CMC Metals Ltd. is providing an update and exploration outlook on its Rancheria Silver Properties in South-central Yukon and norther British Columbia, Canada. Silver Hart: The Main Zone at Silver Hart comprises of a series of parallel veins that to date have a contained inferred resource of 7.5 Moz @ 584 g/t silver equivalent (AgEq), in 362,500 tonnes utilizing a cut-off grade of 150 g/t AgEq. After a couple of small drill campaigns, it became evident that the ability to further expand resources in the Main Zone was limited to a possible resource of 15-18 million contained silver-equivalent ounces.

Therefore, a new exploration strategy was conceptualized that would target carbonate replacement style deposits that had been previously noted as possibly existing at Silver Hart. Initial target priorities were identified as (i) areas with significant conductivity associated with large areas of geochemically anomalous silver, lead and zinc values from soil sampling efforts; and (ii) the known carbonate belt which comprises of limestones and skarnified carbonates within an area of approximately 300-600 meters in width and over 4 kilometers in strike length. In the first conductivity targets, eight (8) holes were drilled and encountered disseminated pyrite and pyrrhotite which explained the conductivity but did not explain the geochemical anomalies.

This raises question as to the possible importance, or lack thereof, of other conductivity anomalies identified in the 2021 airborne survey. The drill program then shifted to a singular hole to test the northern extension of the Main Zine which encountered mineralization leading to possible evidence of a 250-meter extension of the KL mineralized area. A second drill hole 250 meters to the north had not encountered mineralization.

As a result of these efforts, drill attention then shifted to the second target to examine a portion of the carbonate belt which was proximal to the Main Zone in an area with manto structures exposed at surface. The drilling tested the manto structures for possible continuity along strike and depth with limited results. Drilling of the carbonates encountered primarily disseminated mineralization of no economic importance.

As a result of these disappointing results, CMC commissioned Ronacher-McKenzie Geosciences Incorporated to initiate a multi-phase study on the Silver Hart area to evaluate the possible existence of new exploration targets that could potentially host CRD, skarn, and/or vein deposits. Silverknife: Exploration on this property in 2023 comprised of (i) extension of the 2022 gravity survey to cover the historic Silverknife Prospect; (ii) geological mapping and prospecting; and (iii) initial drilling of the Tootsee South and Silverknife Prospect areas. Prior to this, the 2021 airborne geophysical study had identified prominent conductivity anomalies in the northern portion of the Property in the Tootsee River area and a property wide anomaly trending southwestwards from the Silverknife Prospect to the western boundary of the property.

In addition, a gravity survey conducted in late 2022 examined the norther portion of the property and served to discover the existence of significant gravity anomalies. These anomalies identified areas where material was of a higher density and therefore felt to represent possible areas of base-metal mineralization. Using a gravity survey was a novel approach as lead and zinc mineralization has a high density and therefore, it was felt that areas with gravity anomalies combined with good conductivity (silver is highly conductive) would present highly valid drill targets.

So set out to target gravity anomalies. At the outset of the 2023 exploration season, initiated drilling just south of the Tootsee River where there is considerable overburden (up to 50 meters). Due to the lack of any outcrops, drill targets were totally dependent on geophysical results.

At the same time, a gravity survey was extended to the south. Prior to this speculated on the existence of an intrusive (the heat source) extending into the property from the west into the northern part of the property and south of the Tootsee River but the existence and defined extent of the intrusive was not known. First two holes south of the Tootsee River encountered the intrusive.

A total of 435.6 meters was drilled in the Tootsee South area . At the same time completed gravity survey to the south, which resulted in a refinement of the 2022 gravity results. This served to better define the extent of the gravity anomaly in the Tootsee River area, which was defined as occurring on the north side of the River.

In this area the gravity anomaly is also coincident with a conductivity anomaly. Limited exposures identified in mapping efforts in the area north of the Tootsee River identified the presence of McDame limestone which is the host rock to the Silvertip deposit. However closer examination of the existing horse trail, that traverses the northern part of the Property and was the proposed access route into the area, indicated that it would take significant clearing and building efforts that would take several weeks to complete.

Without access to the Tootsee North targets, then mobilized the drill to the Silverknife Prospect.