Metals Creek Resources Partner, Sokoman Iron Extends Gold Mineralization And Intersects a Second Zon
Metals Creek Resources Partner, Sokoman Iron Extends Gold Mineralization And Intersects a Second Zone At Clarks Brook, Central Newfoundland
Toronto, 05 April, 2018. - Metals Creek Resources Corp. (TSX-V: MEK) (Metals Creek) is pleased to announce that they have been advised by their option partner, Sokoman Iron Corp (Sokoman) (TSX-V: SIC) that all holes in the Phase Two program intersected gold mineralization including a second previously unknown zone, which returned the highest grades of the program. Diamond drill hole CB-18-5 intersected bleached and locally clay altered conglomerate cut by a network of narrow pyritic quartz veinlets that returned 3.74 g/t gold over 3.10 metres including 14.73 g/t gold over 0.60 metres.
This is the first time that gold mineralization has been observed in conglomeratic units. The Company now believes that many of the previous holes may have been shut down prematurely based on the understanding that gold mineralization observed to date on the property was historically hosted only in finer-grained rocks such as siltstone and sandstone. Therefore, gold mineralization at Clarks Brook may be much more extensive than originally thought. The conglomerate-hosted zone intersected in CB-18-5 lies approximately 100 metres east of, and across strike from, the discovery zone intersected in the 2017 drilling (see attached map).
Timothy Froude, P. Geo., Interim CEO states: “We continue to extend existing and discover new zones of gold mineralization at Clarks Brook. Whenever a property is drilled for the first time, as Clarks was last October, you have to be prepared for surprises and be flexible in the way you are thinking. We have learned much from Phase Two that gives us tremendous encouragement for the future and we now realize that we need a much bigger program at Clarks Brook. The mineralization remains open in all directions with a new zone discovered in the most recent phase of drilling.”
The original Clarks Brook prospect consists of a number of large (up to 1-2 square metres) angular siltstone/sandstone boulders from which previous operators had returned grab sample gold values ranging from 2.98 to 24.5 g/t gold (Altius Minerals Corp. (ALS) in 2004), and from the property vendor, Metals Creek Resources (MEK) in 2016, where thirteen (13) of the large angular blocks were grab sampled and yielded assays ranging from 0.24 g/t to 10.4 g/t gold. Note: The historical assay results mentioned in this news release were grab samples which are selective by nature and are unlikely to represent average grades of the property.
Sokoman’s Phase Two 594-metre (NQ) program with hole depths ranging from 172 to 213 metres (-40 to -52 degree dips) continued testing a strong magnetic low feature which appears to host the gold mineralization at Clarks Brook. Gold mineralization has now been intersected in all seven holes completed to date and the mineralization, including a second zone, intersected in CB-18-5, remains open in all directions. Note: Drill intercepts tabled below are believed to be 80 to 90% true thickness.
This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101 and Interim CEO for Sokoman Iron Corp. Assaying of drill cores was carried out at Eastern Analytical Ltd. in Springdale NL, an ISO 17025 accredited lab. Eastern runs a blank and a certified standard in each batch of 24 samples and a pulp duplicate is run every 20 samples. Sokoman did not insert its own blanks or standards in the sample stream. Sampled core was cut using a diamond blade core saw with one half of sawn core retained for future reference. All logging and sampling of core was carried out by Sokoman personnel who also transported the samples directly to Eastern Analytical for Au (fire assay) and selected ICP 34 analysis. A total of 222 samples were cut ranging in length from 0.20 to 1.50 meters with a median length of 0.83 meters.
The Company would like to acknowledge the Government of Newfoundland and Labrador for financial support of this project through the JEA program.
To earn an initial 75% interest, Sokoman must make cash payments of $45,000 over three years (no cash on signing) and issue a total of 3,000,000 Sokoman common shares over three years (500,000 due upon regulatory approval) and incur work expenditures of $800,000 over three years ($100,000 by 1st anniversary). Sokoman will be the operator during the earn-in period. Once a 75% interest is earned by Sokoman, either a 75/25 joint venture will be formed, or Sokoman may elect to earn an additional 25% interest to bring its total property interest to 100%. The terms to increase its interest from 75% to 100% include payments of $100,000 and the issuance of an additional 2,000,000 Sokoman shares within 60 days of the 3rd anniversary date. This agreement is subject to regulatory approval.
About Metals Creek Resources Corp.
Metals Creek Resources Corp. is a junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol “MEK”. Metals Creek has earned a 50% interest in the Ogden Gold Property, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has a 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) that stretches between Timmins, Ontario and Val d’Or, Quebec. Metals Creek also has an option agreement with Quadro Resources on Metals Creeks and Benton Resources Staghorn Gold Project in Newfoundland as well as two option agreements with Anaconda Mining Inc. on Metals Creek’s Jacksons Arm and Tilt Cove Properties also in Newfoundland. The company also has an option agreement on its Clarks Brook property with Sokoman Iron Corp. and is engaged in the identification, acquisition, exploration and development of other mineral resource properties, and presently has mining interests in Ontario, Yukon and Newfoundland and Labrador including the recently acquired Great Brehat project on the Great Northern Peninsula of Newfoundland. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under its profile at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp