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BeMetals Reports Significant Copper and Silver Drill Intersections at its High-Grade Polymetallic South Mountain Project

February 9, 2021

VANCOUVER, CANADA - BeMetals Corp. (TSXV: BMET, OTCQB: BMTLF, Frankfurt: 1OI.F) (the “Company” or “BeMetals) is pleased to announce a new batch of analytical results from its Phase 2 underground diamond drilling program at the high-grade South Mountain Zinc-Silver-Gold-Copper Project (“South Mountain” or “South Mountain Project” or the “Property”) in southwestern Idaho, U.S.A. Today’s results demonstrate that South Mountain’s Texas Zone contains both high-grade Copper-Silver and Zinc-Silver-Gold mineralization (See Tables 1 and 2). The Company’s 2020 program intersected mineralization at depths beyond any historical drilling of the Texas Zone and the deposit remains open to depth (See Figure 1). Further drilling results will be reported when received from the laboratories.

DRILL HOLE HIGHLIGHTS

TEXAS WEST ZONE:

  • SM20-028: 10.85 metres grading 2.56% Copper (“Cu”), 260.1 grams per tonne (“g/t”) Silver (“Ag”), 0.26 g/t Gold (“Au”), 0.10% Lead (“Pb”) and 0.13% Zinc (“Zn”)
  • SM20-038: 7.62 metres grading 1.64% Cu , 279.5 g/t Ag, 0.74g/t Au, 0.86% Pb and 0.55% Zn
    • Including: 5.17 metres grading, 2.23% Cu, 337.9 g/t Ag, 1.02 g/t Au, 1.12% Pb and 0.77% Zn
  • SM20-043: interval 1: 7.01 metres grading 2.84% Cu, 181.5 g/t Ag, 0.22 g/t Au, 0.01% Pb and 0.29% Zn
    • Including: 4.79 metres grading, 3.81% Cu, 244.3 g/t Ag, 0.17 g/t Au, 0.01% Pb and 0.07% Zn

TEXAS EAST ZONE:

  • SM20-050 Interval 2: 8.35 metres grading 4.17% Zn, 194.8 g/t Ag, 4.05 g/t Au, 0.78% Pb and 0.54% Cu

Note: ALS Global completed the analytical work with the core samples processed at their preparation facility in Reno, Nevada, U.S.A. All analytical and assay procedures are conducted at the ALS laboratory in North Vancouver, BC. Reported widths are drilled core lengths as true widths are unknown at this time. It is estimated based upon current data that true widths might range between 60-80% of the drilled intersection.

John Wilton, President and CEO of BeMetals stated, “We are very pleased with the drilling results received to date from our Phase 2 underground program at South Mountain. This batch of drill hole intersections focused on the Texas Zone, an area of the deposit which has not been tested by underground drilling since the 1980s. These latest analytical results confirm distinctly higher copper grades and generally, appreciably higher silver grades in Texas West than those of the April 2019 Mineral Resource Statement for the deposit. At Texas East we see the reported drilled intersections have significant grades in zinc, silver and importantly gold, a similar association to South Mountain’s extensive DMEA Zone.

Examples of intersection grades for the two Texas zones are; 3.81% Cu with 244.3 g/t Ag over 4.79 metres in hole SM20-043 (Interval 1), 2.58% Cu with 260.1 g/t Ag over 10.85 metres in hole SM20-028, both in Texas West, and 4.17% Zn, 194.8 g/t Ag and 4.05 g/t Au over 8.35 metres in hole SM20-050 from Texas East. It should be noted that these examples are supported by a number of other compelling intersections (See Tables 1 & 2).

Given the success of both our 2019 and 2020 drilling programs, we are confident their results will add significant tonnage to an updated mineral resource estimate. This updated resource statement is to be completed around the end of Q1 2021, subject to timing of remaining analytical results from the laboratory. Additional metallurgy and hydrology testing as well as rock mechanics and mine modelling are scheduled for the first half 2021. All the data from these studies will be incorporated into a Preliminary Economic Assessment (“PEA”) study for South Mountain, expected to be completed during Q3 of this year.”

