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White Metal Expands Ground Position and Applies for Drilling Permits on its 100% Owned Seagull Lake Platinum-Palladium Project

Jan 28, 2020

Thunder Bay, Ontario--(Newsfile Corp. - January 28, 2020) - White Metal Resources Corp. (TSXV: WHM) ("White Metal" or the "Company") is pleased to announce that it has applied for drilling permits on its 100% owned Seagull Lake Project (the "Property" or the "Project"), northwestern Ontario. The Property, approximately a one hour drive north of the port city of Thunder Bay, is located about 50 km south of Impala Canada's Lac des Iles Mine (previously North American Palladium) and is about 28 km north of the copper (Cu), nickel (Ni), and platinum group element (PGE) discoveries of Rio Tinto and Panoramic Resources. Recent staking, aimed at covering high priority targets including a potential feeder conduit, has increased the Project size to 7,539 ha comprising 357 single cell mining claims.

Commented Michael Stares, President and CEO of White Metal, "With the recent price of palladium touching on US$2,500 per ounce and prices for other platinum group elements performing so well, we are very excited to be revisiting the Seagull Lake Project and look forward to initiating an exploration program in the coming months. We are encouraged with the interpretations we are able to make from the historical data we have compiled and continue to compile and have identified numerous opportunities which were not explored in previous programs including surface exploration and diamond drilling targets."

The Seagull Lake Intrusion ("SLI") is described as being a 10 km diameter, circular intrusive composed of ultramafic rocks with a high olivine content that has been derived from a deep mantle source. Layering and multiple phases of intrusion have been recognized which creates a favourable setting for Noril'sk Type sulphide accumulation. The SLI is located in the Nipigon Plate, which is interpreted to represent the failed third arm of a Proterozoic-aged, mid-continent rift system, the bulk of which lies beneath Lake Superior to the south. This rifting event is interpreted to be associated with significant Cu-Ni-PGE mineralization such as the Duluth Gabbro Complex deposits (Dunka Road, Minnamax, Local Boy, etc.) in Minnesota, USA, the Eagle Nickel Mine (Lundin Mining) in Michigan, USA, and the Great Lakes Nickel deposit in Ontario. The Nipigon Plate area has been compared to the Noril'sk Region of Siberia, Russia, and is considered to be highly prospective for the discovery of new Cu-Ni-PGE deposits. Known platinum group element-copper-nickel zones in the intrusion support the interpretation that Proterozoic ultramafic intrusions in this area of the Nipigon Plate have undergone magmatic processes that are capable of producing large PGE-Cu-Ni sulphide deposits (see Company news release dated March 12, 2019).

Three styles of PGE mineralization have been identified in the SLI: (1) near surface, PGE-rich detrital "black sands"; (2) magnetite associated, PGE-rich layers or "reef-type"; and, (3) sulphide associated, basal Cu-Ni-PGE mineralization, interpreted as "Noril'sk-type". Although the detrital and reef-type mineralization was the first style known in the SLI, the discovery of Noril'sk-type Cu-Ni-PGE sulphide mineralization became the focus for subsequent exploration programs, which reported from diamond drilling 3.6 g/t Pt+Pd, 0.34% Cu and 0.21% Ni over 2.1 metres and 1.04 g/t Pt+Pd, 0.14% Cu and 0.16% Ni over 16.0 metres (from Pettigrew, 2002). The possibility for the discovery of other styles of sulphide mineralization remains, including Contact-type deposits (e.g., Lac des Iles Mine and River Valley Deposit, Ontario) and structurally hosted high-grade concentrations along regional fault systems. It is important to note that the SLI contains anomalous concentrations of additional platinum group elements rhodium, iridium, osmium, and ruthenium. The current spot price of rhodium is approximately US$9,000 per troy ounce.

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