 meter surface elevation) in the Tootsee North and South-Central Zones at Silverknife. Both anomalies present potential drill targets given that are further supported by an anomalous mass in the 2022 and 2023 gravity surveys presented in Figure 2 (Source: Intelligent Exploration, 2022).

Figure 2: Gravity Bouguer anomalies in the Tootsee North and South Central Zones at Silverknife that are coincident with conductivity anomalies identified by the 2021 SkyTEM airborne EM survey (Source: Intelligent Exploration, 2023)

Figure 3: Looking northeastwards across the Silverknife Property, a conductivity anomaly extends across the entire property which is now called the South-central zone. This anomaly was originally identified from the 2021 SkyTEM airborne is now also known to be coincident with a gravity anomaly and geochemical anomalies. Also note the conductivity anomalies in the Tootsee North zone and the South Silverknife Zone where mapping has identified the presence of McDame limestones (Source: Intelligent Exploration, 2022).

SOURCE: CMC Metals Ltd.

View the original press release on accesswire.com

FAQ

What geophysical studies are CMC Metals planning to initiate at Silverknife and Amy properties?

CMC Metals plans to initiate CSAMT and Induced Polarization geophysical studies to define potential drill targets.

What did previous airborne surveys at CMC Metals' Silverknife and Amy properties reveal?

Previous airborne surveys identified large conductivity anomalies, indicating high-grade silver-lead-zinc carbonate replacement and skarn deposit targets.

When is CMC Metals expecting an offer for the Silverknife Project?

CMC Metals expects an offer for the Silverknife Project by mid-June.

What are the main goals of CMC Metals 's upcoming geophysical studies at Silverknife?

The main goals are to better define near-term drill targets to depths of 250-300 meters and to evaluate key known controls for mineralization.

What is the significance of the Tootsee North Zone at the Silverknife property?

The Tootsee North Zone has a conductivity anomaly coincident with a gravity anomaly and the presence of limestones, which are positive features for exploration.