PHASE 2 TEXAS ZONE DRILLING AT THE SOUTH MOUNTAIN PROJECT

A total of 2,714 metres of underground core drilling was completed during Phase 2, with 30 holes in both the Texas and DMEA zones. During this drilling campaign, our site team widened and advanced the existing Sonneman level eastwards by some 52 metres to establish a new drill station closer to the Texas Zone (See Figure 1). With better access to drill the Texas Zone, a total of 24 holes were completed to test this zone of mineralization. Geological logging of the core supported by sampling results indicate that two styles of high-grade mineralization have developed in this area and are now identified as the Texas West and Texas East zones.

Table 1 below illustrates the drilling results received to date from the Texas West Zone. This zone is characterized by skarn-hosted, dominantly copper and silver mineralization. This is demonstrated, for example, in the drilled width intercepts of; 3.81% Cu with 244.3 g/t Ag over 4.79 metres in hole SM20-043 (Interval 1), 2.58% Cu with 260.1 g/t Ag over 10.85 metres in SM20-028 and 2.23% Cu with 337.9 g/t Ag over 5.17 metres in hole SM20-038. Importantly observed from the geological logging of the core, the higher copper grades over significant drilled widths in Texas West appear to be controlled by the increased abundance of chalcopyrite, which is a common copper sulphide mineral, often extractable through conventional flotation methods. Representative sample material of this and other zones of the deposit have been identified, and are being collected for metallurgical test work at the SGS Mineral Services site in Lakefield, Canada. Results from this study will be included with historical test work and incorporated into the planned PEA study later this year.

Table 2 below shows the drill hole intersections from the Texas East Zone where this mineralization is represented by predominantly massive sulphide hosted zinc, silver and gold mineralization. Examples of this style of mineralization are intercepts of; 8.65% Zn, 218.1 g/t Ag and 2.44 g/t gold over 3.37 metres in hole SM20-043 (Interval 2), and 4.17% Zn, 194.8 g/t Ag and 4.05 g/t Au over 8.35 metres in hole SM20-050.

The gold grades of; 4.05 g/t over 8.35 metres, 2.07 g/t over 4.71 metres and 3.82 g/t over 1.34 metres in holes SM20-050, SM20-043, and SM20-029, respectively, are of specific interest from a value potential for the Texas East Zone. These Texas East intersections represent the successful targeting and interpreted extension of mineralization below historical high-grade rib sampling in the Sonneman level from the 1980s (See Figure 1). (See BeMetals news release, dated; September 10, 2020).

The 2020 drill program has delivered on intersecting mineralization extending the Texas Zone further down dip of historical drilling and the exposures in the underground development. Texas Zone mineralization is now interpreted to continue from the collar of the old Texas Shaft some 350 metres down dip to the SM20-050 intercept. Both the Texas West and East zones remain open to depth (See Figure 1). Table 3 further below provides drill hole azimuth, dip, end of hole length and collar co-ordinates for each of the reported drill holes.

Table 1. Analytical and Assay Results From Texas West Zone

Drill Hole ID, Zone
& Interval
From
(m)
To
(m)
Core
Interval
(m)
Cu % Ag
g/t
Au
g/t
Pb % Zn %
TEXAS WEST ZONE                
SM20-028 60.64 71.49 10.85 2.56 260.1 0.26 0.10 0.13
                 
SM20-030 16.73 25.02 8.29 1.13 125.1 0.10 0.02 0.26
                 
SM20-031 41.48 42.85 1.37 1.56 306.5 0.40 1.09 2.21
                 
SM20-033 33.77 36.42 2.65 2.77 251.3 0.37 0.03 0.15
                 
SM20-036 34.26 43.8 9.54 0.99 316.9 0.25 0.39 2.15
                 
SM20-038 32.31 39.93 7.62 1.64 279.5 0.74 0.86 0.55
INCLUDING: 32.31 37.48 5.17 2.23 337.9 1.02 1.12 0.77
                 
SM20-041                
INTERVAL 1: 19.42 22.52 3.10 1.29 177.5 0.09 0.07 0.04
INTERVAL 2: 31.76 33.28 1.52* 0.44 169.6 2.37 0.91 1.99
                 
SM20-042                
INTERVAL 1: 17.98 19.87 1.89 1.92 103.0 0.08 0.01 0.03
INTERVAL 2: 23.8 25.6 1.80 1.06 114.0 0.08 0.03 0.10
                 
