Sandfire Resources America Reports Final Drill Results for Winter 2021 Exploration Program and Announces Start of 14,000m Resource Definition Core Drill Program at Lowry Deposit


Figure 1

Site plan of the exploration drilling completed at the Black Butte project from January to March 2021.

Site plan of the exploration drilling completed at the Black Butte project from January to March 2021.

WHITE SULFUR SPRINGS, Mont., Aug 09, 2021 (GLOBE NEWSWIRE) – Sandfire America Resources Inc. (“Sandfire America” ​​or the “Company”), following its press release dated May 27, 2021, is pleased to announce the final full drill results of the exploration core exploration drill program of the ‘winter 2021 (the “”Exploration program“), with four of the nine exploration holes returning intersections of more than 1.2% copper. The Company also entered into a contract with American Drilling beginning in August 2021 to complete 14,000m of diamond drilling on the deposit Lowry which has an Inferred Inferred Mineral Resource of 8.3 million tonnes of 2.4% copper (See press release dated October 27, 2020).

Drilling for the exploration program, which ended in March 2021, focused on drilling new targets accessible from the currently planned and fully licensed underground mine in the Johnny Lee area. The exploration program recovered 5,267 m of core from eight drill holes in four different target areas. Any resource development in these areas, including inferred mineral resources at Lowry, will require an extensive environmental review as part of the clearance process administered by the Montana Department of Environmental Quality (“MT DEQ”), As well as commercial studies, before the Company can make the decision to operate.

Highlights of the exploration program include (a full table of results is included at the end of this release):

  • Hole SC21-256 – Lowry South Extension in the Lowry Lower Copper Zone – 12.45 m of 3.4% copper and 6.5 g / t silver (previously reported in the Company’s press release of May 27 2021)

  • Hole SC21-262 – Strawberry West Upper Copper Zone – 6.8 m of 1.2% copper and 33.0 g / t silver.

  • Hole SC21-263 – Lowry North Extension in the Lowry Middle copper zone – 9.8m of 1.7% copper and 12.2g / t silver

  • Hole SC21-263 – Lowry North Extension in the Lowry Lower Copper zone – 7.1 m of 1.4% copper and 6.5 g / t silver.

Hole SC21-263 intercepted copper mineralization in the Lowry Middle Copper and Lowry Lower Copper zones, extending the two zones north and east of previous intersections. With the intersection in SC21-256 (published May 27, 2021), these results show positive potential for the expansion of the Lowry Lower Copper zone into areas of its higher grade.

Hole SC21-262 tested the Upper Sulfide zone in the Strawberry West area, approximately 600 m west of the Johnny Lee Upper Copper zone. The results of this hole as well as historical holes describe an upper Strawberry West copper zone accessible by underground access from the future Johnny Lee mine zone.

A photo accompanying this announcement is available on https://www.globenewswire.com/NewsRoom/AttachmentNg/093e7b8e-ae66-4e1d-b727-77679b15cc13

Sandfire America is in preparation for a fall-winter 2021-2022 drill program that will include 14,000 m of infill drilling in the Lowry deposit to upgrade and expand the resources of the middle copper zone and of the lower copper zone. Approvals for the program have been received from MT DEQ and a contract has been entered into with American Drilling to begin in August 2021 and end in March / April 2022. The results of this drilling will support a Lowry pre-feasibility study scheduled for completion in 2022 Additional work for the pre-feasibility study will include hydrological, metallurgical, mining and geotechnical studies.

Sandfire America CEO Rob Scargill said: “The successful winter drill program demonstrates the potential of the Black Butte property to harbor economical copper mineralization within mineable distance from Johnny Lee mine infrastructure and facilities. treatment. The Lowry deposit has the potential to add significant value to the Black Butte project due to its size and grade. Its location could allow us to mine and process the material with minimal impact on our already approved surface footprint, which will protect water resources and the environment while providing benefits to all of our stakeholders. “

Table 1. Black Butte Copper 2021 winter exploratory drilling program.

