Richnorth,
Bolivar Goldfields sure shoot up today. Wonder if it was the news on the financing?
Any other ideas?
Bruce Hamilton
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: BOLIVAR GOLDFIELDS LTD.
TSE SYMBOL: BVG
JUNE 17, 1997
Bolivar Reports Progress with Financing for Tomi Gold
Project
TORONTO, ONTARIO--Standard Bank of London has agreed with Bolivar
Goldfields to underwrite a US$28 million Loan Facility for the
construction of the Tomi project in Venezuela.
Total project costs are estimated to be US$40 million, comprised
of US$30 million for construction and the balance for working
capital, finance closing costs, a pre-production royalty and other
pre-construction costs. Standard has agreed to provide a US$28
million Project Loan Facility plus a US$5 million Subordinated
Standby Loan Facility, subject to finalization of due diligence
and documentation.
The Bank technical audit of the Tomi project feasibility study
engineering and reserves has been completed by Denver based
Steffen Robertson and Kirsten ("SRK"), confirming the technical
feasibility and economic viability of the project. SRK will also
review the final engineering study and construction contract when
completed.
The preliminary report on the first phase engineering for the
project has been completed by JE MinCorp, a division of Jacobs
Engineering Group Inc., and is presently being reviewed by Bolivar
and Micon International Inc. ("Micon"). Micon is a Canadian-based
mineral industry consulting firm assisting Bolivar in project
development and management of the construction of Tomi, including
the start-up of operations. Construction will be by a fixed price
turnkey contract with an experienced capable contractor.
Negotiations are expected to commence when the evaluation of the
first phase engineering is complete.
An environmental impact study has been completed and submitted to
the Venezuelan government for approval. Bolivar expects the
environmental permits to be issued by August of this year.
Endeavour Financial Corporation ("Endeavour"), a Canadian-based
company with considerable expertise in arranging financing for
mining projects, has been engaged to assist Bolivar in obtaining
the balance of the project funding. Endeavour has also been
assisting Bolivar with the debt financing.
Once the environmental and other permits and licenses have been
received and the financing completed, construction will commence
and will take approximately 14 months to complete.
The Tomi project is comprised of three deposits having measured,
indicated and inferred resources of more than 5 million tonnes
averaging 3.46g/t Au and containing 338,000 recoverable oz. Au.
The presently delineated mineable reserves are capable of
supporting a low-cost open pit mining operation producing an
average of 48,000 oz. Au per year for a minimum of seven years
with an average cash operating cost of US$191 per oz. Gold
production during the first two years of operation will be in
excess of 81,000 oz. and 61,500 oz., with a cash operating cost of
US$114 per oz. and US$156 per oz., respectively, giving the
project a short pay back period.
An increase in the existing open pit reserves may result from the
addition of several mineralized zones which have been identified
outside the area of the proposed mine development. At present,
many of these zones are thought to be too small to support a
separate operation; however, due to their proximity to the
proposed Tomi plant, they may provide additional feed for the Tomi
mill. Testing carried out on one of these zones, the Fosforito,
has shown a resource of 42,000 oz. Au with a grade averaging
2.68g/t Au.
Further upside potential of Tomi exists in at least two of the
deposits planned for open pit mining, as they are both open at
depth. In one of the deposits 4 drill holes reached a level 100m
below the planned pit bottom, and intersected several high-grade
mineralized zones including 10.45g/t Au over 4.5m, 36.24g/t Au
over 3.0m and 7.78g/t Au over 47.6m.
These intersections indicate that the Tomi deposits, as they have
been delineated, may only be the surface expression of a much
larger structure that has considerable geological potential for
containing high-grade mineralization at depth. This type of
mineralization could provide the basis for an underground mine,
operating independently or in conjunction with the open pit
operation.
In addition, there is a strong indication that the mineralization
at Tomi extends beyond the Tomi concession onto the adjacent
Dividival/Belen concessions, which are also part of Bolivar's land
package. Exploration is being carried out in Belen where two
geochemical anomalies have been tested by trenching from which
encouraging results have been obtained and drilling targets
delineated. |
