Significant Drilling Success at Black Butte
Sandfire Resources America Inc. (“Sandfire America” or the “Company”) proudly announces the completion of its drilling program for 2024-2025, aimed at progressing the Black Butte Project. This initiative wrapped up in mid-May, following the focus on the Johnny Lee Lower Copper Zone, which has shown extremely promising results. Notable findings from the latest drilling include:
- 8.11 meters of 4.66% copper in drill hole SC24-311,
- 14.99 meters of 7.99% copper in drill hole SC24-312,
- 10.58 meters of 4.69% Cu in drill hole SC25-316,
- 11.73 meters of 8.80% Cu in drill hole SC25-325, and
- 4.91 meters of 9.74% Cu in drill hole SC25-328.
The most recent reports suggest that the Johnny Lee Lower Copper Zone currently holds a combined measured and indicated resource of 1.2 million tonnes at a grade of 6.8% copper, alongside an inferred resource of 0.5 million tonnes at 5.9% copper, according to a report released in 2020. This ongoing drilling campaign aimed to fill gaps in data and outline the zone's boundaries whilst also supporting ongoing geotechnical and metallurgical studies. With approximately 28,000 meters drilled since December, we await updated resource estimates and the official technical report, which is expected in late 2025.
Project Advancements and Strategic Insights
Having recently concluded its drilling operations successfully, Sandfire America has initiated a technical report update concerning the Johnny Lee deposit to reach a Pre-Feasibility Study level. Significant re-evaluations are crucial to accommodate changes and advancements since the last report dated October 19, 2020. These considerations include:
- Updating capital and operating cost estimates in light of recent increases across the global mining sector,
- Evaluating the effects of cost escalation on the size of the Upper Copper Zone's mineral resource and reserve at Johnny Lee,
- Incorporating fresh drilling data into the mineral resource estimate for both the Johnny Lee and Lowry deposits, and
- Formulating an improved mining strategy to support a revised mineral reserve at Johnny Lee.
CEO Lincoln Greenidge remarked on the encouraging results from the drilling within the Johnny Lee Lower Copper Zone, indicating its promising extension beyond the previously established resource boundaries. The demand for copper, driven by the transition to clean energy and modern infrastructure, places Sandfire America in a pivotal position with a fully permitted project to contribute to future supply needs. He emphasized the necessity of solidifying these insights into reports as the company gears up for future growth.
Leadership Changes and Strategic Appointments
In addition to the drilling updates, the company is excited to welcome Mr. Stef Weber to its Board of Directors, following the departure of Ms. Gemma Tually. Mr. Weber brings a wealth of more than 25 years in the mining industry, specializing in finance, project development, and corporate strategy. With his extensive experience across various senior financial roles including CFO at MOD Resources Limited and his current position in treasury at Sandfire Resources Limited, he is anticipated to play a vital role in driving forward the company's strategic initiatives.
Loan Variation Agreement Renewal
Sandfire America has also made strides in its financial position by entering into a Fifth Variation agreement to its bridge loan with Sandfire BC Holdings Pty Ltd. The updated terms will increase the borrowable amount from US$50 million to US$59.5 million and extend the loan maturity date to June 30, 2026, allowing for continued operational and strategic development for the company.
Overview of the Black Butte Copper Project
The Black Butte Copper Project extends across 60,000 acres of mixed private and federal mineral rights, comprising two major copper deposits: the Johnny Lee deposit—which currently possesses a Mine Operating Permit—and the Lowry deposit. According to the 2020 Technical Report, the Johnny Lee deposit is estimated to hold 10.9 million tonnes at a copper grade of 2.9%, while the Lowry deposit has an estimated resource of 8.3 million tonnes at 2.4% copper. With its large property scope, Sandfire America ideally positions itself for additional exploration success in the pursuit of further copper discoveries.
Contact for further information:
Sandfire Resources America Inc.
Nancy Schlepp, VP of Communications and Government Relations
Mobile: 406-224-8180
Office: 406-547-3466
Email: nschlepp@sandfireamerica.com
www.sandfireamerica.com
Frequently Asked Questions
1. What were the key findings of Sandfire's recent drilling program?
The recent drilling program showcased exceptional copper grades with significant intersections, highlighting the potential of the Johnny Lee Lower Copper Zone.
2. What is the status of the Black Butte Copper Project?
The project is progressing well, with completed permits and ongoing drilling aimed at enhancing resource estimates.
3. Who joined the Board of Directors recently?
Mr. Stef Weber has been appointed to the Board, bringing over 25 years of mining industry expertise to Sandfire America.
4. What changes occurred regarding the loan agreement?
A Fifth Variation of the bridge loan agreement will increase borrowable amounts to US$59.5 million and extend the maturity to June 2026.
5. What resources are estimated in the Johnny Lee deposit?
The Johnny Lee deposit holds an estimated Measured and Indicated Mineral Resource of 10.9 million tonnes at an average grade of 2.9% copper.
