Drilling continues to expand potential and intersect higher grades
VANCOUVER, Sept. 4 /CNW/ - Bear Creek Mining Corporation (TSX Venture: BCM) ("Bear Creek" or the "Company") is very pleased to announce results from the second resource estimate at the Company's 100% owned Santa Ana leachable silver deposit and new results from 28 additional diamond drill holes (4,666 meters). Drilling at Santa Ana now totals 50,612 meters in 279 drill holes. Santa Ana is located 200 kilometers south of the Company's Corani silver-base metal deposit in southeastern Peru. Highlights of this press release include:
RESOURCE ESTIMATION
- Current Silver resources are:
- Measured and Indicated 56.0M tonnes grading 45.7 g/t Ag containing
82.2M ounces silver
- Inferred 23.3M tonnes grading 50.3 g/t Ag containing 37.7M ounces
silver
- Deposit still open in 3 directions
- Almost three-fold increase in M&I from the first estimate eight
months ago
- New drill holes continue to expand deposit beyond the updated
resource
ADDITIONAL DRILLING RESULTS (not included in the second resource
estimate)
- Drill hole SA-154 intersects 114m @ 103 g/t Ag and 1.3% Zn,
including 12m @ 634 g/t Ag (one 2m interval contains 2,300 g/t Ag)
- Drill hole SA-160 intersects 84m @ 62 g/t Ag and 1.0% Zn,
including 4m @ 263 g/t Ag and 2.1% Zn.
- Drill hole SA-167 intersects 52m @ 124 g/t Ag and 0.9% Zn,
including 14m @ 353 g/t Ag and 1.2% Zn (one 2m interval with
1,500 g/t Ag)
- Drill hole SA-163 intersects 48 m @ 96 g/t Ag on western grid
limit
- Drilling continues to intersect higher-grade mineralization in eight
of the 28 drill holes
- Mineralization remains open to the north, south and west plus at
depth
Andrew Swarthout, President and CEO of Bear Creek, states "We are very encouraged with the second resource estimation completed on the Santa Ana leachable silver deposit. Measured and Indicated resource increased almost three-fold while still maintaining approximately 38M oz silver in Inferred resources. Our conversion of waste to mineral, and Inferred resource to Measured and Indicated continues to be very successful due to the strong continuity of the deposit."
Drilling continues to expand the deposit which remains open in three directions and intersecting significant silver mineralization under cover. For example, drill hole SA-163 intersected 48 meters averaging twice the current resource grade on the western limits of the drill grid under thin post-mineral cover. Additionally, drill holes such as SA-154 and SA-167 are expected to further bolster higher-grade starter pits as the silver grades intersected in several drill holes are higher than those seen in many current underground silver producers.
Importantly, 14.1MT of Measured and Indicated resources averaging 63 g/t silver (approximately 26M ounces of silver) are contained within the total resource. These higher-grade resources will likely provide starter pits at grades 50% higher than the average resource grade for sequencing into the early years of mining. Because the deposit remains open and the expected positive effect of mining sequencing at Santa Ana on the project economics, the scoping study and preliminary economic assessment (PEA) are awaiting further detailed mine planning utilizing a resource model which will include the additional drill data.
Mr. Swarthout continues "Ongoing metallurgical testing continues to indicate that the project can employ low-cost open-pit mining and heap leaching with at least 70% silver recoveries. Infrastructure is favorable for developing a mine. Santa Ana is a very large, straight-forward, buildable silver project with many up-side opportunities."
RESOURCE ESTIMATION
The current resource estimates using a $12/ounce silver resource price
are:
Bear Creek Mining, Santa Ana Deposit
Mineral Resource Based on 20 g/t Cutoff and Prudent Open Pit Constraints
September 2, 2008
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Contained Metal
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Category Ktonnes Silver Lead Zinc Silver Lead Zinc
Million Million Million
Gm/t % % Ozs Lbs Lbs
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Measured 10,385 48.1 0.36 0.64 16.1 82.4 146.5
Indicated 45,592 45.1 0.33 0.56 66.1 331.7 562.9
------ ---- ---- ---- ---- ----- -----
Measured + Indicated 55,977 45.7 0.34 0.57 82.2 414.1 709.4
Inferred 23,333 50.3 0.32 0.51 37.7 164.6 262.3
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The stripping ratio is approximately 1.8:1; however, the block model considers blocks with no nearby drill holes as waste and additional drilling will convert many of these blocks to resource, reducing the stripping ratio. Lead and zinc are not recovered in a heap leach; however, flotation testing will examine this up-side as higher-grade base metals are seen in several drill holes.
