Exploration Results At The Puerto S
10/11/0 17:55 (New York)
PUERTO SANCHEZ PROJECT
Preliminary results at Breakwater's Puerto Sanchez project in
southern Chile at the Lake General Carrera have confirmed earlier
stream sediment test results and indicate the presence of a large
base metal anomaly (Zn-Pb-Ag-Cu-Bi-Cd).
The Puerto Sanchez project is located 250 kilometres south of the
El Toqui mine. In 1999, a stream sediment survey indicated the
presence of a strong, anomalous base metal occurrence, coincident
with mineralized outcrops, covering an area of 20 square
kilometres. The most recent program, completed in July 2000,
involved a total of 18,155 soil samples collected at 25 metre
intervals over an 11 square kilometre grid. Preliminary assay
results from the north quadrant (27% of the total samples taken)
indicate a strong anomalous system with soil values of up to 1.4%
zinc, 14 g/t silver, 0.55% lead, 0.42% copper. The soil survey
analysis will be completed by the end of October, and the Company
is preparing a drilling program, to begin this November,
targeting the most promising anomalies.
At the project site, the thickness of Palaeozoic limestones is
more than 1,000 metres in places and contains several brecciated
horizons in concordance with bedding planes. The brecciated
limestone horizons are accompanied with Zn-Pb-Ag mineralization
with grades of up to 17% zinc, 8% lead, 200 g/t silver, 0.5 g/t
gold and 0.6% copper. Some mining was conducted in the area in
the 1930's and it is estimated that over 2.0 million tonnes of
high-grade ore were produced.
EL TOQUI DISTRICT
Drilling continues in the area of the El Toqui mine focusing on
expanding reserves and resources in the Estatuas, Dona Rosa South
and Aserradero sectors. Since the beginning of July, 25
additional holes totalling 6,400 metres have been drilled.
Nine holes have been drilled in the Dona Rosa South sector. The
results are summarized in the following table:
Dona Rosa South
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DRILL-HOLE From To Interval Zn Au Au g/t
(Metres) % Ppb [FA(1)]
---------------------------------------------------------------
DAS-01 166.63 168.10 1.47 4.34 5,426
197.14 208.44 11.30 0.28 447
DAS-02 161.09 163.01 1.92 19.12 272
189.97 198.11 8.14 2.12 211
DAS-03 194.10 205.42 11.32 2.61 5,946 7.06
208.04 209.07 1.03 4.10 16,910 20.65
DAS-04 151.19 153.73 2.54 3.44 2,712 3.68
DAS-05 213.80 217.41 3.61 1.23 276
DAS-06 155.90 159.33 3.43 8.33 4,072 6.71
215.47 218.44 2.97 0.05 1,099 1.17
DAS-07 217.72 221.75 4.03 1.33 736 0.91
DAS-08 212.55 216.95 4.40 1.72 510
DAS-10 204.62 207.39 2.77 0.40 277
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(1)fire assay
Recent results suggest that a new horizon exists below the
rhyolitic porphyry hosting sulfides with high gold values. This
is significant in that historically, drilling in the El Toqui
district did not intercept mineralization beneath the porphyry
horizon. Of particular interest are the significant gold values
in hole DAS-03 of 21g/t gold and hole DAS-13 of 4.5 g/t gold.
Holes DAS-03, DAS-12 and DAS-13 are the first holes to intercept
this horizon.
This new horizon will be further drill tested to better define
the resource potential below the rhyolytic porphyry.
Drilling of the Aserradero sector (five holes), 250 metres to the
south of Dona Rosa, intercepted a strongly mineralized manto with
a true thickness of 3.8 to 7.5 metres, 50 metres below and
extending over a kilometre to the south of the Dona Rosa's mine
current workings.
Aserradero
---------------------------------------------------------------
DRILL-HOLE From To Interval Zn Au Au g/t
(Metres) % Ppb [FA(1)]
---------------------------------------------------------------
DAS-09 211.31 216.25 4.94 12.80 164
DAS-11 NW FAULT EXTENDED
DAS-12 238.64 244.51 5.87 3.00 14,878 20.06
305.99 309.71 3.72 1.84 1,248 1.35
DAS-13 219.44 224.19 4.75 5.20 166
280.43 289.44 9.01 3.55 4,497 4.51
DAS-14 190.85 194.70 3.85 Pending
DTQ-263(2) 252.16 256.23 4.07 13.33 4,337 4.46
PDT-03(2) 537.30 544.80 7.50 10.50 1.35
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(1)fire assay
(2)These holes were drilled by previous owners.
At Estatuas, infill drilling will continue to define the
boundaries of the mineralized zone which to date has been
estimated at 4.4 million tonnes of inferred resources grading 7%
zinc. This sector remains open to the west and south.
The following table summarizes the results of the last eleven
holes drilled in the Estatuas sector:
Estatuas Area
---------------------------------------------------------------
Drill-Hole Inclination INTERCEPTION Core True Zn Au
Angle From To Length Thickness % Ppb
---------------------------------------------------------------
EST-22 -55.0 391.65 400.10 8.45 6.92 8.18 44
417.15 419.02 1.87 1.53 13.05 26
EST-24 -47.5 215.38 219.43 4.05 2.99 14.99 43
228.23 236.24 8.01 5.91 4.17 26
EST-25 -90.0 325.10 330.84 5.74 5.74 0.55 30
EST-26 -72.5 313.44 319.39 5.95 5.68 4.24 9
EST-27 -59.0 310.77 317.69 6.92 5.93 6.35 10
327.17 331.70 4.53 3.88 2.60 6
352.85 358.80 5.95 5.10 9.54 52
364.46 366.93 2.47 2.12 4.21 7
EST-28 -90.0 139.02 142.83 3.81 3.81 5.16 102
EST-29 -70.0 149.20 152.00 2.80 2.63 3.88 24
154.65 159.10 4.45 4.18 7.19 26
EST-30 -64.0 221.35 225.18 3.83 3.44 1.98 3
EST-31 -55.0 265.10 270.94 5.84 4.78 6.41 14
EST-32 -70.0 218.67 221.55 2.88 2.71 2.78 13
EST-33 -90.0 207.62 210.40 2.78 2.78 4.67 251
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These exploration programs are under the supervision of Alejandro
Kakarieka. Mr. Kakarieka is an independent consultant geologist
who graduated from the Universidad de Chile, Santiago, Chile in
1982. He has been a member of the Colegio de Geologos de Chile
A.G. since 1987 and the Sociedad Geologica de Chile since 1992.
All core samples are split in half at the drill site, with
one-half of the core sample sent to Acme Analytical Laboratories
Chile S.A. in Santiago for sample preparation and analysis by
atomic absorption and fire assay for the gold values. The other
half of the core sample is retained on site. The pulp samples are
sent to Acme Analytical Ltd. in Vancouver, British Columbia for
further analysis by ICP methods.
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For further information please contact:
Gordon F. Bub E. Ann Wilkinson
Chairman & Chief Executive Officer Corporate Secretary and
(416) 363-4798 Ext. 264 Investor Relations Officer
(416) 363-4798 Ext. 277
* Maps are available on the BCE Emergis website at
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