Sandfire Resources America Announces Successful Completion

WHITE SULFUR SPRINGS, Montana, Nov. 01, 2022 (GLOBE NEWSWIRE) — Sandfire Resources America Inc. (“Sandfire America” ​​or the “Company”) is proud to announce that the necessary permits to take water for the Black Butte Copper Project have been issued by the Montana State Department of Natural Resources and Conservation (DNRC).

Permits issued by the DNRC authorize the Company to divert groundwater for use in mining the Johnny Lee copper deposit and to store high water flows to maintain stream flow. The DNRC also approved the company’s amendment applications to use six existing water rights to mitigate surface water flow reductions resulting from the groundwater diversion. Right to Water Permits and Amendment Requests are issued by the DNRC pursuant to the Montana Water Use Act (Title 85, Chapter 2, MCA).

The Company, as applicant, had to prove the following criteria for the issuance of new water rights permits:

  • There is water physically available at the proposed diversion point in the amount that the applicant seeks to appropriate;
  • The water can reasonably be considered legally available during the period the claimant seeks to appropriate, in the quantity demanded;
  • The water use rights of a previous owner will not be adversely affected by the proposed new use;
  • The means of diversion, construction and operation of the proposed appropriation works are adequate;
  • The proposed use of water is a beneficial use; and
  • The applicant has a right of possession or the written consent of the person having the right of possession to the property where the water is to be used for a beneficial purpose.

Although the Company received objections to the Water Use Permits and Mitigation Amendments, the Company was able to resolve all but one of the objections through negotiated settlements, which cannot be contested. as agreed by the parties. The only remaining objection to the groundwater permit, which is pending in Meagher County District Court, relates to the DNRC’s interpretation of whether mine dewatering constitutes “waste” under the Montana Water Use Law.

Senior Vice President Jerry Zieg shared. “We are extremely pleased with this positive progress. We have now obtained the necessary water permits to begin Phase II construction of mining operations at the Johnny Lee deposit. We are optimistic that the remaining objection to the groundwater permit will be resolved in our favor.

Another regulatory hurdle to Phase II construction will be resolving narrow issues in the Montana Supreme Court regarding the mine’s operating license, with opening briefs due Nov. 1, 2022. Regulatory finalization will be followed. by requirement of Sandfire Resources America Inc. Board Approval and securing funding.

Qualified person

Jerry Zieg, Vice President of Exploration for the Company, who is an AIPG Certified Professional Geologist, is the Qualified Person for the purposes of NI 43-101 and has also reviewed and approved the scientific or technical information contained in this press release.

Sandfire Resources America Inc.

Sandfire Resources America Inc. is a Canadian-listed junior exploration company (TSX-V:SFR) that is majority-owned by Sandfire Resources Limited, an international and diversified sustainable mining company that is listed on the Australian Securities Exchange (ASX: SFR). The Black Butte Project is a sediment-hosted, high-grade copper project in Meagher County in west-central Montana. The company licenses a state-of-the-art underground mine on the Johnny Lee deposit.

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

Caution Regarding Forward-Looking Statements: Certain information contained herein constitutes “forward-looking information” within the meaning of Canadian securities laws, including statements regarding the agreement, the company’s financing options and expected results. In making these forward-looking statements, the Company has applied certain factors and assumptions that it believes to be reasonable, including that the Company will receive the required regulatory approvals and that the Company will be able to obtain additional financing to execute its plans. However, the forward-looking statements contained herein are subject to numerous risks, uncertainties and other factors, including delays in obtaining or inability to obtain required governmental or regulatory approvals or funding. 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. ‘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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