BeMetals Commences Surface Drilling Program at High-Grade South Mountain Zinc- Silver-Gold-Copper Project in Idaho
TSXV – BMET
October 18, 2021 OTCQB – BMTLF
FRANKFURT – 1OI.F
BeMetals Commences Surface Drilling Program at High-Grade South Mountain Zinc-
Silver-Gold-Copper Project in Idaho
Vancouver, British Columbia – BeMetals Corp. (TSXV: BMET, OTCQB: BMTLF, Frankfurt: 1OI.F) (the
“Company” or “BeMetals”) is pleased to announce the start of an exploratory phase of drilling from surface
at its high-grade South Mountain Zinc-Silver-Gold-Copper Project (“South Mountain” or the “Project” or the
“Property”) in southwest Idaho, U.S.A. This program is designed to further test the down depth exten t of
mineralization at the DMEA Zone with the objective to significantly expand the scale of the current Mineral
Resource Estimate (“MRE”) at South Mountain (See Summary below and Table 1 ). The DMEA Zone is the
largest known body of mineralization on the Property, containing the majority of tonnage in the current MRE,
and the mineralized zone remains open at depth.
John Wilton, President and CEO of BeMetals stated, “ Based on our last two phases of underground drilling
and all the historical exploration data available, we are confident that there is strong potential to substantially
increase the mineral resources with this new phase of surface drilling at the Property. We plan to complete
approximately 2,100 metres of surface core drilling in this phase of exploration work. Assuming th is
exploration program is successful, our plan is to update the current MRE and complete an ongoing Preliminary
Economic Assessment for the Project in 2022.”
Since optioning the South Mountain Project in early 2019, BeMetals has conducted two phases of
underground core drilling at the Property for a combined total of approximately 5,000 metres. All of the
drilling results from the Company’s past programs have been incorporated into the current MRE for the South
Mountain deposit and filed on SEDAR in June 2021. The 2021 MRE is summarised as:
Measured & Indicated (“M&I”): 187,650 tonnes grading 9.63% Zinc (“Zn”), 151 grams per tonne (“g/t”) Silver
(“Ag”), 2.19 g/t Gold (“Au”), 1.01% Lead (“Pb”) and 0.63% Copper (“Cu”). This represented a 21.8% increase
to the M&I tonnage from the historical 2019 MRE with a 20.36% Zn equivalent grade (“ZnEq”).
Inferred: 756,300 tonnes grading 7.63% Zn, 196 g/t Ag, 1.40 g/t Au, 0.97% Pb and 0.81% Cu. This represented
a 129.5% increase in the Inferred tonnage from the historical 2019 MRE with a 18.10% ZnEq grade.
During the first week of October, a surface drilling rig was mobilized to the Property. See Figure 1 below for a
cross section view of the existing DMEA Zone mineralization and the planned drill target area. The drill target
area remains subject to modification with the incorporation of ongoing drilling results.
2
Figure 1. Simpl ified Cross Section Through South Mountaion Deposit, DMEA Zone and Planned Surface
Drilling Exploration Holes (Looking to northwest)
Table 1. South Mountain Mineral Resource Statement (Metric Units)
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
3
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 cohere nt 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 c ost of $33.29/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 Recovery 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 Price * 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 measureme nts 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 Or dinary 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.
ABOUT THE SOUTH MOUNTAIN PROJECT
South Mountain is a polymetallic development project focused on high -grade zinc and i s 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 r ealised (See NI 43 -101 Technical Report: Updated Mineral Resource
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 purchased and advanced the
South Mountain from 2007 through 2019, with expenditures into the Project of approximately US$12million.
BeMetals formed a Boise, Idaho-based project team that is focused on advancing South Mountain. This team
includes key management of Thunder Mountain, Optionee of the Property. The Project team has completed
re-establishment of the Project site and have conducted two phases of drilling. 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 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.
4
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 established 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 Project 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.
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.
5
The Geologic Model and Mineral Resource Estimate were completed using Leapfrog Geo® Software version
6.0.5.
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
43-101.1
ON BEHALF OF BEMETALS CORP.
“John Wilton”
John Wilton
President, CEO and Director
For further information about BeMetals please visit our website at 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
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", "object ive", "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 unk nown 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 that cause r esults 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 re visions 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.