VANCOUVER, Sept. 25, 2013 /CNW/ - Bear Creek Mining (TSX Venture: BCM /
BVL: BCM) ("Bear Creek" or the "Company") is pleased to announce that
the Peruvian Ministry of Energy and Mines ("MEM") has approved the
Environmental and Social Impact Assessment ("ESIA") for the Corani
silver- lead-zinc project located in southern Peru.
Corani represents a rare asset class containing 270 million ounces of
silver and 4.8 billion pounds of combined lead and zinc which is
forecasted to produce over 13 million ounces of silver/year at a
negative cost of $0.45 per ounce of silver, net of by-product credits,
for the first 5 years of a 22 year mine life. Subsequent steps in the
advancement of the Corani project are intended to include detailed
engineering followed by construction permits flowing from the ESIA.
Andrew Swarthout, Bear Creek's CEO, states that "We sincerely appreciate
the strong support from the local communities and the various Peruvian
Ministries, including MEM, during the approval process. We also
express our gratitude to the Peruvian central government for
establishing investments in infrastructure along side of our
life-of-mine community investment commitments. Bear Creek is excited to
move this important project forward towards development."
Mr. Swarthout continues "We are also encouraged by recent conversations
with the Peruvian government towards the resolution of issues regarding
the Santa Ana silver project, which remains under the conditions of the
Supreme Decree issued in June 2011. The successful resolution of these
issues and returning Bear Creek's right to operate Santa Ana is
critical to the Company's ability to raise financing for the
construction of Corani. Based upon the successful acquisition of the
social license through long-term community investment agreements at
Corani, we strongly believe that the model has been demonstrated that
will establish social license at Santa Ana. We look forward to working
with the government and local communities in reaching a resolution
thereby avoiding ongoing and future litigation while providing the
opportunity for advancing Santa Ana and providing much needed
employment, investment, and revenues in those local communities."
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.
Cautionary Note regarding Technical and Scientific Disclosure and
Forward-Looking Statements:
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 Andrew Swarthout, P.Geo., CEO, who serves as the
Qualified Person under the definitions of NI 43-101. The block model
estimate, mine design and schedules were 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
mineral reserves and resources are consistent with the CIM Best
Practices Guidelines. The method used in the resource calculation is
equivalent to the method used in the resource calculation shown in our
August 23, 2006 Press Release. For this resource estimate we have used
metal prices based on a 3-year backward average and a 2-year forward
price based on the metal markets in August 2011.
Assumptions used in the mineral reserve and FS model by IMC are: Silver
Price=$18.00/oz; Zinc Price=$0.85/lb; Lead Price=$0.85/lb; Mixed
Sulfide Material Silver Recovery is fixed at 62% to lead con and an
additional14% to the zinc con when zinc head grade is greater than
0.7%, 10.4% Ag recovery when zinc head grade is from 0.7% to 0.5%, 6.3%
recovery of silver to the zinc con when zinc head grade is from 0.5% to
0.3% and no silver recovery to the zinc con when zinc head grades are
less than 0.3%. Zinc Recovery=67.5% to zinc con when the zinc head
grade is greater than 0.7%, 50% Zn recovery when zinc head grade is
from 0.7% to 0.5%, 30% recovery of zinc to the zinc con when zinc head
grade is from 0.5% to 0.3% and no zinc recovery to the zinc con when
zinc head grades are less than 0.3%. Lead Recovery=75% to lead con.
For Transitional Material Silver Recovery= 38.5%+.2*Ag Grade (g/t)
(Maximum 70% recovery) to lead con and 0% to the zinc con, Zinc
Recovery= 0% to zinc con and Lead Recovery= 38%+10.9*Lead Grade (%)
(Maximum 65% recovery) to lead con. Average smelter charges including
Treatment Charges and Refining Charges ("TCRC") and metal deducts
against saleable metal: Silver= $1.52 per ounce; Zinc= $0.62 per pound;
Lead= $0.41 per pound; Mining Costs per tonne= $1.34; Process cost per
tonne= $8.00; G&A per processed tonne= $1.20; Pit Slopes= 42 degrees in
mineralized tuff and 46 degrees in post-mineralized tuff. The
resulting mineral reserve cutoff is $10.54/tonne ore NSR. The mineral
reserves are contained within a practical mining plan that utilized the
'floating-cone" method as an initial guide for design. Mineral reserves
are established as follows:
|
Mineral Reserves, $10.54 NSR cut-off |
|
|
Contained Metal
|
|
Equivalent
Ounces
|
Category
|
|
Ktonnes
|
|
Silver
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Lead
|
|
Zinc
|
|
Eq.