SM20-043                
INTERVAL 1: 39.93 46.94 7.01 2.84 181.5 0.22 0.01 0.29
INCLUDING: 39.93 44.71 4.79 3.81 244.3 0.17 0.01 0.07
                 
SM20-049                
INTERVAL 1: 32.58 36.77 4.19 1.82 89.4 0.07 0.01 0.18
INTERVAL 2: 44.90 46.10 1.20 2.42 138 0.14 0.01 0.07
                 
Analytical and Assay results are pending for drill holes SM20-32, 34, 35, 37, 39, 40, 44-48 and 51

Note: Reported widths are drilled core lengths as true widths are unknown at this time. It is estimated based upon current data that true widths might range between 60-80% of the drilled intersection. A nominal cut-off grade of 0.5% Cu has been applied to determine the boundaries of the intersections for this skarn-hosted mineralization with no more than 1.22 metres of internal dilution. *A nominal cut-off grade of 150 g/t Ag has been applied to this intersection. Table 3 below documents; Drill Hole Azimuth, Dip, end of hole length, and Collar Co-ordinates (Note: See details below in QA/QC section).

Table 2. Analytical and Assay Results From Texas East Zone

Drill Hole ID, Zone
& Interval
From
(m)
To
(m)
Core
Interval
(m)
Zn % Ag
g/t
Au
g/t
Pb % Cu %
TEXAS EAST ZONE                
SM20-029 61.63 62.97 1.34 19.67 229.3 3.82 3.94 0.25
                 
SM20-043                
INTERVAL 2: 56.53 61.23 4.71 6.19 168.6 2.07 0.71 0.39
INCLUDING: 56.53 59.89 3.37 8.65 218.1 2.44 0.90 0.52
                 
SM20-050                
INTERVAL 1: 46.28 48.59 2.31 0.10 145.9 0.18 0.01 2.91
INTERVAL 2: 49.65 58.00 8.35 4.17 194.8 4.05 0.78 0.54
                 
Analytical and Assay results are pending for drill holes SM20-32, 34, 35, 37, 39, 40, 44-48 and 51

Note: Reported widths are drilled core lengths as true widths are unknown at this time. It is estimated based upon current data that true widths might range between 60-80% of the drilled intersection. Intervals cut offs are based upon visual contacts of massive sulphide units with no more than 0.80 metres of internal skarn. For hole SM20-050 Interval 1 a nominal cut-off grade of 0.5% Cu has been applied to determine the boundaries of the intersections for this skarn-hosted mineralization. Table 3 below documents; Drill Hole Azimuth, Dip, end of hole length, and Collar Co-ordinates (Note: See details below in QA/QC section).

Figure 1: 3D Perspective view inclined 200 looking north-north-east, with hole locations for SM20-028 - SM20-050
3D Perspective view inclined 200 looking north-north-east, with hole locations for SM20-028 - SM20-050

Table 3: Drill Hole Azimuth, Dip, End of hole length and Collar Co-ordinates

Hole ID Azimuth Degree Dip Degree End of hole Length (m) East (ft.) North (ft.) Elevation (ft.)
SM20-028 90 15 74.83 2311763.60 393645.30 6866.77
SM20-029 126 -12 99.06 2311763.60 393645.30 6866.77
SM20-030 95 -30 38.10 2311763.60 393645.30 6866.77
SM20-031 110 -14 54.56 2311763.60 393645.30 6866.77
SM20-032* 105 -64 43.89 2311763.60 393645.30 6866.77
SM20-033 115 -30 62.48 2311763.60 393645.30 6866.77
SM20-034* 80 15 66.14 2311763.60 393645.30 6866.77
SM20-035* 105 14 23.77 2311763.60 393645.30 6866.77
SM20-036 105 -14 81.87 2311763.60 393645.30 6866.77
SM20-037* 100 -14 68.64 2311763.60 393645.30 6866.77
SM20-038 110 -30 56.39 2311763.60 393645.30 6866.77
SM20-039* 122 -8 106.68 2311763.60 393645.30 6866.77
SM20-040* 105 -29 60.96 2311763.60 393645.30 6866.77
SM20-041 110 -40 56.39 2311763.60 393645.30 6866.77
SM20-042 87 -62 62.18 2311763.60 393645.30 6866.77
SM20-043 124 -20 121.62 2311763.60 393645.30 6866.77
SM20-044 124 -20 46.94 2311763.60 393645.30 6866.77
SM20-045* 0 -55 32.92 2311763.60 393645.30 6866.77
SM20-046* 127 -37 92.96 2311763.60 393645.30 6866.77
SM20-047* 60 -80 52.88 2311763.60 393645.30 6866.77
SM20-048* 135 -36 83.82 2311763.60 393645.30 6866.77
SM20-049 155 -60 62.48 2311763.60 393645.30 6866.77
SM20-050 150 -42 84.06 2311763.60 393645.30 6866.77
SM20-051* 170 -49 123.14 2311759.60 393643.08 6866.07

