Vancouver, British Columbia – (February 22, 2022) – Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) ("Battery" or “BMR” or the "Company") is pleased to announce encouraging drill core assay results from the on-going 2021 exploration and in-fill drill program at the San Andres zone of the Punitaqui mine complex (“Punitaqui”) in Chile. Punitaqui is slated for resumption of copper concentrate production in the second half of 2022.
San Andres is the “normal” fault displaced upper portion of the adjacent Cinabrio copper deposit that is part of Punitaqui. Cinabrio was the primary source of copper for the Punitaqui mill which typically produced between 20 and 25 million pounds of copper annually and was operated for nine plus years by each of Glencore and Xiana Mining. The San Andres zone is one of several historic zones within BMR’s Punitaqui project with partially delineated resource potential and established underground access. Historic wide-spaced drilling completed by the previous operators between 2011- 2020 totaled 9,676 meters in 76 holes.
- The San Andres drill program is designed to confirm resource potential identified over a 600-meter (“m”) strike length by previous drilling programs.
- Final assay results from remaining San Andres drillholes have been returned with encouraging results as follows (see Table 1):
- SAS-21-36: 37.6 meters (“m”) at 1.36% Copper (“Cu”) including 27.4m at 1.55% Cu and including 14.7m at 2.12% Cu
- SAS-21-35: 25.1m at 0.54% Cu including 6.9m at 1.10% Cu
- SAS-21-34: 9.2m at 1.57% Cu
- SAS-21-31: 2.8m at 1.74% Cu
- SAS-21-25: 4.6m at 0.82% Cu
- SAS-21-32: 4m at 1.44% Cu
- SAS-21-38: 2.2m at 1.10% Cu
- SAS-21-33: 2.0m at 0.73% Cu
- SAS-21-37: 2.1m at 0.66% Cu
- 8,156m of drilling in 38 diamond core holes were completed in the Phase 1 drill program at San Andres and final complete multi-element analytical results have been received for all samples.
- Drilling tested the Target Stratigraphic Unit (“TSU”) sediments to the north and south along strike and at depth. In total, 36 holes reached target depth and intersected the favorable mineralized horizon. Of those, 29 drillholes produced significant copper intercepts during the program.
- Cross-sectional geological interpretation sections have been compiled and a three-dimensional San Andres zone geological model has been completed.
- The geological model and corresponding assay database have been forwarded to JDS Energy & Mining to complete a resource estimate for San Andres.
- A composite drillcore metallurgical sample from the San Andres zone was shipped to SGS Lakefield in Ontario where preliminary metallurgical testwork is underway.
Battery CEO Martin Kostuik states; “The completion of the first phase of drilling at the San Andres zone brings us one step closer to providing the market with BMR’s maiden resource statement for Punitaqui. We believe these new drilling results complement the prior successful drilling at San Andres and, together, demonstrate that this drill program has the potential to provide the Company with an additional source of copper ore for the Punitaqui mill and longevity for the project. We look forward to providing further exciting updates for the drill program as we progress towards the 2022 resource update and funding the potential near term resumption of operations and cashflow at Punitaqui”
Previously released copper assay highlights include those as follows (see Table 2):
- SAS-21-01: 3.0m grading 1.52% Cu
- SAS-21-03: 11.0m at 1.39% Cu including 8.0m at 1.63% Cu
- SAS-21-04: 16.7m grading 1.37% Cu including 11.7m at 1.64% Cu and a second interval of 9.0m at 1.75% Cu
- SAS-21-05: 9.0m at 2.06% Cu
- SAS-21-07: 3.4m at 2.10% Cu and a second interval of 4.0m at 1.56% Cu