The resource estimate was prepared based on 47,436 meters of drilling in 260 diamond drill holes completed through July 2008 and was prepared by Independent Mining Consultants (IMC) of Tucson, Arizona, with John Marek, P.E. acting as the Independent Qualified Person under NI 43-101. The estimation utilized indicator kriging to establish the limits of mineralization and block grades were then calculated using a linear kriging method using 5-meter drill hole composites. The 20 g/t Ag cutoff was chosen based on operational assumptions substantiated by recent metallurgical test work completed at McClelland Labs and cost assumptions provided by both IMC and Resource Development Inc. (RDI) of Denver Colorado. Deepak Malhotra, PhD acted as Independent Qualified Person for process costs and recoveries.
ADDITIONAL DRILLING RESULTS
The following drill holes are not included within the current resource model. The holes will be included in a subsequent resource model, to be accompanied by preliminary mine sequencing for the purposes of a Preliminary Economic Assessment. All intercepts are down-hole lengths and true widths have not been calculated.
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Silver
Drill Interval (grams
Hole Azimuth Inclination Total From To (m) per
No. (degrees) (degrees) Depth (m) (m) DTH tonne) Lead Zinc
(m) (%) (%)
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SA-150 90 -70 147.9 60 72 12 47.8 0.4 0.9
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128 134 6 40.0 0.2 0.3
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SA-151 90 -70 181.8 0 34 34 26.5 0.3 0.5
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52 62 10 37.2 0.6 0.9
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78 86 8 32.5 1.8 1.5
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130 152 22 59.2 0.3 0.3
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includes 134 140 6 141.3 0.3 0.4
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50 86 36 - - 0.9
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SA-152 90 -70 150.8 16 76 60 47.5 0.4 1.3
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includes 26 38 12 76.8 0.4 1.2
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114 140 26 82.0 0.5 0.6
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includes 128 134 6 239.7 1.6 1.2
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TDs in 95g/t Ag
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SA-153 90 -70 164 0 36 36 48.3 0.5 0.4
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SA-154 90 -70 151.7 6 120 114 103.4 0.4 1.3
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includes 72 84 12 634.2 0.6 2.0
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SA-155 90 -70 180 56 114 58 39.8 0.6 1.3
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170 176 6 54.0 0.1 0.1
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12 116 104 - - 1.0
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SA-156 90 -70 190 42 68 26 37.8 1.1 2.1
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80 92 12 39.3 0.4 1.3
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120 136 16 31.0 1.5 2.2
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146 152 6 111.0 0.6 0.6
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42 164 122 - - 1.3
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SA-157 90 -70 165.2 4 34 30 36.5 0.5 0.4
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66 86 20 52.8 0.5 0.6
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96 122 26 46.1 0.5 0.7
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42 72 30 - - 1.0
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112 165 53 - - 1.2
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SA-158 90 -70 158.1 4 46 42 43.1 0.4 0.5
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136 138 2 135 0.4 0.6
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SA-159 90 -70 157.7 110 118 8 43.5 0.1 0.2
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134 138 4 89.5 0.3 0.3
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SA-160 90 -70 200.3 48 132 84 62.0 0.4 1.0
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includes 86 90 4 262.5 0.7 2.1
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150 156 6 42.7 1.4 1.2
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74 160 86 - - 1.2
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SA-161 90 -70 180.3 54 58 4 92.0 0.3 0.9
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72 78 6 50.7 0.8 1.5
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86 110 24 38.4 0.4 0.6
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122 124 2 478.0 1.1 1.6
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SA-162 90 -70 176 96 102 6 56.0 0.4 0.5
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122 128 6 46.3 0.4 0.8
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SA-163 90 -70 155.1 44 92 48 96.3 0.7 0.9
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includes 68 78 10 226.6 1.0 0.9
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SA-164 90 -70 185.5 86 92 6 70.3 0.9 2.6
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104 118 14 35.3 0.7 1.4
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SA-165 90 -70 164.2 24 74 50 44.5 0.3 0.7
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includes 58 64 6 185.7 0.5 0.5
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92 126 34 91.7 0.8 1.8
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includes 104 116 12 165.8 1.2 2.4
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SA-166 90 -70 167.4 68 108 40 48.2 0.5 1.0
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SA-167 90 -70 142.4 32 84 52 123.5 0.4 0.9
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includes 52 66 14 353.0 0.4 1.2
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SA-168 90 -70 156 No significant intervals
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SA-169 90 -70 173.1 No significant intervals,
TDs in 59g/t Ag
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SA-170 90 -70 175 68 84 16 90.0 0.7 1.7
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includes 74 76 2 401.0 2.0 4.1
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152 166 14 52.7 0.5 0.8
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68 116 48 - - 1.2
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SA-171 90 -70 160 6 76 70 54.1 0.3 0.7
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includes 58 64 6 202.0 0.9 2.1
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26 68 42 - - 1.0
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SA-172 90 -70 170.8 34 86 52 58.1 0.2 0.3
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includes 74 80 6 158.3 0.4 0.2
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158 160 2 344.0 1.6 0.8
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SA-173 90 -70 153 56 70 14 22.1 0.2 0.3
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SA-174 90 -70 160.7 94 106 12 50.8 0.5 0.7
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SA-175 90 -70 154.8 1 16 15 71.7 0.7 0.6
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48 78 30 35.1 0.3 1.0
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60 112 52 - - 1.0
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SA-176 90 -70 175.3 26 54 28 30.0 0.1 0.2
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SA-178 90 -70 169.3 12 32 20 31.8 0.2 0.3
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52 68 16 30.3 0.4 0.6
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132 134 2 281 0.1 0.2
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160 162 2 198 0.4 0.4
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(Full drill results can be found at www.bearcreekmining.com. To access the silver drill hole map directly please refer to http://www.bearcreekmining.com/i/pdf/Sept3SantaAnadhmap.pdf.)
