2024 Drilling Yields High-Grade Copper Results at Black Butte Project

The Black Butte Copper Project, initiated by Sandfire Resources America Inc., is situated near White Sulphur Springs, around 20 miles north of the main town in the Smith River Valley. This project aims to extract high-grade copper from the Johnny Lee deposit, which consists of two primary zones: the Upper Copper Zone and the Lower Copper Zone.

Sandfire Resources America Inc. has unveiled outcomes from its 2024 exploration drilling campaign, uncovering significant data from the Johnny Lee Lower Copper Zone. Notably, hole SC24-286 revealed 8.53 meters of 6.6% copper, while hole SC24-288 exposed 13.19 meters of 12.8% copper. These findings indicate rich copper deposits in these specific drill holes, showcasing the potential for significant mineral resources in the area.

The 2024 drilling program aims to upgrade and expand the Johnny Lee Lower Copper Zone resource. The latest estimates indicate a measured and indicated resource of 1.2 million tonnes grading 6.8% copper, along with an inferred resource of 0.5 million tonnes grading 5.9% copper, based on the 2020 Technical Report. Since December 2023, the company has drilled approximately 8,000 meters out of a planned 20,000-meter program.

Drilling operations at the Black Butte Project were conducted by Ruen Drilling, utilizing HQ3-sized core samples. The drill holes were strategically oriented at steep angles, ranging between -80 to -70 degrees. This approach facilitates a comprehensive assessment of the subsurface geological formations and mineral deposits, ensuring precise and reliable data collection.

Samples, logged and photographed in White Sulphur Springs, were sent to ALS Labs for processing and analysis. ALS Labs, a highly accredited laboratory, conducted gold assays and base metal analysis, following strict quality control and assurance protocols. The drill hole collars were also surveyed and documented using the Universal Transverse Mercator (UTM) coordinate system, specifically adhering to the North American Datum 1983 (NAD83) in Zone 12. This ensures precise and accurate mapping of the drill hole locations.

Figure Source: Sandfire Resources America Inc.

Photo depicts drill findings at the Black Butte Project. Black diamonds indicate the locations of previous pierce points, while red dots represent new pierce points from the 2024 drilling program. Blue dots mark intercepts with only weak copper mineralization, and the green dot shows the drill hole currently in progress. The colored areas denote resource classifications: Measured (brown), Indicated (yellow), and Inferred (blue).

The company reported no factors affecting data accuracy. Drilling, completed in approximately six months (December 2023 to mid-July 2024), identified various mineralization points in the Johnny Lee Lower Copper Zone. The Black Butte Copper 2024 drilling program has made significant strides, with encouraging resource estimates for the company. The data collection process has been thorough and accurate, adhering to several quality assurance protocols. The ongoing efforts are expected to further expand and upgrade the resource potential of the Black Butte Copper project.