- SAS-21-08: 5.3m at 1.39% Cu and a second interval of 3.8m at 1.85% Cu
- SAS-21-11: 2.0m at 0.91% Cu
- SAS-21-12: 7.0m at 1.81% Cu and a second intercept of 2m grading 1.04% Cu
- SAS-21-13: 3.0m at 1.96% Cu, 3.0m grading 0.87% Cu and a third interval of 1.8m at 0.83% Cu
- SAS-21-14: 28.1m at 0.98% Cu including 10.1m at 1.44% Cu and a second intercept of 9.4m grading 1.24% Cu
- SAS-21-15:3.0m at 0.5% Cu, 3.0m grading 0.48% Cu and a third interval of 2.0m at 0.51% Cu
- SAS-21-17: 3.6m at 1.04% Cu
- SAS-21-19: 5.0m at 1.08% Cu including 4.0m at 1.24% Cu
- SAS-21-20: 2.4m at 0.70% Cu
- SAS-21-21: 25.0m at 0.88% Cu including 13.0m at 0.96% Cu and 4.0m at 1.19% Cu and a second intercept of 2.0m at 1.12% Cu
- SAS-21-23: 2.8m at 1.00% Cu
- SAS-21-24: 3.0m at 0.82% Cu
- SAS-21-27: 11m at 2.16% Cu
- SAS-21-29: 16m at 1.49% Cu
- SAS-21-30: 5m at 1.39% Cu
San Andres Drill Program
The San Andres target is a zone of copper mineralization located 500m southwest of the high-grade Cinabrio deposit mined by Glencore and Xiana Mining (see Figure 1).
San Andres is a tabular sedimentary horizon within a volcanic sequence. This sedimentary horizon is variably mineralized and has a variable width ranging from 5m - 30m. It consists of an interlayered volcano-sedimentary sequence composed of dark colored laminated and unlaminated shales, volcanoclastic sandstone, conglomerates and breccias and tuff breccias. There is a variable component of syngenetic pyrite. The horizon dips 40 to 50 degrees to the east and is cut-off at depth by the moderately west dipping San Andres fault (see Figure 3).
Mineralization consists of veinlets and irregular disseminations in both the fine and coarse-grained clastic rocks and locally within the volcanic rocks above and below the host unit. The host horizon is also cut and offset by other faults with a wide range of orientations. The fundamental orientations identified to date include:
- moderately west dipping splays of the San Andres fault, generally with downward and westward movement
- steep dipping northeast to northwest trending faults with both sinistral and dextral offsets
- Faults parallel and sub-parallel to stratigraphy
- Historic wide-spaced drilling completed by the previous operators between 2011- 2020 totaled 76 holes / 9,676.65m. Significant historic drilling intercepts (see Table 3) included:
- SAS-20-07: 16m at 2.52% Cu
- SAS-07-50: 11m at 2.39% Cu
- SAS-20-01: 11m at 2.16% Cu
- SAS-20-08: 17m at 1.74% Cu
- BMR’s Phase 1 San Andres diamond drilling program comprised of 8,156 meters of diamond core drilling in 38 drill holes (See Figure 1 and Figure 2).
Sample assay results, reported herein, are from the final nine drill holes and are in addition to the results reported previously from the first 29 drillholes completed at San Andres (see Table 1 and Table 2 below).
SAS-21-37: 2.1m at 0.66% Cu from 210.1m
SAS-21-38: 15m at 0.40% Cu from 218m including 2.2m at 1.10% Cu from 230.8m.
Drillhole SAS-21-25 was designed to test San Andres targeted stratigraphic unit (“TSU”) 60m down-dip from the SAS-21-08 intercept (5.3m at 1.39% Cu and a second interval of 3.8m at 1.85% Cu). This down-dip test resulted in an intercept of 4.6m at 0.82% Cu from 245m confirming the mineralized zone at depth at about the same width.
Drillhole SAS-21-31 targeted the TSU about 50m up-dip from hole SAS-21-06 that intersected an 18.2m downhole interval of the TSU consisting of shales and volcanoclastic sandstone and conglomerates with abundant pyrite and trace chalcopyrite. Further down, the hole intersected a thick section of the TSU with abundant pyrite with weak copper sulphides that yielded an intercept of 2.8m at 1.74% Cu from 169.8m.
