BeMetals Further Extends Down Plunge DMEA Zone Mineralization at the High-Grade, Polymetallic, South Mountain Project in Idaho, U.S.A.
January 20, 2020
VANCOUVER, CANADA - BeMetals Corp. (“BeMetals” or the “Company”) (TSXV: BMET and OTCQB: BMTLF) is pleased to announce the remaining analytical results from its Phase 1 underground drilling campaign, including holes SM19-016, SM19-017 and SM19-018 from the Company’s high-grade South Mountain Base and Precious Metal Project (“South Mountain” or the “Project”) in southwestern Idaho, U.S.A. Most importantly, drill hole SM19-016 has further increased the down plunge extent of the DMEA zone by approximately 75 metres and the zone remains open at depth (See Figures 1 & 2). The Company has also recently agreed upon revised terms with Copper Cross Zambia Limited at the Pangeni Copper Exploration Project in Zambia, to extend the due date for money-in-the-ground exploration investment until the end of 2020. This allows for a full field season of exploration activities this year. (See Pangeni section of this news release for more details).
From this batch of recent analytical results, hole SM19-016 has identified multiple zones of dominant gold and silver mineralization in the projected extension of the polymetallic DMEA zone (See Figure 1 & Table 2). The geological logging and interpretation of SM19-016 suggests this drill hole intersected the margins of the DMEA zone based on an increase in the observed ratio of skarn to massive sulphide styles of mineralization. Future drilling will test areas in close proximity to SM19-016 where more massive sulphide mineralization is likely to be discovered. Drill holes SM19-017 and SM19-018 intersected intervals of predominantly zinc and silver mineralization associated with the MB4 target (See Figure 1 & Table 2). These holes represent the first drill testing at the MB4 target zone, generated from rib channel sampling results in the Sonneman level (See Company press release dated June 18, 2019), and as such the orientation of this mineralization is not yet fully understood.
John Wilton, President, CEO and Director of BeMetals stated, “These recent results support and complete what has been a very successful phase 1 drilling program at the South Mountain Project in Idaho, U.S.A. This initial underground campaign of drilling has delivered on the Company’s objective of demonstrating the potential to considerably expand the high-grade base and precious metal mineralization. Overall, we are pleased to see the increased gold and silver components in specifically the DMEA zone mineralization and have found this has been a consistent theme from the 2019 drilling results.
In addition, we were pleased that in September 2019, one of the Company’s advisors, Dr. Richard Sillitoe, an economic geologist, spent several days on site examining underground exposures, drill core and surface outcrops. He endorsed and was supportive of the general exploration methodology being applied to the deposit. Importantly it was noted that the massive sulphides have mainly replaced the Laxey marble unit, implying that they may be considered as carbonate-replacement deposit (“CRD”) style of mineralization. This classification as a CRD by Dr. Sillitoe might well indicate that there is more upside to the ultimate scale of this deposit than was previously recognized."
Table 1 below summarizes the drill intersections returned from the phase 1 program, demonstrating the high-grade nature of the base and precious metal mineralization. Figure 1 illustrates the compiled intersections which indicate the potential to expand the mineral resource base at the South Mountain deposit following phase 2 drilling in 2020.
PHASE 1 DRILLING AT THE SOUTH MOUNTAIN PROJECT
The principal objectives of the phase 1 work plan at South Mountain was to test for potential extensions of the mineralized zones and support the grade distribution of the current polymetallic mineral resource estimate. The Company has now successfully completed the phase 1 program comprised of 20 underground drill holes for a total of approximately 2,250 metres. Geological logging and sampling of all drill holes have now been completed with all analytical results received. These results have been compiled into the Project’s geological database and will be used to design the phase 2 drilling program for 2020. Following a planned phase 2 drilling program, all new results will be integrated into an updated mineral resource estimation for the Project, expected to be completed towards the end of this year. Further expansion and definition of the DMEA, Texas, and MB4 zones, as well as other targets within reach of underground drill testing from the Sonneman level, provide excellent exploration upside for the 2020 program.
Table 1. All Previously Reported Analytical and Assay Results for the Phase 1 Drilling Program
|Drill Hole ID, Zone
|Pb %||Cu %|
Table 2 below shows the latest results received from holes SM19-016, SM19-017 and SM19-018 and Table 3 provides their drill hole co-ordinates, azimuth and dip.
Table 2. Drill Holes SM19-016, SM19-017 and SM19-018: Analytical and Assay Results
|Drill Hole ID: Zone
|Pb %||Cu %|
|MB4 Target Zone|
Note: Reported widths in tables 1 & 2 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. For drill holes SM19-017* and SM19-018* true widths are unknown as these are the first drill intersections of the MD4 target. Intervals cut offs are based upon visual contacts of massive sulphide units with no more than 1.75 metres of internal skarn. For SM19-010 a nominal 0.5% copper cut off has been applied to determine the boundaries of the intersections for this skarn hosted mineralization with no more than 1.4m of internal dilution. For SM19-016† (intervals 1, 3 and 4) a nominal 0.46 g/t gold cut off has been applied to determine the boundaries of the intersections with no internal dilution. For SM19-017 & 018 a nominal 2.4% zinc cut off has been applied to determine the boundaries of the intersections for this skarn hosted mineralization with no more than 2m of internal dilution. (Note: See details below in QA/QC section).
The above drill holes returned significant intersections of both massive sulphide and skarn styles of mineralization. Important sulphide minerals are pyrrhotite, sphalerite, galena, arsenopyrite and chalcopyrite. During the planned phase 2 campaign at South Mountain, the Company will carry out mineralogy and metallurgical test work studies to confirm historical results.
