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Sterling Metals Expands Heimdall and Announces Discovery of New High Grade Zone 500m North

December 12, 2022

Sterling Metals Expands Heimdall and Announces Discovery of New High Grade Zone 500m North

December 12, 2022 – Toronto, Ontario – Sterling Metals Corp. (TSXV: SAG) (“Sterling Metals” or the “Company”) is pleased to report results from its 2022 drilling on the Sail Pond Silver and Base Metal Project in the Great Northern Peninsula of Newfoundland. Drilling results are from the Heimdall Zone and new zone 500m north of Heimdall. The company will be hosting a zoom webinar at 2PM EST on Monday December 12, 2022, to discuss these findings in more detail. Registration for the event can be found at: https://us02web.zoom.us/webinar/register/WN_oWaOO7foTjKgQk5lnTFjvQ.

Significant drill results are listed below:

  • 3,499.1 g/t Ag Eq over 0.35 m (1,564 g/t Ag, 8.33% Cu, 12.83% Pb, 2.74% Sb, & 3.93% Zn) within a broader interval of 294 g/t Ag Eq over 4.67m (129 g/t Ag, 0.66% Cu, 1.19% Pb, 0.22% Sb, & 0.45% Zn in hole SP-22-064 beginning at 179.23 m downhole; and
  • 1,914 g/t Ag Eq over 0.28m (848 g/t Ag, 3.24% Cu, 4.27% Pb, 1.02% Sb, & 9.62% Zn) within a broader interval of 171.1 g/t Ag Eq over 6.74m (77.2 g/t Ag, 0.29% Cu, 0.69% Pb, 0.09% Sb, 0.61% Zn) in hole SP-22-053 beginning at 219.0 m downhole; and
  • 1,485.3 g/t Ag Eq over 0.63m (520 g/t Ag, 1.81% Cu, 6.93% Pb, 0.57% Sb and 10.86% Zn) within a broader interval of 179.8 g/t Ag Eq over 5.58 m (63.3 g/t Ag, 0.22% Cu, 0.84% Pb, 0.07% Sb, & 1.29% Zn) in hole SP-22-047 beginning at 125.47 m downhole; and
  • 530.8 g/t Ag Eq over 0.93m (162.6g/t Ag, 0.79% Cu, 1.46% Pb, 0.22% Sb, 4.71% Zn) within a broader interval of 115.4 g/t Ag Eq over 7.3m (35.9 g/t Ag, 0.17% Cu, 0.41% Pb, 0.05% Sb, & 0.95% Zn) in hole SP-22-050 beginning at 194.7 m downhole.

Mathew Wilson, CEO of Sterling Metals, commented: “It is a pleasure to finally share with the market the terrific work we have done in only our second drill campaign at Sail Pond. This drill campaign solidifies the Heimdall Zone footprint, a 400m x 200m x 150m zone of mineralization. Through boots on the ground prospecting and reinterpretation of old data, we were also able to discover a completely new zone, 500m to the north, where previous drilling had not been able to identify a mineralized structure. This resulted in one of the highest-grade intervals we have seen to date, and the highest-grade copper and antimony we have seen at the project. The company is in an enviable position with a rapidly advancing high grade polymetallic mineral system, $4m in cash and a very strong team fully focused on unlocking the potential of the Sail Pond Project.”

Sail Pond Drilling

Sterling’s 2022 drilling program successfully completed 34 new holes for over 7,500m of drilling at both new targets and the Heimdall Zone. Highlights of the program are the expanded mineralization at Heimdall and newly identified mineralized zone 500m to the north. The gap between Heimdall and the new zone to the north is virtually wide open and considered very prospective. Two holes drilled in this gap in the 2021 campaign drilled overtop of the mineralization. Targeting for the 2022 program incorporated a detailed structural interpretation by SRK and a comprehensive study by Goldspot which utilized soil sampling, trenching, prospecting, and geophysics along ~12 km of prospective strike length. Assays are pending on other target areas.

drilling with silver equivalent mineralization

Figure 1: Longitudinal section looking west showing drilling with silver equivalent mineralization on drillholes

With the new discovery north of Heimdall, the footprint of precious and base metal mineralization now extends over 1 kilometre and is open to the north as seen in a longitudinal section looking at the Zone from underground (Figure 1, above). There are multiple high-grade mineralized veins within the mineral zones and these will be the focus of future drill programs. An example of such veins is shown with core photos in Figure 2 and Figure 3 (below). Figure 4 (below) shows a plan map of the drilling completed to date.

