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Metallic Minerals Acquires Klondike Gold District Claims; Enters Into Royalty Agreement on Alluvial Gold Production
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 11, 2017) - Metallic Minerals Corp. (TSX VENTURE:MMG) (OTC PINK:MMNGF) ("Metallic" or the "Company") is please
About this update from Metallic Minerals Corp.
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 11, 2017) - Metallic Minerals Corp. (TSX VENTURE:MMG) (OTC PINK:MMNGF) (\"Metallic\" or the \"Company\") is pleased to announce that it has entered into an option agreement to acquire a 100% interest in 36.4 square kilometres (\"km2\") of mining rights (the \"Property\") along the Australia Creek drainage, a tributary to the Indian River, in the Klondike gold district near Dawson City, Yukon. In parallel with this acquisition, Metallic has entered into a production royalty agreement with an experienced alluvial mining operator with respect to a 2.8 km2 portion of the Property (Lower Australia Creek). Under this agreement, the operators will have exclusive rights to mine the Lower Australia Creek property, in exchange for a 12% royalty on all gold production payable to Metallic. The property is road accessible and is permitted for alluvial gold production. Mining equipment has been mobilized to the site to commence test work in September for the remainder of the northern field season. Figure 1. Australia Creek Alluvial Gold Property - Klondike Gold District, Yukon Australia Creek is part of the historic Klondike gold district that is estimated to have produced over 20 million ounces of gold since its discovery in 1898. Australia Creek and its benches are now recognized by Yukon Geological Survey as an eastern continuation of the highly-productive Indian River drainage, which is the largest placer gold producing area in the Yukon. Mining on the Indian River began in the late 1970s and has produced about 250,000 ounces or more than 40% of all placer production in the Yukon through 2015. With the expansion of larger-scale, open-pit operations, production on the Indian River has doubled since 2010 and accounted for 46% of the Yukon's total placer gold production in 20151. Despite extensive mining activity nearby, Australia Creek itself was never historically mined due to its importance as a source of water and hydro-electric power for supporting the broad scale, floating dredge operations that were being conducted in the area by Yukon Consolidated Gold Company (YCGC) which operated in the Klondike Region between 1920s and 1960s. The dams on Australia Creek have been removed with only the historic diversion channels now remaining. YCGC did limited exploration churn drilling at the...