From the recent batch of drilling, holes SM19-015, SM19-019, SM19-020 did not return any significant mineralization and this information will be compiled to be used to design and target areas of mineralization in the 2020 phase 2 program. Drill hole SM19-021 had to be terminated at 10 metres with a significant drill rig break down near the planned conclusion of the phase 1 program.
Figure 1: 3D Perspective View inclined at 20 degrees looking north-north-east, showing locations of rib-sampling, priority target zones, and the phase 1 drill holes and highlighted the recent SM19-016, SM19-017 and SM19-018
Figure 2: Plan View of the Sonneman & Laxey Levels, South Mountain Deposit, showing locations of rib-sampling, priority target zones, and drill holes SM19-016, SM19-017 and SM19-018>
Table 3 below shows the drill hole azimuth, dip, end of hole depth and collar co-ordinates.
Table 3: Drill Hole Azimuth, Dip and Collar Co-ordinates
|Hole ID||Azimuth Degree||Dip Degree||End of hole Length
|East (ft.)||North (ft.)||Elevation (ft.)|
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 3). 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. Thunder Mountain Gold Inc. purchased and advanced the Project from 2007 through 2019 investing approximately US$12M during that period. The current mineral resource estimate of the deposit is detailed in Table 3 below and the Company expects to provide a revised mineral resource update following a phase 2 drilling program in 2020.
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 3: Project Location Map
Table 3. 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|
|Zn lbs||Zn%||Ag oz.||Ag opt
|Au oz.||Au opt(g/t)||Pb lbs||Pb %||Cu lbs||Cu %|
|Measured + Indicated||169.9||60,000||17.66||36,200||10.66||813||4.783
- The effective date of the mineral resource estimate is April 1, 2019. The QP for the estimate Mr. Randall K. Martin of Hard Rock Consulting, LLC, is independent of BeMetals Corp.
- 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.
- 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$25/ton. Based on the stated prices and recoveries the ZnEq formula is calculated as follows; ZnEq = (Au grade * 43.71) + (Ag grade * 0.55) + (Pb grade * 0.77) + (Cu grade * 1.35) + (Zn grade).
- Rounding may result in apparent differences when summing tons, grade and contained metal content. Tonnage and grade measurements are in imperial units.
PANGENI COPPER EXPLORATION PROJECT: REVISED TERMS FOR EXPLORATION EXPENDITURE
Following the encouraging copper intersections returned during the 2019 field season, the Company is pleased to report it has agreed upon revised terms of the letter agreement with Copper Cross Zambia Limited, subject to approval of the TSX Venture Exchange. The due date for the remaining obligation of US$ 1,036,806 through money-in-the-ground exploration expenditures has been extended from the 5th of February, 2020 to the 31st of December, 2020. Also it has been agreed to settle an upcoming amount due from US$ 150,000 to US$ 100,000 with the issuance of common shares of BeMetals equal to US$ 50,000. The common shares will be subject to a hold period of four months and a day from the date of issuance. The parties have also agreed that any shortfall of the expenditure commitment amount as of 31st December, 2020 will be settled in common shares of BeMetals paid as at that date.
The results of the 2019 drill program have delivered and exceeded the Company’s objectives at the commencement of Pangeni. The prospectivity of this licence to deliver, potentially tier one scale, copper discovery through the identification of copper sulphide mineralization and associated alteration systems has been established. This area is an under explored region of potential extensions to the prolific Zambian Copperbelt. This data is now being used to design the next phase of exploration which will likely focus on further aircore drilling at the D2, SW (E2) and CT targets to test for extensions and vectors towards higher grade copper mineralization at these prospects during the 2020 field season. (See previous news release dated October 16, 2019).
THE PANGENI COPPER EXPLORATION PROJECT
The Pangeni Project is located on the western extension of the Zambian Copperbelt, within the Lufilian Arc, underlain by Katangan Supergroup metasediments situated unconformably on basement schists and gneisses, which are covered by a thin veneer of Kalahari sands. The open pit Sentinel Copper Mine is operated by First Quantum Minerals Ltd. some 130 kilometres to the northeast of the Pangeni Project. Several major international mining companies have identified this region of the Zambian Copperbelt to be prospective for the discovery of tier one copper mines and are also conducting extensive exploration work in this area.
The Pangeni Project property is geologically prospective for the following deposit types; Basement-hosted Cu (analogues: the Lumwana Deposit, Nyungu Prospect), Sediment-hosted stratiform Cu-Co (analogues: Nchanga, Konkola, Nkana, and Mufulira Deposits), other Domes Region Deposits e.g. Sentinel, and Kansanshi and DRC Copperbelt Deposits e.g. Lonshi, Frontier, Kamoa-Kakula).
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.
ABOUT BEMETALS CORP.
BeMetals' founding Directors include John Wilton (President and CEO), Clive Johnson, Roger Richer, and Tom Garagan. BeMetals is a new base metals exploration and development company focused on becoming a significant base metal producer through the acquisition of quality exploration, development and potentially production stage projects. The Company is progressing both its advanced high-grade, zinc-silver polymetallic underground exploration at the South Mountain Project in Idaho, and its tier-one targeted, Pangeni Copper Exploration Project in Zambia. The Company’s growth strategy is led by our strong Board, key members of which have an extensive proven record of delivering considerable value in the mining sector through the discovery, construction and operation of mines around the world. The Board, it’s Advisors, and senior management also provide outstanding deal flow of project opportunities to BeMetals based upon their extensive network of contacts in the international minerals business.
On Behalf of BeMetals Corp.
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:
Vice President, Investor Relations & Corporate Development
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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 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.