Providing coverage of Alaska and northern Canada's oil and gas industry
November 2012

Vol. 17, No. 46 Week of November 11, 2012

Mining Explorers 2012: Strategic Metals Ltd.


President and CEO: W. Douglas Eaton, B.A., B.Sc.

Chairman: Bruce A. Youngman, B.Sc.

Chief Operating Officer: Ian J. Talbot

Over the past 15 years, Strategic Metals Ltd. has assembled an impressive portfolio of some 160 mineral properties and royalty interests in Yukon, British Columbia and western Northwest Territories, including many that are currently under option to other companies. Strategic recently expanded its wholly-owned Midas Touch project to cover over 1,200 square kilometers (463 square miles) of prospective stratigraphy for Carlin-type gold mineralization south of Atac Resources Ltd.s Osiris discovery. Midas Touch now hosts four areas of orpiment-realgar mineralization, arsenic sulphide minerals that are often associated with Carlin-style gold deposits. At the Crag property, recent drilling by Strategic confirmed that a hydrothermal system is gold-bearing and large in extent. The pathfinder element signature is consistent with the upper portions of a Carlin system, and requires further drilling to depth. Three other areas of orpiment-realgar mineralization are new discoveries located through follow-up prospecting of regional pathfinder and/or gold geochemical anomalies. At the Crag East property, situated 14 kilometers (9 miles) southwest of the Atac discoveries, scout drilling intersected strong orpiment/realgar within favorable carbonate rocks and high pathfinder elements over broad intervals. The most extensive geochemical anomalies identified to date occur on the Crag East property where arsenic values in soil are on average greater than 200 parts per million over strike lengths of more than 2,000 meters and widths of 1,000 meters. At the Trent zone, continued diamond drilling encountered similar results to 2011 work, including 0.4 grams per metric ton gold over 7.04 meters. Two holes drilled at the Crag South zone cut locally sheared, strongly listwaenitized ultramafic rocks with weak gold values, including 0.25 g/t gold over 6.09 meters. At Crag East, widely spaced drilling encountered hydrothermally altered limestone with realgar and other arsenic minerals was encountered in a number of holes, but to date no economic grade gold mineralization has been found. Mapping and drilling at the Scarlet East project optioned from Rackla Metals Inc. identified favorable host rocks and several structurally complex zones that coincide with 2011 gold and arsenic soil geochemical anomalies.

In early September, Strategic also began a reverse circulation drill program at its Zakco and Tagai properties located in the Nechako Plateau of central British Columbia. Drilling tested a number of geochemical and geophysical anomalies. Some of the holes will target porphyry copper-gold mineralization, while others search for structurally hosted gold zones similar to those at NewGold Inc.s Blackwater-Davidson project, located about 75 kilometers (47 miles) to the southwest, which hosts an indicated resource of 5.5 million ounces of gold and an inferred resource of 2.3 million ounces of gold.

Cash and short-term deposits: C$39.08 million (June 30, 2012)

Working capital: C$90 million (Sept. 5, 2012)

Market capitalization: C$81.14 million (Sept. 4, 2012)

1016-510 West Hastings Street

Vancouver, BC Canada V6B 1L8

Tel: 604-688-2568 Fax: 604-688-2578

Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583 --- ---

Copyright Petroleum Newspapers of Alaska, LLC (North of 60 Mining News)(Petroleum News Bakken)(Petroleum News)(PNA)2013 All rights reserved. The content of this article and web site may not be copied, replaced, distributed, published, displayed or transferred in any form or by any means except with the prior written permission of Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA). Copyright infringement is a violation of federal law subject to criminal and civil penalties.