Battery Mineral Resources Announces Positive Initial Drill Results from Its Recently Acquired Punitaqui Copper Mine in Chile

Vancouver, British Columbia--(Newsfile Corp. - September 2, 2021) - Battery Mineral Resources Corp. (TSXV: BMR) ("Battery" or "BMR" or the "Company") is pleased to announce encouraging initial drill core assay results from the 2021 exploration and in-fill drill program at the Punitaqui mine complex ("Punitaqui") in Chile. Punitaqui is a recently producing copper and gold mine which is slated for resumption of production mid-2022.

Highlights

  • Assay results (see Table 1) have been returned for the first three holes with encouraging results as follows (gold values pending):
    • Drillhole SAS-21-05: 9 meters ("m") at 2.06% copper and 20.5 grams per tonne silver ("g/t Ag")
    • Drillhole SAS-21-01: 3m grading 1.52% copper and 2.0g/t silver
  • Currently, three drills are operating on-site, and a fourth drill will arrive shortly.
  • 2,501 meters of diamond core drilling in 14 drill holes have been completed, or are in progress, at San Andres.
  • Nine drill holes have reached target depth and six have intersected significant mineralization.
  • Samples from eight drill holes have been submitted to ALS for geochemical analysis.
  • The San Andres drill program is designed to confirm and extend the resource definition drilling to the north and the south and extend mineralization at depth.
  • Recent but historic drilling at Sand Andres reported values including SAS-20-07 which resulted in 2.69% copper over a true width of 15.6 m (see Table 2).
  • The San Andres target is one of several historic zones identified by BMR with established underground access for infill and extensional drilling.
  • San Andres is the "normal" fault displaced upper portion of the adjacent Cinabrio copper deposit that is part of Punitaqui and was operated for nine plus years by Glencore and Xiana Mining.

Battery CEO Martin Kostuik states, "We are pleased to announce these initial very encouraging copper intercepts from our Punitaqui drilling program. Earlier wide-spaced historic drilling has identified an 800m long zone that is open at depth and in both directions along strike at San Andres. The SAS-21-05 intercept grading 2.06% Copper over a 9-meter downhole interval complements historical drill results and confirms the high-grade nature of the San Andres disseminated sulphide mineralization. We believe these results demonstrate that this drilling program has the potential to provide the Company with an additional source of copper and gold ore along with existing ore at the adjacent Cinabrio mine. We look forward to providing further exciting updates for the drill program in the coming weeks."

San Andres Drill Program

Sample assay results were received for the first three holes of the eight drillholes currently dispatched for analysis (see Table 1 below).

Drillhole SAS-21-01: was designed to test San Andres targeted mineralized horizon 30m north of historic hole SAS-20-07 which intersected a true width of 15.6m of 2.69% copper. The hole intersected a late andesite dyke at the target depth and exited the dyke near the bottom of the Targeted Stratigraphic Unit ("TSU") cutting 3 m of the favourable stratigraphy which contained both disseminated and veinlet occurrences of chalcopyrite and bornite. Although much of the drill hole intersected the dyke, the lower section yielded high-grade copper mineralization which returned results of 3m grading 1.52% copper and 2.0g/t silver.

Drillhole SASA-21-02: intersected the TSU 30m south of historic hole SAS-20-07. The hole intersected the same late-stage andesite dyke at the target depth and exited the dyke near the bottom of the TSU, cutting 8.7m of the favourable stratigraphy which had abundant pyrite and minor copper mineralization. An updated re-interpretation of the San Andres zone geology has been completed and the three dimensional geological model is being updated with the new interpretations and new drilling information.

Drillhole SAS-21-05: intersected the TSU 30m south of historic hole SAS-17-06 that returned a true width section of 7.3m grading 1.73% copper. The hole intersected the TSU between 186.6m to 234.9m (Figure 2). The drilled section consisted of shales, volcanoclastic sandstones, conglomerates and tuff breccia. Disseminated sulphide mineralization occurred throughout the section with the most intense sulphide concentration noted between 200.0m - 210.0m and 220.0m - 229.0m which yielded a 10m interval grading 0.52% Cu and 8.70g/t silver and a higher-grade interval that assayed 9.0m grading 2.06% copper and 20.5g/t silver. Sulphide mineralization consisted of chalcopyrite and bornite that occur as disseminated sulphides and within veinlets.

Table 1: San Andres Drilling Significant Assays Received to Date (gold values pending)

Drillhole
Number
From
(m)
To
(m)
Sample
Interval
(m)
Copper
Cu (%)
Silver
Ag (g/t)
SAS-21-01180.2183.23.01.522.00
SAS-21-021851883.00.041.00
SAS-21-0520021010.00.528.70
including2032074.00.874.00
and2202299.02.0620.50

 

Table 2: San Andres Significant Historical Drillhole Intercepts

Drillhole
Number
From
(m)
To
(m)
Sample
Interval
(m)
Copper
Cu (%)
SAS-17-04A2092134.02.52
SAS-17-05229.152344.851.80
SAS-17-061891978.02.30
2162207.01.87
SAS-20-0718019616.02.52
SAS-5012813911.02.39
SAS-20-0118619711.02.16
SAS-20-0818320017.01.74

 

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Figure 1: Punitaqui Geology with Deposits and Drill Targets

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Figure 2: SAS-21-05 Drillhole Cross Section 2070N

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Background - San Andres Target

The San Andres target is part of the Punitaqui project which is situated within a 25km long mineralized district that is a classic IOCG and mantos style copper belt that is comprised of mantos and structural controlled copper-gold-silver veins. San Andres is a zone of copper mineralization located 500m southwest of the high-grade Cinabrio deposit mined by Glencore and Xiana Mining.