*Results pending for this hole

QUALITY ASSURANCE AND QUALITY CONTROL PROCEDURES

The project employs a rigorous QC/QA program that includes; blanks, duplicates and appropriate certified standard reference material. All samples are introduced into the sample stream prior to sample handling/crushing to monitor analytical accuracy and precision. The insertion rate for the combined QA/QC samples is 10 percent or more depending upon batch sizes. ALS Global completed the analytical work with the core samples processed at their preparation facility in Reno, Nevada, U.S.A. All analytical and assay procedures are conducted in the ALS facility in North Vancouver, BC. The samples are processed by the following methods as appropriate to determine the grades; Au-AA23-Au 30g fire assay with AA finish, ME-ICP61-33 element four acid digest with ICP-AES finish, ME-OG62-ore grade elements, four acid with ICP-AES finish, Pb-OG62-ore grade Pb, four acid with ICP-AES finish, Zn-OG62-ore grade Zn, four acid digest with ICP-AES finish, Ag-GRA21-Ag 30g fire assay with gravimetric finish.

THE SOUTH MOUNTAIN PROJECT

South Mountain is a polymetallic development project focused on high-grade zinc and is located approximately 70 miles southwest of Boise, Idaho (See Figure 2). The Project was intermittently mined from the late 1800s to the late 1960s and its existing underground workings remain intact and well maintained. Historic production at the Project has largely come from high-grade massive sulphide bodies that remain open at depth and along strike. According to historical smelter records, approximately 53,642 tons of mineralized material has been mined to date. These records also indicate average grades; 14.5% Zn, 363.42 g/t Ag, 1.98 g/t Au, 2.4% Pb, and 1.4% Cu were realised (See NI 43-101 Technical Report: Updated Mineral Resource Estimate for the South Mountain Project, dated May 6, 2019, Section 6.4 – Table 6.4 for more details. Available on the BeMetals website and at www.sedar.com). Thunder Mountain Gold Inc. purchased and advanced the project from 2007 through 2019, with expenditures into the project of approximately US$12million. The current mineral resource estimate of the deposit is detailed in Table 4 below and the Company expects to provide a revised mineral resource update in Q1 2021.

BeMetals has formed a Boise, Idaho-based project team that is focused on advancing South Mountain. This team includes key management of Thunder Mountain Gold Inc., Optionees of the Property. The project team has completed re-establishment of the Project site and have conducted two phases of drilling. The team continues to build and maintain strong relations with local communities relevant to the South Mountain Project.

The Project is largely on and surrounded by private surface land, and as such, the permitting and environmental aspects of the Project are expected to be straightforward. Permits are in place for underground exploration activities and BeMetals does not anticipate significant barriers to any future development at the Project.

Figure 2: Project Location Map
Project Location Map

Table 4. NI 43-101 Mineral Resource Statement for the South Mountain Project - April 1, 2019

