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Sandfire Resources America Inc. Exploration Program Drill Results Update

Sandfire Resources America Inc. Exploration Program Drill Results Update

May 27th, 2021
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White Sulphur Springs, Montana– May 27, 2021 –Sandfire Resources America Inc. (“Sandfire America” or the “Company”) is pleased to provide an update on its winter 2021 exploration core drilling program (the “Exploration Program”), including the initial drill results for hole SC21-256 which intercepted 12.45m (metres) of 3.4% copper and 6.5 g/t silver in the Lowry Lower Zone which includes a core intercept of 4.65m of 6.0% copper and 14.6 g/t silver.

Table 1. Black Butte Copper 2021 Winter Exploration Drilling Program

Hole ID

Target
Area

From
(m)

To
(m)

Length
(m)

Cu %

Ag g/t

SC21-256

Lowry Extension

796.25

808.70

12.45

3.4

6.5

including

798.50

803.15

4.58

6.0

14.6

SC21-263

Lowry Extension

Results Pending

SC21-258

Sawmill Hill

78.80

79.60

0.8

2.3

87.8

SC21-260

Sawmill Hill

No significant intercept

SC21-257

Sawmill Hill

Results Pending

SC21-259

Brush Creek

Results Pending

SC21-261

Strawberry West

Results Pending

SC21-262

Strawberry West

Results Pending

Intercept calculations included a minimum of 2 samples above a 1%copper cutoff grade.

Drilling conducted by Timberline Drilling Inc. of Hayden Lake, Idaho. HQ3-sized core was collected. Drill holes were oriented with dips varying between -80 to -70degrees in relatively variably dipping mineral zones. Intercepts may be slightly longer than true thickness.

After being logged and photographed in White Sulphur Springs, Montana, all mineralized zones were sampled by cutting half-core splits which were delivered to Bureau Veritas (“BV”) labs in Reno, Nevada for processing. BV crushed the entire sample to 85% passing 2mm then split off 1kg, which was ground to 85% passing 75 micron and wet-sieved the split to ensure 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-ES 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. Assays of duplicates, and blanks were also included as part of the QA/QC program.

Bureau Veritas labs are accredited by ISO/IEC 170205:2017 methods for North America.

The Exploration Program drilling, which completed in March 2021, focused on drilling new targets away from the fully permitted Johnny Lee area to expand the footprint of mineralization that could be accessed from the currently planned underground mine. Eight diamond drill holes were completed, with a total of 5,267m of core spread over four different target areas. All four target areas are outside of the area covered under the current Mine Operating Permit and will require further environmental assessment, a thorough permitting process and commercial studies before any decision to mine. Logging and sampling of the core is nearly complete, with most of the samples delivered to the Bureau Veritas mineral lab in Reno, Nevada.

SC21-256 was drilled in the southern portion of the Lowry Lower Zone (figure 1) where two isolated historic intercepts of copper in holes SC11-087 and SC11-083 had significantly higher grade and thickness than average for the zone (Table 2). This intercept confirms the presence and continuity of the higher grade-thicknesses in this area.

Table 2. Comparison of results of SC21-256 to intercepts in previous results from SC11-087 and SC11-083

Hole ID

From
(m)

To
(m)

Length
(m)

Cu %

Ag g/t

SC21-256

796.25

808.7

12.45

3.4

6.5

including

798.50

803.15

4.58

6.1

14.6

SC11-083

763.00

770.00

7.00

2.2

6.1

and

785.32

799.04

13.72

1.2

2.9

SC11-087

804.65

826.50

21.85

2.1

3.5

including

809.00

821.00

12.00

3.0

5.1

SC11-087 results were reported in news releases dated January 19, 2012 and SC22-083 results were first reported in News Release dated March 1, 2012.

SC21-258 and SC21-260 tested the same shallow target on the east flank of Sawmill Hill adjacent to the current facilities areas. The result of SC-258, though unlikely economic by itself, does show the presence copper mineralization and anomalously high silver grades. These results warrant follow-up to determine if shallow higher grade thickness intercepts are present.

CEO Rob Scargill stated, “Our first exploration drilling program outside of the known resource envelope in a decade is starting to deliver exciting results.The high-grade southern extension to Lowry provides encouragement for further work and the discovery of copper mineralization between Johnny Lee and Lowry provides additional evidence of the prospectivity of the district.”

Figure 1: Site plan of Exploration drilling completed at the Black Butte Project January-March 2021.

Figure 2: Pierce point map of Lowry lower zone showing location of SC21-256 intercept.

Contact Information:
Sandfire Resources America Inc.
Nancy Schlepp, VP of Communications
Mobile: 406-224-8180
Office: 406-547-3466
Email: nschlepp@sandfireamerica.com

Jerry Zieg, Senior Vice President for the Company, is a Qualified Person for the purposes of NI 43-101. Mr. Zieg has reviewed and approved the information of a scientific or technical nature contained in this news release. Mr. Zieg verified the data disclosed in this news release, including sampling, analytical, and test data underlying the information or opinions contained in this news release.

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 Exploration Program, 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, the inherent risks involved in the exploration and development of mineral properties,and the Black Butte Copper Project,the uncertainties involved in interpreting drill results and other exploration data and the geology, grade and continuity of mineral deposits 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, currencyfluctuations, the possibility of project cost over runs or unanticipated costs and expenses, the inherent uncertainty of production and costs estimates and the potential for unexpected costs and expenses, the possibility of project cost overruns or unanticipated costs and expenses, competition and loss of key employees, 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.