The resource block model continues to agree well with geologic cross-sections and plan maps prepared on-site. Mineralization is typically contained within northerly and northeasterly trending, sub-vertical structural corridors within which high-grade silver mineralization is surrounded by lower-grade halos. Silver mineralization is also found along bedding planes in the thick andesite flow and in sub-vertical, dilational zones within the bedding.
Drilling continues to intersect near-surface, high-grade structures contained within halos of lower grade material. Drill hole SA-154, located in the north central part of the mineralized zone, intersected 114m averaging 103 g/t Ag and containing one-2m interval of 2,300 g/t Ag. Drill hole SA-167 intersected 52m averaging 124 g/t Ag, including 14m averaging 353 g/t Ag. Importantly, drill hole SA-167 intersected 14m averaging 353 g/t Ag with 2m containing 1,500 g/t Ag, extending these higher-grade mineralized structures approximately 250m SW of SA-154. These high-grade drill holes are expected to further support higher-grade starter pits with low stripping ratios during the first several years of mine-life. Drill holes SA-152, 154, 160, 163, and 165, 167, and 171 are expected to continue to convert waste to mineralized material as well as provide for higher-grade starter pits in future resource estimations and mine sequencing exercises.
Two drill rigs continue close-spaced infill drilling in order to further convert Inferred resources into Measured and Indicated categories and explore for untested mineralization in the northern anomaly.
Santa Ana Engineering
Work is continuing on the development of a scoping study and PEA. The Company has extended the time horizon for completion of this work pending additional drilling and resource modeling in the unexplored parts of the deposit as it remains open in three directions and drilling continues to intersect near surface high grade structures hidden beneath thin post mineral cover. Metallurgical testing utilizing diagnostic shaker leach tests continues to confirm that new mineralization added to the resource is responding similarly to cyanide extraction as the materials reported in the column leach tests. The column leach tests indicate at least 70% recoveries under heap leach conditions (see 25 Feb 2008 news release).
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 Marc Leduc, P. Eng., Sr. Vice President of Engineering and Development and the President and CEO, Andrew Swarthout, P.Geo., who serve as the Qualified Persons under the definitions of NI 43-101. The block model estimate was prepared by Independent Mining Consultants of Tucson Arizona. John Marek P.E. acted as the independent qualified person as defined by Canada's National Instrument 43-101. Additionally the methods used in determining and reporting the resources are consistent with the CIM Best Practices Guidelines for the estimation of mineral resources and mineral reserves. The resource was estimated by using an indicator kriging method for material above and below 15 g/t Ag to define the mineralized area. Then linear kriging was used to estimate the grade of metal within the separate grade zones; using only sample composites contained within the zone being estimated. Additionally, high-grade composites (over 200 g/t Ag) were limited to a 15m search to reduce high grade smearing. For this resource estimate, metal prices based on a 3-year backward average and a 2-year forward price based on the recent metal markets were used. Assumptions used in the resource model by IMC are: Silver Price(equal sign) $12.00/oz; Silver Recovery(equal sign) 65% Zinc Recovery(equal sign) 0%; Lead Recovery(equal sign) 0%; Smelter charges: Silver(equal sign) $0.50 per ounce; Mining Costs per tonne(equal sign) $1.25; Process cost per tonne(equal sign) $4.00; G&A per processed tonne(equal sign) $0.85; Pit Slopes(equal sign) 40 degrees in all rock types. 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 Juliaca, 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. These risks, uncertainties and other factors are disclosed in Bear Creek's continuous disclosure filings with Canadian securities regulators including its most recent annual information form, available on www.sedar.com. 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, except as required by law.