Drillhole SAS-21-32 was planned as an infill hole targeting the gap between SAS-21-04 (16.7m grading 1.37% Cu including 11.7m at 1.64% Cu and a second interval of 9.0m at 1.75% Cu) and SAS-21-20(2.4m at 0.70% Cu). This hole successfully intersected 36m of the TSU including a 7m interval of mineralized shaley sediments. Two mineralized intercepts were reported 5.3m at 0.70% Cu from 212m and 4m at 1.44% Cu from 230m.
Drillhole SAS-21-33 targeted the gap west of the underground workings in the northern part of the San Andres zone. The drillhole intersected a 36m section of the TSU with disseminated chalcopyrite mineralization. A narrow, mineralized intercept of 2m at 0.73% Cu from 99m was reported.
Drillhole SAS-21-34 was designed to test the “drilling gap” between SAS-21-14 (28.1m at 0.98% Cu including 10.1m at 1.44% Cu and a second intercept of 9.4m grading 1.24% Cu) and SAS-21-07 (3.4m at 2.10% Cu) and a second interval of 4.0m at 1.56% Cu). SAS-21-34 intercepted 32m of the TSU with variable chalcopyrite and bornite sulphides that resulted in an encouraging assay of 9.2m at 1.57% Cu from 232m.
Drillhole SAS-21-35 tested the “drilling gap” between the high-grade intercept in SAS-21-27(11m at 2.16% Cu) and SAS-21-17 (3.6m at 1.04% Cu). The hole cut a 37m long section of the targeted stratigraphic unit with pyrite and chalcopyrite. The mineralized horizon produced a broad anomalous intercept of 25.1m at 0.54% Cu from 206.9m including 6.9m at 1.10% Cu from 225.1m.
Drillhole SAS-21-36 was designed to test the “drilling gap” between SASA-21-03 (11.0m at 1.39% Cu including 8.0m at 1.63% Cu) and historic hole SAS-20-02 (16m at 1.05% Cu). Hole SAS-21-36 positively intersected a strongly mineralized 51m of the TSU with pyrite and chalcopyrite that produced assays of 37.6m at 1.36% Cu from 178.4m including 27.4m at 1.55% Cu from 178.4m including 14.7m at 2.12% Cu from 191.1m and 7.1m at 1.16% Cu from 209.0m and including 3.2m at 1.93% Cu from 212.9m.
Drillhole SAS-21-37 was designed to test the “drilling gap” between SAS-21-03 (11.0m at 1.39% Cu including 8.0m at 1.63% Cu) and SAS-21-23(2.8m at 1.00% Cu). The hole intersected 10.2m of the TSU with pyrite and chalcopyrite. The hole successfully returned an intercept of 2.1m at 0.66% Cu from 210.1m.
Drillhole SAS-21-38 was designed to test the “drilling gap” between SAS-21-14 (28.1m at 0.98% Cu including 10.1m at 1.44% Cu and a second intercept of 9.4m grading 1.24% Cu) and SAS-21-24(3.0m at 0.82% Cu). The infill hole successfully intersected the TSU within which were 6.4m of shaley sediments with pyrite and copper sulphides of the TSU that produced 15m at 0.40% Cu from 218m including 2.2m at 1.10% Cu from 230.8m.
Table 1: San Andres Drilling Latest Significant Assays Results – November 2021
Note: All intervals reported as downhole core intervals
Table 2: San Andres 2021 Drill Program Significant Drillhole Intercepts
Note: All Intercepts reported as downhole core intervals
Table 3: San Andres Significant Historic Drillhole intercepts
|Note: All intervals reported are downhole core lengths|
Figure 1: Cinabrio – San Andres Area Geology and Targets Map
Sample preparation, analysis and security procedures applied on the BMR exploration projects is aligned with industry best practice. BMR has implemented protocols and procedures to ensure high quality collection and management of samples resulting in reliable exploration assay data. BMR has implemented formal analytical quality control monitoring for all field sampling and drilling programs by inserting blanks and certified reference materials into every sample sequence dispatched.
