BeMetals Commences Phase 2 Underground Drill Program At High-Grade South Mountain Zinc- Silver-Gold-Copper Project
TSXV – BMET
September 16, 2020 OTCQB – BMTLF
FRANKFURT – 1OI.F
BeMetals Commences Phase 2 Underground Drill Program At High-Grade South Mountain Zinc-
Silver-Gold-Copper Project
Vancouver, British Columbia – BeMetals Corp. (TSXV: BMET, OTCQB: BMTLF, Frankfurt: 1OI.F) (the
“Company” or “BeMetals”) is pleased to announce commencement of the Phase 2 underground diamond
drilling program at the high-grade South Mountain Zinc-Silver-Gold-Copper Project (“South Mountain” or the
“Project” or “Property”) in southwestern Idaho, U.S.A. This year’s program is designed to extend the
mineralized bodies at the Texas Zone and infill drill key areas of the DMEA Zone to prepare for completion of
both an updated mineral resource estimate and a Preliminary Economic Assessment (“PEA”) for South
Mountain in 2021 (See Figure 1).
HIGHLIGHTS OF THE PLANNED 2020 RESOURCE EXPANSION AND INFILL DRILLING CAMPAIGN:
• Complete 2,400 metres of diamond drilling f or approximately 25 holes from at least three
underground drilling locations this includes opening and enlarging the southeastern section of the
Sonneman adit towards the Texas Zone;
• The new Texas Zone drill stations will provide better locations for testing the newly defined high-
grade copper-silver-gold targets (See Company’s news release September 10, 2020);
• Conduct infill drilling of the DMEA Zone to further evaluate the significant component of gold and
silver intersections from the 2019 program that included;
Drill Hole ID, Zone
& Interval
From
(m)
To
(m)
Core
Interval
(m)
Zn % Ag
g/t
Au
g/t Pb % Cu %
SM19-002: Interval 3 85.83 96.39 10.56 11.42 123.0 4.43 0.36 0.52
SM19-006 28.01 43.71 15.70 21.27 147.0 8.04 0.77 0.30
SM19-007 26.97 39.17 12.20 18.16 122.6 4.41 1.55 0.16
SM19-016: Interval 2 136.55 146.64 10.09 3.15 151.3 1.68 0.66 0.22
SM19-016: Interval 4 184.18 188.64 4.47 5.04 482.0 4.27 5.80 0.43
Note: Reported widths in table 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 (See notes to table 1 below & QA/QC section).
• Ultimately, all the drilling data collected during this 2020 campaign is to be incorporated into an
updated resource estimate and a Preliminary Economic Assessment in 2021.
John Wilton, President and CEO of BeMetals stated, “Our work crews have mobilized to the South Mountain
project site. We will commence with key infill drilling on the high -grade DMEA Zone mineralization that was
successfully extended down plunge last year. The 2019 program returned increased gold and silver
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components to the polymetallic mineralization, specifically in the DMEA Z one (See Table 1 ) and this year’s
drilling will provide more information on the grade and distribution of this precious metal content . With the
initial drilling at the DMEA Zone, our mine contractors have commenced work to access the far southeastern
extent of the Sonneman level to prepare new drillin g stations closer to the Texas Zone. Given the historical
drilling and rib sampling results in connection with results from last year’s Phase 1 program, we believe we
can potentially add significant tonnage to the known mineral resource by focusing on the Texas and DMEA
zones (See Company’s press release dated September 10, 2020). Our site team has upgraded the underground
electrical and ventilation systems in preparation for the commencement of the drill and mining activities.
All personnel at the property are receiving COVID-19 related training in addition to our standard procedural
safety training, prior to commencing this season’s program.”
THE PLANNED 2020 SOUTH MOUNTAIN RESOURCE EXPANSION DRILLING AND DEVELOPMENT PROGRAM
BeMetals has formed a Boise, Idaho-based project team that is focused on advancing South Mountain. This
team includes key management of Thunder Mountain Gold Inc., Optionees of the Property, who have
coordinated re-establishment of the Project site for the start of Phase 2 drilling. The team continues to build
and maintain strong relations with local communities relevant to the South Mountain Project in southwestern
Idaho. The Project is largely on and surrounded by private surface land with much of the permitting in place
that would facilitate development of the project given favourable results of technical and economic studies.
