Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) ("Battery" or "BMR" or the "Company") is extremely pleased to announce encouraging drill core assay results from the on-going 2021 exploration and in-fill drill program focused on extensions of the Cinabrio orebody, the Dalmacia and San Andres targets within the Punitaqui mine complex ("Punitaqui") in Chile. Punitaqui is slated for resumption of copper concentrate production in mid to late-2022.
Dalmacia is in the southern portion of the Punitaqui area about 6 kilometers south of the Punitaqui copper processing plant. The Dalmacia target has underground mining access, partially delineated mineralized zones and is targeted as a potential new source of ore feed to the Punitaqui ore concentration plant (see Figure 1).
- At Dalmacia, a total of 6,504 meters in 33 holes have been completed and drilling continues. New assay results include the following drillholes (see Table 1):
- DS-21-08: 102 meters ("m") grading 1.41 percent copper ("% Cu") including 78m at 1.67% Cu and 16m at 3.52% Cu;
- DS-21-11: 24m at 1.04% Cu including 6m at 1.95% Cu;
- DS-21-12: 11m at 0.82% Cu;
- DS-21-13: 18m at 1.61% Cu and 12m at 2.13% Cu;
- DS-21-14: 15m at 1.16% Cu and 9m at 1.53% Cu;
- DS-21-16: 8m at 5.29% Cu and 8m at 3.53% Cu.
- Four diamond drills in operation at Punitaqui - two drills at Dalmacia and two drills at Cinabrio Norte (a potential extension of the Cinabrio orebody).
- At San Andres, the Phase 1 program resulted in the completion of 8,156m of drilling in 38 holes. All samples have been dispatched for analysis with assay results pending for the final six holes. An update of the 3D geological model is being completed which will be followed by a resource estimate by JDS Energy and Mining. A sample of previously published results include the following drillholes:
- SAS-21-03: 11m at 1.39% Cu;
- SAS-21-04: 16.7m at 1.37% Cu;
- SAS-21-14: 12.8m at 1.44% Cu;
- SAS-21-21: 13m at 0.96% Cu;
- SAS-21-27: 11m at 2.16% Cu;
- SAS-21-29: 16m at 1.49% Cu.
Battery CEO, Martin Kostuik states; "These drilling results, particularly from our Dalmacia target, are far better than expected. 102 meters of 1.41 percent copper is an outstanding result as we continue piece together this untapped area of Punitaqui. We are very pleased with the progress of the Dalmacia drill program which is shaping up to give Dalmacia strong potential to be a significant contributor to the future of the Punitaqui mine. Continued results like these leading to the planned restart of our former producing Punitaqui copper mine in Chile will give our investors an opportunity to participate in a potentially significant re-rating in BMR's valuation as we transition from development to operations and positive cash flow. We look forward to providing further exciting updates from the drill program as we continue to progress."
Punitaqui Copper Mine
Punitaqui is a former producing copper mine located in the Coquimbo region of Chile with an eight-plus year operating history within which up to 25 million pounds of copper in concentrate were produced annually. Punitaqui was acquired by BMR via a private placement equity financing closed on July 13, 2021. BMR began developing the project immediately by initiating a drilling program, operating and environmental permit modifications and engineering studies with the intention of restarting copper production in 2022.
Dalmacia Drill Program
The Dalmacia target is in the southern portion of the Punitaqui area about 6 kilometers south of the Punitaqui processing plant (see Figure 1). The first drilling occurred in 1993-1994 when 49 reverse circulation ("RC") holes totaling 9,972m were completed. Historic exploration drilling at Dalmacia North has been completed at a grid spacing of 25m x 25m, and 15m x 15m at Dalmacia South. Prior to the 2021 program, 229 drill holes (98 RC holes and 131 diamond core holes) had been drilled for a total of 53,294m.
The geological setting of the Dalmacia target is different from the Cinabrio orebody which is located 20 kilometers to the north. Dalmacia is situated within a roof-pendant of volcanic rocks, with minor calcareous intercalations of Middle to Upper Jurassic age. This volcano-sedimentary complex is intruded by younger aged granites located in a reverse fault.
