Corani Silver Deposit Resource Update, Measured & Indicated Up 8.3 Percent, Deposit Still Open
Tuesday December 5, 8:00 am ET
ca.us.biz.yahoo.com
VANCOUVER, Dec. 5 /CNW/ - Bear Creek Mining (TSX Venture: BCM - News; "Bear Creek" or the "Company") is pleased to announce the results of its recently updated resource estimate for the Corani silver base metal deposit, the third resource estimate in the past year. The resource estimate is based on drilling and assay results received by the Company up to November 29, 2006 and include the results from 327 drill holes and 25 surface trenches. Highlights of this release include:
- The resource for the Corani Este, Minas Corani and Main Corani
deposits presently stands at 278 million ounces of silver,
3.12 billion pounds of lead and 1.59 billion pounds of zinc in the
Measured and Indicated categories plus 40 million ounces of silver in
the Inferred category.
- A detailed analysis of the rock density in all three deposits has
resulted in a reduction in the original 2.81 t/m(3) in situ rock
density used in the August resource estimate to approximately
2.41 t/m(3) for ore. The waste rock has also been reduced in density
from 2.81 t/m(3) to 2.31 t/m(3).
- The Measured and Indicated resource of contained silver has increased
8.3% to 171.6 million tonnes at 50.4 g/t silver, with 0.83% lead and
0.42% zinc.
- High-grade cores in each of the 3 deposits cumulatively contain a
resource of 68.3 million tonnes at 80 g/t silver (175M oz Ag), 1.18%
lead and 0.53% zinc (Measured and Indicated) plus 5.0 million tonnes
of 66.2 g/t silver (11M oz Ag), 0.88% lead and 0.27% zinc (Inferred).
Andrew Swarthout, President and CEO, stated, "This latest resource estimate confirms Corani is a world class silver deposit with robust base metal credits and very strong silver mineralization in the high-grade cores of the three principal zones. The latest drilling has also once again successfully converted Inferred resources into the Measured and Indicated resource categories, further strengthening the resource model. A substantial increase in the rock density database has led to a revision of the specific gravity calculation used in this resource estimation effectively reducing overall mineralized tonnes by about 10%. Importantly, the revised density has a significant beneficial affect in the reduction of the already low stripping ratio from 2.0:1 to 1.85:1 for the high grade pods, which will have a positive impact on project economics."
Mr. Swarthout continued, "Further growth of the Corani resource is expected albeit at a slower pace, as the project focus transitions to focus on refining the resource estimate, metallurgy and project development. The Company anticipates that the faster-paced, early-growth potential of its other projects, such as the newly discovered Santa Ana silver deposit, will continue to provide the exploration blue-sky that shareholders have come to expect from Bear Creek. Phase 2 drilling results from Santa Ana are expected before the Christmas break along with an exploration update on other projects including two newly acquired precious metals prospects. In short, the Company is prepared to move its core asset, Corani, down the development path while laying the groundwork for the next generation of precious metals discoveries."
The following block model estimate was prepared by Independent Mining Consultants of Tucson Arizona. John Marek P.E. acted as the independent qualified person as defined by Canada's National Instrument 43-101. Additionally the methods used in determining and reporting the resources are consistent with the CIM Best Practices Guidelines for the estimation of mineral resources and mineral reserves. The method used in the resource calculation is equivalent to the method used in the resource calculation shown in our August 23, 2006 Press Release. For this resource estimate we have used metal prices based on a 3-year backward average and a 2-year forward price based on the current metal markets, with the prices found in the notes below.
