Battery Mineral Resources Corp. Provides Corporate Update on Its Path to Production at its Punitaqui Mine
Battery Mineral Resources Corp. Provides Corporate Update on Its Path to
Production at its Punitaqui Mine
Vancouver, British Columbia – (July 13, 2022) – Battery Mineral Resources Corp.
(TSXV: BMR) (" BMR” “Battery" or the " Company") is very pleased to provide a
broad corporate update on its recent accomplishments in Chile as it moves its
Punitaqui mine complex towards a production restart. The Punitaqui mine and mill
have been on continuous care and maintenance since April 2020, when copper prices
as low as $2.00 per pound forced the previous operators to cease operations.
Drilling and Updated 43-101 Resource Estimates
The Phase 1 drill program at the Punitaqui Mining complex was completed in May and
all assays have now been received and reported. The final tally for the Phase 1
program totalled nearly 33,000 meters (“m”) of diamond drilling focusing on three
zones: San A ndres, Dalmacia and Cinabrio Norte . The results of these drilling
campaigns will be combined with historical drilling and resource estimates will be
calculated and reported. In addition, the current remaining resources for the Cinabrio
mine, which fed the Punitaqui copper processing plant for eight -plus years, will be
included in the report.
The Company’s management are very excited with the results of the Phase 1 program
for several reasons, as follows:
Dalmacia
- A change in drilling azimuth and dip discovered several new areas of
mineralization and was also able to connect several smaller zones into larger
bodies which are more suitable for larger scale mining.
- The focus area for the upcoming resource statement covers approximately
one-third of the known strike length and BMR is optimistic further infill drilling
could lead to a significantly larger resource as the remaining two-thirds of the
strike is explored.
Cinabrio Norte
- The drilling results reported from Cinabrio Norte were very encouraging as this
area immediately north of the Cinabrio mine had very minor drilling prior to
the recent Phase 1 surface drilling program.
- The Company now expects the Cinabrio Norte zone will be included in the
upcoming resource estimate. This is particularly important since this zone is
approximately 110m north of the 220m level in the Cinabrio mine and can
therefore be accessed from Cinabrio with relatively little effort.
- The Cinabrio Norte zone is open at depth, which BMR plans to continue drilling
from underground once access has been established.
San Andres
- Infill and step out drilling intersected broad areas of copper mineralization to
the north and south.
- The main mineralized zone has now been traced for up to 450m in strike, up
to 200m in width and up to 30m in thickness.
- The company expects that San Andres will be included in the upcoming
resource estimate.
- The planning for a Phase 2 RC infill drill program at San Andres is well
underway with the construction of all drill pads completed.
Figure 1: Punitaqui Project Tenement Holdings, Resource Targets & Plant
Location Map
JDS Energy and Mining, Inc. are working to complete the updated NI 43-101 resource
estimate at the Punitaqui mining complex since receiving all final assays from the
Phase 1 drill program. An NI 43-101 resource is to be received in the next three to
four weeks.
Punitaqui Mill Maintenance Audit
The Punitaqui mill is a standard crush, grind and flotation mill rated for processing of
up to 3,600 tonnes per day, which was improved upon and optimized by Glencore Plc
during the approximately 8 years that they operated the mill. As part of the planned
restart of production, the Company recently engaged a third-party firm to conduct a
full maintenance audit of the Punitaqui mill to assess its readiness to recommence
processing ore and producing copper concentrate . The audit scope included all
mechanical, electrical and instrumentation items. This included inspection of all
pumps, motors, conveyor belts, primary, secondary, and tertiary crushers, ball mills,
liners, flotation cells, concentrate filters, tailings thickeners, cranes and hoists ,
electrical supply and water supply.
The results of the audit confirmed that the budgeted cost estimate, which was based
on operating and maintenance records, was accurate and no new major repairs or
replacements are required. Finally, the audit confirmed that the Punitaqui mill is in
good working condition to restart production after the planned maintenance program
concludes, which is expected later this year.
Metallurgical Study on Processing of Punitaqui Ores
Although the Punitaqui copper processing plant successfully operated for nearly a
decade, the company elected to undertake a comprehensive metallurgical test
program on each potential different ore type s from the Punitaqui mining complex
including material from two zones at the Cinabrio mine (M1 & M2), the Cinabrio Norte,
San Andres, and Dalmacia zones. The samples were shipped to the SGS Laboratory
in Lakefield, Ontario, where a full flotation program was conducted. SGS Lakefield is
a recognized global leader in mineral processing and recovery and their work was
overseen by BMR metallurgical consultant Dr. Joseph Ferron. The goal of this study
was to minimize any potential start -up ri sk and maximize metal recoveries and
copper concentrate quality.
