Company release - May 15/1997
Bema Gold Corporation (''Bema'') and joint venture partner Arizona Star Resource Corp. ('Arizona Star'') are pleased to announce the following update concerning the Cerro Casale Project in Northern Chile.
Updated Geological Resource Estimate
Based on additional drill results for the Cerro Casale deposit in Chile, the Companies have received an updated geological resource estimate from Mineral Resource Development Inc. (``MRDI''). This resource further increases the estimate of contained gold and copper in the Cerro Casale deposit to 27.4 million ounces of gold and 7.6 billion pounds of copper. This represents an increase of 2.6 million ounces of gold and 1.2 billion pounds of copper. The updated
resource estimate was calculated from the results of 214 reverse circulation and 73 diamond drill holes. The previous resource estimate released on April 2, 1997 was calculated from 43 diamond and 214 reverse circulation drill holes. The Cerro Casale deposit still remains open to the south and west and at depth. Drilling is ongoing.
A summary of the preliminary geological in situ resource estimate as prepared by Mineral Resources Development, Inc. (``MRDI'') is listed below. The total resource estimate (including oxide and sulfide) is presented in three cases utilizing different gold cut off grades.
Note: Discrepancies in total ounces presented above are due to rounding.
By comparison the preliminary geological reserve estimates released on April 2, 1997 included in the following case:
Case 1 was 0.4 grams per ton cutoff, 1,118,000,000 tonnes grading, 0.69 grams per tonne gold and .28% copper for a total of 24.8 million ounces of gold and 6.4 billion pounds of copper.
MRDI utilized ordinary kriging employing a 175m x 175m x 250m search ellipsoid to estimate gold and copper grades.
Approximately 60% of the resource above a 0.5g/t gold cut off is within a 70 metre radius from drill holes. A simplified
oxidation model was developed for containing the estimation of copper grades, as copper mineralization is strongly related to oxidation state. For gold grade estimation, a breccia unit in the central part of the deposit was estimated separately from the other intrusives and the contact between intrusives and volcanics to the north-east of the
mineralization was also used to constrain the resource estimate.
In addition to further drilling, metallurgical test work is ongoing. MRDI is currently preparing a detailed scoping study utilizing the above resource and metallurgical test results to outline the economic parameters of the Casale Project. This study is scheduled to be delivered to Bema and Arizona Star in June. A pre-feasibility study on the Casale Project is scheduled to be completed by MRDI in September.
The favourable geometry and topography of Casale allow for low strip ratios, which indicate a high percentage of the geological resource should be mineable. Based upon this and other technical information available to date, Bema Gold management believes the Cerro Casale deposit will be a world class open pit gold copper mine.
Cerro Casale Due Diligence
Bema Gold and Arizona Star have invited a number of major companies to sign confidentiality agreements allowing them access to detailed technical information with a view to potential involvement in the Casale project.
As part of its growth strategy, Bema is prepared to consider a major mining company as a partner to develop and operate the Casale Project. This approach would allow Bema's technical teams to focus on developing our other exciting projects including the Pancho Deposit at Refugio with partner Amax Gold, the Q Seca and Roman discoveries, also in the Maricunga District and El Callao's Lo Increible property in Venezuela.
To date 20 mining companies have signed confidentiality agreements with Bema and Arizona Star and have received detailed technical information on Casale. A total of 11 of these companies have visited the Casale site to date. The companies are at various stages of detailed due diligence and evaluation of Casale. As part of this due diligence, one of Bema's deep diamond drill holes at Casale has been twinned and independently sampled and assayed. The assay results
from this hole confirm the results of the Bema hole that was twinned.
Bema and Arizona Star anticipate more detailed discussions with interested potential partners for Casale in the near term.
In response to a news wire statement distributed this morning, Bema would like to clarify that it would only consider selling it's 33% stake in Arizona Star as part of a full takeover of Arizona Star by a major mining company. Any potential bidder for Arizona Star would need the support of Arizona Star's board of directors, Bema and the independent shareholders.
BEMA GOLD CORPORATION
Clive T. Johnson
C.E.O., Chairman & President
ARIZONA STAR RESOURCE CORP.
Roger T. Richer
President
The Vancouver Stock Exchange neither approves nor disapproves the information contained in this News Release.
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