Bear Creek Mining, Corani Project Silver Zone
Mineral Resource Based on 15 g/t Ag Cut-off and Prudent Open Pit
Constraints
December 4, 2006
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Deposit Category Ktonnes Silver Lead Zinc Silver Lead Zinc
Million Million Million
Gm/t % % Ozs Lbs Lbs
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Main Measured 7,699 50.4 0.89 0.29 12.5 151.1 49.2
Indicated 42,456 37.8 0.65 0.37 51.6 608.4 346.3
--------- ------ ---- ---- ---- ---- ----- -----
Meas+Ind 50,155 39.7 0.69 0.36 64.1 759.5 395.5
Inferred 9,843 38.2 0.57 0.33 12.1 123.7 71.6
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Minas Measured 3,724 67.2 1.28 0.45 8.0 105.1 36.9
Indicated 72,287 45.6 0.85 0.34 106.0 1,354.6 541.8
--------- ------ ---- ---- ---- ----- ------- -----
Meas+Ind 76,011 46.7 0.87 0.35 114.0 1,459.7 578.7
Inferred 17,723 42.7 0.59 0.26 24.3 230.5 101.6
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Este Measured 15,906 74.5 1.01 0.71 38.1 354.2 249.0
Indicated 29,497 65.0 0.84 0.57 61.6 546.2 370.7
--------- ------ ---- ---- ---- ---- ----- -----
Meas+Ind 45,403 68.3 0.90 0.62 99.7 900.4 619.7
Inferred 2,242 45.3 0.38 0.12 3.3 18.8 5.9
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Total Measured 27,329 66.7 1.01 0.56 58.6 610.4 335.1
All Indicated 144,240 47.3 0.79 0.40 219.2 2,509.2 1,258.8
Deposits --------- ------- ---- ---- ---- ----- ------- -------
Meas+Ind 171,569 50.4 0.83 0.42 277.8 3,119.6 1,593.9
Inferred 29,808 41.4 0.57 0.27 39.7 373.0 179.1
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The resource is based on 327 diamond drilled core holes and 25 surface trenches; all the data in the possession of Bear Creek as of November 29, 2006. This includes 9 drill holes that had not been released to the public since our last disclosure (see news release 15 November '06). These new results are tabulated below. A complete list of drill holes used in this resource estimate can be found at Bear Creek's website (www.bearcreekmining.com). All analyses of the samples were performed by ALS Chemex in Lima Peru and a strict quality control and chain of custody protocol has been maintained throughout the project development.
Since the Corani project is a poly-metallic silver-lead-zinc project a cut-off grade of 15 g/t Ag has been used in the reporting of the resource. The 15 g/t Ag cut-off was chosen as it reflects what is considered to be a prudent cut-off level to take into account the additional metal values. The cut-off has been lowered from the 16 g/t used in the August resource estimation because of the increase in the metal prices used in this study. (See footnote below for the assumptions used in the resource model.)
High Grade Core
There are high grade cores to each of the 3 deposits and these pods will likely be mined separately to enhance project economics. At a 45 gm/t silver cutoff, the high grade cores cumulatively represent a resource of 68.3 million tonnes of ore at a silver grade of 80 g/t Ag, 1.18% Pb and 0.53% zinc (Measured and Indicated) and 5.0 million tonnes at 66.2 g/t Ag, 0.88% Pb and 0.27% Zn in the Inferred category. This represents 174.8 million ounces of silver, 1.78 billion pounds of lead and 0.80 billion pounds of zinc in the Measured and Indicated category and 10.6 million ounces of silver, 96 million pounds of lead and 30 million pounds of zinc in the Inferred category. These cores lie within a computer-generated pit shape able to be mined with a stripping ratio of 1.85:1, or less.
