Mr. Brett Heath reports
METALLA PROVIDES UPDATE OF NEW DISCOVERY ON THE SANTA GERTRUDIS GOLD PROPERTY
Metalla Royalty & Streaming Ltd. has provided an update on its recently acquired 2-per-cent net smelter return (NSR) royalty covering the Santa Gertrudis gold property owned by Agnico Eagle Mines Ltd., as disclosed by Agnico by way of a news release on Oct. 24, 2018.
Brett Heath, president and chief executive officer of Metalla, commented: "We are very encouraged by the exploration success at Santa Gertrudis and the new discovery of the high-grade Centauro zone. We eagerly await the results of the remainder of Agnico's 2018 drill program that will be focused on mineral resource expansion and exploring new target areas. In addition, Agnico expects to release an initial mineral resource estimate in mid-February, 2019."
Santa gertrudis -- drilling of the North and South deposits confirms historic mineral resources with potential for expansion; and the discovery of a higher-grade zone
Agnico Eagle acquired its 100-per-cent interest in the Santa Gertrudis gold property in November, 2017.The 42,000-hectare property is located approximately 180 kilometres north of Hermosillo in Sonora, Mexico. The property was the site of historic heap leach operations that produced approximately 565,000 ounces of gold at a grade of 2.1 grams per tonne gold between 1991 and 2000, and includes substantial surface infrastructure already in place including prestripped pits, haul roads, water sources and buildings.
Three favourable geological trends with a potential strike length of 18 kilometres have been identified on the property with limited drilling between deposits.In addition, the previous owner reported high-grade mineralization along northeast-trending structures.
Drill results for the Santa Gertrudis project were last reported in the Agnico's news release dated July 25, 2018.This news release presents the drill results at the project in the third quarter of 2018 using portable and skid-mounted drill rigs, with the purpose of confirming and extending the historic mineral resources (estimated by previous owners) and exploring new concepts.
In the third quarter of 2018, 13,120 metres were drilled in 89 holes mainly in the Becerros, Toro, Escondida, Viviana and Trinidad zones.The third quarter drilling almost completes 2018's program to validate and confirm the most recent historical mineral resource estimates.The 2018 exploration program at the project consists of 28,000 metres at a budget of $7.2-million.Drilling is now focused on mineral resource expansion and exploring new target areas.
Selected recent drill results from the Santa Gertrudis project are set out in the attached table, and drill hole co-ordinates are set out in a table in the appendix of the Oct. 24, 2018, news release.Drill collars are also shown on the Santa Gertrudis project local geology map, available on-line.All intercepts reported for the Santa Gertrudis project show uncapped gold grades over an estimated true width and depth of midpoint below surface (metres), based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.
SELECTED RECENT EXPLORATION DRILL RESULTS FROM THE SANTA GERTRUDIS PROJECT Depth of midpointEstimated Goldbelow truegradeDrillFrom Tosurfacewidth (g/t)holeZone(metres) (metres) (metres) (metres) (uncapped)SGE18-067 Centauro 41.0 45.0 434.07.0SGE18-068 Becerros180.0191.0137 11.01.8and Becerros197.0200.01513.02.2SGE18-072 Toro123.0145.0134 18.02.2SGE18-076 Toro 96.0100.0 984.01.1and Toro140.9152.7145 11.83.3SGE18-082 Toro 88.0104.6 95 16.61.5SGE18-087Escondida 20.0 37.0 26 12.51.8SGE18-089 Trinidad103.0110.0 307.02.8and Trinidad123.0133.0 38 10.0 10.5including 125.6129.0 373.4 19.5SGE18-098Viviana 80.0 99.0 898.94.8SGE18-102Viviana 49.0 52.0 513.03.0andViviana 96.6102.0 995.40.7
No capping factor was used for these composites.The cut-off grade for these intervals is 0.3 g/t gold. Recent assay results from the Becerros, Toro, Escondida, Viviana and Trinidad zones have confirmed mineralization and the potential for extensions in these areas, as well as the continuity of structurally controlled feeders.
Exploration drilling in the third quarter of 2018 has discovered the high-grade structurally controlled Centauro zone, where hole SGE18-067 intersected 7.0 grams per tonne gold over 4.0 metres at 43-metre depth.Centauro aligns well with, and may represent a projection of, the Camello area (part of Becerros zone) 300 metres to the west.Centauro potentially also lies at the intersection of the Corral and Toro trends.
In the Becerros zone, located approximately 1,000 metres southwest of the Centauro zone, hole SGE18-068 intersected two intervals that are part of the same mineralized corridor: 1.8 g/t gold over 11.0 metres at 137-metre depth and 2.2 g/t gold over 3.0 metres at 151-metre depth.The main mineralized corridor that forms the Becerros deposit can now be traced over 1,500-metre strike length.
Four recent infill drill holes intersected the Toro zone along a strike length of 1,660 metres, showing good correlation with historic drill results.The recent Toro intercepts include hole SGE18-072 that intersected 2.2 g/t gold over 18.0 metres at 134-metre depth.One thousand six hundred hundred metres to the southwest, hole SGE18-076 had two intercepts in Toro: 1.1 g/t gold over 4.0 metres at 98-metre depth and 3.3 g/t gold over 11.8 metres at 145-metre depth.The Toro zone is located 1,400 metres northwest of the Becerros zone.
The Escondida zone is in the northern portion of the project, 2,800 metres northeast of the Toro zone.Recent drilling has confirmed the grades and widths of mineralization within the historic mineral resource area, such as hole SGE18-087 that twinned a historic hole, intersecting 1.8 g/t gold over 12.5 metres at 26-metre depth.
One thousand seven hundred hundred metres northwest of Toro is the Viviana zone, where hole SGE18-098 intersected 4.8 g/t gold over 8.9 metres at 89-metre depth.Approximately 34 metres to its southeast, hole SGE18-102 intersected two mineralized intervals: 3.0 g/t gold over 3.0 metres at 51-metre depth and 0.7 g/t gold over 5.4 metres at 99-metre depth.Both exploration holes were drilled near the historic Viviana open pit.
At the Trinidad zone, which is located 2,200 metres north-northeast of the Viviana zone, recent drill results correlate well with historic drill holes in the area.Hole SGE18-089 intersected two mineralized intervals: 2.8 g/t gold over 7.0 metres at 30-metre depth (beneath a former open-pit mine) and 10.5 g/t gold over 10.0 metres at 38-metre depth (including 19.5 g/t gold over 3.4 metres).Additional follow-up drilling in this area in 2018 will aim to expand the historic mineral resources.
An additional 5,800 metres of drilling are planned for the rest of 2018.Agnico expects to report its initial mineral resource estimate for Santa Gertrudis in mid-February, 2019.
Garrison royalty
As of Sept. 30, 2018, Osisko Mining, the owner of the Garrison property, continues with the data migration and reinterpretation of the geological plans for the Garrcon, Jonpol and 903 zones. An additional 90,000 metres of drilling since the previous technical report were published in 2014 has been completed at the Garrison property. Osisko is in the process of updating the resource model with an updated resource estimate expected in January, 2019.
About Metalla Royalty and Streaming Ltd.
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