BeMetals Files Technical Report Supporting Increased Mineral Resource Estimate for the High-Grade South Mountain Zinc-Silver-Gold-Copper Project in Idaho
TSXV – BMET
June 29, 2021 OTCQB – BMTLF
FRANKFURT – 1OI.F
BeMetals Files Technical Report Supporting Increased Mineral Resource Estimate for the High-Grade South
Mountain Zinc-Silver-Gold-Copper Project in Idaho
VANCOUVER, CANADA - BeMetals Corp. (TSXV: BMET, OTCQB: BMTLF, Frankfurt: 1OI.F) (the “Company” or
“BeMetals) is pleased to announce that it has filed an independent National Instrument 43 -101 Mineral
Resource Estimate (“MRE”) Technical Report for the South Mountain Project (“South Mountain” or “ South
Mountain Project” or the “Property”) in southwestern Idaho, U.S.A.
The updated MRE has an effective date of April 20 , 2021 and was prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI -43-101”) by Hard Rock Consulting, LLC ,
based in the U.S.A. A copy of the MRE can be found on SEDAR and on the Company’s website.
John Wilton, President and CEO of BeMetals stated , “We are very pleased with this updated mineral resource
and the progress to date at the South Mountain Project. With the efficient deployment of our exploration
budget, we have more than doubled the inferred resources and increased the measured and indicated resources
by over 21% while maintaining the high -grade nature of mineralization. Drilling over the past two years has
focused on the DMEA and Texas zones and both these areas as well as other known zones of mineralization
remain open to significant further increase with future underground drilling. The results of the filed technical
report supporting the MRE will be incorporated into the ongoing South Mountain Preliminary Economic
Assessment (“PEA”), which is planned for completion in September this year.”
MINERAL RESOURCE ESTIMATE
Table 1 below provides a summary of the updated MRE in metric units and includes the details for the modeling
methodology and cut-off grades applied. This MRE now includes an additional 50 core drill holes (approximately
5,000 metres), of which 30 drill holes (approximately 2,400 metres) were completed during the 2020 program
and 20 drill holes (approximately 2,250 metres) from the 2019 campaign. Some results from BeMetals’ past two
drilling campaigns are highlighted in Table 2 below and demonstrate the high -grade nature and continuity of
the deposit in both the DMEA and Texas zones . These intersections from the underground drilling on the
Sonneman level illustrate the high-grade zinc-silver-gold component of the DMEA Zone mineralization and the
increased copper content in the Texas West Zone of the deposit. All figures are in U.S. dollars unless otherwise
indicated.
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Table 1. South Mountain Mineral Resource Statement (Metric Units)
1) The effective date of the mineral resource estimate is April 20th, 2021. The QP for the estimate is Mr. Richard A.
Schwering, P.G., SME-RM, of Hard Rock Consulting, LLC. and is independent of BeMetals, Corp., Thunder Mountain Gold
Inc., and South Mountain Mines Inc.
2) Mineral resources are not mineral reserves and do not have demonstrated economic viability such as diluting materials
and allowances for losses that may occur when material is mined or extracted; or modifying factors including but not
restricted to mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and
governmental factors. 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 $102.50/ton U.S. Net Smelter Return (“NSR”) within
coherent wireframe models. The NSR calculation and cut -off is based on the following assumptions: an Au price of
$1,750/oz, Ag price of $23.00/oz, Pb price of $1.02/lb., Zn price of $1.20/lb. and Cu price of $3.40/lb.; Massive sulfide
ore type metallurgical recoveries and payables of 52.25% for Au, 71.25% for Ag, 71.40% for Zn, 66.50% for Pb, and
49.00% for Cu and a total smelter cost of $3 3.29/ton; Skarn ore type metallurgical recoveries and payables of 71.25%
for Au, 80.75% for Ag, 51.00% for Zn, 47.50% for Pb, and 87.70% for Cu and a smelter cost of $7.24/ton; assumed mining
cost of $70/ton, process costs of $25/ton, and general and administrative costs of $7.50/ton. Based on the stated prices
and recoveries the NSR formula is calculated as follows; NSR = (Ag grade * Ag price * Ag Recovery and Payable) + (Au
grade * Au price * Au Recovery and Payable) + (Pb grade * 20 * Pb Price * Pb Recov ery and Payable) + (Cu grade * 20 *
Cu Price * Cu Recovery and Payable) + (Zn grade * 20 * Zn Price * Zn Recovery and Payable) -(smelter charges) for each
ore type.
4) The zinc equivalent grades were calculated as Zn Grade + (((Pb Price * Pb Recovery and Payable) / (Zn Price*Zn Recovery
and Payable)) * Pb Grade) + (((Cu Price * Cu Recovery and Payable) / (Zn Price * Zn Recovery and Payable)) * Cu Grade)
+ (((Ag Price * Ag Recovery and Payable) / (Zn Price * 20 * Zn Recovery and Payable)) * Ag Grade) + (((Au Pri ce * Au
Recovery and Payable) / (Zn Price * 20 * Zn Recovery and Payable)) * Au Grade)
5) Rounding may result in apparent differences when summing tons, grade and contained metal content. Tonnage and
grade measurements are in U.S. units and converted to metric.
6) HRC estimated the mineral resources based on drillhole and channel sample data constrained by geologic boundaries
using an Ordinary Kriging algorithm.
7) Measured mineral resources are those DMEA and Texas Zone blocks within 40ft of the Sonneman level. Indicated mineral
resources are those DMEA and Texas Zone blocks within 100 ft of the Sonneman level and 40 ft of the Laxey level.