Silver
|
|
Eq.
Silver
|
|
|
|
|
Gm/t
|
|
%
|
|
%
|
|
Million
Ozs
|
|
Million
Lbs
|
|
Million
Lbs
|
|
Million
Ozs
|
|
Gm/t
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
|
30,083
|
|
66.6
|
|
1.04
|
|
0.60
|
|
64.4
|
|
690.4
|
|
399.9
|
|
115.7
|
|
119.6
|
Probable |
| 126,047 |
| 50.7 |
| 0.87 |
| 0.47 |
| 205.6 |
| 2,422.6 |
| 1,297.7 |
| 381.5 |
| 94.1 |
Proven + Probable
|
|
156,130
|
|
53.8
|
|
0.90
|
|
0.49
|
|
270.0
|
|
3,113.0
|
|
1,697.6
|
|
497.2
|
|
99.1
|
The mineral resource portion of the project is contained in a larger pit
than the FS design pit, which was a floating cone using the following
input assumptions: Silver Price=$30.00/oz; Zinc Price=$1.00/lb; Lead
Price=$1.00/lb; Mixed oxide material that was given 0% recovery for the
reserves was assumed to have an 85% recovery of silver, all other
recoveries remained the same. The Mineral Resource cut-off was
$9.20/tonne which represents the internal process cutoff. All
metallurgical material types were included in the resource.
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.
The FS was prepared by a team of independent engineering consultants.
The mining and block model portion was prepared by Independent Mining
Consultants of Tucson Arizona, John Marek, PE acting as QP. The process
plant design was prepared by M3 Engineering, Dan Neff, PE acting as QP.
Metallurgy and Process design criteria developed by Blue Coast
Metallurgy Ltd. Chris Martin, CEng acting as QP. And geotechnical,
environmental, infrastructure, waste stockpile and tailings designs
were prepared by Global Resource Engineering Ltd., Chris Chapman, PE
acting as the QP. Each of these individuals has read and approves the
respective scientific and technical disclosure contained in this news
release. Silver Equivalency calculation represents the contained
equivalent silver ounces contained in the ground and is based on the
resource metal prices assumptions of $18.00/oz Ag, 0.85/lb Pb and
0.85/lb Zn and recoveries to concentrate of 64.2% for silver and 71.1%
for lead and 51.6% for zinc. The calculation does not take into
account the net smelter payment terms for the different metals in the
two separate concentrates. The resulting equivalency is 1 oz Ag = 19.1
lb Pb and 1 oz Ag = 26.3 lb Zn.
Total cash cost per ounce of silver is calculated in accordance with a
standard approved by The Silver Institute, a nonprofit international
association that draws its membership from across the breadth of the
silver industry. Adoption of the standard is voluntary and the cost
measures presented may not be comparable to other similarly titled
measures of other companies. Total cash cost includes mine site
operating costs such as mining, processing, administration, and
treatment and refining charges, but is exclusive of amortization,
reclamation, capital, exploration costs and taxes on income. Total cash
costs are reduced by lead and zinc by-product revenues, and then
divided by silver ounces sold to arrive at total cash cost of per ounce
of silver, net of by-product revenues. Previously, the Company
included reclamation costs as a component of its total cash cost per
ounce of silver.
The Company has elected to follow the Silver Institute's cash cost
standard, and has therefore excluded reclamation costs from its
calculation of total cash cost per ounce of silver.