Copper-gold mineralization is related to regional structures and deformation zones, developed in the contacts between granite, sub-volcanic andesitic porphyry intrusives and volcano-sedimentary rocks. Controls on mineralization include small scale shear zones, intrusive contacts, vesicular andesites and alteration zones. These controls have different geometries leading to complex orebody shapes. High grade copper mineralization occurs in small high-grade pods which locally occur in clusters enveloped in low grade mineralization.
The upper portion of the Dalmacia target is accessed via a portal and an underground ramp with limited level development. The current Phase 1 drill program is designed to infill and confirm the continuity of mineralization between previous drilling and includes a series of step-out holes to test the potential adjacent to the main zone of copper-gold-silver mineralization as defined by historic drilling.
To date, a total of 6,504 meters in 33 holes completed with an additional 5 holes / 600m of infill and step out drilling is planned to complete the Phase 1 program (see Figure 2). Complete assay results were recently received for seven holes: DS-21-08, DS-21-10, DS-21-11, DS-21-12, DS-21-13, DS-21-14, and DS-21-16 (see Table 1). A summary of the target rationale and results for these new drillholes is below.
48m - 150m downhole
Drillhole DS-21-08 was designed as an infill hole to test the up-dip extent of mineralization intersected in historic hole DAL-20 (27m at 0.91% Cu) and DS-14-17 (27m at 1.84% Cu) and the down-dip extent of mineralization intersected in DS-11-08 (12.6m at 2.12% Cu). The new hole intersected both disseminated and veinlet chalcopyrite and bornite between 48 - 140m downhole. Significant mineralized zones included 102m at 1.41% Cu from 48m downhole including 78m at 1.67% Cu and 16m at 3.52% Cu. The up-dip test found minor mineralization and the down-dip test successfully intersected strongly mineralized copper of both disseminated and veinlet chalcopyrite and bornite between 48m – 150m downhole. Sizable and strongly mineralized zones included 102m at 1.41% Cu from 48m downhole including 78m at 1.67% Cu and 16m at 3.52% Cu. The DS-21-08 intersection is made up of 5 different high-grade zones within a broader section of moderately to weakly mineralized host rock. The mineralization is interpreted as contiguous and can be correlated with intersections in nearby, adjacent historic drillholes. The results clearly demonstrate that these higher-grade zones interspaced with moderately to weakly mineralized copper mineralization represent a viable target model for future resource definition drilling at Dalmacia. Close spaced drilling is required to define potential copper resources with unmineralized to moderately mineralized rock in between the high-grade pods.
Drillhole DS-21-10 was drilled as a vertical step-out hole angled under surface workings. The hole intersected variably altered andesites with 0.1% - 1% pyrite and 0.01% - 0.05% copper. A high-grade copper intercept was reported from a vein zone; 2m at 2.40% Cu from 138m downhole.
Drillhole DS-21-11 successfully tested the area 18 meters below and west of historic intercept DAL-32 (17m at 2.17% Cu). Mineralized intercepts include 2m at 1.14% Cu from 59m downhole, 24m at 1.04% Cu from 78m including 10m at 1.06% Cu from 78m and 4m at 1.60% Cu from 78m and an intercept of 6m at 1.95% Cu from 96m.
Drillhole DS-21-12 is an infill hole designed to test the area 15 meters above an intercept in historic hole DAL-32 (17m at 2.17% Cu). The hole cut moderate chalcopyrite-bornite mineralization above the historic intercept. Results include 5m at 0.62% Cu from 116m downhole, 2m at 0.95% Cu from 143m and 11m at 0.82% Cu from 161m.
Drillhole DS-21-13 successfully tested a "drilling gap" between historic hole DS-11-10 that intersected weak, copper mineralization and historic hole SD-08 (8m at 1.86% Cu). Mineralized intercepts include 18m at 1.61% Cu from 44m downhole, 12m at 2.13% Cu from 135m downhole including 8m at 2.95% Cu and an interval of 5m at 3.26% Cu from 157m downhole as well as an intercept of 7m at 1.87% Cu from 181m.
