WHITE SULPHUR SPRINGS, Mont., July 25, 2018 (GLOBE NEWSWIRE) -- Sandfire Resources America
Inc. (TSX-V:SFR) (OTCQB:SRAFF) (“Sandfire America” or the “Company”) is pleased to provide the
following update on activities at the Black Butte Copper underground project in Montana.
Metallurgical Drilling and Test Work
The 2018 Spring drilling program focused on recovering mineralized core for further metallurgical test
work. 16 large-diameter (114 mm diameter) diamond drill holes dispersed throughout the Upper Copper Zone (“UCZ”) of the
Johnny Lee deposit provided representative samples for metallurgical testing. These holes also delivered further clarification of
the geology within the UCZ.
A total of 2,011 kilograms of mineralized core has been prepared for metallurgical testing at Base Metallurgical
Laboratories (“BML”) in Kamloops, British Columbia. BML are world-wide recognized experts in base metal froth flotation
recovery testing. The results of this test work will support the design of the proposed process flow sheet for the processing
plant which is an integral component of the Bankable Feasibility Study, and will allow modelling of recoverable copper within the
mineralized zones to optimize scheduling.
Two additional diamond drill holes pierced the Lower Copper Zone (“LCZ”) of the Johnny Lee deposit and improved
knowledge of this zone.
An additional three diamond drill holes were completed outside the known mineralized zones to investigate areas
of planned future facilities.
See Table 1. below for results from drill intersections through the UCZ and LCZ and associated drill hole
locations on Maps 1 and 2.
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Table 1. Black Butte Copper 2018 Spring
Drilling Program Intersections of the Johnny Lee Deposit |
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Hole ID |
From
(m) |
To
(m) |
Length (m) |
Cu |
Co |
Ag g/t |
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SC18-207 |
63.24 |
70.64 |
7.40 |
2.21 |
% |
0.14 |
% |
14.3 |
UCZ |
|
SC18-209 |
83.48 |
89.66 |
6.18 |
1.52 |
% |
0.07 |
% |
7.7 |
UCZ |
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and |
102.29 |
109.60 |
7.31 |
4.38 |
% |
0.13 |
% |
8.0 |
UCZ |
|
SC18-211 |
118.24 |
147.42 |
29.18 |
2.23 |
% |
0.08 |
% |
14.2 |
UCZ |
|
SC18-212 |
121.22 |
135.16 |
13.94 |
1.94 |
% |
0.08 |
% |
14.6 |
UCZ |
|
SC18-213 |
132.73 |
139.00 |
6.27 |
1.57 |
% |
0.08 |
% |
18.3 |
UCZ |
|
and |
142.88 |
146.75 |
3.87 |
1.83 |
% |
0.04 |
% |
16.5 |
UCZ |
|
SC18-214 |
156.70 |
160.29 |
3.59 |
2.50 |
% |
0.11 |
% |
23.2 |
UCZ |
|
SC18-215 |
56.50 |
58.77 |
5.99 |
2.74 |
% |
0.08 |
% |
11.4 |
UCZ |
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SC18-216 |
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UCZ |
Abandoned |
SC18-217 |
119.70 |
132.13 |
12.43 |
3.26 |
% |
0.19 |
% |
12.4 |
UCZ |
|
SC18-218 |
49.17 |
56.93 |
7.76 |
0.98 |
% |
0.11 |
% |
26.5 |
UCZ |
Intercept
compromised by poor core recovery |
SC18-219 |
74.03 |
85.05 |
11.02 |
2.34 |
% |
0.14 |
% |
8.6 |
UCZ |
|
SC18-220 |
121.58 |
126.80 |
5.22 |
2.29 |
% |
0.13 |
% |
21.3 |
UCZ |
|
SC18-221 |
101.35 |
109.79 |
8.44 |
1.96 |
% |
0.07 |
% |
7.3 |
UCZ |
|
SC18-222 |
90.40 |
103.74 |
13.34 |
1.95 |
% |
0.05 |
% |
19.1 |
UCZ |
|
SC18-224 |
119.48 |
131.98 |
12.50 |
2.78 |
% |
0.11 |
% |
11.1 |
UCZ |
|
SC18-225 |
No significant
mineralization intercepted |
UCZ |
|
SC18-226 |
55.70 |
66.10 |
10.40 |
2.07 |
% |
0.10 |
% |
17.7 |
UCZ |
|
SC18-223 |
424.02 |
425.67 |
1.65 |
12.10 |
% |
0.05 |
% |
13.1 |
LCZ |
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SC18-227 |
422.06 |
423.68 |
1.62 |
9.42 |
% |
0.13 |
% |
20.2 |
LCZ |
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*UCZ intercept calculations included a minimum of 3.0 metres above 1.5 % cutoff grade, with maximum of 5.0 metres internal
waste.
