Vancouver, B.C. - Bear Creek Mining (TSX Venture: BCM) (“Bear Creek” or the “Company”) is pleased to announce results for 43 additional diamond drill holes (4,567.8 meters) that will be incorporated into an updated resource/reserve estimation in the next month. Drilling at Santa Ana, a pure silver, heap leachable deposit capable of producing close to 5 million ounces per year (see news release dated 20 April 2009), now totals 64,761meters in 393 drill holes including 45 holes engineering holes totaling of 4,303 meters. Santa Ana is located 200 kilometers south of the Company’s world-class Corani silver-base metal deposit in southeastern Peru. Both projects are in the feasibility study stages. Highlights of this press release include:
- Feasibility Study on-track for September 2010.
- Infill holes are returning similar silver values to previous drilling; therefore, good conversion from inferred to M+I resources and mineable reserves is expected.
- Drill hole SA-227 intersects 34m @ 81.2 g/t Ag including 10m @ 140.4 g/t Ag.
- Drill hole SA-230 intersects 24m @ 64.6 g/t Ag, including 6m @ 185.0 g/t Ag.
- Drill hole SA-237 intersects 24m @ 86.8 g/t Ag.
- New style of base metal-rich (up to 3.6% combined Pb-Zn) + silver (up to 63 g/t) mineralization intersected in four drill holes (SA-221, 222, 241, and 241A) at drilling margins, indicating additional potential towards the untested “North Anomaly”.
- Mineralization remains open laterally and at depth.
Andrew Swarthout, President and CEO of Bear Creek, states “We are very pleased with the advances at Santa Ana. The data is indicating that our upcoming Feasibility Study will describe a project which exceeds the expectations presented in the April 2009 Preliminary Economic Assessment (“PEA”). Additionally, there continue to be pleasant surprises as we perform step-out drilling in this large, unexplored district.”
New drilling results are as follow. All intercepts are down-hole lengths and true widths have not been calculated.
(grams per tonne)
(To access the silver drill hole map directly please refer to http://www.bearcreekmining.com/i/maps/santa_ana/2010-06-18_SADH.pdf). Holes SA-202, SA- 207, SA-218, SA-220, SA-225, SA-231, SA-232, SA-235 and SA-236 did not intersect significant mineralization which we define as a mineralized core length of 10m with a grade of 20 g/t Ag or higher.
Bear Creek recently completed a 43 hole program of infill drilling designed to convert inferred resources located within the north and south-southeast portions of the project into measured and indicated categories. The data is being incorporated into the block model for the preparation of a reserve estimation and mine planning to be included within the Feasibility Study expected to be completed in September. The results from the infill drill hole program are consistent with previous drilling, providing further confidence in the resource estimations. No drilling was performed in the central zone or higher-grade starter pits as these areas had previously been drilled at a more dense spacing adequate for a feasibility level reserve estimation. In addition to the 43 resource-model drill holes, 45 drill holes in the area of the pit, heap leach pad and waste rock facility were completed for engineering and hydrogeology for the design of these site facilities in the Feasibility Study.
The Company is very excited by the recent discovery of the new north-northwest extension mineralization in 4 holes (SA-221, SA-222, SA-241 and SA-241A). This new zone includes abundant fine sulfide mineralization containing higher lead and zinc (up to 3.6% combined lead/zinc) than is common in the central zone of the South Anomaly as well as silver mineralization up to 63 g/t Ag. The zone trends towards the Northern Anomaly which has been an exploration target for some time but to date has received only surface mapping and prospecting. The Company plans to expand exploration efforts in this area to identify targets for future expansions of the mine plan.
The Feasibility Study incorporating the latest metallurgical test work, updated resource/mineable reserve model, infrastructure requirements, capital and operating cost estimates, and environmental/social studies is on track for completion in September. The heap leach metallurgical test work being performed at McClelland Labs is proceeding as planned and the initial results are in line with previous test work showing that the Santa Ana ore responds very well to heap leaching recovery methods. The test work is in the final phase with column residues being screened and analyzed for total recovery determination and crush size optimization studies. Consistent with previous guidance, we expect the overall recovery of silver from the heap leach to be at least 70%.
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.
Andrew Swarthout - President and CEO, or Patrick De Witt - Investor Relations
Phone: 604-685-6269 Direct: 604-628-1111
For further information, please visit the Company’s website (www.bearcreekmining.com)
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., COO, Christian Rios, P.Geo. Exploration Manager and the President and CEO, Andrew Swarthout, P.Geo., who serve as the Qualified Persons under the definitions of NI 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 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. 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.