Bema (BGO-TSE) and Arizona Star (AZS-VSE) Message Board

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Gold/Mining/Energy : Bema (BGO-TSE) and Arizona Star (AZS-VSE)

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To: vinod Khurana who wrote (3)	5/20/1997 12:35:00 PM
From: vinod Khurana	of 15

Company release: April 17, 1997 VSE: ECM EL CALLAO MINING CORP. Substantial Increase in Geological Resource El Callao Mining Corp. (''El Callao'' or the ''Company'') is pleased to announce a substantial increase of its geological resource to two million ounces of gold at its Lo Increible Gold Property in Venezuela. In addition, the Company reports excellent drill results from holes completed after the resource was calculated. Most of these holes are outside the defined area used for the resource calculation, and will therefore expand the size of the resource. The resource was completed by El Callao and Bema Gold Corporation using polygonal methods on the La Victoria and La Cruz deposits, which are located approximately two kilometres apart. Calculations from La Victoria are based on 70 drill holes over a strike length of 900 metres and up to 350 metres down dip. La Cruz calculations are based on 33 drill holes along a strike length of 550 metres and up to 300 metres down dip. The resource is presented in two cases: Case One utilizing a gold cut off of 1 gram gold per tonne and Case Two utilizing a 3 gram gold per tonne cut off grade. Case One is directly comparable to the previous resource of 835,000 ounces previously released August 14, 1995 and demonstrates an increase of over 1 million ounces as a result of on-going exploration work. The Case Two resource is more suitable to those portions of the ore bodies that will be amenable to underground rather than open pit mining. A summary of the resource calculation is as follows: The following drill holes were received subsequent to the resource calculation with the majority drilled outside or along the outer edges of the polygons used to define the resource. These holes indicate the potential to further increase the size of both La Victoria and La Cruz deposits. Selected La Victoria drill results are as follows: La Victoria deposit remains open along strike both to the south and north and at depth. Selected La Cruz drill results are as follows: La Cruz deposit remains open along strike to both the east and west as well as at depth. The Company is working with Bema Gold Corporation and a third party engineering firm to complete a scoping study for the resource with the intention of doing a feasibility study. A decision to commence feasibility drilling is expected to be made when the scoping work is completed in June 1997. Management believes that La Victoria and La Cruz deposits can be mined utilizing both open pit and underground methods. Exploration drilling continues on both La Victoria and La Cruz as well as on several other targets along the 7.5 kilometre Lo Increible gold belt. Further drill results will be released when received. Bema Gold is the largest shareholder of El Callao owning 39.7% on a fully diluted basis and manages its affairs. Lo Increible Project - Concession 4 Geology La Victoria Upper Zone Inclined Hinged Long Section La Cruz Upper Zone Inclined Long Section B-B' On Behalf of EL CALLAO MINING CORP. "Roger T. Richer" Roger T. Richer Secretary The Vancouver Stock Exchange neither approves nor disapproves the information contained in this News Release.

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