WHITE SULPHUR SPRINGS, Mont., July 24, 2024 – Sandfire Resources America Inc. (“Sandfire America” or the “Company”) is pleased to announce additional drill results of its 2024 exploration drilling program. This includes hole SC24-286 which intercepted 8.53 meters of 6.6% copper and hole SC24-288 which intercepted 13.19 meters of 12.8% copper, both in the Johnny Lee Lower Copper Zone.
The ongoing 2024 drill program focuses on upgrading and expanding the Johnny Lee Lower Copper Zone resource which at last estimate consists of a measured and indicated resource of 1.2 million tonnes grading 6.8% Cu and an inferred resource of 0.5 million tonnes of 5.9% Cu (2020 Technical Report*). Since December 2023, the Company has drilled approximately 8,000 meters of a planned 20,000-meter drill program.
Table 1. Black Butte Copper 2024 Exploration Drilling Program
| Drill hole ID | collar x | collar y | collar z | azimuth | dip | total depth | From (m) | To (m) | Width (m) | Cu % | Resource |
| SC23-278 | 506700.0 | 5180717.0 | 1741.0 | 16.6 | -67.9 | 489.29 | 64.98 | 81.36 | 16.38 | 1.4 | Upper Copper Zone |
| SC23-278 | 433.46 | 446.37 | 12.91 | 4.7 | Lower Copper Zone | ||||||
| SC24-279 | 506628.0 | 5180702.0 | 1748.0 | 36.8 | -70.2 | 502.31 | 62.86 | 76.25 | 13.39 | 2.3 | Upper Copper Zone |
| SC24-279 | 461.73 | 467.10 | 5.37 | 10.2 | Lower Copper Zone | ||||||
| SC24-280 | 507100.0 | 5180848.7 | 1709.4 | 36.8 | -70.2 | 442.48 | weakly mineralized | Lower Copper Zone | |||
| SC24-281 | 506441.5 | 5180834.2 | 1767.5 | 31.8 | -77.5 | 486.61 | 94.98 | 100.58 | 5.60 | 1.8 | Upper Copper Zone |
| SC24-281 | 431.66 | 437.54 | 5.88 | 4.6 | Lower Copper Zone | ||||||
| SC24-282 | 507650.0 | 5180746.0 | 1735.0 | 194.2 | -86.5 | 494.57 | weakly mineralized | Lower Copper Zone | |||
| SC24-283 | 507213.0 | 5180540.0 | 1713.0 | 43.0 | -71.5 | 560.98 | 471.44 | 477.93 | 6.49 | 2.4 | Lower Copper Zone |
| SC24-284 | 506900.0 | 5180832.0 | 1721.2 | 35.2 | -83.0 | 426.11 | 383.44 | 392.98 | 9.54 | 7.4 | Lower Copper Zone |
| with | 386.72 | 392.98 | 6.26 | 10.7 | |||||||
| SC24-285 | 506900.0 | 5180832.0 | 1721.2 | 28.9 | -67.6 | 392.03 | 363.65 | 365.45 | 1.80 | 15.3 | Lower Copper Zone |
| SC24-286 | 506609.0 | 5180868.0 | 1779.0 | 45.4 | -73.9 | 495.67 | 77.23 | 80.77 | 3.54 | 4.7 | Upper Copper Zone |
| SC24-286 | 438.25 | 446.78 | 8.53 | 6.6 | Lower Copper Zone | ||||||
| SC24-287 | 506850.0 | 5180852.0 | 1731.1 | 336.0 | -71.5 | 431.90 | weakly mineralized | Lower Copper Zone | |||
| SC24-288 | 506850.0 | 5180852.0 | 1731.0 | 110.0 | -78.8 | 460.25 | 396.15 | 409.34 | 13.19 | 12.8 | Lower Copper Zone |
| SC24-289 | 506900.0 | 5180832.0 | 1721.0 | 51.0 | -63.0 | 444.09 | weakly mineralized | Lower Copper Zone | |||
| SC24-290 | 506425.0 | 5180870.0 | 1767.0 | 82.0 | -71.0 | 513.31 | 476.68 | 481.39 | 4.71 | 4.5 | Lower Copper Zone |
| SC24-291A | 506622.0 | 5180877.0 | 1741.0 | 58.0 | -68.5 | 507.03 | 67.25 | 70.37 | 3.12 | 3.7 | Upper Copper Zone |
| 80.9 | 82.9 | 2.00 | 5.4 | Upper Copper Zone | |||||||
| SC24-291A | weakly mineralized | Lower Copper Zone | |||||||||
| SC24-292 | 506361.5 | 5180939.0 | 1771.0 | 0.0 | -84.5 | 453.54 | 120.21 | 125.89 | 5.68 | 2.3 | Upper Copper Zone |
| SC24-292 | 369.02 | 371.81 | 2.79 | 4.1 | Lower Copper Zone | ||||||
| SC24-293 | 506354.0 | 5180981.0 | 1773.0 | 346.0 | -76.5 | 362.1 | Assays pending | Upper Copper Zone | |||
| SC24-293 | Assays pending | Lower Copper Zone | |||||||||
| SC24-294 | 506441.5 | 5180834.0 | 1768.0 | 64.0 | -80.0 | 511.45 | Assays pending | Upper Copper Zone | |||
| SC24-294 | Zone faulted away | Lower Copper Zone | |||||||||
| SC24-295 | 506441.5 | 5180834.0 | 1767.55 | 38.0 | -68.0 | In progress | |||||
Intercept calculations included a minimum of 2 samples above a 1% copper cutoff grade.
