Battery Mineral Resources Initiates New Drilling Program and Announces Encouraging Drill Results from Its Punitaqui Copper MINE IN Chile
BATTERY MINERAL RESOURCES INITIATES NEW DRILLING PROGRAM AND ANNOUNCES
ENCOURAGING DRILL RESULTS FROM ITS PUNITAQUI COPPER MINE IN CHILE
Vancouver, British Columbia – (July 2nd, 2024) – Battery Mineral Resources Corp. (TSXV: BMR)
("Battery" or “BMR” or the " Company") is pleased to announce encouraging drill core assay
results from the new 2024 underground exploration and in-fill drill program at the Punitaqui
mine complex (“Punitaqui”) in Chile.
The Company announced on May 13th, 2024, that it had resumed mill operations and
production of copper concentrates at Punitaqui. Coincident with these activities, exploration
drilling has resumed with an underground drilling campaign in the Sand Andres and Cinabrio
mines.
Highlights
• Assay results from drillholes (see Table 1) have returned with encouraging results as
follows:
o Drillhole SAM-24-01: 4.3 meters (“m”) at 1.4% (“CuT”) total copper and 24
g/t grams per tonne (“Ag”) silver
o SAM-24-02: 4.0m grading 1.1% CuT & 7.8g/t Ag
o SAM-24-04: 3.5m at 1.0% CuT & 23.3g/t Ag
o SAM-24-05: 4.3m at 1.2% CuT & 19.2g/t Ag
• This initial underground San Andres drilling targeted a scheduled production area and
totaled 282 meters of diamond core drilling in 5 drillholes (see Table 2 and Figure 1).
Of the five holes drilled , three were designed to confirm the modelled geology,
mineralization and copper grade within the planned extraction area (SAM-24-01, SAM-
24-02 and SAM-24-05). The remaining two holes explored along the direction of the
existing resources to the north and south to test for extensions of the mineralization
(SAM-24-03 and SAM-24-04).
• The 2024 San Andres drill program is designed to confirm resources identified by
previous drilling programs and expand these resources north and south along strike
and at depth. All holes reached target depth and have intersected the targeted shale
horizons that host the copper mineralization.
• This drilling confirmed copper grades and better delineated the extent of the
mineralization in the upper and lower shale units within and adjacent to the planned
extraction area.
• These drill results have been added to the three -dimensional geology and resource
models which BMR’s mining engineers will use to update the current mine designs and
optimize mining schedules.
• Currently, one contract underground diamond drill is operating on-site.
• The drill is currently operating in the Cinabrio underground where 14 drillholes totalling
426.5 meters have been completed . This campaign is focused on three planned
production areas.
• Assay results for the Cinabrio drillholes are pending and drilling is continuing.
Battery CEO Martin Kostuik states ; “With the same team that was hugely successful in our
prior campaign, we are pleased to announce these new encouraging copper intercepts. This
drilling confirmed the copper grades which exist in the current geological model and better
delineated the extent of the mineralization. We believe these new results demonstrate our
keen understanding of the geological controls of the copper mineralization and how a well
planned and executed drilling program has the potential to provide the Company with
additional copper resources. These potential new resources are important in that they could
provide additional sources of feed to the mill without the need for extensive capital investment
in mine development to access them. We look forward to providing further exciting updates
for the 2024 Cinabrio – San Andres drill program in the coming weeks.”
On the heels of a very successful surface drill program of 33,000 meters, which culminated
in BMR reporting resources of 6.172 million tonnes of Indicated at 1.1 4% CuT and 3.07
million tonnes of Inferred at 0.93% CuT (see press release August 16th, 2022), BMR initiated
this new underground drill program. As a reference, the Punitqui mill is planned to consume
approximately 1 million tonnes per annum.
During the current operational ramp-up period, the underground drilling program is focused
on accessible targets within existing Inferred Resource to upgrade the resources to a higher
resource category as well as targeting areas adjacent to Inferred Resource to potentially add
new resources.
