BeMetals has entered an option agreement with Thunder Mountain Gold to acquire the South Mountain zinc-silver project in Idaho, U.S.A.
BeMetals (TSXV:BMET) has entered an option agreement with Thunder Mountain Gold (TSXV:THM,OTCQB:THMG) to acquire the South Mountain zinc-silver project in Idaho, U.S.A.
As highlighted in the press release:
The acquisition of South Mountain, through a two year Option Agreement, provides the next significant step in our growth strategy focused on becoming a significant base metal developer. The board and management believe this Project has the potential to develop into a high-grade mining operation, and possesses substantial upside to significantly expand the existing high-grade resource base.
South Mountain’s current mineral resource is comprised of:
Measured & Indicated: 169,900 tons at 17.66 percent zinc equivalent grade, which is comprised of 10.66 percent zinc, 4.783 ounces per ton (164 grams per tonne) silver, 0.065 ounces per ton (2.22 grams per ton) gold, 0.80 percent lead and 0.69 percent copper.
Inferred: 363,200 tons at 16.63 percent zinc equivalent Grade, which is comprised of 9.70 percent zinc, 5.585 ounces per ton (191 grams per tonne) silver, 0.045 ounces per ton (1.54 grams per ton) gold, 1.20 percent lead and 0.67 percent copper.
John Wilton, BeMetals President and CEO, commented:
“We believe South Mountain has the potential to become an exceptionally high-grade zinc-silver polymetallic mine, subject to successful completion of resource expansion studies and final permitting, and we look forward to advancing this Project aggressively with key members of the Thunder Mountain management team. Over the coming months, we intend to establish drill platforms from the existing underground development, and conduct an approximately 4,500 metre underground drill program to better assess the continuity and expansion potential of the currently identified mineral resource. Upon a successful acquisition of this Project, which would include the delivery of a preliminary economic assessment, BeMetals will have secured its first cornerstone base metal development project. BeMetals will continue to seek further value-accretive acquisitions in the base metal sector for our portfolio, that comply with our robust project selection criteria.”