June 8, 2021                                                                       

Vancouver, BC: Metallis Resources Inc. (TSX-V: MTS; OTCQB: MTLFF; FSE: 0CVM) (the “Company” or “Metallis”) reports the results from the final drill hole of the Company’s 3,820 meter (“m”) drill program (the “Program”) in 2020 at its 100%-owned Kirkham Property (the “Property”). The Property is situated in the prolific Eskay Camp of the Golden Triangle, northwestern British Columbia, a district known worldwide for the past producing Eskay Creek and Snip gold mines, Seabridge’s KSM porphyry deposits and Pretium’s producing Brucejack gold mine.

Drilling highlights

Two drill holes (from the same pad) were planned to test the King East target area. The first hole (KH20-38) was drilled to the west to test a very large VTEM and magnetic anomaly. The second drill hole was designed to test strong copper-gold soil geochemical anomalies to the east. Due to weather and time constraints at the end of the 2020 season, the second hole was not drilled.

The upper 170m of KH20-38 intersected a highly silicified and pyritic siltstone/chert horizon with elevated gold values (i.e., 10m @ 0.14 g/t Au) which has confirmed the presence of both stratabound and vein stockwork mineralization. Later observations from the drill core identified a distinct inside-out vector of sericitic to propylitic alteration to the west, this alteration highlights significant exploration potential to the east where anomalous historical Cu-in-soil values correlate with magnetic lows (See below map).

The lower section of KH20-38 intersected a succession of greywacke and magnetite-bearing andesitic volcanics which explains the VTEM resistivity and magnetic anomaly in the area.

Magnetics & Copper in soil at King East Target, Kirkham Property
Figure 1 – Magnetics & Copper in soil at King East Target, Kirkham Property

Exploration Potential and Follow-up Plan

The King East target extends over an area of 2 km x 3 km, representing a cluster of northerly trending monzonite dikes, sericitic alteration, veins, and elevated gold-in-soil values: all together highlighting the potential of a porphyry system at depth. The copper-gold (± silver) mineralization is hosted in predominantly sub-vertical vein stockwork and breccias. As such, the style of mineralization in the King East target area is similar to that of the high-grade gold mineralization at the Valley of the Kings, part of Pretium Resources’ land package located approximately 30 km to the east of the Property.

An evaluation of historical soil grids highlighted several zones of anomalous Gold (>50ppb up to 6000 ppb) and Copper (>50ppm up to 2500ppm) values coincident with the margins of the altered intrusion. Trench chip sampling in the same area returned values up to 1.74 g/t Au over 6.0m in siliceous siltstone.

Building on the results from KH20-38 and the proposed 2021 ZTEM and SkyTEM surveys over King East (See News Release April 07, 2021), Metallis’ 2021 exploration program will include plans to carry out detailed mapping and sampling focusing on the porphyry, shear-vein gold, and sedimentary exhalites in the folded stratigraphic sequence near the border with Eskay Mining Corp.’s property.

Metallis’ Chief Geologist Dr. Abdul Razique stated, “The systematic patterns of alteration, VTEM anomalies and strong copper-gold geochemistry in the area reflect significant vein stockwork and porphyry potential to the east of our 2020 scout hole at the King East target.” he added, “Although our focus is on the 4 km Cliff Porphyry Corridor, we are also planning to advance other prospective regional targets at the Kirkham Property. The overlapping ZTEM and SkyTEM surveys will provide an outstanding opportunity to optimize the conductors for targeting the porphyry and sedimentary exhalites between King East and the Unuk-Harrymel fault.”

Corporate Update

The Company also announces that Dr. Razique has been moved into the role of Vice-President of Geoscience Services. Dr. Razique will be responsible for all the technical services including, but not limited to, planning and designing of the exploration surveys and overseeing drilling programs. He will now take a lead role in the Company by continuing to build on a strong geological team focused on generating robust 3D geological models for the exploration and discovery of porphyry, shear-vein gold and Volcanogenic Massive Sulphide (“VMS”) deposits at the Kirkham Property. The senior management team congratulates Dr. Razique on his appointment.

QAQC and Analytical Protocols

Metallis has implemented a rigorous quality assurance / quality control (QA/QC) program to ensure best practices in sampling and analysis of diamond drill core. Drill core samples were prepared at MSA LABS’ Preparation Laboratory in Terrace, BC and assayed at MSA LABS’ Geochemical Laboratory in Langley, BC. Analytical accuracy and precision are monitored by the insertion of blanks, certified standards, and duplicate samples at regular intervals into the sample stream by Metallis Resources’ personnel. MSA LABS quality system complies with the requirements for the International Standards ISO 17025 and ISO 9001. MSA LABS is independent of the Company.

Qualified Person

David Dupre, P.Geo, Vice President – Exploration and the Qualified Person, as defined by National Instrument 43-101, has reviewed, and approved the technical information contained in this release. Metallis believes historic results referenced herein to be from reliable sources using industry standards at the time. However, the Company has not independently verified, or cannot guarantee, the accuracy of this historic information.

About the Kirkham Property

The wholly owned 106 sq. km Kirkham Property is located about 65 km north of Stewart, B.C., in the heart of the Golden Triangle’s prolific Eskay Camp. The Property is prospective for multiple mineral deposit types and is located along a strategic geological boundary – the “Red-line” exposed on the western margin of the Eskay Rift system in the Golden Triangle, northwestern British Columbia.

The Kirkham Property is contiguous to Garibaldi Resources’ E&L Nickel Mountain Project in the north and Eskay Mining Corp. to the east. The property is within 12 km of the Eskay Creek mine while the eastern border is within 12 – 20 km of Seabridge Gold’s KSM deposits and Pretium Resources’ Brucejack mine.

About Metallis

Metallis Resources Inc. is a Vancouver-based company focused on the exploration of gold, copper, nickel, and silver at its 100%-owned Kirkham Property situated in northwest British Columbia’s Golden Triangle.  Metallis trades under the symbols MTS on the TSX Venture Exchange, MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Stock Exchange. The Company currently has 52,839,878 common shares issued and outstanding.

On behalf of the Board of Directors:

/s/ “Fiore Aliperti”

Chief Executive Officer, President and Director

For further information:

Tel: 604-688-5077

Email: info@metallisresources.com

Web: www.metallisresources.com


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