AUS
NZ
UK
CA
USA
IND
Highlights
- Silicon Metals acquires full ownership of the high-purity Longworth Silica Project.
- Deal includes $35,000 pre-paid expenses, 3.3 million shares, and a 2% NSR Royalty.
- Company plans to expand mineralization and advance exploration at the Longworth Property.
SILICON METALS CORP. (CSE:SI) ("Silicon Metals" or the "Company") is pleased to announce that it has exercised its option under an agreement with Cronin Exploration Inc. ("Cronin") to acquire a 100% right, title, and interest in the Longworth Silica Project. The project is located approximately 85 km east of Prince George, British Columbia, and represents a key addition to the Company’s growing portfolio of silica-based properties. The option agreement was initially made public on November 6, 2024, and has been amended through December 19, 2024.
The Longworth Silica Property
The Longworth Silica Property encompasses 3,863.06 hectares and is strategically situated beneath Bearpaw Ridge. The region features a sequence of sedimentary and volcanic rocks, with Silicon Metals focusing on the Nonda Quartzite formation, which extends southeastward. The quartzite bands identified within the property are known for their thickness, reaching up to 400 meters in some areas, and show multiple faulted offsets and folds.
Previous geological assessments and reports on the region have highlighted the presence of massive and homogeneous high-purity silica. For example, eight chip samples taken in 1982 by the Geological Survey Branch of British Columbia averaged 99.5% silica content. In the 1970s, Silver Standard Mines Limited explored the property for high-purity silica intended for ferro silicon and silicon metal production. More recently, in 2016, MGX Minerals Inc. reported SiO2 values as high as 99.56% in the vicinity, further confirming the potential of the silica resource.
Exploration Opportunity
Silicon Metals sees a significant opportunity to build upon the historical work done by Silver Standard and MGX Minerals. The Company plans to expand the known mineralization along strike to the southeast, tapping into the area's high-purity silica deposits. While the historical exploration results are promising, a qualified person has yet to classify the Silver Standard estimate as current mineral resources or mineral reserves, and the Company is not treating the historical data as current resources or reserves.
Deal Terms
To acquire the 100% ownership of the Longworth Silica Project, Silicon Metals has met the following terms under the agreement with Cronin Exploration Inc.:
- A pre-payment of $35,000 in exploration expenses.
- The issuance of 3.3 million common shares to Cronin.
- The granting of a 2.0% net smelter returns royalty (NSR) to Cronin on the property.
The agreement also allows Silicon Metals the right to purchase 50% of the NSR (1.0%) for $1,000,000, with this option exercisable within 30 days of commercial production.
Looking Forward
Morgan Good, Chief Executive Officer of Silicon Metals, commented, “With the formal closing of the 100% acquisition of the Longworth Silica project, we have successfully integrated three silica-focused properties in British Columbia into our portfolio. Our technical team, led by Kyler Hardy of Cronin Exploration, is now laying the groundwork for advancing work on the property. We look forward to providing further updates as exploration plans progress.”