As previously announced in our June 9 th press release, metallurgical studies
confirmed that the combined copper concentrate to be produced from the four main
deposits (Cinabrio, Cinabrio Norte, Dalmacia and San Andres) is commercially
marketable and the company has received strong interest from several concentrate
off-takers. Moreover, the testing demonstrated the combined future sources of ore
to the Punitaqui mill demonstrate an average of overall 84% copper recovery – a 5%
higher recovery than historically realised at Punitaqui by prior opera tors.
Additionally, we are working to refine and improve upon these initial very positive
results.
The Punitaqui samples were prepared and submitted for complete chemical and
mineralogical analyses. In addition, the sample hardness was measured using the
Bond work index procedure (BWI). Most relevant results are presented in the
following Table #1.
Table #1 – Chemical & Mineralogical Results of Punitaqui Feed Material
The flotation program included: rougher kinetics tests, open circuit cleaner tests and
locked cycle tests. The main parameters examined were copper and precious metals
recovery, fineness of primary grind, use of regrind and circuit configuration. The
results of the locked cycle tests are presented in the following Table #2.
Table #2 – Concentrate Recoveries & Grades by Zone
Unit M1 M2 Norte
Chemical
Cu Total % 0.92 0.96 1.39 1.02 0.98
Gold g/t 0.22 <0.02 <0.02 0.03 0.02
Silver g/t 2.8 1.7 5.5 5.1 0.5
Mineralogical
Copper Minerals
Chalcopyrite % 2.86 3.31 3.37 2.7 1.42
Bornite % 0.01 0.02 0.78 0.4 0.67
Chalcocite/Covellite % <0.01 <0.01 0.07 0.04 <0.01
Gangue Minerals %
Quartz (silica) % 11.5 13.8 6.4 23.6 2.2
Plagioclases % 10.0 12.1 9.1 6.7 54.0
Sericite/Muscovite % 16.6 15.9 11.8 20.5 3.2
Calcite % 10.3 15.8 43.5 14.5 0.4
Iron Oxides % 16.7 6.1 0.3 0.4 6.5
Hardness (BWI) KWh/tonne 17.0 19.3 14.3 23.3 12.3
Cinabrio San Andres DalmaciaANALYSES
Copper Concentrates
Unit M1 M2 Norte
Copper Total % 31.5 27.5 21.6 22.0 27.8
Gold g/t 4.8 n.a 0.04 0.6 0.5
Silver g/t 78.4 n.a 91.0 110 17
Copper Recovery % 94.3 95.7 81.0 84.2 96.5
Rougher Tails
Copper Total % 0.039 0.032 0.2700 0.160 0.023
Primary Grind
P 80 um 116 95 86 67 102
Cinabrio San Andres Dalmacia
The flotation circuit used during these locked cycle tests incorporated a regrind of the
entire rougher concentrate, and an open circuit first cleaner stage. Results clearly
indicated that the copper recovery was directly related to the percent liberation of
the copper sulphides. Copper concentrate grades for all five ore types were squarely
in ranges which are marketable (ranging from 21.6% up to 31.5%). Representative
copper concentrates produced from each ore sample were submitted to standard
smelter analysis. Significant results are presented in Table 3.
Table #3 – Punitaqui Copper Concentrate Chemical Analysis
Final Punitaqui Permitting
The permitting process which is a combination of modifying and combining existing
environmental and operating permits is progressing in lockstep with the goal
restarting the Punitaqui copper mine complex. Permits for operation of the Punitaqui
mill, tailings deposition and re-starting underground mine development have already
been approved by the regulators.
After resources are updated, mine designs are modified and the remainder of the
capital required for recommencing operations is secured, Cinabrio will be the first
area to be mined, to be followed soon after by a sequence that brings in mining at
San Andres, Cinabrio Norte and Dalmacia.
To recommence underground mining of ore at Cinabrio and San Andres , BMR
submitted a simplified environmental impact study (DIA) for the Cinabrio mine and
San Andres zone in December 2021 as requested by the authorities. After reviewing
the DIA study, regulators are afforded two rounds of comments/questions for
clarification. BMR is in the process of preparing the answers to the second and final
round of comments sent by the regulatory authorities. These will be filed on July 15th,
with final approval expected within 60 days.