Jeremy Niemi, Director of Exploration commented: “Since joining this company, my understanding of Sail Pond and my excitement for this project has grown with each new drill hole. Each new data point is leading us to fine tuning our exploration strategy making us very well positioned for our 2023 work campaign.” 

Today’s results come from drillholes targeting the Heimdall Zone, a significant zone of mineralization, and an adjacent target to the north. Both are within the South Zone of the Sail Pond project. The Heimdall Zone, which is hosted by dolostone, occurs in a favorable structural corridor and metal accumulates in close proximity to a high strain area. There are multiple styles of mineralization at Sail Pond; a broad zone of lower grade precious and base metals associated with breccia-style or veinlet-style sulfide mineralization and a tighter vein system of high grade precious and base metal mineralization.

The mineralization at Sail Pond, especially the high-grade veins, is structurally controlled and understanding the orientation of the structures is vital to expanding zones and identifying potential new zones along preferred structural trends. The Company has completed an extensive down hole optical televiewer study to measure the orientation of high-grade veins and other structural features in important drill holes across the property. Preliminary results from this study have been encouraging and have successfully mapped the orientation of high-grade veins at Heimdall. This data and the enhanced geological model, will play a significant role in the targeting for the next drill programs.

The primary host rock for mineralization identified to date is a thick sequence of highly altered and often brecciated dolostone of the Cambro-Ordovician Saint George Group. Mineralization encountered to date typically consists of tetrahedrite-tennantite, chalcocite, sphalerite, galena, pyrite, and potentially additional sulfosalt minerals. Quartz veining and associated mineralization are ubiquitous throughout the dolostone unit, but included metallic mineralization is best developed in areas of combined brecciation and veining. The structural evolution and metallogenic sequencing are very complex, and mineralization has been identified in association with a multitude of structural events.

Figure 2. High grade mineralization in hole SP-22-053 from 223m to 224m

Figure 3. Massive sulphide high grade mineralization in hole SP-22-064 at depth of 183.9m

Figure 4. Plan map showing drilling locations at Heimdall Zone and new zone to the north.

Table 1. Initial reported assay intervals from Sail Pond 2022 drilling.

Drillhole Zone From (m) To (m) Length (m) AgEq (g/t) Ag (g/t) Cu (%) Pb (%) Sb (%) Zn (%)
                     
