BeMetals Corp. (TSXV:BMET)(OTCQB:BMTLF)(FSE:1OI.F) (the “Company” or “BeMetals”) is pleased to announce an extension of the option agreement (the “Option Agreement”) with Thunder Mountain Gold, Inc. (THMG, THM) (“Thunder Mountain”) and certain of its wholly-owned subsidiaries, to acquire up to a 100% interest in the South Mountain Project (“South Mountain” or the “Project” or the “Property”) in southwest Idaho, U.S.A.
John Wilton, President and CEO of BeMetals stated, “We are happy to have agreed on the extension of our Option Agreement with Thunder Mountain to allow for completion of a phase of surface exploration drilling to determine the potential to further increase the resource tonnage at the South Mountain Property. Based on our last two phases of underground drilling, combined with historical mining records, drilling, and rib sampling, we believe there is strong potential to further grow the mineral resource substantially by targeting extensions of existing mineralized zones with holes drilled from surface. Our plan is to complete a 2,100 metre (7,000 feet) drilling campaign and incorporate the results to provide an updated mineral resource estimate for the Project. The updated resource estimate will then lead to completion of our ongoing preliminary economic assessment for the Project next year.”
BeMetals entered the initial Option Agreement for the South Mountain Project in February 2019 (See BeMetals press release dated February 28, 2019, for more details on the Option Agreement) and today’s amendment provides for an extension of the option period by approximately 15 months, to December 31, 2022. BeMetals intends to complete the surface exploration drilling program as soon as possible subject to drilling contractor availability and seasonal weather conditions.
South Mountain is a polymetallic development project focused on high-grade zinc and is located approximately 70 miles southwest of Boise, Idaho (See Figure 1). 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: 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.
