VANCOUVER, Jan. 6 /CNW/ -- Bear Creek Mining Corporation (TSX Venture: BCM) ("Bear Creek" or the "Company") is very pleased to provide an update to its exploration efforts being advanced in concert with feasibility studies underway at the Company's two large silver deposits, Corani and Santa Ana.
The Company is pleased to announce the acquisition of Campanario; an untested mesothermal gold-silver prospect located within the prolific belt containing the Alto Chicama/Lagunas Norte, Santa Rosa, and La Arena gold deposits southeast of Trujillo, Peru. A 100% interest in the prospect is acquired following back-end loaded payments totaling $2.73M over three years subject to a 3% NSR royalty which is purchasable following completion of a positive feasibility study. The initial payment was $60,000 which provides full access to the property for one year. The options to buy-out the royalties commence from the completion of a positive feasibility study.
The Campanario prospect focuses on a Mesozoic sedimentary sequence intruded by strongly altered Tertiary quartz porphyry sills, dikes and small stocks. Sub-horizontal and sub-vertical quartz-sulfide veins and veinlets are ubiquitous especially in the sediments - intrusive contact zones. Nineteen rock chip samples average 3.1 g/t gold, 101.0 g/t silver, and range from (less than) 0.005 to 9.7 g/t gold and from (less than) 0.2 to 313 g/t silver within veins several meters thick. Fifty-one rock chip samples within the surrounding host rocks ranged from (less than) 0.005 to 0.82 g/t gold and from (less than) 0.2 to 7.5 g/t silver. Strongly anomalous zinc and lead are associated with the entire outcrop area. Outcrops are sparse within the 1,100 hectare claim area; however, several short shafts and tunnels have encountered hidden mineralized veins beneath shallow soil cover. Excellent potential exists for a near-surface, disseminated gold-silver deposit and high-grade manto-type replacements. The target area occupies a hill top indicating low stripping ratios and is surrounded by suitable areas for heap leaching and other processing infrastructure. Access is excellent for year-round exploration and community support is favorable.
An IP/resistivity survey and additional mapping and trenching are planned for Q1 2010 with Phase I drilling program to target depths of at least 200-300 meters to follow. Approximately 2,000 meters of drilling is estimated depending on results of further exploration work.
The Tassa prospect, located southeast of Arequipa, was previously acquired by staking of mineral rights (see News Release 16 April, 2009). Subsequent work has shown Tassa to be similar in size (approximately 300m by 1 km by 200m vertical), geochemistry, silver leaching amenability and geologic setting to the Company's Santa Ana deposit currently being advanced in a feasibility study. Eighty-seven rock chip and trench samples average 61 g/t silver which is similar to the resource grade at Santa Ana. Significantly, however, while the average gold value in all sampling is (less than) 0.005 g/t, Tassa locally exhibits gold values up to 0.49 g/t with a tendency for higher gold zoning with depth indicating that unlike Santa Ana, Tassa has potential for a gold credit under heap leach conditions. Bottle role tests performed at ALS Chemex labs on six samples (low, moderate and high silver value material) resulted in recoveries of up to 85% silver and 95% gold. Continuity of mineralization is demonstrated by sampling at Tassa totaling 466 meters in three trenches averaging 65.4 g/t silver.
Additionally, Tassa is located approximately 15 kms from Chucapaca, currently under exploration by the Goldfields - Buenaventura joint venture where drilling has intercepted up to 170 meters averaging 3.3 g/t gold in a similar geologic setting and mineralization reportedly remains open. Tassa, located in mineralized pyroclastics adjacent to a volcanic dome, shows zoning patterns in copper, antimony, arsenic and mercury indicating that a source intrusive and center of mineralization is present at shallow depths. IP/resistivity surveys and further geologic mapping and sampling will be initiated in Q1 2010 with drilling of an estimated 2,000 meter Phase I drilling program to commence in Q2. Drill depths will be determined based upon further work; however, the potential for a near-surface, open pit silver (gold) leaching deposit will be the first priority. Similar geological models suggesting that gold mineralization may increase at shallow depths will be tested first by drilling.
A map is available on the Bear Creek Mining web site that shows the locations of these new acquisitions. To view the map please refer to: http://www.bearcreekmining.com/i/pdf/BCMC_Projects.pdf
In other news, Magellan Minerals, previously Chapleau, has terminated its option agreement on the La Yegua copper-molybdenum-gold project, citing that it is terminating all Peruvian exploration in order to focus its efforts on Brazil. Bear Creek is considering other joint venture partners or, alternatively, continuing with Phase II drilling on its own.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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., Chief Operating Office, Christian Rios, P. Geo., Manager of Exploration and the President and CEO, Andrew Swarthout, P. Geo., who serve as the Qualified Persons under the definitions of NI 43-101.
A section in Bear Creek's website is dedicated to sampling, assay and quality control procedures.
Cautionary Note Regarding Forward Looking Statements:
Certain disclosure in this release, including statements regarding the acquisition by the Company of the Campanario prospect, management's assessment of the Campanario and Tassa prospects, the Company's plans, intentions and estimates with respect to the Company's exploration activities and strategic alternatives for the La Yegua project constitutes forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and adequate financing to complete the acquisition of the Campanario prospect and to complete the Company's planned exploration activities on the Campanario and Tassa prospects, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis, that actual results of exploration activities are consistent with management's expectations and that the Company is able to enter into a joint venture for the La Yegua project or, alternatively, complete Phase II drilling on its own. However, forward-looking statements 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. Such risk factors may include, among others, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis and inability to secure a joint venture partner for the La Yegua project or to complete Phase II drilling without a joint venture partner. Readers are cautioned not to place undue reliance on forward-looking statements. Bear Creek does not intend, and 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.