Business
Metallic Minerals Signs New Production Royalty Agreement on Two Additional Areas on its Australia Creek Holdings within the Klondike Gold District
VANCOUVER, British Columbia, Oct. 03, 2018 (GLOBE NEWSWIRE) -- Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic” or the “Company”) announces that
About this update from Metallic Minerals Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 03, 2018 (GLOBE NEWSWIRE) -- Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic” or the “Company”) announces that it has entered into a production royalty agreement covering a total of four additional miles of valley bottom and bench alluvial claims in two blocks of its Australia Creek property. The Company has granted exclusive mining rights to an experienced alluvial mining operator in exchange for a 10% royalty on all gold production. The property is road accessible and permitted for large-scale alluvial gold production. The operator mobilized mining equipment to the site and has been conducting exploration work including drilling and bulk sample test pit development, which has confirmed the presence of significant alluvial gold. Metallic Minerals now has approximately 6 miles out of its 26 miles of holdings on Australia Creek under production royalty agreements with an additional mile of its Dominion Creek claims also under agreement. The Company has received royalties from test mining activities carried out in both 2017 and 2018 and will receive annual advanced minimum royalties on the properties once they begin full commercial operations. Figure 1: Klondike Gold District Properties 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. 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 more than 40% of all placer production in the Yukon through 2015. With the expansion of larger-scale, open-pit operations, alluvial production on the Indian River has doubled since 20101. 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 very large 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 explor...