BeMetals Further Extends Down Plunge DMEA Zone Mineralization at the High- Grade, Polymetallic, South Mountain Project in Idaho, U.S.A.
TSXV – BMET
January 20, 2020 OTCQB – BMTLF
BeMetals Further Extends Down Plunge DMEA Zone Mineralization at the High-
Grade, Polymetallic, South Mountain Project in Idaho, U.S.A.
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 Cros s 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 ar eas 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 del ivered on the Company’s objective of demonstrating the
potential to conside rably expand the high-grade base and precious metal mineraliza tion. Overall, we are
pleased to see the increased gold and sil ver 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."
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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 minerali zed 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 ha ve
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
& Interval
From
(m)
To
(m)
Core
Interval
(m)
Zn % Ag
g/t
Au
g/t Pb % Cu %
DMEA Zone
SM19-002
Interval 1 46.88 57.39 10.51 17.81 226 2.41 1.59 0.16
Interval 2 67.85 71.63 3.78 5.45 145 8.39 0.58 0.15
Interval 3 85.83 96.39 10.56 11.42 123 4.43 0.36 0.52
SM19-003
Interval 1 51.18 75.35 24.17 11.12 267 3.44 3.75 0.29
Including 51.18 60.78 9.60 11.74 437 5.99 8.68 0.38
Including 62.09 75.35 13.26 11.77 169 1.88 0.54 0.25
Interval 2 77.60 81.24 3.64 9.74 331 1.94 1.11 0.34
SM19-005 75.13 86.37 11.23 7.97 128 1.20 0.91 0.24
SM19-006 28.01 43.71 15.70 21.27 147 8.04 0.77 0.30
SM19-007 26.97 39.17 12.20 18.16 122.6 4.41 1.55 0.16
SM19-014
Interval 1 105.31 120.40 15.09 9.59 127.1 1.50 0.69 0.28
Interval 2 138.07 143.88 5.81 4.88 76.9 2.55 0.21 0.12
Interval 3 155.17 158.95 3.78 14.49 145.5 0.37 0.25 0.48
Interval 4 184.40 189.56 5.15 0.28 79.9 2.08 0.15 0.06
Interval 5 250.65 258.94 8.29 8.11 178.7 0.48 0.57 1.73
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Interval 6 266.33 268.16 1.83 1.32 158.9 2.56 0.56 0.11
Texas Zone
SM19-010
Interval 1 24.41 31.62 7.21 4.37 155.2 0.13 0.03 2.07
Interval 2 53.11 63.15 10.04 0.40 135.1 0.07 0.01 1.75
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
& Interval
From
(m)
To
(m)
Core
Interval
(m)
Zn % Ag
g/t
Au
g/t Pb % Cu %
DMEA Zone
SM19-016
Interval 1 112.33 132.05 19.72† 0.07 8.39 1.52 0.01 0.002
Interval 2 136.55 146.64 10.09 3.15 151.3 1.68 0.66 0.22
Interval 3 158.27 163.59 5.32† 0.59 46.8 1.81 0.11 0.04
Interval 4 184.18 188.64 4.47† 5.04 482.0 4.27 5.80 0.43
Interval 5 227.32 230.83 3.51 8.85 136.2 0.17 1.25 1.67
MB4 Target Zone
SM19-017
Interval 1 1.37 5.23 3.86* 12.90 314.1 0.26 0.88 1.08
Interval 2 16.32 24.08 7.76* 10.23 91.4 0.07 0.36 0.55
SM19-018
Interval 1 0.00 18.62 18.62* 5.15 73.2 0.11 0.02 0.41
Including 8.53 18.62 10.09* 8.06 97.0 0.15 0.02 0.68
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 comp iled 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.
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Figure 1: 3D Perspective V iew inclined at 20 degrees looking north -north-east, showing location s of rib-
sampling, priority target zones, and the phase 1 drill holes and highlighted the recent SM19-016, SM19-017
and SM19-018
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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
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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
(m)
East (ft.) North (ft.) Elevation
(ft.)
SM19-015 237 -68 106.07 231,1176 394,129 6868
SM19-016 237 -58.5 267.61 231,1176 394,129 6868
SM19-017 240 -42 74.06 231,0900 394,412 6868
SM19-018 235 -22 61.87 231,0900 394,412 6868
SM19-019 205 -45 91.44 231,0841 394,498 6863
SM19-020 205 -51 92.35 231,0841 394,498 6863
SM19-021 205 -41 10.06 231,0841 394,498 6863
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 C ompany 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.
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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
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 Mr. Randall K. Martin of Hard R ock
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 an d
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 t he 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$25/ton. Based on the stated prices and recoveries the ZnEq
formula is calculated as follows; ZnEq = (Au grade * 43.71) + (Ag grade * 0.55) + (Pb grade * 0.77) + (Cu grade * 1.35) + (Zn grade).
4. Rounding may result in apparent differences when summing tons, grade and contained metal content. Tonnage and grade
measurements are in imperial units.
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PANGENI COPPER EXPLORATION PROJECT: REVISED TERMS FOR EXPLORATION EXPENDITURE
Following the encouraging copper intersections returned during the 2019 field season, the Company is
pleased to report it has agreed upon revised terms of the letter agreement with Copper Cross Zambia Limited,
subject to approval of the TSX Venture Exchange. The due date for the remaining obligation of US$ 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 31 st 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 exte nsions 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 Proje ct. 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 P rospect), 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 acquisit ion 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