Bear Creek announces the acquisition of two new gold properties in Peru; Santa Ana project update
Wednesday January 17, 9:00 am ET
ca.us.biz.yahoo.com
VANCOUVER, Jan. 17 /CNW/ - Bear Creek Mining Corporation (TSX Venture: BCM - News; "Bear Creek" or the "Company") is pleased to announce the acquisition of two new gold projects, both located along the prolific Pierina-Alto Chicama-Yanacocha gold belt in northern Peru. Neither property has ever been drill-tested. Drill targets are already defined on both properties and further detailed exploration is planned which is expected to identify additional targets.
El Abuelo Project
The El Abuelo project (500 has.) is located approximately midway between Barrick Gold's Pierina and Alto Chicama mines. Gold mineralization is associated with white crystalline quartz veins, stockwork and breccias hosted in Chicama black shales (Cretaceous-age) along a northeast-trending structural zone that currently measures 2,000 x 100m. The mineralization remains open in all directions. Mr. Mike McClave, an independent qualified person under the definitions of NI 43-101, evaluated the property for Bear Creek Mining in November 2006 and concludes that the geologic environment is similar to slate belt gold systems which have the potential to be large and may extend to great depths. Evidence of past mining by hydraulic and placer methods suggests the presence of significant free gold recoverable by low-cost gravity and leach methods.
The 82 surface rock chip samples collected to date average 1.7g/t gold, and:
- 39 samples assay greater than 0.5g/t Au,
- 24 samples assay greater than the average, and
- the 6 highest assays returned 6.6, 7.7, 9.1, 10.4, 12.4 and
17.2 g/t Au.
Gold is the primary metallic element with minimal silver or base metals.
Bear Creek can earn 100% of the property by making escalating payments totaling $10M over 4 years, investing a minimum of $1M in exploration over 3 years and drilling a minimum of 1,000m in the first 6 months.
Don Marcelo Project
The Don Marcelo property (1100 has.) is located in the Cordillera Negra, Ancash Department, approximately 50km south of Barrick's Pierina Mine. Upper Miocene Calipuy andesite volcanics host northeast-trending vein sets, stockwork and breccias over areas measuring approximately 1500 x 500m and 2000 x 100m around a possible central volcanic dome complex. Vuggy, massive and granular silica are the main gold-mineralization hosts.
The surface sampling database (316 samples) contains 89 samples greater than 100ppb gold with the 6 best assays returning 1.0, 1.6, 1.7, 1.9, 2.3 and 3.0ppm gold. Elevated mercury values of 1.5 to 80ppm suggest that Don Marcelo is exposed at the higher levels of an untested epithermal system with gold potential at very shallow depth. As with El Abuelo, gold is the primary metallic element with minimal silver or base metals.
Bear Creek can acquire 75% of the property through escalating cash payments over 4 years totaling $4M with a commitment to complete a geophysical survey and drill a minimum of 1500m within the first 12 months. Bear Creek retains the right to obtain the remaining 25% interest by making a one-time payment based upon recoverable gold or gold-equivalent precious metals contained in proven reserves defined in a pre-feasibility study. The payment is defined as:
- $10M for up to 2M ounces gold
- $20M for 2-5M ounces gold
- $30M for more than 5M ounces gold.
Andrew Swarthout, President/CEO of Bear Creek, states: "With the addition of two new gold targets to Bear Creek's project pipeline, we continue to leverage the fundamental strengths of our company in exploration. This exploration focus has led to numerous past successes such as the Corani and Santa Ana silver discoveries. Our team's ability to continue to identify and acquire opportunities such as these brings exceptional potential to create value through the discovery of additional precious metal deposits. We look forward to the commencement of drilling on both of these projects during the first two quarters of 2007."
To access the current project location map directly please refer to: bearcreekmining.com.
Santa Ana Project - Update
At the Santa Ana silver discovery, all data from Phase 2 drilling has been received and Phase 3 drilling is being planned to commence during the second quarter of 2007. Phase 3 drilling will be designed on the basis of metallurgical testing aimed at evaluating the low-cost, heap leaching potential for the large volumes of silver mineralization exposed at the surface and confirmed at shallow depth by wide-spaced drilling. Additionally, Phase 3 will explore the northeast and southwest extensions of mineralization where drill holes SA-10B and SA-12 intersected 38 meters averaging 86g/t silver, including 6 meters at 315g/t silver and 46m averaging 89.0g/t Ag, including 6 meters at 418.0g/t Ag, respectively; and mineralization remains open. Initial metallurgical leach testing is underway and results will be reported as they are received.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Regulatory footnotes:
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 |