Bear Creek Mining, Corani Project Silver Zone
High Grade Core at 45 g/t cut-off Contained in Smaller Open Pit Shapes
4 December 2006
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Deposit Category Ktonnes Silver Lead Zinc Silver Lead Zinc
Million Million Million
Gm/t % % Ozs Lbs Lbs
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Main Measured 3,401 83.8 1.36 0.18 9.2 102.0 13.5
Indicated 10,197 73.4 1.05 0.25 24.1 236.0 56.2
--------- ------ ---- ---- ---- ---- ----- ----
Meas+Ind 13,598 76.0 1.13 0.23 33.3 338.0 69.7
Inferred 1,546 63.7 0.91 0.41 3.2 31.0 14.0
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Minas Measured 2,368 84.9 1.48 0.50 6.5 77.3 26.1
Indicated 25,904 68.7 1.24 0.36 57.2 708.1 205.6
--------- ------ ---- ---- ---- ---- ----- -----
Meas+Ind 28,272 70.1 1.26 0.37 63.7 785.4 231.7
Inferred 3,189 63.7 0.89 0.22 6.5 62.6 15.5
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Este Measured 10,816 93.3 1.18 0.91 32.4 281.4 217.0
Indicated 15,634 90.3 1.09 0.83 45.4 375.7 286.1
--------- ------ ---- ---- ---- ---- ----- -----
Meas+Ind 26,450 91.5 1.13 0.86 77.8 657.1 503.1
Inferred 222 120.6 0.46 0.07 0.9 2.3 0.3
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Total Measured 16,585 90.2 1.26 0.70 48.1 460.7 256.6
All Indicated 51,735 76.2 1.16 0.48 126.7 1,319.8 547.9
Deposits --------- ------ ---- ---- ---- ----- ------- -----
Meas+Ind 68,320 79.6 1.18 0.53 174.8 1,780.5 804.5
Inferred 4,957 66.2 0.88 0.27 10.6 95.9 29.8
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Rock Density
The increased rock density data base from 100 to over 1,000 specific gravity measurements since August has resulted in a more conservative in situ density for the mineralized material and waste rock being applied to the estimation. A detailed analysis of the rock density in all three deposits has resulted in a reduction in the original 2.81 t/m(3) in situ rock density used in the August model to a density range of 2.52 t/m(3) to 2.33 t/m(3) for ore. The use of ranges are due to the variation in densities between the three deposits. The waste rock has also been reduced in density from 2.81 t/m(3) to a range of 2.30 t/m(3) to 2.33 t/m(3).
Corani Este
Corani Este has the highest grade and remains open to the northwest. This resource contains 97% of the contained silver ounces in the Measured and Indicated categories. One drill continues to extend the deposit to the northwest.
Minas Corani
In the August estimation the Minas Corani resource occurred in two separate zones; the West Limb and the East Limb. Subsequent drilling has shown that the two limbs are joined below a shallow cover of post mineral tuff and form one continuous zone of mineralization. This has resulted in an increase in the measured and indicated contained silver resource of 58% since the August resource estimate. As a result of the drilling since July '06, the Minas deposit has the largest contained resource of metal of the three deposits; though at a lower grade than the Este resource. Additionally, the deposit remains open to the northeast and southwest. Two drill rigs continue to expand the resource at Minas Corani.
Main Corani
The mineralization between Minas and Main has been substantially infilled with the recent drilling and the two zones have been linked in this resource model. Drilling will continue between the Main and Minas zones to increase the certainty of the resource estimation and continue to evaluate the high grade zinc zone found on the eastern edge of the two zones which has received limited drill testing to date. Additional drilling to the west of the Main zone has been initiated to evaluate the "new zone" (see news release 15 November '06) that showed anomalous surface mineralization with grades up to 100g/t Ag with up to 0.5 g/t gold in outcrop. Assay results are pending on this drilling.
High Grade Zinc
Drilling continues to demonstrate that the zinc at the Corani project tends to occur in discrete high-grade zones and that the zinc potential remains open laterally and at depth in the three deposit areas. Applying a 1% zinc cut-off to the resource material (shown in the table below), there are 24.9 million tonnes averaging 1.88% Zn in the combined measured and indicated categories representing 65% (1.03 billion pounds) of the contained zinc in 14.5% of the measured and indicated resource tonnes. This is important for enhancing the economics of zinc recovery as these areas can be specifically targeted in the flotation flow-sheet to ensure recovery of the higher zinc grades and take advantage of the positive outlook for zinc prices.
Bear Creek Mining, Corani Project
High Grade Zinc Areas at 1% Zinc cut-off of Global Resource
4 December 2006
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Zn Pb Ag Contained
Ktonnes % % gm/t M Lbs Zn
----------------------------------------------------------
Measured 5,323 2.21 1.47 83.9 259.3
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Indicated 19,527 1.80 1.01 46.8 772.8
------ ---- ---- ---- -----
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Total M&I 24,850 1.88 1.11 54.7 1,032.1
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Inferred 3,373 1.56 0.47 21.2 116.3
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Exploration Upside
Exploration continues in the areas between the Minas and the Este deposit at the head of the glacial valley with the objective of establishing additional links between the high grade portions of these two deposits. Drilling also focuses on areas where mineralization remains open northwest of Corani Este, west of Minas Corani/Main Corani beneath shallow post-mineral cover, and between Minas Corani and Main Corani.