This document contains "forward-looking information" within the meaning
of Canadian securities legislation and "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995. This information and these statements, referred to
herein as "forward-looking statements" are made as of the date of this
news release or as of the date of the effective date of information
described in this news release, as applicable. Forward-looking
statements relate to future events or future performance and reflect
current estimates, predictions, expectations or beliefs regarding
future events and include, without limitation, statements with respect
to: (i) the planned approval and timing of the ESIA; (ii) the planned
development of the Corani and Santa Ana projects, including the timing
thereof. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not
always, using words or phrases such as "expects", "anticipates",
"plans", "projects", "estimates", "envisages", "assumes", "intends",
"strategy", "goals", "objectives" or variations thereof or stating that
certain actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved, or the negative of any of these
terms and similar expressions) are not statements of historical fact
and may be forward-looking statements.
All forward-looking statements are based on the Company's or its
consultants' current beliefs as well as various assumptions made by and
information currently available to them. These assumptions include,
without limitation: (i) the presence of and continuity of metals at the
project at modeled grades; (ii) the capacities of various machinery and
equipment; (iii) the availability of personnel, machinery and equipment
at estimated prices; (iv) exchange rates; (v) metals and minerals sales
prices; (vi) appropriate discount rates; (vii) tax rates and royalty
rates applicable to the proposed mining operation; (viii) financing
structure and costs; (ix) anticipated mining losses and dilution; *
metals recovery rates, (xi) reasonable contingency requirements; and
(xiii) receipt of regulatory approvals on acceptable terms and in the
timeframes expected by the Company, including, without limitation, in
relation to the ESIA. Although management considers these assumptions
to be reasonable based on information currently available to it, they
may prove to be incorrect. Many forward-looking statements are made
assuming the correctness of other forward looking statements, such as
statements of net present value and internal rate of return, which are
based on most of the other forward-looking statements and assumptions
herein. The cost information is also prepared using current values,
but the time for incurring the costs will be in the future and it is
assumed costs will remain stable over the relevant period.
By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
estimates, forecasts, projections and other forward-looking statements
will not be achieved or that assumptions do not reflect future
experience. We caution readers not to place undue reliance on these
forward-looking statements as a number of important factors could cause
the actual outcomes to differ materially from the beliefs, plans,
objectives, expectations, anticipations, estimates assumptions and
intentions expressed in such forward-looking statements. These risk
factors may be generally stated as the risk that the assumptions and
estimates expressed above do not occur, but specifically include,
without limitation, risks relating to variations in the mineral content
within the material identified as mineral reserves and mineral
resources from that predicted; variations in rates of recovery and
extraction; developments in world metals and minerals markets; risks
relating to fluctuations in the Canadian dollar relative to other
currencies; increases in the estimated capital and operating costs or
unanticipated costs; difficulties attracting the necessary work force;
increases in financing costs or adverse changes to global market
conditions and the terms of available financing, if any; tax rates or
royalties being greater than assumed; changes in development or mining
plans due to changes in logistical, technical or other factors, changes
in project parameters as plans continue to be refined; risks relating
timing and to receipt of regulatory approvals; adverse changes to
government approval processes; the effects of competition in the
markets in which the Company operates; operational and infrastructure
risks; and the additional risks described in the Company's Annual
Information Form, annual financial statements and management's
discussion and analysis for the year ended December 31, 2012 and in the
feasibility study entitled "Corani Project, Form 43-101F1 Technical
Report, Feasibility Study" filed by the Company on December 22, 2011
filed on the SEDAR website in Canada (available at www.sedar.com). The foregoing list of factors that may affect future results is not
exhaustive.
When relying on our forward-looking statements, investors and others
should carefully consider the foregoing factors and other uncertainties
and potential events. The Company does not undertake to update any
forward-looking statement, whether written or oral, that may be made
from time to time by the Company or on behalf of the Company, except as
required by law.
SOURCE Bear Creek Mining Corporation
<p> Lisa May - Investor Relations<br/> Direct: 604-628-1111<br/> E-mail: <a href="mailto:lmay@bearcreekmining.com">lmay@bearcreekmining.com</a><br/> For further information, please visit the Company's website (<a href="http://www.bearcreekmining.com">www.bearcreekmining.com</a>) </p>