The 2024 drill plan allows for some flexibility in terms of timing and sequencing of target areas
which permits the drilling to be shifted between the Cinabrio mine and the adjacent San
Andres underground.
San Andres Mine
Sample assay results , reported herein, are from the first five underground drill holes
completed on Level 448 at San Andres as part of the 2024 drilling program.
Drillhole SA M-24-01: was designed to test the San Andres “Targeted Stratigraphic Unit”
(“TSU”) within the central part of a scheduled extraction area located above Level 448. The
hole began in the upper part of the TSU and finished in the andesite above. The hole
intersected the mineralized intervals in the upper shale unit between 0m – 27.8m, copper
intercepts included 1.4m at 0.9% CuT & 24g/t Ag and 1.8m at 0.9% CuT & 15.6g/t Ag. The
lower shale unit was intersected between 35m – 45m and produced a 4.3m at 1.4% CuT &
4.4g/t Ag result before terminating in andesite at 54m. These results confirm both the
modelled geology and extent of the mineralization within the central part of the planned
extraction area.
Drillhole SA M-24-02: tested the TSU unit within the northern part of the same scheduled
extraction area. The hole started in the upper part of the TSU and finished in the andesite.
The hole intersected a mineralized interval within the upper shale unit between 0m – 29.2m;
2.2m at 0.9% CuT & 23.7g/t Ag. The lower shale was cut downhole between 37.7m to 43.4m
and intercepted 4.0m at 1.1% Cu T and 7.8g/t Ag . These intercepts confirm the geological
modelling of the shale units that host the copper mineralization as well as the extent and the
grade of the mineralization within the modelled shales.
Drillhole SAM-24-03: was designed as a step-out hole to test targeted stratigraphic unit TSU
to the north of the planned extraction area. Hole started in the upper part of the TSU and
finished in the andesite. The hole tested the targeted shale horizons but intersected weakly
anomalous copper mineralization in both the upper and lower shale units.
Drillhole SAM-24-04: was designed as a step -out hole and tested the targeted stratigraphic
unit TSU south of the same scheduled extraction area. The hole started in the upper part of
the TSU and finished in the andesite. The drill hole intersected mineralized intervals in the
upper shale unit between 0m – 51m; 2.0m at 1.4% CuT & 41.5g/t Ag and 3.5m at 1.0% CuT
and 23.3g/t Ag. The lower shale unit was intercepted between 37.7m to 43.4m downhole and
produced 1.0m at 0. 9% Cu T and 9.5g/t Ag . The resulting intercepts may contribute to
additional resources because the intercepts confirmed the modelled geology and copper
grade and extended the copper mineralization.
Drillhole SAM-24-05: was designed to test San Andres TSU within the southern part of the
scheduled extraction area. The hole began in the upper part of the TSU and finished in the
footwall andesite. The hole intersected the mineralized intervals in the upper shale unit
between 0m – 32.2m; 1.8m at 0.7% CuT & 19.5 g/t Ag and 2.4m at 0.6% CuT & 19.4g/t Ag
and within the lower shale unit from 39.8m to 45.8m; 4.3m at 1.2% CuT & 19.2 g/t Ag. These
intercepts have confirmed the modelled geology and better delineated the grade and extent
of the copper mineralization.