SP-22-045 South 56.71 57.5 0.79 209.6 113 0.48 0.58 0.062 0.34
and   81.75 86.1 4.35 30.5 16.6 0.067 0.036 0.016 0.063
inc   81.75 82 0.25 175.6 78 0.35 0.29 0.094 0.82
inc   85.55 86.1 0.55 146.1 88 0.35 0.041 0.067 0.09
SP-22-046 South 111.25 111.55 0.3 92 28 0.12 0.12 0.037 0.96
SP-22-047 South 112.63 112.88 0.25 100.6 51 0.2 0.44 0.051 0.13
and   125.47 131.05 5.58 179.8 63.3 0.22 0.84 0.071 1.29
inc   125.47 126.1 0.63 1485.3 520 1.81 6.93 0.57 10.86
and   154.9 155.15 0.25 99.8 53 0.26 0.017 0.075 0.11
SP-22-048 South 26.8 27.1 0.3 186 56 0.29 0.63 0.059 1.61
and   102.8 103.25 0.45 285.8 90 0.37 1.94 0.093 1.88
and   124.8 137.05 12.25 20.6 7.6 0.032 0.082 0.01 0.12
inc   125.2 125.6 0.4 130.2 57 0.25 0.83 0.072 0.18
inc   135.53 135.78 0.25 347.4 68 0.23 1.3 0.071 4.79
SP-22-049 South 168 170 2 392 187.7 1.01 0.64 0.28 0.62
inc   169 169.45 0.45 1703.8 821 4.41 2.74 1.21 2.49
and   193.24 193.64 0.4 127.6 42 0.089 1.47 0.028 0.64
SP-22-050 South 151.2 152 0.8 121.4 62 0.27 0.28 0.068 0.23
and   162.05 162.45 0.4 137.8 72 0.28 0.33 0.101 0.21
and   194.7 202 7.3 115.4 35.9 0.17 0.41 0.048 0.95
inc   197.37 198.3 0.93 530.8 162.6 0.79 1.46 0.22 4.71
SP-22-051 South 163.45 166 2.55 141.7 73 0.38 0.32 0.082 0.068
inc   163.45 163.7 0.25 421.8 224 1.06 0.93 0.26 0.18
inc   165.55 166 0.45 563.4 287 1.55 1.28 0.31 0.27
and   211.5 211.75 0.25 689.5 314 1.2 1.52 0.4 3.05
SP-22-052 South No Significant Results
SP-22-053 South 121 121.83 0.83 140.3 43 0.14 1.59 0.04 0.64
and   219 225.74 6.74 173.8 77.2 0.29 0.69 0.088 0.61
inc   222.47 225.74 3.27 339.6 153.9 0.59 1.27 0.18 1.23
inc   223.14 223.39 0.25 1072 523 2.14 4.46 0.56 1.93
inc   224 224.28 0.28 1914 848 3.24 4.27 1.02 9.62
SP-22-054 South 124.65 124.95 0.3 342 116 0.52 2.02 0.13 2.02
and   191.35 191.65 0.3 123.2 56 0.21 0.82 0.044 0.26
SP-22-055 South 106.75 107 0.25 116.5 32 0.16 0.11 0.04 1.34
and   128.45 128.7 0.25 413 123 0.55 0.61 0.18 4.27
and   131.25 132 0.75 101.3 42 0.15 0.56 0.05 0.44
and   140.85 141.2 0.35 193.1 89 0.45 0.3 0.12 0.59
and   175.85 180.85 5 121 38.9 0.15 0.57 0.045 0.96
inc   178.28 178.85 0.57 741.5 211 0.82 2.38 0.26 7.67
SP-22-056 South 12 12.25 0.25 443.4 94 0.47 0.046 0.104 6.56
and   167.85 168.1 0.25 471.5 196 0.64 5.12 0.205 0.36
and   174.77 175.05 0.28 134.4 69 0.32 0.38 0.092 0.069
and   180 185.7 5.7 43.1 18.5 0.072 0.27 0.02 0.102
inc   185.1 185.7 0.6 173.1 84 0.38 0.64 0.088 0.3
and   197.51 197.76 0.25 1535 635 1.97 0.84 0.98 11.73
SP-22-057 South 51.2 51.5 0.3 130 35 0.17 0.43 0.041 1.33
and   76.4 77.2 0.8 136.6 52.8 0.31 0.35 0.072 0.57
and   135.56 135.81 0.25 771.5 392 1.97 1.47 0.49 0.75
and   142.85 143.1 0.25 236 112 0.52 0.31 0.14 0.8
and   186.15 193.2 7.05 59 27.1 0.11 0.25 0.032 0.15
inc   191.35 191.65 0.3 1075.8 519 2.06 4.78 0.58 2.01
SP-22-058 South 223.5 223.75 0.25 90.7 39 0.19 0.045 0.052 0.48
SP-22-059A South No Significant Results
SP-22-060 South No Significant Results
SP-22-061 South 3.9 4.15 0.25 173.4 82 0.35 0.12 0.019 1.03
and   24.88 25.2 0.32 173.5 96 0.29 0.95 0.072 0.093
and   27.7 28 0.3 114.4 35 0.15 0.61 0.029 0.92
and   69.75 70 0.25 166 52 0.04 3.5 0.014 0.014
and   105.3 107.5 2.2 328.8 183.7 0.71 0.53 0.22 0.32
inc   105.79 106.51 0.72 975 545 2.11 1.51 0.65 0.97
SP-22-062 South 16.12 16.38 0.26 668 118 0.32 2.58 0.07 10.02
and   118.25 127 8.75 47.3 21.1 0.062 0.33 0.02 0.14
inc   122.42 122.67 0.25 341.8 158 0.44 2.14 0.14 1.12
SP-22-063 South 153 167 14 17.6 9.3 0.032 0.069 0.011 0.022
inc   153.5 154 0.5 149.3 95 0.33 0.033 0.083 0.064
and   193 193.25 0.25 266 134 0.6 0.048 0.13 0.95
SP-22-064 South 139 141 2 122.5 60 0.25 0.11 0.067 0.47
inc   139.77 140.08 0.31 784.4 386 1.6 0.71 0.42 3.03
and   179.23 183.9 4.67 294 129 0.66 1.19 0.22 0.45
inc   179.23 179.68 0.45 160.3 64 0.17 2.23 0.045 0.051
inc   182.9 183.15 0.25 273.3 96 0.42 0.027 0.11 2.62
inc   183.55 183.9 0.35 3499.1 1564 8.33 12.83 2.74 3.93
and   204.38 209.48 5.1 125.2 61.2 0.28 0.078 0.066 0.47
inc   208.92 209.48 0.56 1013.2 502 2.29 0.53 0.52 3.54
SP-22-065 South 207 215.2 8.2 70.6 33.2 0.12 0.32 0.034 0.205
inc   207 207.25 0.25 249.6 96 0.29 1.51 0.093 1.42
inc   208.55 208.8 0.25 1406 817 3.2 1.64 0.73 1.37

Table 2. Reported Sail Pond drillhole locations and orientations.

