SOUTH MOUNTAIN ZINC-SILVER-GOLD-COPPER PROJECT
BeMetals has an option agreement to acquire up to a 100% interest in the high-grade South Mountain Zinc-Silver-Gold-Copper Project located in southwestern Idaho, USA. The project currently hosts one of highest-grade zinc-equivalent mineral resources in all North America (See Figure 1 below) and the property includes significant infrastructure.
Project Location Map
Figure 1: Zn-Eq. Grade Comparison for 63 Zinc Focused Projects in North America
The South Mountain property hosted a past producing mine and according to historic smelter records, the consolidated property produced over 53,000 tons of ore at an average grade of 14.5% Zn from 1941 to 1953. The underground workings at the existing Sonneman level have been upgraded over the past 10 years and remain in excellent condition for our ongoing underground exploration activities and potentially for future production. Importantly, all the known mineralized zones on the property, are on patented (private) land, and are fully permitted for exploration activities.
From 2019 to 2020, BeMetals completed a combined total of approximately 5,000 metres of underground core drilling at South Mountain. These initial drilling programs focused on the DMEA and Texas zones of the property, and successfully confirmed the grade continuity and extensions of known mineralized areas. By the end of 2020, BeMetals had completed two phases of underground drilling programs to expand the Mineral Resource Estimate (“MRE”) on the property.
Figure 2 below illustrates the principal areas where the South Mountain deposit has been expanded from the historical MRE that was completed in 2019. The historical Technical Report for the Mineral Resource Estimate for the South Mountain Project Owyhee County, Idaho USA Report Date: Dated: April 1, 2019 is filed on SEDAR.
In June 2021, BeMetals filed an updated NI 43-101 compliant Independent Technical Report on SEDAR that was completed by Hard Rock Consulting, LLC. See Table 1 below for a summary of the updated MRE or Click here to view the full Technical Report. BeMetals commenced a phase of surface drilling in late 2021 in order to further expand the property’s known mineral resource estimate and aims to complete a Preliminary Economic Assessment study in 2022.
Table 1:NI 43-101 Mineral Resource Estimate for the South Mountain Project - April 20, 2021
- The effective date of the mineral resource estimate is April 20th, 2021. The QP for the estimate, Richard A. Schwering, P.G., SME-RM, of HRC, is independent of SMMI, THMG, and BMET.
- 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.
- The mineral resource is reported at an underground mining cut-off of $102.5 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 $33.29; 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; assumed mining cost of $70/ton, process costs of $25/ton, and general and administrative costs of $7.5/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. 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).
- Rounding may result in apparent differences when summing tons, grade and contained metal content. Tonnage and grade measurements are in U.S. customary units and converted to metric.
Figure 2. South Mountain Project – 3D View of Deposit Inclined 200 Looking North-Northeast