NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: BOLIVAR GOLDFIELDS LTD.
TSE SYMBOL: BVG
APRIL 2, 1997
Bolivar Contracts JE MinCorp to Complete The Phase 1
Engineering For Its Tomi Gold Project
TORONTO, ONTARIO--Bolivar Goldfields Ltd. (the "Company") is
pleased to announce that it has taken the next step in developing
its Tomi Gold project ("Tomi") pursuant to its recently completed
feasibility study. It has engaged Denver-based JE MinCorp to
complete the Phase 1 Engineering for the project, which is
located in the El Callao district of Bolivar State, Venezuela.
JE MinCorp, a division of Jacobs Engineering Group Inc., has
extensive experience in South America with mining project and
construction management. This will be the final phase of
engineering before the construction of the mining operation is
initiated, will commence immediately and will take 8 weeks to
complete. A definitive capital cost estimate will be developed
during the engineering phase, which estimate will form the basis
for negotiating a firm price for completion of the project. The
next phase of development, which includes construction and
commissioning of the mine, will be executed on a firm guaranteed
price basis.
Tomi has mineable reserves of 2.9 million tonnes averaging 3.62
g/t Au equating to approximately 338,000 oz. Au and is forecast to
produce an average of 48,000 oz. Au per year with an average
operating cost of US$191 per oz. over a seven year period. During
the first two years of operation Tomi is forecast to produce
81,000 oz. Au with an operating cost of US$114 per oz. and 61,500
oz. Au with an operating cost of US$156 per oz., respectively.
In order to arrange financing for the development of Tomi, the
Company, through its advisor Endeavour Financial Corporation, has
contacted several banks with a financial plan for the project and
has received initial favourable responses. Endeavour is a
corporation with considerable experience in arranging and
obtaining project debt financing for mining projects, especially
in South America. Endeavour will also assist the Company in
raising the equity portion of the financing. It is anticipated
that funds will be available in time to commence construction by
mid-year.
Elsewhere on the Tomi concession, exploration is underway on
targets outside the area covered by the Company's feasibility
study. The Company is currently evaluating the Fosforito showing,
which is situated on-strike with, and west of, the Milagrito
deposit. The Milagrito deposit is the most western of the three
main ore bodies which make up the Tomi project. A drill program
was initiated in mid-February to evaluate an earlier defined
resource of 486,000 tonnes grading more than 2 g/t Au hosted in
gold-bearing quartz veins within a mafic chlorite schist. To date
9 holes totalling 980 metres have been completed. Some of the
better intersections include:
/T/
Hole No. From To Thickness Au Grade
(m) (m) (m) (g/t)
T9701 18 25 7 1.52
T9702 40 44 4 1.30
T9703 57 64 7 2.19
T9704 23 29 6 1.50
T9701A 24 30 6 2.29
T9703A 46 49 3 1.17
T9703A 56 62 6 29.42
/T/
Drilling at Fosforito is continuing.
On the Company's Belen concession, which is also located in the El
Callao district, trenching is being carried out on two targets
known as the Chaparal and El Esfuerzo. Both of these targets lie
along the Laguna Dyke, a major lineament that is associated with
many of the region's past and present producing gold mines. At
Chaparal, trenching has uncovered several folded and fractured
quartz veins in saprolite. Results from these programs are pending
and further trenching is being completed.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
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