HoleID Easting Northing Elevation Azimuth Dip Final Depth (m) Target
SP-22-045 575,104 5,652,229 82.94 320 -45 119 Heimdall 
SP-22-046 575,137 5,652,210 84.98 320 -45 167 Heimdall 
SP-22-047 575,168 5,652,218 83.98 320 -45 182 Heimdall 
SP-22-048 575,168 5,652,218 83.98 320 -55 176 Heimdall 
SP-22-049 575,214 5,652,238 81.56 320 -45 221 Heimdall 
SP-22-050 575,214 5,652,238 81.56 320 -55 209 Heimdall 
SP-22-051 575,239 5,652,254 80.85 320 -45 227 Heimdall 
SP-22-052 575,278 5,652,268 81.88 320 -45 245 Heimdall 
SP-22-053 575,300 5,652,309 84.38 320 -45 254 Heimdall 
SP-22-054 575,262 5,652,339 88.59 320 -45 224 Heimdall 
SP-22-055 575,265 5,652,411 90.72 320 -45 197 Heimdall 
SP-22-056 575,307 5,652,384 86.75 320 -45 245 Heimdall 
SP-22-057 575,307 5,652,384 86.75 320 -55 293 Heimdall 
SP-22-058 575,328 5,652,399 83.61 320 -45 254 Heimdall 
SP-22-059A 575,390 5,652,478 78.46 320 -45 284 Heimdall 
SP-22-060 574,941 5,651,823 72 330 -45 59 Heimdall 
SP-22-061 575,446 5,653,093 66.6 290 -45 301 Heimdall North
SP-22-062 575,410 5,653,043 68.37 290 -45 199 Heimdall North
SP-22-063 575,455 5,653,025 68.08 290 -45 250 Heimdall North
SP-22-064 575,502 5,653,079 66.18 290 -46 244 Heimdall North
SP-22-065 575,502 5,653,079 66.18 290 -55 250 Heimdall North

Silver Equivalent Calculation

Silver equivalent (Ag Eq) values were calculated using the following formula: ((Ag_oz*$USAg_price/oz)+(Cu_lb*$USCu_price/lb)+(Pb_lb*$USPb price/lb)+(Sb lb*$USSb_price/lb)+(Zn_lb*$USZn_price/lb))/$USAg_price/oz.

Silver equivalent grade calculations are based on the current spot metal prices and are provided for comparative purposes only. This approach reflects the polymetallic nature of the mineralization. Recovery factors of 100% have been assumed for all metals. Metallurgical tests will be required to establish recovery levels for each element reported. Metal spot prices as at the close of the London Metals Exchange December 7th, 2022 were applied and include: Ag – $US 22.70/oz;, Cu – $US3.83/lb; Zn – $US1.40/lb; Pb – $US 1.00/lb. The Sb – $US 5.04/lb price applied was sourced from Argus Media, a recognized provider of energy and commodity price benchmarks.

Qualified Person

Jeremy Niemi, P.Geo., Director of Exploration for Sterling Metals has reviewed and approved the technical information presented herein.

Laboratory Technical Note

Analytical services were provided by SGS Canada Inc. , which is an independent, CALA-accredited analytical services firm registered to ISO 17025 standard. Drill core was halved by sawing at the Sterling core facility and half-core samples were securely stored at the facility until being delivered to SGS Grand Falls site by commercial transport. Samples were crushed to 80% passing 10 mesh, split to 250g, and pulverized to 95% passing 150 mesh. Multi-element analyses, including base metals, were conducted on pulverized material using the ICP method for 34 elements. Laboratory over-limits analysis methods were applied as required. A systematic QAQC protocol was employed that includes systematic insertion in the sample stream of certified reference materials and blank samples, plus analysis of duplicate pulp splits.

About Sterling Metals

Sterling Metals (TSXV: SAG) is a mineral exploration company focused on Canadian exploration opportunities. The company is currently exploring for silver and base metals at the Sail Pond project in Northwestern Newfoundland. Sterling has recently fulfilled its obligations to acquire 100% of the 13,500 Ha Project from Altius Resources, Inc.

For more information, please contact:

Sterling Metals Corp.

Mathew Wilson, President & CEO

Tel:                  (416) 643-3887

Email:              [email protected]

Website:         www.sterlingmetals.ca

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.

This news release contains certain “forward-looking information” within the meaning of applicable securities laws. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.