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Gold/Mining/Energy : Breakwater Resources (T.BWR) -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (794)	4/19/2000 9:52:00 AM
From: Stephen O	Respond to of 962

BWR CN: To Acquire 90% Interest In the Oued Amizour Project 4/19/0 8:50 (New York) BREAKWATER RESOURCES LTD ("BWR-T;BWLRF-L") - To Acquire 90% Interest In the Oued Amizour Project in Algeria Breakwater Resources Ltd. (BWR) is pleased to announce it has signed a firm letter of intent with Algeria's natural resource agency the Office National de la Recherche Geologique et Miniere (ORGM) entitling Breakwater to earn up to a 90% interest in the Oued Amizour zinc project. The Oued Amizour project comprises a 105 square kilometre area containing a zinc/lead deposit with a total resource estimated by ORGM at 30.2 million tonnes grading 5.5% zinc and 1.4% lead. The thickness of the orebody varies between 10 and 190 metres. Within this resource there is a higher grade core estimated to contain 11.0 million tonnes grading 10.9% zinc and 3.0% lead with an average thickness of 50 metres. Estimation of the higher grade core was based on 25 diamond drill holes. The higher grade core is contained in two separate zones, a hanging wall zone and a footwall zone and lies between 200 and 400 metres below surface. The deposit is located 10 kilometres from the port city of Bejaia on the Mediterranean coast approximately 270 kilometres east of the capital city of Algiers. The project is in close proximity to an airport, highways, railroad, power grid, natural gas and water. Three additional prospects exist on the property. The deposit is located in the Oued Amizour massif, composed of two volcanic masses. The lower unit is 600 metres thick and consists of lavas, tuffs and anbesitic breccias whereas the upper unit, which is more than 300 metres thick, is composed of lavas, tuffs and dacitic breccia. These units are cross-cut by subvolcanic units the most important of which is a rhyolitic sill in the middle part of the lower unit. The mineralization forms an irregular stockwork with minor intervals of massive ore. Hydrothermal alteration is widespread. The mineralogical composition is simple (sphalerite, galena, pyrite +/- marcasite/melnicovite). The agreement with ORGM requires that Breakwater complete a feasibility study, arrange financing, construct and bring the project into production and manage the operation. ORGM will retain a 10% net profit interest in the project once Breakwater recovers its full capital investment. A payment of US$5 million will be paid to ORGM for the property from the net profits of the operation over a 5-year period beginning in the first year of production at US$1 million per year. A five per cent net smelter return royalty to be shared by the Algerian Government and ORGM will be attached to the project. A Protocole d'Accord is currently being drafted setting out the details of the association to be established between Breakwater and ORGM. Under Algeria's policy for establishing new business in the country, Breakwater will be given a minimum 5-year tax-free period as well as special considerations for power, rail and port rates and other related infrastructure. Breakwater Resources Ltd. sees great opportunity in the mining industry in Algeria and is looking forward to being one of the first offshore investors to contribute to the development and expansion of the mining industry in Algeria. Breakwater Resources Ltd. is a mineral resource company engaged in the acquisition, exploration, development and mining of base metal and precious metal deposits in the Americas and North Africa. Breakwater has four producing zinc mines: the El Mochito mine in Honduras; the El Toqui mine in Chile; the Nanisivik mine on Baffin Island in Canada; and the Bougrine mine in Tunisia. In 1999, Breakwater's mines produced 383 million pounds of zinc, 24 million pounds of lead, 2.1 million ounces of silver and 4,900 ounces of gold. Breakwater also owns the Caribou mine in New Brunswick, Canada that is currently on care and maintenance pending higher zinc prices. Breakwater recently announced (news release dated March 15, 2000) that the Company had entered into an agreement to acquire the Bouchard-Hebert and Langlois mines. When this transaction is finalized the Company will have six operating mines with a combined annual contained metal production of 550 million pounds of zinc, 18 million pounds of copper, 27 million pounds of lead, 30,000 ounces of gold and 2.5 million ounces of silver. This press release includes certain forward-looking statements. All statements, other than statements of historical fact included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. For further information or for a copy of the map included in this release please contact: TEL: (416) 363-4798 x264 Gordon F. Bub, Chairman and CEO TEL: (416) 363-4798 x269 Colin K. Benner, President and COO ______________________________________ ___________________________________________________________________ (c) Market News Publishing Inc. Tel:(604) 689-1101 All rights reserved. Fax:(604) 689-1106