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

To: gilbert leblanc who wrote (843)	10/11/2000 7:11:27 PM
From: Stephen O	Respond to of 962

Exploration Results At The Puerto S 10/11/0 17:55 (New York) PUERTO SANCHEZ PROJECT Preliminary results at Breakwater's Puerto Sanchez project in southern Chile at the Lake General Carrera have confirmed earlier stream sediment test results and indicate the presence of a large base metal anomaly (Zn-Pb-Ag-Cu-Bi-Cd). The Puerto Sanchez project is located 250 kilometres south of the El Toqui mine. In 1999, a stream sediment survey indicated the presence of a strong, anomalous base metal occurrence, coincident with mineralized outcrops, covering an area of 20 square kilometres. The most recent program, completed in July 2000, involved a total of 18,155 soil samples collected at 25 metre intervals over an 11 square kilometre grid. Preliminary assay results from the north quadrant (27% of the total samples taken) indicate a strong anomalous system with soil values of up to 1.4% zinc, 14 g/t silver, 0.55% lead, 0.42% copper. The soil survey analysis will be completed by the end of October, and the Company is preparing a drilling program, to begin this November, targeting the most promising anomalies. At the project site, the thickness of Palaeozoic limestones is more than 1,000 metres in places and contains several brecciated horizons in concordance with bedding planes. The brecciated limestone horizons are accompanied with Zn-Pb-Ag mineralization with grades of up to 17% zinc, 8% lead, 200 g/t silver, 0.5 g/t gold and 0.6% copper. Some mining was conducted in the area in the 1930's and it is estimated that over 2.0 million tonnes of high-grade ore were produced. EL TOQUI DISTRICT Drilling continues in the area of the El Toqui mine focusing on expanding reserves and resources in the Estatuas, Dona Rosa South and Aserradero sectors. Since the beginning of July, 25 additional holes totalling 6,400 metres have been drilled. Nine holes have been drilled in the Dona Rosa South sector. The results are summarized in the following table: Dona Rosa South --------------------------------------------------------------- DRILL-HOLE From To Interval Zn Au Au g/t (Metres) % Ppb [FA(1)] --------------------------------------------------------------- DAS-01 166.63 168.10 1.47 4.34 5,426 197.14 208.44 11.30 0.28 447 DAS-02 161.09 163.01 1.92 19.12 272 189.97 198.11 8.14 2.12 211 DAS-03 194.10 205.42 11.32 2.61 5,946 7.06 208.04 209.07 1.03 4.10 16,910 20.65 DAS-04 151.19 153.73 2.54 3.44 2,712 3.68 DAS-05 213.80 217.41 3.61 1.23 276 DAS-06 155.90 159.33 3.43 8.33 4,072 6.71 215.47 218.44 2.97 0.05 1,099 1.17 DAS-07 217.72 221.75 4.03 1.33 736 0.91 DAS-08 212.55 216.95 4.40 1.72 510 DAS-10 204.62 207.39 2.77 0.40 277 --------------------------------------------------------------- (1)fire assay Recent results suggest that a new horizon exists below the rhyolitic porphyry hosting sulfides with high gold values. This is significant in that historically, drilling in the El Toqui district did not intercept mineralization beneath the porphyry horizon. Of particular interest are the significant gold values in hole DAS-03 of 21g/t gold and hole DAS-13 of 4.5 g/t gold. Holes DAS-03, DAS-12 and DAS-13 are the first holes to intercept this horizon. This new horizon will be further drill tested to better define the resource potential below the rhyolytic porphyry. Drilling of the Aserradero sector (five holes), 250 metres to the south of Dona Rosa, intercepted a strongly mineralized manto with a true thickness of 3.8 to 7.5 metres, 50 metres below and extending over a kilometre to the south of the Dona Rosa's mine current workings. Aserradero --------------------------------------------------------------- DRILL-HOLE From To Interval Zn Au Au g/t (Metres) % Ppb [FA(1)] --------------------------------------------------------------- DAS-09 211.31 216.25 4.94 12.80 164 DAS-11 NW FAULT EXTENDED DAS-12 238.64 244.51 5.87 3.00 14,878 20.06 305.99 309.71 3.72 1.84 1,248 1.35 DAS-13 219.44 224.19 4.75 5.20 166 280.43 289.44 9.01 3.55 4,497 4.51 DAS-14 190.85 194.70 3.85 Pending DTQ-263(2) 252.16 256.23 4.07 13.33 4,337 4.46 PDT-03(2) 537.30 544.80 7.50 10.50 1.35 --------------------------------------------------------------- (1)fire assay (2)These holes were drilled by previous owners. At Estatuas, infill drilling will continue to define the boundaries of the mineralized zone which to date has been estimated at 4.4 million tonnes of inferred resources grading 7% zinc. This sector remains open to the west and south. The following table summarizes the results of the last eleven holes drilled in the Estatuas sector: Estatuas Area --------------------------------------------------------------- Drill-Hole Inclination INTERCEPTION Core True Zn Au Angle From To Length Thickness % Ppb --------------------------------------------------------------- EST-22 -55.0 391.65 400.10 8.45 6.92 8.18 44 417.15 419.02 1.87 1.53 13.05 26 EST-24 -47.5 215.38 219.43 4.05 2.99 14.99 43 228.23 236.24 8.01 5.91 4.17 26 EST-25 -90.0 325.10 330.84 5.74 5.74 0.55 30 EST-26 -72.5 313.44 319.39 5.95 5.68 4.24 9 EST-27 -59.0 310.77 317.69 6.92 5.93 6.35 10 327.17 331.70 4.53 3.88 2.60 6 352.85 358.80 5.95 5.10 9.54 52 364.46 366.93 2.47 2.12 4.21 7 EST-28 -90.0 139.02 142.83 3.81 3.81 5.16 102 EST-29 -70.0 149.20 152.00 2.80 2.63 3.88 24 154.65 159.10 4.45 4.18 7.19 26 EST-30 -64.0 221.35 225.18 3.83 3.44 1.98 3 EST-31 -55.0 265.10 270.94 5.84 4.78 6.41 14 EST-32 -70.0 218.67 221.55 2.88 2.71 2.78 13 EST-33 -90.0 207.62 210.40 2.78 2.78 4.67 251 --------------------------------------------------------------- These exploration programs are under the supervision of Alejandro Kakarieka. Mr. Kakarieka is an independent consultant geologist who graduated from the Universidad de Chile, Santiago, Chile in 1982. He has been a member of the Colegio de Geologos de Chile A.G. since 1987 and the Sociedad Geologica de Chile since 1992. All core samples are split in half at the drill site, with one-half of the core sample sent to Acme Analytical Laboratories Chile S.A. in Santiago for sample preparation and analysis by atomic absorption and fire assay for the gold values. The other half of the core sample is retained on site. The pulp samples are sent to Acme Analytical Ltd. in Vancouver, British Columbia for further analysis by ICP methods. - 30 - For further information please contact: Gordon F. Bub E. Ann Wilkinson Chairman & Chief Executive Officer Corporate Secretary and (416) 363-4798 Ext. 264 Investor Relations Officer (416) 363-4798 Ext. 277 * Maps are available on the BCE Emergis website at www.e-newsservices.com