| 1) | Drilling conducted by Ruen Drilling of Hope, Idaho. HQ3-sized core was collected. Drill holes were oriented with dips varying between -80 to -70 degrees in relatively variably dipping mineral zones. Intercepts may be slightly longer than true thickness. |
| 2) | After being logged and photographed in White Sulphur Springs, Montana, all mineralized zones were sampled by cutting half-core splits which were delivered to ALS labs in Reno Nevada for processing. ALS crushed the entire sample to 85% passing 2mm then split off 1kg, which was ground to 85% passing 75 micron and wet-sieved the split to ensure grinding passed specifications and then assayed for gold by fire assay with AA finish. Base metals were analyzed using a 4-acid digestion and ICP-OES analysis. Various other trace and major elements were also analyzed utilizing ICP procedures. Sandfire America utilized a QA/QC protocol which included inserting Certified Reference Materials (CRM) on a minimum of 1 CRM in 20 samples insertion rate. Assays of duplicates, and blanks were also included as part of the QA/QC program. |
| 3) | ALS Labs are accredited by ISO/IEC 170205:2017 methods for North America. |
| 4) | Drillhole collars are surveyed conforming to UTM NAD83 Zone 12. |
| 5) | The Company is aware of no drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to above. |
Figure 1: Drilling completed at the Black Butte Project December 2023-mid-July 2024; black diamonds show locations of past pierce points in Johnny Lee Lower Copper Zone; red dots show locations of pierce points in Johnny Lee Lower Copper Zone from this drill program; blue dots show intercepts with only weak copper mineralization; green dot shows the drill hole in progress; and colored areas show Measured (brown), Indicated (yellow), and Inferred (blue) and resource areas.
VP of Exploration, Jerry Zieg shared, “We’re very pleased with our drilling results as they are among the best ever drill results at Black Butte thus far! They add significant value to the Black Butte project.”
CEO Lincoln Greenidge closed stating, “This is a positive further step to improving the project’s resource base by demonstrating increased value to the Johnny Lee Deposit which is fully permitted as upheld in the Montana Supreme Court in a 5-2 decision in February 2024. This is wonderful news for the project.”
Johnny Lee Copper Deposit
The Johnny Lee deposit has a Measured and Indicated Mineral Resource of 10.9 million tonnes (Mt) at an average copper grade of 2.9% for 311 thousand tonnes (kt) of contained copper (Cu) at a 1.0% Cu cut-off grade, and an Inferred Mineral Resource of 2.7 Mt at an average copper grade of 3.0% for 80 kt of contained Cu at a 1.0% Cu cut-off grade (2020 Technical Report*). The Company has received a Mine Operating Permit from the Montana Department of Environmental Quality for mine development of this deposit and has completed a majority of Phase I construction on surface construction facilities. The Company received a decision from the Montana Supreme Court on February 26, 2024, to re-instate the mine operating permit and allow construction to move forward.
Qualified Person
Jerry Zieg, Sr. Vice President of Exploration for the Company, is a Qualified Person for the purposes of NI 43-101 and has also reviewed and approved the information of a scientific or technical nature contained in this news release. Mr. Zieg verified the data disclosed in this news release, including sampling, analytical, and test data underlying the information, or opinions contained in this news release.
*(2020 Technical Report) – Feasibility Study (Johnny Lee Deposit) and Mineral Resource Estimate Update (Lowry Deposit) – Technical Report NI 43-101” dated October 19, 2020, and news release “Sandfire Resources America Achieves Major Milestones with Completion of Black Butte Copper Project Feasibility Study and Updated Mineral Resource for Lowry Deposit” October 27, 2020.