*LCZ intercept calculations included a minimum of 1.5 metres above 1.5 % cutoff grade, with maximum of 1.5 metres internal
waste.
Drilling in the Upper Copper Zone was conducted sampling PQ-sized core. Drilling in the Lower Copper Zone was conducted
collecting HQ3-sized core. Drill holes were oriented with dips varying between vertical (-90) to -55 degrees in relatively
flat-lying to slightly dipping mineral zones. Intercepts may be slightly longer than true thickness.
All Upper Copper Zone (UCZ) mineralized zones were sampled whole and delivered to Base Metallurgical Labs (BML) in Kamloops BC
for processing. BML crushed the entire sample to 85% passing 2mm then split off 1kg, which was ground to 85% passing 75
micron and delivered to ALS Global Labs in Vancouver BC. ALS Global wet-sieved the split to insure 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-AES analysis.
Various other trace and major elements were also analyzed utilizing ICP and XRF 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. ALS
Global included assays of duplicates, standards, and blanks for QA/QC purposes.
All Lower Copper Zone samples were taken from ½ splits of the HQ3 core and shipped directly to ALS Global Lab in Reno NV. The
samples were crushed to 85% passing 2mm size, split down and then ground to 85% passing 75 micron size. These pulps were then
assayed utilizing same processes and procedures as described above for the UCZ samples. The same QA/QC procedures were utilized as
well.
ALS Global labs are accredited to ISO/IEC 170205:2017 methods for North America
Bankable Feasibility Study (“BFS”)
Preparations are well advanced for the Black Butte Copper underground project BFS. In addition to the
metallurgical work discussed above, the Company has contracted SRK Consulting to complete a review of the structural geology of the
property, utilizing historic data and new stratigraphic modeling completed by the in-house geological team. Combined with the
existing resource modelling, this work will provide the basis for the initial underground design work.
Other packets of work for the BFS are being prepared for issuance for tender with a target completion date of
the June Quarter 2019.
Permitting Progress
Preparation of the Environmental Impact Study (“EIS”) under the watchful eye of the Montana Department of
Environmental Quality (“DEQ”) is progressing. A draft EIS may be available for public comment in the fall of 2018.
The draft air permit was issued by the DEQ in June and will be incorporated into the EIS. In May, the
Company received notification from DEQ that its MPDES (Montana Pollutant Discharge Elimination System) water quality permit
application has no further deficiencies.
Corporate Activities
In June, the Company completed a simplification restructuring removing two unnecessary subsidiaries and, in the
process, released US$1.15 million of restricted funds. Following the simplification, the Company now has one wholly owned
subsidiary, Tintina Montana Inc, which in turn wholly owns the Black Butte Copper underground project.
Management is currently considering a Rights Issue to fund ongoing permitting costs, the BFS and future drilling
activities.
Interim CEO and VP of Project Development Rob Scargill stated, “The Company is pleased to see the Black Butte
Copper underground project progressing in such a consistently positive direction. We look forward to reaching the
construction phase of this project and implementing our vision, which is consistent with our community’s stewardship council’s
vision, of a project that has a net positive effect economically, socially, and environmentally.”
QUALIFIED PERSON
Jerry Zieg, Vice President of Exploration for the Company, is a Qualified Person for the purposes of
NI 43-101 and has reviewed, verified, and approved the data disclosed and information of a scientific or technical nature
contained in this news release.
Contact Information:
Sandfire Resources America Inc.
Nancy Schlepp, VP of Communications
Mobile: 406-224-8180
Office: 406-547-3466
Email: nschlepp@sandfireamerica.com
CAUTIONARY NOTE
Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this document constitute “forward looking
information” within the meaning of Canadian securities legislation, including statements regarding the completion of the BFS,
permitting timelines and the Company’s plans for advancing the Black Butte Copper Project and expected outcomes. In making these
forward-looking statements, the Company has applied certain factors and assumptions that the Company believes are reasonable,
including that the Company will receive required regulatory approvals, that the Company will continue to be able to access
sufficient funding to execute its plans, and that the results of exploration and development activities are consistent with
management’s expectations. However, the forward-looking statements in this document are subject to numerous risks, uncertainties
and other factors, including factors relating to the Company’s operation as a mineral exploration and development company and the
Black Butte Copper Project, that may cause future results to differ materially from those expressed or implied in such
forward-looking statements, including that results of exploration and development activities will not be consistent with
management’s expectations, delays in obtaining or inability to obtain required government or other regulatory approvals or
financing, failure of plant, equipment or processes to operate as anticipated, the risk of accidents, labor disputes, inclement or
hazardous weather conditions, unusual or unexpected geological conditions, ground control problems, earthquakes, flooding and all
of the other risks generally associated with the development of mining facilities. 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.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly
disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Maps accompanying this announcement are available at
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http://www.globenewswire.com/NewsRoom/AttachmentNg/8c5b49b2-e19b-40aa-b7df-e25b3d67d6ad