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Gold/Mining/Energy : ECM.VSE - El Callao Mining. -- Ignore unavailable to you. Want to Upgrade?

To: The Count who wrote (1057)	11/29/1997 10:53:00 AM
From: Sergio R. Mejia	Read Replies (1) \| Respond to of 1253

El CALLAO MINING CORP. THIRD QUARTER REPORT VANCOUVER, Nov. 28 /CNW/ - El Callao Mining Corp. (''The Company'') today reported a net loss of $43,392 (0.1 cents per share) for the quarter ending September 30, 1997. These results compare to net earnings of $34,664 (0.3 cents per share) for the same three months of 1996. Nine Months Earnings For the first nine months ended September 30, 1997, the Company recorded a net loss of $4,407 (zero cents per share) compared to net earnings of $33,606 (0.1 cents per share) in the same period of 1996. Other Developments In the third quarter of 1997, the Company announced receipt of a positive independent engineering scoping study on its Lo Increible Gold Property in Venezuela from Mineral Resource Development Inc. (''MRDI''). The study confirms that under certain circumstances mining the property should be economically viable. Mining at the Lo Increible property remains subject to completion of a full feasibility study and arranging production financing. The study by MRDI was based on the resource calculations from the Upper Zones of the La Victoria and La Cruz deposits only. The study recommends mining the La Victoria deposit utilizing both open pit and underground methods while the La Cruz deposit would be operated as an open pit operation only. The study identifies an initial mine life for the project of nine years and estimated capital costs of US$63.5 million, which included sustaining capital and a US$9.0 million contingency cost. Ore would be processed at rates up to 1,500 tonnes per day resulting in approximately 87,500 ounces of aggregate gold production annually (70% allocated to the Company). In August 1997 the Company announced two significant discoveries at the Lo Increible Property. The discoveries, known as El Tapon and Sophia, are located between the La Victoria and La Cruz deposits. Exploration efforts in the third quarter of 1997 focused on continued diamond drilling on the Sophia and El Tapon targets. Drilling to date at Sophia and El Tapon has identified several mineralized zones associated with contact zones between different mafic volcanic units. Gold mineralization is associated with zones of quartz-carbonate veining and brecciation. These new discoveries have the potential to enhance the economics outlined in the scoping study as well as add to the current resource of 2.0 million ounces of gold identified to date on the Property. At El Tapon the mineralized zone is a shallow plunging oval shaped body 40 meters by up to 40 meters thick. It has a strike length of 80 meters (90 meters down plunge length) and is open at depth. Sophia is an extension of the original Sophia showing and like El Tapon is an oval shaped body 70 meters wide and up to 35 meters thick. It has been intersected down dip for approximately 150 meters and is open down dip. Drilling is continuing at La Loca, located approximately 2.5 kilometers northeast of the La Cruz zone. The La Loca target was drilled with several reverse circulation drill holes in 1994 and returned up to 14.2 grams per tonne over 3.05 meters in hole LC-60. An updated open pit and underground resource will be started in January 1998 on several targets on the Lo Increible Property. Financing The $1.96 million private placement of 1,400,000 common shares of the Company to Bema Gold Corporation (''Bema'') which was announced in the second quarter of 1997 closed in July 1997. El Callao Mining Corp. explores for gold in Venezuela. The common shares of the Company are listed for trading in Canada on the Vancouver Stock Exchange under the symbol ''ECM''. Due to the current disruption in Canadian postal services, the Company is unable to mail these results to shareholders at this time. However, they are available on request by phoning (604) 669-7764 or (604) 681-8371 or on the Internet at www.newswire.ca. The Company will be mailing the interim financial statements immediately upon resumption of normal service by Canada Post Corp. EL CALLAO MINING CORP. Roger T. Richer V.P. Administration General Counsel & Secretary For further information: John D. Anderson, Director of Investor Relations or Andrea Bell (604) 681-8371