This year, BeMetals has contracted Boart Longyear to drill a total of approximately 25 underground core holes
for some 2,400 metres at the South Mountain project. During the 2019 drilling campaign at South Mountain,
the Company identified and intersected mult iple zones of high -grade zinc with significant gold and silver
mineralization in projected extensions of the polymetallic DMEA zone (See Figure 1).
As of today, d rilling has commenced from the Muck Bay #5 drilling platform while our mining contractor,
Quimby Mining Services works on opening and enlarging the far southeastern section of Sonneman level to
prepare drilling platforms closer t o targets within the Texas Zone (See Figure 1 ). Th e historical far
southeastern section of the Sonneman adit has not been accessed since the 1980s, subsequently little
underground exploration has been conducted on this zone in the past four decades.
The Company has defined a number of compelling targets related to the Texas Zone from historical drilling,
and underground sampling ( See Company’s news release dated September 10, 2020). These targets include
both high-grade copper and zinc mineralization with a significant silver and gold component. A significant
portion of this year’s underground drilling are planned to test and extend mineralization in this zone which
can potentially add significant tonnage towards updating a mineral resource estimate for South Mountain in
the first half of 2021.
The infill drilling planned for the DMEA Zone area is designed to provide further information on the grade and
distribution of both the gold and silver component to this polymetallic zone of mineralization. Table 1 below
includes the complete results from the 2019 drilling of the DMEA Zone. Table 2 shows the azimuth, dip and
collar co-ordinates for these drill holes.
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Figure 1: 3D Perspective View inclined at 20 degrees looking NNE, showing locations of 2019 drill holes
(SM19 Series), 2013 surface drilling (TX13 Series) in the area of the Texas Zone, rib-sampling of Texas Zone,
and priority Texas Zone Target
Table 1. 2019 Program DMEA Zone: 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
SM19-002
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
4
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
SM19-004 (Did not intersect mineralization)
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
Interval 6 266.33 268.16 1.83 1.32 158.9 2.56 0.56 0.11
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
Note: Reported widths in tables 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. Intervals cut offs are based upon visual contacts of massive
sulphide units with no more than 1.75 metres of internal skarn. 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. (Note: See details below in QA/QC section).
Upon completion of the 2020 drilling campaign additional metallurgical and hydrology testing as well as rock
mechanic and mine modelling will be scheduled to be done in 2021 . A Preliminary Economic Assessment for
South Mountain is expected to be completed by approximately mid-2021.
Table 2: Drill Hole Azimuth, Dip and Collar Co-ordinates
Hole ID Azimuth
Degree
Dip
Degree
Eoh Length (m) East (ft) North (ft) Elevation (ft)
SM19-002 138 -28 102.41 231,176 394,120 6,868
SM19-003 152 -47 99.97 231,176 394,120 6,868
SM19-004 175 -58 119.79 231,176 394,120 6,868
SM19-005 175 -53 98.45 231,176 394,120 6,868
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SM19-006 320 +61 58.67 231,148 393,978 6,860
SM19-007 313 30 74.07 231,1481 393,978 6,860
SM19-014 210 -61 271.79 231,1176 394,129 6,868
SM19-016 237 -58.5 267.61 231,1176 394,129 6868
QUALITY ASSURANCE AND QUALITY CONTROL PROCEDURES
The Project employs a rigorous QA/QC 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 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. 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 1 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. Rights to the Project are secured through an Option Agreement with Thunder Mountain Gold
(“THMG”), optionees of the Property, a long established Idaho based company with strong local business
relationships in the state. Key management of THMG form part of the Project team.
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Figure 2: Project Location Map
Table 1. 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
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1. 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.
2. Mineral resources that are not mineral reserves do not have demonstrated economic viabili ty. 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.
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 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).
4. Rounding may result in apparent differences when summing tons, grade and contained metal content. Tonnage and grade
measurements are in imperial units.
ABOUT BEMETALS CORP.
BeMetals is a new precious and base metals exploration and development company focused on becoming a
leading diversified metal producer through the acquisition of quality exploration, development and potentially
production stage projects. The Company is searching globally for an entry-level precious metals project while
progressing both its advanced high -grade, zinc-silver-gold-copper polymetallic underground exploration at
the South Mountain Project in Idaho, and its tier-one targeted, Pangeni Copper Exploration Project in Zambia.
BeMetals’ growth strategy is led by our strong board and management, f ounders of the Company and
significant shareholders, 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.
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 our website at 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 news release
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Cautionary Note Regarding Forward-Looking Information
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 Mount ain and Pangeni projects, 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 f rom 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 ac tual 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 as surance
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 deve lopments, 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.