Scott Petsel, President of Metallic Minerals (TSX.V:MMG – OTCQB:MMNGF), joins us to review the news out earlier this week on July 31st of the updated National Instrument 43-101 Mineral Resource Estimate at the La Plata Project in Colorado, representing a 25% increase in contained metal, based on an additional 1,730 meters of diamond drilling completed in 2022. The inferred mineral resources at the Allard deposit now total 1,211 million pounds of copper (1.2 Billion lbs) and 17.6 million ounces of silver in a constrained model with 147.3 million tonnes at an average grade of 0.41% Copper Equivalent (CuEq) (0.37% Cu and 3.72 g/t Ag) using a 0.25% CuEq cut-off grade.
On July 11th the Company announced the start of the 2023 exploration and 5,000 meter drill campaign at the La Plata copper-silver-gold-PGE alkalic porphyry project, located in southwest Colorado. We have Scott outline how the exploration work will be following up and stepping out from last year’s successful deeper drill hole# 22-04 hole which intersected 816 meters of 0.41% Cu Eq (0.30% Cu, 2.47 g/t Ag, 0.038 g/t Au, 0.055 g/t Pd and 0.093 g/t Pd) from surface and ended in 5.39% CuEq over 5.2 m (2.44% Cu, 18.7 g/t Ag, 5.0 g/t Au+PGE). This hole generated more interest in this project from larger companies, and lead to the announcement on May 18th of the $6.3 million strategic equity investment by Newcrest Mining Limited to further advance the La Plata Project.
Next we pivoted over to the key company milestone on tap in the next few months with the Maiden Resource Estimate slated come out on the Keno Silver Project, located in the Keno Silver district of the Yukon. This will be the culmination of much of the exploration work since acquiring the project in 2017, and will feature resources from 3 of the main 5 target areas of interest at the deposit.
Wrapping up, we highlighted the financial strength of the company with $7 Million in the treasury, and additionally the expectation for new revenues to start coming in this month from the Australia Creek gold alluvial royalty property in the Klondike Gold District of the Yukon. Currently the primary operator working these claims towards production is Little Flake Mining, a company owned and operated by Parker Schnabel of Discovery Channel‘s top-rated television series, “Gold Rush.” Work is well underway with initial production and first royalty payments anticipated to start in late August. This ties into a larger discussion on how there could be room for 10 operators along their vast alluvial land claims, resulting in more future royalties, which could bring in more revenues to fund exploration at both the Keno Silver and La Plata Projects.
If you have any follow up questions for Scott on Metallic Minerals, then please email us Fleck@kereport.com or at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Metallic Minerals.
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