April 4, 2017

Bisha Extends Harena 150 Metres Beyond Current Resource and Identifies New Regional Targets from VTEM Survey

Bisha Mining Share Company (the “Company” or “BMSC”) is pleased to announce new assay results from on-going drilling at Harena.  These results include in-fill drilling of large gaps in the resource model, as well as new results from the testing of Harena at depth.  Bisha is also pleased to report that the 6,386 line kilometre VTEM (Versatile Time Domain Electromagnetic) airborne survey has been completed over an 825 square kilometre licensed area at Bisha.

Highlights

  • Intersected 18.4 metres of 1.65% Cu, 4.03% Zn, 0.82g/t Au, 55g/t Ag extending the deposit by 150 metres
  • Borehole electromagnetic surveys suggest further down plunge extensions likely
  • Additional new drilling results include:
    • 57.4 metres of 0.37% Cu, 7.08% Zn, 0.17g/t Au, 9g/t Ag
    • 44.5 metres of 0.49% Cu, 6.51% Zn, 0.43g/t Au, 29g/t Ag
    • 40.5 metres of 0.76% Cu, 4.82% Zn, 0.18g/t Au, 18g/t Ag
    • 84.0 metres of 0.80% Cu, 4.72% Zn, 0.27g/t Au, 15g/t Ag
    • Preliminary VTEM survey results highlight numerous new untested shallow drill targets

BMSC’s Chairman, Cliff Davis, commented, “The new drilling demonstrates that the already sizeable Harena resource extends 150 metres beyond its currently modelled limits, further enhancing the potential for underground mining.  We are particularly encouraged by the increasing copper content which indicates the mineralizing system is strengthening”.  Mr. Davis went on to say, “The recently completed airborne survey over the Mogoraib River and Tabakin Exploration Licenses that were acquired in 2016 has highlighted a significant number of new shallow drill targets.  Evaluation of the highest priority anomalies is currently underway but the full suite of targets will take years to pursue.  As we have always stated, Bisha is evolving into a large VMS district with exploration still in its infancy.”

Harena

Harena is located 10 kilometres south of the Bisha processing plant and drilling continues to expand the deposit at depth. Some of the results reported in today’s update are part of an in-fill program designed to upgrade the mineral resource and tighten the drill spacing at Harena to 100 metre centres, while others are from an on-going program focused on expanding the deposit. A drill-hole plan map, longitudinal section and representative cross section through Harena can be found in Figures 1, 2 and 3.

Hole HX-083, which is the deepest hole yet drilled at Harena, is relatively higher in copper than recent holes drilled above it and has an 11.0 metre interval grading 2.23% Cu, 4.92% Zn, 1.10 g/t Au, 79 g/t Ag including 2.6 metres grading 4.88% Cu, 7.79% Zn, 2.49 g/t Au, 201 g/t Ag.  This suggests that the mineralizing system is strengthening and Borehole transient electromagnetic (BHEM) modeling indicates that the mineralization should continue down dip.  Further drilling will determine if this is the case.

The mineralization at Harena displays a well-defined base metal and host rock alteration zonation pattern consisting of a sphalerite and pyrite, zinc-rich upper portion and a lower chalcopyrite and pyrite, copper-rich basal section.  The copper-rich basal area is focussed along the northeastern edge of the deposit and is commonly underlain by a thick zone of highly altered felsic volcanics indicative of the high temperature focus point of the mineralizing system.  The zinc-rich upper portion tends to be displaced to the southwest and has much less alteration associated with the volcanic rocks below it, indicating that it is somewhat distal from the active mineralizing centre.

BHEM surveys are routinely completed in all holes drilled at Harena.  The results of these surveys are typically interpreted and modeled as plates of various conductivities in three dimensional space.  These models, along with the geology and alteration patterns, have been instrumental in guiding the drilling at Harena.  Chalcopyrite is the main conductive mineral and the borehole survey results preferentially focus our efforts toward copper enriched mineralization.  Sphalerite is not conductive, but is associated with pyrite, which is less conductive than chalcopyrite giving weaker anomalies.  A longitudinal section with the interpreted borehole plate models derived from hole HX-083 is shown in Figure 4.

The highly predictable nature of the geology at Harena, coupled with the borehole geophysical modeling, has allowed us to aggressively step out with our drill pattern.  This will ultimately enable us to quickly define the full geometry of Harena.