Figure 1: San Andres Drilling Hole Location Plan- Level 448
Table 1: San Andres Level 448 Significant Drillhole Intercepts
Drillhole
Number
Downhole
Interval
From
(m)
Downhole Interval
To
(m)
Downhole
Sample
Interval
(m)
Sample
Estimated True
Interval Width
(m)
Total Copper
CuT
(%)
Silver
Ag
(Grams per
tonne)
(g/t)
SAM-24-01
4.00 8.00 4.00 1.44 0.85 24.00
20.00 25.00 5.00 1.80 0.89 15.60
35.00 47.00 12.00 4.32 1.38 4.40
SAM-24-02
0.00 6.00 6.00 2.16 0.90 23.70
36.00 47.00 11.00 3.96 1.14 7.80
SAM-24-03 NSR – No Significant Results
SAM-24-04
32.00 36.00 4.00 2.00 1.35 41.50
46.00 53.00 7.00 3.50 1.04 23.30
61.00 63.00 2.00 1.00 0.88 9.50
SAM-24-05
6.00 10.00 4.00 1.80 0.67 19.50
23.75 29.05 5.30 2.39 0.63 19.40
39.80 49.30 9.50 4.28 1.18 19.20
Note: All Intercepts reported as estimated true widths intervals
Table 2: San Andres Drillhole Summary
Hole
Number
Collar UTM
Easting (m)
Collar
UTM
Northing
(m)
Collar
Elevation
(mASL)
Depth
EoH
(m)
Hole
Inclination
(Dip)
Azimuth
Hole
Type & Size
SAM-24-01 287890.8 6598875 449.8 54.0 22.4o N259.9oE Diamond HQ Core
SAM-24-02 287889.8 6598878 449.8 47.9 20.9o N278.0oE Diamond HQ Core
SAM-24-03 287876.5 6598926 449.8 58.0 26.0o N254.1oE Diamond HQ Core
SAM-24-04 287893.0 6598861 449.9 72.7 17.4o N205.3oE Diamond HQ Core
SAM-24-05 287892.6 6598862 450.0 49.3 24.1o N244.9oE Diamond HQ Core
Background – San Andres Deposit
The San Andres resource is part of the Punitaqui project which is situated within a 25km long
mineralized district that is a classic IOCG and manto style copper belt that is comprised of
manto and structural controlled copper -silver veins. San Andres is a zone of copper
mineralization located 500m southwest of the high-grade Cinabrio deposit mined by Glencore
and Xiana Mining.
Prior to 1998, only limited extraction of high -grade copper oxides was undertaken at San
Andres by small groups of local miners. In 2000 , a Chilean national company La Empressa
Nacional de Mineria (“ENAMI”) developed two underground exploration tunnels targeting
copper sulphides. In 2005, via an option process, San Andres became part of the Punitaqui
mine complex.
Historic wide -spaced drilling completed by the previous operators between 2011 - 2017
totaled 58 holes for 5,927m. During 2021 – 2022 BMR completed 38 diamond drillholes
totalling 8,212m.
On October 3, 2022, BMR published an NI 43-101 resource for San Andres at a 0.70 Cu%
cut-off.
• Indicated Sulphide Resource of 1,736 ,000 tonnes grading 1.06 % CuT and 4.83 g/t
Ag.
• Inferred Sulphide Resource of 303,000 tonnes at 0.82% CuT and 4.03g/t Ag
Note: Scientific and technical information pertaining to the San Andres Resource was
extracted from the Company’s NI 43 -101 “Technical report on Punitaqui Copper Complex
Coquimbo, Chile” dated as of September 30,2022 with an effective date of August 16, 2022,
prepared by Garth Kirkham (Kirkham Geosystems Ltd.) an Independent Qualified Person in
accordance with NI 43-101.
San Andres is a tabular sedimentary horizon known as the “Targeted Stratigraphic Unit ”
(“TSU”) within a volcanic sequence. This sedimentary horizon is variably mineralized and has
a variable width ranging from 5m - 30m. It consists of an interlayered volcano -sedimentary
sequence composed of dark colored laminated and unlaminated shales, volcanoclas tic
sandstone, conglomerates and breccias and tuff breccias. Most of the copper mineralization
is hosted in the shale units within the TSU package. There is a variable component of
syngenetic pyrite. The horizon dips 40 to 50 degrees to the east and is cut-off at depth by the
moderately west dipping San Andres fault.
Mineralization consists of veinlets and irregular disseminations in both the fine and coarse -
grained clastic rocks and locally within the volcanic rocks above and below the host unit. The
host horizon is also cut and offset by other faults with a wide range of orientations.
Quality Control
Sample preparation, analysis and security procedures applied on the BMR exploration
projects are aligned with industry best practice. BMR has implemented protocols and
procedures to ensure high quality collection and management of samples resulting in reliable
exploration assay data. BMR has implemented formal analytical quality control monitoring for
all field sampling and drilling programs by inserting blanks and certified reference materials
into every sample sequence dispatched.