Future Work
Bear Creek continues to explore the Corani project with 3 drill rigs; one on Corani Este and two on Minas Corani. The latest resource estimate will now form the basis for the scoping study which will be released early in 2007. The drilling of three metallurgical holes (in progress) are to be completed by year-end with additional metallurgical testing to commence in Q1 '07.
Drill hole results not previously released, but included in this resource estimate are as follows:
NEW CORANI DRILL RESULTS
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Interval Silver
Drill Inclin- Total (m) (grams
Hole Azimuth ation Depth From To True per Lead Zinc
No. (degrees)(degrees) (m) (m) (m) Width tonne) (%) (%) COMMENTS
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CORANI
ESTE
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0-37
(equal sign)
C-164 70 -70 195.10 37 54 17 64.9 0.6 nil Cover
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0-33
(equal sign)
C-164A 250 -70 80.40 33 58 25 65.2 2.1 1.3 Cover
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includes 36 48 12 122.4 2.9 2.2
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MINAS
CORANI
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0-146
(equal sign)
Post-mineral
C-162 70 -70 270.40 146 172 26 30.8 0.4 0.1 tuff
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NOTE:
244-250
(equal sign)
206 242 36 31.6 1.2 0.6 1.5% Zn
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C-163 70 -70 251.30 0 60 60 29.1 0.3 0.1
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C-163A 250 -70 225.45 No significant intervals
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C-165 250 -50 167.00 1 18 17 36.1 2.0 0.6
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C-165A 70 -70 125.00 2 10 8 32.0 2.1 0.4
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C-166 250 -50 151.80 No significant intervals
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C-166A 70 -70 110.10 1 52 51 15.4 0.3 0.6
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The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Regulatory footnotes:
Assumptions used in Resource model by IMC. Actual results will vary based upon completion of metallurgical testing: Silver Price(equal sign) $9.75/oz; Zinc Price(equal sign) $0.94/lb; Lead Price(equal sign) $0.52/lb; Silver Recovery(equal sign) 85%; Zinc Recovery(equal sign) 65%; Lead Recovery(equal sign) 65%; Smelter charges: Silver(equal sign) $0.40 per ounce; Zinc(equal sign) $0.135 per pound; Lead(equal sign) $0.113 per pound; Mining Costs per tonne(equal sign) $1.10; Process cost per tonne(equal sign) $8.50; G&A per processed tonne(equal sign) $0.85; Pit Slopes(equal sign) 42 degrees in mineralized tuff and 50 degrees in post-mineralized tuff.
All of Bear Creek's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of David Volkert, P.Geo. Bear Creek's Vice President of Exploration, who serves as the qualified person (QP) under the definitions of National Instrument 43-101. All diamond drilling has been performed using HQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Bear Creek geologists. Sampling is done on two-meter intervals and samples are transported by Company staff to Cusco, Peru for direct shipping to ALS Chemex, Laboratories in Lima, Peru. ALS Chemex is an ISO 9001:2000-registered laboratory and is preparing for ISO 17025 certification. Silver, lead, and zinc assays utilize a multi-acid digestion with atomic absorption ("ore-grade assay method"). The QC/QA program includes the insertion every 20th sample of known standards prepared by SGS Laboratories, Lima. A section in Bear Creek's website is dedicated to sampling, assay and quality control procedures.
Certain disclosure in this release, including management's assessment of Bear Creek's plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Bear Creek's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. (x)Any reference to the potential quantity & grade of mineralization at Corani is conceptual in nature, there has been insufficient exploration to define a mineral resource on the property and it is uncertain if further exploration will result in discovery of a mineral resource on the property. Readers are cautioned not to place undue reliance on forward-looking statements. Bear Creek expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
For further information
Andrew Swarthout - President and CEO, or Patrick De Witt - Investor Relations, Phone: (604) 685-6269, Direct: (604) 628-1111
E-mail: info@bearcreekmining.com
For further information, please visit the Company's website (www.bearcreekmining.com)
Source: Bear Creek Mining Corporation |