Mineral Resources at 6.04% ZnEq Cut-off
Classification Zinc Equivalent Resource Contained Metal
Short Tons ZnEq lbs ZnEq
%
Zn lbs Zn% Ag oz. Ag opt
(g/t)
Au oz. Au opt
(g/t)
Pb lbs Pb % Cu lbs Cu %
x1000 x1000 x1000 x1000 x1000 x1000 x1000
Measured 63.2 22,200 17.57 14,700 11.64 237 3.745
(116 g/t)
4.0 0.063
(1.96 g/t)
600 0.483 700 0.566
Indicated 106.7 37,800 17.72 21,500 10.08 576 5.398
(168 g/t)
7.0 0.066
(2.05 g/t)
2,100 0.983 1,600 0.766
Measured +
Indicated
169.9 60,000 17.66 36,200 10.66 813 4.783
(149 g/t)
11.0 0.065
(2.09 g/t)
2,700 0.797 2,300 0.692
Inferred 363.2 120,800 16.63 70,500 9.70 2,029 5.585
(174 g/t)
16.3 0.045
(1.49 g/t)
8,700 1.202 5,200 0.696
  1. The effective date of the mineral resource estimate is April 1, 2019. The QP for the estimate is Mr. Randall K. Martin of Hard Rock Consulting, LLC, is independent of BeMetals Corp.
  2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources that are part of the mineral resource for which quantity and grade or quality are estimated on the basis of limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality and continuity. Inferred mineral resources may not be converted to mineral reserves. It is reasonably expected, though not guaranteed, that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.
  3. The mineral resource is reported at an underground mining cutoff of 6.04% Zinc Equivalent (“ZnEq”) within coherent wireframe models. The ZnEq. calculation and cutoff is based on the following assumptions: an Au price of US$1,231/oz., Ag price of US$16.62/oz., Pb price of US$0.93/lb., Zn price of US$1.10/lb. and Cu price of $2.54/lb.; metallurgical recoveries of 75% for Au, 70% for Ag, 87% for Pb, 96% for Zn and 56% for Cu, assumed mining cost of US$70/ton, process costs of US$25/ton, general and administrative costs of US$7.50/ton, smelting and refining costs of US$25/ton. Based on the stated prices and recoveries the ZnEq formula is calculated as follows; ZnEq = (Au grade * 43.71) + (Ag grade * 0.55) + (Pb grade * 0.77) + (Cu grade * 1.35) + (Zn grade).
  4. Rounding may result in apparent differences when summing tons, grade and contained metal content. Tonnage and grade measurements are in imperial units.

About BeMetals Corp.

BeMetals is a precious and base metals exploration and development company focused on becoming a leading diversified metal producer through the acquisition of quality exploration, development and potentially production stage projects. The Company is evaluating numerous global potential entry-level precious metals projects while progressing both its advanced high-grade, zinc-silver-gold-copper polymetallic underground exploration at the South Mountain Project in Idaho, and its tier-one targeted, Pangeni Copper Exploration Project in Zambia. A strong board and management team, founders and significant shareholders of the Company, who have an extensive proven record of delivering considerable value in the mining sector through the discovery, construction and operation of mines around the world, lead BeMetals’ growth strategy.

The technical information in this news release for BeMetals has been reviewed and approved by John Wilton, CGeol FGS, CEO and President of BeMetals, and a “Qualified Person” as defined under National Instrument 43-101.

On Behalf of BeMetals Corp.

"John Wilton"

John Wilton
President, CEO and Director

For further information about BeMetals please visit our website at www.bemetalscorp.com and sign-up to our email list to receive timely updates, or contact:

Derek Iwanaka
Vice President, Investor Relations & Corporate Development
Telephone: 604-609-6141
Email: diwanaka@bemetalscorp.com  

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.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" and “forward looking information” (as defined under applicable securities laws), based on management’s best estimates, assumptions and current expectations. Such statements include but are not limited to, statements with respect to the plans for future exploration and development of the South Mountain and Pangeni projects, and the acquisition of additional base and/or precious metal projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" , "anticipates" "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such statements, including but not limited to: the actual results of exploration activities, the availability of financing and/or cash flow to fund the current and future plans and expenditures, the ability of the Company to satisfy the conditions of the option agreements for the South Mountain Project and/or the Pangeni Project, and changes in the world commodity markets or equity markets. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward looking information are made as of the date hereof and are qualified in their entirety by this cautionary statement. The Company disclaims any obligation to revise or update any such factors or to publicly announce the result of any revisions to any forward-looking statements or forward looking information contained herein to reflect future results, events or developments, except as require by law. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to the Company’s most recent filings under its profile at www.sedar.com for further information respecting the risks affecting the Company and its business.

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