VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2012) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic" or "the Company") is pleased to announce exploration and drilling plans for its wholly-owned Midas Touch project and optioned Scarlet East project, both located in the Rackla Gold Belt of eastern Yukon Territory. The projects cover more than 1,200 sq km area of favourable, off-shelf carbonate-bearing stratigraphy that is prospective for Carlin-style gold mineralization. The property area adjoins the south side of claims where ATAC Resources Ltd. has identified a number of significant Carlin-style gold zones, including its Conrad, Osiris, Isis and Isis East discoveries.
Strategic's 2012 exploration program is scheduled to commence in early June and will drill test seven priority targets for Carlin-style gold mineralization. A budget of $5 million has been approved, which will include at least 8,000 m of drilling on the following targets:
Crag East Property (14 km WSW of ATAC's discoveries):
- The Malbec Zone: A first-ever drilling program will test a 2,300 m by 100-650 m, open-ended soil geochemical anomaly containing strong pathfinder elements (arsenic-mercury-antimony-thallium) and locally elevated gold (10 to 2,410 ppb) values that are associated with orpiment-realgar mineralization.
- The Merlot Zone: An open-ended, 3,000 m by 1,000 m soil geochemical anomaly containing strong pathfinder elements has been outlined. Four 2011 drill holes intersected broad intervals of realgar mineralization and very high pathfinder elements within favourable silty limestone host rocks that have been intensely clay altered and decarbonatized. The holes tested below a prospecting discovery, before geochemical analyses were completed, and are located in a relatively weak part of the soil anomaly.
- The Shiraz Zone: Strong clay alteration and silicification together with elevated pathfinder elements were encountered in two reconnaissance drill holes completed below an arsenic-rich gossan.
Crag Property (40 km west of ATAC's discoveries):
- The Trent Zone: Drilling in 2011 (12 holes) intersected favourable orpiment/realgar mineralization, strong pathfinder signatures, and increasing gold values to depth. The 2012 program will use a larger drill to test deeper in the hydrothermal system.
- The Crag South Zone: Located 1,250 m to the south of the Trent Zone, a first phase drilling program will target a 700 m long by 250 m wide soil geochemical anomaly containing a strong pathfinder signature and higher gold values (20 to 372 ppb) than overlie the Trent Zone.
Nad Property (22 km ESE of ATAC's discoveries):
- A drilling program will test orpiment-realgar mineralization associated with a 1,400 by 400 m soil geochemical anomaly containing strong pathfinder elements and anomalous gold values. This anomaly has never been drilled.
Scarlet East Option (10 km ESE of ATAC's discoveries):
- A first phase drilling program will target a series of northwest-trending gold and pathfinder soil anomalies associated with gossanous carbonate stratigraphy and a prominent southeast-trending antiform outlined by Rackla Metals Inc in 2011. Strategic can earn a 60% interest in the Scarlet East project by completing at least 1,000 m of drilling in 2012 and incurring $5 million in exploration expenditures prior to the end of 2016.
Other Geochemical Anomalies:
Strategic will also complete follow-up prospecting and detailed sampling at numerous other geochemical anomalies elsewhere within the Midas Touch project. These include the Hag anomaly, situated 9 km to the southwest of the Trent Zone and the Staff anomaly, located 18 km to the west of ATAC's Tiger Zone. This fieldwork is designed to rapidly advance new discoveries to the drilling stage.
Maps and cross-sections related to the Midas Touch project can be viewed at the Company's website at www.strategicmetalsltd.com. Matthew Dumala, P.Eng., has reviewed and approved the technical information contained in this news release. Mr. Dumala is a qualified person as defined by National Instrument 43-101.
About Strategic Metals Ltd.
Strategic is a pre-eminent explorer and claimholder in the Yukon, with an exceptional portfolio of more than 160 property and royalty interests. Strategic also owns marketable shares of other resource companies, including 9.6% of ATAC Resources Ltd., 18.8% of Silver Range Resources Ltd., 26.1% of Rockhaven Resources Ltd, 19.9% of Precipitate Gold Corp., and 19.9% of Wolverine Minerals Corp.
ON BEHALF OF THE BOARD
W. Douglas Eaton, President and Chief Executive Officer
For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com.
This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
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.