HOLE ID

Target

From (m)

To M)

Length (m)

Copper %

Ag g / t

SC21-256 *

Lowry Extension – Lowry Low Zone

796.25

808.70

12.45

3.4

%

6.5

SC21-257

Sawmill Hill – East

no significant interceptions

SC21-258 *

Sawmill Hill – East

78.80

79.60

0.80

2.3

%

87.8

SC21-259

Black Butte fault domain

no significant interceptions

SC21-260 *

Sawmill Hill East

no significant interceptions

SC21-261

West Extension – Lower Johnny Lee Zone

no significant interceptions

SC21-262

Strawberry West Domain – Upper
Sulphide zone

501.82

502.91

1.09

1.3

%

34.0

547.80

554.61

6.81

1.2

%

33.0

Domaine Ouest Strawberry –
Volcano Valley Rift

575.22

579.88

4.66

1.2

%

35.0

SC21-263

Lowry North Extension
– Medium sulphide zone

277.49

287.30

9.81

1.7

%

12.2

Lowry North Extension
– Zone of lower sulphides

482.84

489.90

7.06

1.4

%

6.5

* -Reported previously, see the press release of the company dated May 27, 2021

The interception calculations included a minimum of 2 samples above a 1% copper cut-off.

Drilling performed by Timberline Drilling Inc. of Hayden Lake, Idaho. A core of size HQ3 was collected. The drill holes were oriented with dips varying between -80 and -70 degrees in mineral zones of relatively variable dip. Interceptions may be slightly longer than the actual thickness.

After being recorded and photographed in White Sulfur Springs, MT, all mineralized zones were sampled by cutting half cores that were delivered to Bureau Veritas laboratories in Reno, Nevada for processing. Bureau Veritas ground the entire sample at 85% passing 2mm, then fractionated 1kg, which was ground at 85% passing 75 microns and wet sieved to ensure that the grinding met specifications, then dosed for gold by fire assay with AA finish. Base metals were analyzed using 4 acid digestion and ICP-ES analysis. Various other trace and principal elements were also analyzed using the ICP and XRF procedures. Sandfire America used a QA / QC protocol that included the insertion of Certified Reference Materials (CRMs) on a minimum of 1 CRM in 20 insertion rate samples. Duplicate and blank assays were also included as part of the QA / QC program.

Bureau Veritas laboratories are accredited according to ISO / IEC 170205: 2017 methods for North America.

Contact details:
Sandfire Resources America Inc.
Nancy Schlepp, Vice President of Communications
Mobile: 406-224-8180
Office: 406-547-3466
E-mail: [email protected]

Jerry Zieg, the Company’s senior vice president of exploration, is a qualified person for the purposes of NI 43-101 and has also reviewed and approved the scientific and technical information contained in this press release. Mr. Zieg has verified the data disclosed in this press release, including the sampling, analytical and testing data underlying the information or opinions contained in this press release.

Caution Regarding Forward-Looking Statements: Certain information contained in this document constitutes “forward-looking information” within the meaning of Canadian securities legislation, including statements regarding the completion of the exploration program, the licensing process with MT DEQ and the Company’s plans to advance the Black Butte Copper Project and expected results. In making these forward-looking statements, the Company has applied certain factors and assumptions that it considers reasonable, including that the Company will receive the 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 in line with management’s expectations. However, the forward-looking statements contained in this document are subject to numerous risks, uncertainties and other factors, including factors relating to the Company’s business as a mineral exploration and development company, the risks inherent in the ” exploration and development of mineral properties and the Black Butte copper project, uncertainties associated with the interpretation of drilling results and other exploration data as well as the geology, grade and continuity of the deposits minerals, which could cause future results to differ materially from those expressed or implied in such forward-looking statements, including that the results of exploration and development activities will not be in accordance with management’s expectations, delays in obtaining or inability to obtain required approvals or funding from government or other regulatory bodies, fluctuations in currency, the possibility of project cost overruns or unforeseen costs and expenses, the uncertainty inherent in production and cost estimates and t the potential for unforeseen costs and expenses, the possibility of project cost overruns or unforeseen costs and expenses, competition and loss of key employees, failure to operate facilities, equipment or processes as intended, risk of accidents, labor disputes, inclemency or danger conditions weather, unusual or unexpected geological conditions, ground control problems, earthquakes, floods and all 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 forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. required.

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.


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