VTEM Survey

A 6,386 line kilometre VTEM survey has been recently completed by helicopter over the Mogoraib River and Tabakin Exploration Licenses covering an area of 825 square kilometres.  These licenses were acquired in mid-2016 and much of the area had never been covered by any geophysical survey.  Preliminary results have highlighted many new anomalies that, by the nature of the survey, should be relatively shallow (i.e., less than 100 metre depth).  Field evaluation is underway to determine the nature of the anomalies and over 11,000 metres of drilling has been allocated for the testing of targets.

Forward Looking Statements

Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements concerning the Company’s current beliefs, plans and expectations about the future including but not limited to commercial production, future production of copper and related cash flows and other events or conditions that may occur in the future, and are inherently uncertain.

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis
Chairman

 

Table of previously unreleased assy results from Harena

HOLE
ID

From
(m)

To
(m)

Length
(m)

Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)

Harena

HX-072

539.50

594.10

54.60

1.02

2.54

0.46

20

includes

574.30

594.10

19.80

2.27

1.76

0.59

31

HX-073

285.60

319.00

33.40

1.08

4.08

2.07

40

includes

314.00

319.00

5.00

0.92

0.14

11.05

95

HX-074

190.00

193.60

3.60

0.40

9.31

0.33

46

HX-075

219.00

225.50

6.50

0.72

6.44

0.65

42

HX-076

371.60

374.30

2.70

0.49

10.62

0.25

26

HX-077

701.00

701.50

0.50

0.91

0.06

0.21

12

HX-078

No Significant Values

HX-079

795.10

852.50

57.40

0.37

7.08

0.17

9

includes

800.90

840.10

39.20

0.35

7.99

0.18

8

and

845.40

852.50

7.10

0.33

9.33

0.11

10

HX-080

909.00

916.60

7.60

0.40

4.69

1.51

47

and

1,077.10

1,082.60

5.50

0.67

5.21

0.58

60

HX-081

762.60

768.50

5.90

0.06

8.20

0.07

6

and

883.20

927.70

44.50

0.49

6.51

0.43

29

includes

883.20

888.90

5.70

0.29

15.02

0.32

19

and

894.00

898.00

4.00

2.64

1.25

1.11

84

and

914.00

923.20

8.40

0.08

15.23

0.20

19

HX-082

856.00

896.50

40.50

0.76

4.82

0.18

18

includes

869.20

875.10

5.90

1.67

2.45

0.14

21

and

875.10

892.30

17.20

0.37

5.67

0.12

10

and

892.30

896.50

4.20

2.48

4.33

0.59

73

HX-083

1170.70

1176.00

5.30

0.17

3.87

0.85

26

and

1211.00

1229.40

18.40

1.65

4.03

0.82

55

includes

1213.50

1224.50

11.00

2.23

4.92

1.10

79

and

1213.50

1216.10

2.60

4.88

7.79

2.49

201

HX-084

598.00

682.00

84.00

0.80

4.72

0.27

15

includes

598.00

616.60

18.60

0.31

7.51

0.66

24

and

625.30

640.50

15.20

0.45

6.66

0.15

5

and

640.50

646.70

6.20

4.42

1.23

0.76

49

and

649.70

669.00

19.30

0.89

6.69

0.11

11

and

658.60

661.00

2.40

4.62

1.35

0.25

54

and

678.70

682.00

3.30

2.53

1.30

0.29

43

Estimated true widths are approximately 70% of the drill intercept length.

Figure 1. Harena Drill-hole Location Map

Figure 2. Harena Longitudinal Section

Figure 3. Harena Section A – A’ (L6350)

Figure 4. Harena Longitudinal Section Showing Borehole Plate Models from HX-083

Drill Collar Locations

HOLE
ID

UTM
Easting

UTM
Northing

Elevation

Depth
(m)

Azimuth

Dip

HX-072

334229

1707761

602

702

125

-65

HX-073

334424

1707684

602

407

125

-67

HX-074

334605

1707864

600

387

125

-65

HX-075

334339

1707439

604

389

125

-66

HX-076

334162

1707443

604

464

125

-65

HX-077

334448

1708041

599

765

125

-69

HX-078

334710

1708216

597

775

125

-74

HX-079

334015

1707667

602

875

122

-74

HX-080

333879

1707639

601

1199

122

-76

HX-081

333995

1707558

602

947

125

-76

HX-082

334033

1707777

601

1126

123

-74

HX-083

333710

1707635

601

1410

123

-75

HX-084

334170

1707619

600

695

125

-70

Note: Collar coordinates are in UTM WGS84 Zone37N