Grades and Contained Metal
Ore
Type Classification Mass Zinc Zinc Silver Silver Gold Gold Lead Lead Copper Copper ZnEq
Kt % t ppm kg ppm g % t % t %
Massive
Sulfide
Measured 48.85 11.45 5,600 126 6,100 2.38 116,200 0.79 400.00 0.46 200 20.21
Indicated 107.90 11.36 12,300.0 164 17,700 2.63 283,500 1.36 1,500 0.53 600 22.14
Measured + Indicated 156.75 11.39 17,800.0 152 23,800 2.55 399,700 1.18 1,900 0.51 800 21.54
Inferred 705.03 8.09 57,000.0 202 142,600 1.49 1,049,000 1.04 7,300 0.74 5,200 18.34
Skarn
Measured 9.62 1.25 100.0 187 1,800 0.78 7,500 0.30 0 1.26 100 18.23
Indicated 21.28 0.49 100.0 130 2,800 0.17 3,700 0.07 0 1.20 300 12.63
Measured + Indicated 30.90 0.72 200.0 148 4,600 0.36 11,200 0.14 0 1.21 400 14.38
Inferred 51.26 1.34 700.0 110 5,600 0.19 9,900 0.04 0 1.66 900 14.92
Total
Measured 58.47 9.77 5,700.0 136 7,900 2.12 123,700 0.71 400 0.59 300 19.88
Indicated 129.18 9.57 12,400.0 158 20,400 2.22 287,300 1.15 1,500 0.64 800 20.57
Measured + Indicated 187.65 9.63 18,100.0 151 28,400 2.19 411,000 1.01 1,900 0.63 1,200 20.36
Inferred 756.30 7.63 57,700.0 196 148,200 1.40 1,058,900 0.97 7,300 0.81 6,100 18.10
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Table 2: Select Highlight Holes From the 2020 and 2019 Drilling Campaigns
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 intersections. Intervals cut offs are based upon visual contacts
of massive sulphide units. For SM20-028/43 a nominal 0.5% copper cut off has been applied.
Figure 1: 3D Perspective view inclined 20 0 looking north-north-east, indicating the areas of the expanded
mineral resource compared to the 2019 MRE
Core hole ID Interval
(metres)
Zn
(%)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Cu
(%)
DMEA Zone
SM19-002: Interval 1 10.51 17.81 226 2.41 1.59 0.16
SM19-003: Interval 1 24.17 11.12 267 3.44 3.75 0.29
SM19-006 15.70 21.27 147 8.04 0.77 0.30
SM19-014: Interval 5 8.29 8.11 178.7 0.48 0.57 1.73
SM20-025: Interval 1 13.64 3.40 119.9 3.28 0.22 .033
Texas West
SM20-028 10.85 0.13 260 0.26 0.10 2.56
SM20-043 7.01 0.29 181 0.22 0.01 2.84
Texas East
SM20-050 8.35 4.17 194.8 4.05 0.78 0.54
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QUALIFIED PERSON STATEMENT FOR THE MINERAL RESOURCE ESTIMATE
Mr. Richard A. Schwering, P.G., SME-RM, a Resource Geologist with Hard Rock Consulting, LLC, is responsible for
the South Mountain Project Mineral Resource Estimate with an effective date of April 20, 2021. Mr. Schwering
is a Qualified Person as defined by NI43 -101 and is independent of BeMetals Corp., Thunder Mountain Mines
Inc., and South Mountain Mines, Inc. Mr. Schwering estimated the mineral resources based on drill hole and
channel sample data constrained by geologic boundaries using an Ordinary Krige algorithm. The Geologic Model
and Mineral Resource Estimate were completed using Leapfrog Geo® Software version 6.0.5.
Table 2: 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.)
SM19-002: 138 -29 102.41 2311176 394,120 6,864
SM19-003: 152 -47 99.97 2311176 394,120 6,864
SM19-006 320 +58 58.67 2311481 393979 6,864
SM19-014 210 -60 274.14 2311176 394,129 6,864
SM20-025 195 -61 253.59 2311177 394,106 6,864
SM20-028 89 +15 74.83 2311763 393,645 6,866
SM20-043 124 -20 121.62 2311763 393,645 6,866
SM20-050 150 -42 84.06 2311763 393,645 6,866
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 combine d 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.
ABOUT 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: U pdated Mineral R esource Estimate for the South
Mountain Project, dated June 15, 2021 , Section 6.4 – Table 6.3 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.
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BeMetals formed a Boise, Idaho -based project team that is focused on advancing South Mountain. This team
includes key management of Thunder Mountain Gold Inc., Optionee of the Property. The project team ha s
completed two phases of drilling and is now working on a Preliminary Economic Assess ment. 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 P roject 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
ABOUT BEMETALS CORP.
BeMetals is a precious and base metals exploration and development company focused on becoming a leading
metal producer through the acquisition of quality exploration, development and potentially production stage
projects. The Company has recently establ ished itself in the gold sector with the acquisition of certain wholly
owned exploration projects in Japan. BeMetals is also progressing both its advanced high-grade, zinc-silver-gold-
copper polymetallic underground exploration at the South Mountain Projec t in Idaho through a preliminary
economic assessment, and its tier -one targeted, Pangeni Copper Exploration Project in Zambia. Guiding and
leading BeMetals’ growth strategy is 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.
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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 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: [email protected]
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 future exploration, development and advancement of the South Mountain
Project, the Pangeni project and the Japan properties, 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 t hat 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.