Local Community Engagement
Battery Mineral Resources is committed to a strong focus of continuous improvement
on community relations by proactively engaging with our local communities and
especially with the residents of the town of Punitaqui. Earlier this year, BMR engaged
the services of consulting firm Integratio Mediação Social e Sustentabilidade
Element Unit M1 M2 Norte
Cu % 30.8 23.9 27.0 26.8 26.3
Fe % 29.3 24.6 16.3 19.4 18.2
S % 31.3 26.1 19.8 23.8 20.5
As % 0.01 0.12 0.06 0.26 0.12
Al % 0.41 1.45 2.19 1.34 2.25
Mg % 0.21 0.52 0.56 0.21 2.67
Si % 1.16 5.03 6.33 7.39 10.8
Pb % 0.04 0.05 0.07 0.03 0.004
Zn % 0.42 0.15 0.37 0.46 0.007
Hg g/t 4.40 23.3 1.60 24.7 1.00
Cinabrio San Andres Dalmacia
(“Integratio”). Integratio is a socio -environmental management, strategic
relationship, and stakeholder engagement consultant group operating for over 17
years and based in Belo Horizonte, Brazil. Integratio has recently delivered a report
to BMR with communit y assessment and stakeholder mapping that also highlights
the main issues to be focused on in our community relations and social license
program and provides the framework for a wholistic and proactive approach to social
engagement. As a next step to the responses received in the report, BMR plans to
initiate a social management and engagement plan that considers the entire
relationship and communication of the company with in the area, including the
establishment of a social investment program, which will allow direct communication
with the entities and population in the area of influence of our Punitaqui mine
complex. This program is now being prepared, reviewed and should be implemented
by the end of the month. We look forward to continuing to engage in a proactive and
positive manner with all our stakeholders and local communities.
About Battery Mineral Resources Corp.
Battery Mineral Resources (“BMR”) is a battery mineral company focused on growth
through cash-flow, exploration, and acquisitions in favourable mining jurisdictions.
BMR is currently developing the Punitaqui Mining Co mplex, a past copper -gold
producer, in the Coquimbo region of Chile and pursuing a potential near -term
resumption of operations in late 2022. Battery Mineral’s mission is the discovery,
acquisition, and development of battery metals (namely cobalt, lithium , graphite,
nickel, and copper), in North America, South America and South Korea, to become a
premier and responsible supplier of battery minerals to the electrification
marketplace. BMR is the largest mineral claim holder in the historic Gowganda Cobalt-
Silver Camp in Ontario, Canada, and continues to pursue a focused program to build
on the recently announced, +1 -million-pound high-grade cobalt resource at McAra.
In addition, Battery Mineral owns 100% of ESI Energy Services, Inc. a profitable
pipeline equipment rental and sales company with operations in Alberta, Canada and
Arizona, USA. Battery Minerals Resources is based in Canada and its shares are listed
on the Toronto Venture Exchange under the symbol “BMR” and on the OTCQB under
the symbol “BTRMF”. Further information about BMR and its projects can be found
on www.bmrcorp.com
For more information, please contact:
Martin Kostuik, CEO
Phone: +1 (604) 229 3830
Mars Investor Relations
+1 (604) 335-1976
Harbor Access Corp.
475-477-9402
Twitter: @BMRcorp_
www.bmrcorp.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the
policies of the TSXV) accepts responsibility for the adequacy or accuracy of this
press release.
Forward Looking Statements
This news release includes certain “forward -looking statements” under applicable
Canadian securities legislation. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ materially from
those anticipated in such statements. Forward-looking statements reflect the beliefs,
opinions and projections of the Company on the date the statements are made and
are based upon a number of assumptions and est imates that, while considered
reasonable by the Company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance, or achievements to be
materially different from the results, performance or achievements that are or may
be expressed or implied by such forward -looking statements and the parties have
made assumptions and estimates based on or related to many of these factors. Such
factors include, without limitation, the ability of the Company to obtain sufficient
financing to complete exploration and development activities, the ability of the
Company to complete the Debenture offering, risks related to share price and market
conditions, the inherent risks involved in the mining, exploration and development of
mineral properties, the ability of the Company to meet its anticipated development
schedule, government regulation and fluctuating metal prices. Accordingly, re aders
should not place undue reliance on forward-looking statements. Battery undertakes
no obligation to update publicly or otherwise revise any forward -looking statements
contained herein, whether because of new information or future events or otherwise,
except as may be required by law.