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

To: John Soileau who wrote (1184)	2/4/1999 9:50:00 PM
From: gmweber	Read Replies (1) \| Respond to of 1253

John Soileau Here it is!!!!!! Thursday February 4, 7:57 pm Eastern Time Company Press Release SOURCE: Bema Gold Corporation; El Callao Mining Corp. Bema Gold Corporation and El Callao Mining Corp. announce positive pre-feasibility study on Lo Increible Project, Venezuela VANCOUVER, Feb. 4 /CNW-PRN/ - Bema Gold Corporation (''Bema'') and 38% owned El Callao Mining Corp. (''El Callao'') are pleased to announce the positive results of a pre-feasibility study (''the Study'') on the Lo Increible Project in Venezuela. El Callao has the right to earn a 70% interest in the Lo Increible Property. The Study was completed by Bema staff and audited by Mineral Resource Development Inc. (''MRDI''). The resource model contained in the Study was completed by MRDI. The Study was undertaken to evaluate the viability of the Lo Increible Property based only on open pittable reserves. The conclusion of the Study is that the project is technically and economically viable as an open pit mine and that El Callao should proceed with a final feasibility study. The main findings of the pre-feasibility Study are as follows: The Lo Increible project contains a mineable open pittable reserve of 11.4 million tonnes with a 3.14 g/t gold for a total of 1.1 million ounces of recoverable gold. The average waste to ore ratio is 6.74 to 1. Forty-five percent of the ore is measured and indicated, the remainder will be drilled at closer spacing during Final Feasibility to bring it into the measured and indicated categories. The Study recommends mining from 6 open pits and processing ore at 3,000 tonnes/day, yielding an average of 138,000 ounces per year for the first 6 years and an average of 97,000 ounces of gold per year over the total mine life of 11 years. Mining of low and high grade would last for 6 years with the low grade stockpiled for the first 6 years and processed in the last 5 years. Initial capital costs are estimated at U.S.$69 million with payback in 2.5 years. Direct operating costs are U.S.$167 per ounce and total costs including capital is U.S.$235 per ounce. This project carries a pre-tax Internal Rate of Return of 26.1% at U.S.$325 per ounce gold and 19.9% at U.S.$300 per ounce of gold. Gold recoveries of 92% would be attained using a conventional CIL circuit. In addition to the open pittable reserves described above, the La Victoria and La Cruz deposits contain additional higher grade resources either laterally or deeper totalling 1.34 million tonnes at 6.77 g/t gold (305,000 ounces at a 5g/tonne gold cut-off). These resources have the potential to be exploited by underground mining methods during the later years of the open pit mine and beyond. In addition, all six deposits including La Victoria and La Cruz remain open to depth and along strike. A final feasibility study, projected to cost approximately U.S.$6 million dollars will commence as soon as financing has been completed. Bema and El Callao have commenced discussions regarding financing alternatives. The key project parameters of the pre-feasibility study are summarized in the following tables: << Summary of Base Case Parameters ------------------------------------------------------ Inflation Constant U.S$ ------------------------------------------------------ Gold Price U.S.$325/oz. ------------------------------------------------------ Nominal Process Rate 3,000 t/day ------------------------------------------------------ Project Life 11.0 years ------------------------------------------------------ Initial Capital Cost U.S.$69 million ------------------------------------------------------ Deferred and Replacement U.S.$3.3 million Capital ------------------------------------------------------ Mine Life Direct Operating U.S.$167/ozt Au Costs ------------------------------------------------------ Total Cash Costs U.S.$235/oz. ------------------------------------------------------ Operation costs per tonne U.S.$15.50 ------------------------------------------------------ Waste: Ore Ratio 6.74 ------------------------------------------------------ Mineable Reserves 11.4 million tonnes ------------------------------------------------------ Average Gold Grade 3.14 g/t ------------------------------------------------------ Average Gold Recovery (to 92.0% Dore) ------------------------------------------------------ Average Annual Recoverable 97 thousand ounces Gold ------------------------------------------------------ Total Recoverable Gold 1.1 million ounces ------------------------------------------------------ Gross Gold Receipts U.S.$346.0 million ------------------------------------------------------ >> Bema Gold Corporation is the largest shareholder of El Callao owning approximately 38% of its common shares and manages its affairs. El Callao explores for gold in Venezuela. The common shares of El Callao are listed for trading in Canada on the Vancouver Stock Exchange under the symbol ''ECM''. BEMA GOLD CORPORATION EL CALLAO MINING CORP. Clive T. Johnson Roger T. Richer Chairman, President & CEO Director & Secretary