Mining News: Northern Neighbors: New Strategic gold explorer in the Yukon

Strategic Metals Ltd. Dec. 19 announced plans to spin-out three precious metals properties in the Yukon – Eureka, Triple Crown (formerly called OOO) and Treble (formerly called LLL) – and sufficient cash to qualify for a listing on the TSX Venture Exchange to Trifecta Gold Ltd. in exchange for Trifecta shares. Eureka is an orogenic gold project in the legendary Klondike goldfields about 70 miles (110 kilometers) road miles south of Dawson City. Triple Crown and Treble are midway between Goldcorp Inc.’s Coffee gold project and Rockhaven Resources Ltd.’s Klaza gold-silver property. One rock sample collected at Triple Crown returned 6,680 grams per metric ton silver, 30.22 percent lead and 0.80 g/t gold. The transaction is intended to increase value for Strategic shareholders by creating a new precious metal focused company. In addition to the three fully owned properties it will receive from Strategic, Trifecta will option Trident, a large land package that blankets the Matson Creek placer region, from Metals Creek Resources Corp. Originally known as the Squid properties, Trident is situated near the Alaska border about 85 miles (135 kilometers) southwest of Dawson City. “The proposed transaction will give Trifecta an exceptional land package in the Dawson Range Gold Belt. This belt is one of the most active gold exploration areas in Canada and has recently seen large investments by major mining companies including Goldcorp, Agnico Eagle and Kinross,” said Strategic President and CEO W. Douglas Eaton. Strategic shareholders will be asked to vote on the plan of arrangement at a special meeting slated for February. The arrangement proposes the dispersal of 90 percent of the Trifecta shares received Strategic to Strategic shareholders on a pro-rata basis. “The management and board of directors of Strategic believe that the proposed spin-out is an excellent opportunity for shareholders to maximize the value of their Strategic holdings, which is not adequately reflected in the current share price” Eaton added. As a prospect generator, Strategic identifies and stakes promising projects and completes initial exploration to confirm the geologic potential of its targets. The company then seeks partners to advance the projects and shares in the blue-sky potential via shareholdings or royalty interests. Through this strategy, the prospect generator holds an 8.3 percent interest in Atac Resources Ltd., which is expanding Carlin-style gold deposits at its Rackla Gold project; a 41.4 percent stake in Rockhaven Resources Ltd., which has identified large gold-silver zones at the Klaza property; and a 16.5 percent interest in Silver Range Resources Ltd., a company that recently shifted its focus to generating gold projects in Northwest Territories, Nunavut and Nevada. Strategic has a current cash position of more than C$18 million.

-Shane Lasley