Sample preparation is performed ALS Global - Geochemistry Analytical Lab in La Serena, Chile and sample analyses by ALS in Lima, Peru. ALS analytical facilities are commercial laboratories and are independent from BMR. All BMR samples are collected and packaged by BMR staff and delivered upon receipt at the ALS Laboratory. Samples are logged in a sophisticated laboratory information management system for sample tracking, scheduling, quality control, and electronic reporting. Samples are dried then crushed to 70% < -2 millimeters and a riffle split of 250 grams is then pulverized to 85% of the material achieving a size of <75 microns. These prepared samples are then shipped to the ALS Laboratory in Lima Peru for analyses by the following methods:
- ME-MS61: A high precision, multi-acid digest including Hydrofluoric, Nitric, Perchloric and Hydrochloric acids. Analysed by inductively coupled plasma (“ICP”) mass spectrometry that produces results for 48 elements.
- ME-OG62: Aqua-Regia digest: Analysed by ICP-AES (Atomic Emission Spectrometry) or sometimes called optical emission spectrometry (ICP-OES) for high levels of Co, Cu, Ni and Ag.
Certified standards are inserted into sample batches by ALS. Blanks and duplicates are inserted within each analytical run. The blank is inserted at the beginning, certified standards are inserted at random intervals, and duplicates are analysed at the end of the batch.
Michael Schuler, Battery Mineral Resources Corp. Chile Exploration Manager, supervised the preparation of and approved the scientific and technical information in this press release pertaining to the Punitaqui Exploration Drill Program. Mr. Schuler is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
About Battery Mineral Resources Corp.
A battery mineral company with high-quality assets providing shareholders exposure to the global mega-trend of electrification and focused on growth through cash-flow, exploration, and making acquisitions in the world’s top mining jurisdictions. BMR is currently developing the Punitaqui Mining Complex and pursuing the potential near term resumption of operations for second half of 2022 at the prior producing Punitaqui copper-gold mine. The Punitaqui mine, operating as recently as April 2020, has typically produced 20 to 25 million lb. of copper in concentrate during its 9 plus year operating history and is located in the Coquimbo region of Chile.
BMR is engaged in the discovery, acquisition, and development of battery metals (cobalt, lithium, graphite, nickel and copper), in North and South America and South Korea with the intention of becoming a premier and sustainable supplier of battery minerals to the electrification marketplace. BMR is the largest mineral claim holder in the historic Gowganda Cobalt-Silver Camp, Canada and continues to pursue a focused program to build on the recently announced, +1-million-pound high grade cobalt resource at McAra by testing over 50 high-grade primary cobalt silver-nickel-copper targets. In addition, the Company owns 100% of ESI Energy Services, Inc., also known as Ozzie’s, a mainline pipeline and renewable energy equipment rental and sales company with operations in Leduc, Alberta and Phoenix, Arizona. ESI, established in 1979, typically generates positive EBITDA in the range of C$4-$5 million and is poised for growth in 2022 and 2023. For more information on the business of Ozzie’s Pipeline Padder, see http://ozzies.com
For further information, please contact:
Battery Mineral Resources Corp.
Phone: +1 (604) 229 3830
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
Forward Looking Statements
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections of the Company on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability of the Company to obtain sufficient financing to complete exploration and development activities, risks related to share price and market conditions, the inherent risks involved in the mining, exploration and development of mineral properties, government regulation and fluctuating metal prices. Accordingly, readers should not place undue reliance on forward-looking statements. Battery undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein, whether as a result of new information or future events or otherwise, except as may be required by law.