Drillhole DS-21-14 was drilled obliquely over the top of the high-grade intercept drilled in DS-21-06 (29m at 1.45% Cu including 14m at 2.44% Cu). DS-21-14 successfully intersected a strongly mineralized zone 10 meters above and 11 meters north of the DS-21-06 intercept. Significant chalcopyrite and bornite mineralization between 73m and 209m including 9m at 0.74% Cu from 73m downhole including 4m at 1.03% Cu from 78m, 15m at 1.16% Cu from 145m including 7m at 1.44% Cu from 145m and an interval of 9m at 1.53% Cu from 186m and another intercept of 4m at 1.50% Cu from 205m.
Drillhole DS-21-16 is an infill hole designed to test continuity of a south plunging mineralized zone between historic holes SD-22 (17m at 2.57% Cu) and DS-14-13 (27m at 1.62% Cu). The new hole established continuity by intercepting two high-grade copper intervals that include 8m at 5.29% Cu from 74m downhole and 8m at 3.53% Cu from 102m.
The infill drilling results to date have defined several structurally controlled, steeply dipping shoots of high-grade mineralization. In addition, the step-out drilling has identified high-grade mineralization beyond the northern edge of the main drilling grid.
Significant assay results received to date for the Dalmacia 2021 drilling program include the following drillholes (see Table 1):
- DS-21-01 (Infill): 23m at 1.16% Cu, including 13m at 1.56% Cu;
- DS-21-02 (Infill): 11m at 1.08% Cu, including 4m at 2.32% Cu;
- DS-21-03 (Infill): 15m at 1.01% Cu, including 4m at 2.47% Cu;
- DS-21-04 (Infill): 13m at 0.64% Cu including 2m at 1.24% Cu;
- DS-21-05 (Step-out): 6m at 1.16% Cu;
- DS-21-06 (Step-out): 32m grading 0.73% Cu including 16m at 1.15% Cu and 95m at 0.78% Cu including 29m at 1.45% Cu, including a higher-grade interval of 14m at 2.44% Cu;
- DS-21-07 (Infill): 33m at 1.77% Cu, including intervals of 9.0m at 3.44% Cu, and 7m at 2.54% Cu, and 10m at 0.84% Cu, and 6m at 2.19% Cu;
- DS-21-08: (Infill): 102m at 1.41% Cu including 78m at 1.67% Cu and 16m at 3.52% Cu;
- DS-21-10: (Step-out): 2m at 2.40% Cu;
- DS-21-11: (Infill) 24m at 1.04% Cu including 4m at 1.60% Cu and an interval of 6m at 1.95% Cu;
- DS-21-12: (Infill) 11m at 0.82% Cu;
- DS-21-13: (Infill): 18m at 1.61% Cu, 12m at 2.13% Cu including 8m at 2.95% Cu and an interval of 5m at 3.26% Cu as well as an intercept of 7m at 1.87% Cu;
- DS-21-14: (Infill) 9m at 0.74% Cu including 4m at 1.03% Cu, 15m at 1.16% Cu including 7m at 1.44% Cu and an interval of 9m at 1.53% Cu and another intercept of 4m at 1.50% Cu;
- DS-21-16: 8m at 5.29% Cu and 8m at 3.53% Cu.
Table 1: BMR - Dalmacia Target Significant Drill Assay Intervals
Note: All intervals are downhole core lengths
Figure 1: Punitaqui Drill Target Location Map. Dalmacia 6 Kilometers South Of The Punitaqui Copper Processing Plant.
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Figure 2: Dalmacia Target Drill Collar Plan; Historic holes in grey, BMR 2021 holes in green and current holes "in progress" in red.
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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%
- 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 elevated 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 analyzed 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.
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.
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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, are based upon several 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 because of added information or future events or otherwise, except as may be required by law.
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