Prior to 1998, only limited extraction of high-grade copper oxides was undertaken at San Andres by small groups of local miners. In 2000 a Chilean national company La Empressa Nacional de Mineria ("ENAMI") developed two underground exploration drives targeting copper sulphides. In 2005, via an option process, San Andres became part of the Punitaqui mine complex.

In 2007, a ground geophysical induced polarization ("IP") survey was completed on 250m - 500m spaced lines across the San Andres-Cinabrio area. The results of the IP survey line across the southern end of the San Andres zone identified a strong chargeability anomaly interpreted to represent potential extensions of the copper sulphide mineralization at depth and along strike. Historic wide-spaced drilling completed by the previous operators between 2011-2017 totaled 58 holes for 5,927m.

San Andres is a tabular sedimentary horizon within a volcanic sequence. This sedimentary horizon is variably mineralized and has a variable width ranging from 5m - 30m. It consists of an interlayered volcano-sedimentary sequence composed of dark colored laminated and unlaminated shales, volcanoclastic sandstone, conglomerates and breccias and tuff breccias. There is a variable component of syngenetic pyrite. The horizon dips 40 to 50 degrees to the east and is cut-off at depth by the moderately west dipping San Andres fault.

Mineralization consists of veinlets and irregular disseminations in both the fine and coarse-grained clastic rocks and locally within the volcanic rocks above and below the host unit. The host horizon is also cut and offset by other faults with a wide range of orientations. The fundamental orientations identified to date include:

  • moderately west dipping splays of the San Andres fault, generally with downward and westward movement
  • steep dipping northeast to northwest trending faults with both sinistral and dextral offsets
  • Faults parallel and sub-parallel to stratigraphy

Other Corporate Matters

BMR has appointed Harbor Access LLC as Investor Relations Advisor to support management with their investor relations program and investor outreach. The initial contract is for six months with a monthly retainer of $6,000. Harbor Access is a recognized advisor to venture companies, with offices in the US and Canada and a wide network of institutional investors in Canada, US and Europe.

BMR has also engaged Investing News Network (INN), a destination web site for the investment community. INN is an online source of investor-focused news and educational content on topics within the resource, cannabis, tech and life science sectors. Investors can view our company profile in the "battery metals" section of INN's website.

Lastly, in an effort to increase investor awareness and knowledge about Battery Mineral Resources and the rapidly growing global battery mineral industry, BMR has engaged Cambridge House International, and will be featured in multiple one-on-one interviews with its CEO Jay Martin. Videos of the interviews will be posted on the Cambridge House International YouTube channel.

Quality Control

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 by ALS Global - Geochemistry Analytical Lab in La Serana, 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% < -2 millimeters and a riffle split of 250 grams is then pulverized to 85% of the material achieving a size of <75 microns. These prepared samples are then shipped to the ALS Laboratory in North Vancouver for analyses by the following methods:

  • 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 high 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 analysed at the end of the batch.

Additional Information

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. Scientific and technical information pertaining to the cobalt resource at McAra was extracted from the Company's NI 43-101 "Technical report on Cobalt Exploration Assets in Canada" dated as of May 26, 2020 with an effective date of March 31, 2020, prepared by Glen Cole (P. Geo) of SRK Consulting (Canada) Inc.

About Battery Mineral Resources Corp.

Battery is a multi-commodity resource company which provides investors with exposure to the world-wide trend towards electrification. Battery is engaged in the discovery, acquisition, and development of battery metals (cobalt, lithium, graphite, nickel & 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. Battery 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 cobalt resource at McAra by testing over 50 high-grade primary cobalt silver-nickel-copper targets. In addition, Battery owns 100% of ESI Energy Services, Inc., a pipeline equipment rental and sales company with operations in Leduc, Alberta and Phoenix, Arizona. Finally, Battery is currently developing the Punitaqui Mining Complex, and pursuing the potential near term resumption of operations at the prior producing Punitaqui copper-gold mine. The Punitaqui copper-gold mine most recently produced approximately 21,000 tonnes of copper concentrate in 2019 and is located in the Coquimbo region of Chile.

For further information, please contact:

Battery Mineral Resources Corp.
Martin Kostuik
Phone: +1 (604) 229 3830
Email: info@bmrcorp.com

Forward-Looking Statements

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 and are based upon a number of 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 as a result of new information or future events or otherwise, except as may be required by law.

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