To: gilbert leblanc who wrote (843)	10/13/2000 8:35:25 AM
From: Stephen O	Read Replies (1) \| Respond to of 962

BWR : TSE : $2.05 Canaccord's Greg Barnes (416) 869-3092 Recommendation: BUY Target price: $4.50 52-week price range: $4.60-1.99 Shares O/S: basic 82.4M Book value per share $2.59 Working capital: $25.8M Long-term debt: $36.1M Market capitalization: $175M Enterprise value: $168.9M Sector: Metals & Minerals Web site address: www.breakwater.ca Breakwater released exploration results from its Chilean projects yesterday morning which continue to show that the area around the El Toqui mine holds significant potential - including a new zone that contains significant gold values. In the past, Breakwater's management has indicated that it believes that the El Toqui mMine is the top operation in the company's portfolio with respect to the potential to significantly increase ore reserves. Reserves at the mine at the end of 1999 stood at 2 million tonnes grading 8% zinc and 0.4 g/t gold. Based on the 2000 mine plan, the operation has a mine life of close to five years. Since the beginning of July 25 holes totaling 6,400 metres have been drilled in the Estatuas, Dona Rosa, and Aserradero sectors surrounding the current operations. Most of the holes reported respectable zinc grades and intersections. The results released yesterday indicate that the company appears to be having the most success in the Estatuas area, located 3.5 kilometres west of the El Toqui mill. To date, inferred resources totaling 4.4 million tonnes grading 7% zinc have been outlined at Estatuas. Yesterday's results reported an average true thickness of 4.1 metres and a weighted average grade of 5.65% zinc. In other drilling, a new horizon was intercepted in the Dona Rosa south sector below the principal sulphide bearing zone. The new zone reported high gold grades (up to 21 g/t gold) along with reasonable zinc grades. Further drilling will be conducted to test the extent of the new zone. El Toqui produces a gold concentrate along with a zinc concentrate. In 1999, the operation produced 2,992 tonnes of gold concentrate containing 4,938 ounces of gold. Breakwater also released some very early stage results from its Puerto Sanchez project located 250 kilometres to the south of the El Toqui mine. Soil sampling in the area confirmed the earlier stream sediment sampling, which indicated the presence of a large base metal anomaly. The company is planning a drilling program on the target starting in November. With Breakwater experiencing a full quarter with the Langlois and Bouchard-Hebert operations in its control, we are expecting better results than reported in Q2/00 (EPS $0.05 and CFPS $0.12). We estimate EPS in the range of $0.10-0.12 and CFPS in the $0.15-0.20 range. Breakwater is expected to release its Q3 results this coming Monday, October 16. We are maintaining our BUY recommendation on Breakwater and our $4.50 target price (5 times 2001 CFPS).