Sample preparation is performed BMR Los Mantos Preparation Lab. Samples are dried then
crushed to 70% < -2 millimeters and a riffle split of 250 grams is then pulverized to 85% of
the material achieving a size of <75 microns. Sample pulps & rejects were then delivered to
ALS Global - Geochemistry Analytical Lab in La Serana, Chile and sample analyses by ALS in
Lima, Peru. ALS analytical facilities are commercial laboratories and are independent from
BMR. All BMR samples are collected and packaged by BMR staff and delivered upon receipt
at the ALS Laboratory. Samples ar e logged in a sophisticated laboratory information
management system for sample tracking, scheduling, quality control, and electronic reporting.
These prepared samples are then shipped to the ALS Laboratory in North Vancouver for
analyses by the following methods:
• ME-MS61: A high precision, multi -acid digest including Hydrofluoric, Nitric, Perchloric
and Hydrochloric acids. Analysed by inductively coupled plasma (“ICP”) mass
spectrometry that produces results for 48 elements.
• ME-OG62: Aqua-Regia digest: Analysed by ICP-AES (Atomic Emission Spectrometry) or
sometimes called optical emission spectrometry (ICP-OES) for high levels of Co, Cu, Ni
and Ag.
Certified standards are inserted into sample batches by ALS. Blanks and duplicates are
inserted within each analytical run. The blank is inserted at the beginning, certified standards
are inserted at random intervals, and duplicates are analysed at the end of the batch.
Qualified Persons
Peter Doyle, Vice President of Exploration and Michael Schuler, Chile Exploration Manager for
Battery Mineral Resource s Corp., supervised the preparation of and approved the scientific
and technical information in this press release pertaining to the Punitaqui exploration drill
program. Mr. Doyle and Mr. Schuler are qualified persons as defined by National Instrument
43-101 - Standards of Disclosure for Mineral Projects.
Scientific and technical information pertaining to the Punitaqui Resource was extracted from
the Company’s NI 43-101 “Technical Report on Punitaqui Copper Complex Coquimbo, Chile”
dated as of September 30,2022 with an effective date of August 16, 2022, prepared by Garth
Kirkham (Kirkham Geosystems Ltd.) an Independent Qualified Person in accordance with NI
43-101.
All mineral resources have been estimated in accordance with Canadian Institute of Mining
and Metallurgy and Petroleum (“CIM”) definitions, as required under NI 43-101. Cut-off grades
are based on a price of US$3.50/lb copper, US$20/oz silver and several o perating costs,
metallurgical recoveries, and recovery assumptions, including a reasonable contingency
factor.
About Battery Mineral Resources Corp.
Battery Mineral Resources’ mission is to build a mid -tier copper producer and it has recently
initiated mine and mill operations at the Punitaqui Mining Complex, a historic copper -gold-
silver producer, in the Coquimbo region of Chile. Battery Mineral Resources is unique because
it leverages the inherent value from its 100% owned subsidiary, ESI Energy Services Inc., a
renewable energy equipment rental and sales company. The Company’s portfolio also
consists of two cobalt assets and one graphite asset located in North America, South America
and South Korea. The Company is focused on providing shareholders accretive exposure to
copper and the global mega -trend of electrification while being focused on growth through
cash-flow, exploration, and acquisitions in favorable mining jurisdictions.
For further information, please contact:
Battery Mineral Resources Corp.
Martin Kostuik
Phone: +1 (604) 229 3830
Email: [email protected]
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 include statements relating to drilling results
and their impact on potential future mine production, statements relating to future drilling
campaigns and statements relating to future mine operations, and in each case 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 estimate s 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,
risks related to share price and market conditions, the inherent risks involved in the mining,
exploration and development of mineral properties, government regulation and fluctuating
metal prices. Accordingly, readers 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 as a result of new information or future
events or otherwise, except as may be required by law.