BEAR CREEK REPORTS PERUVIAN GOVERNMENT RESOLUTION WHICH
posted on
Jun 01, 2011 08:01AM
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POTENTIALLY FURTHER DELAYS SANTA ANA ESIA
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VANCOUVER, June 1, 2011 /PRNewswire/ - Bear Creek Mining (TSXV: BCM) (BVL: BCM)
("Bear Creek" or the "Company") reports that the Peruvian government
has issued a new resolution imposing further measures in addition to
those actions reported by the Company in its news release dated May 24,
2011 . By a resolution issued by the Ministry of Energy and Mines, the
Santa Ana Environmental and Social Impact Assessment ("ESIA") process
has been suspended for a term of twelve months to May 2012 with the
stated objective of reinstating normal conditions in the region and
allowing for the Company to continue with its ESIA approval procedure
in a less politically charged climate. The resolution states that its
purpose is to create the conditions necessary for the Company to
continue to "increase its relationship with the authorities,
communities and adjacent villages". The Company believes that the
temporary suspension of the Santa Ana ESIA process is based on weak
legal grounds in that the action is based upon recent regional protests
as opposed to the technical merits or procedures relating to its ESIA
submission. The Company is assessing its legal alternatives, including
an appeal to the Consejo de Mineria which is the legislative body
charged with overseeing MEM procedures and rulings.
The Company has followed all required processes to earn approvals in the
ESIA process and the ESIA is based on a project design that takes into
account the highest quality of environmental safeguards and standards
as well as strong commitments to social sustainability and benefits to
local communities including job training, agricultural, educational and
health improvement programs. The Santa Ana project will provide 1,000
direct jobs, 1,500 indirect jobs, and provide over US$330 million in
royalties and taxes for the Peruvian people and our surrounding
communities. Mr. Andrew Swarthout, Bear Creek CEO, stated "We continue
to believe that these protests and government responses are the result
of the pre-election political climate. We remain confident that the
protests will be successfully resolved allowing companies like Bear
Creek to return to the normal, well-established permitting and other
procedures under which all mining companies in Peru have operated for
decades. I emphasize again that Bear Creek has received strong local
community support for our Santa Ana project as demonstrated by the
formal public hearing successfully completed in our local community at
Santa Ana in February, 2011 in which the community officially ratified
its strong support for the Santa Ana mine development. It is important
to recognize that the protests in southern Puno are occurring distant
from the Santa Ana project and involve participants far removed from
the communities in which we work. We will continue, as always, to work
with local and federal authorities to assist in resolving the regional
issues even as we pursue our legal alternatives."
About Bear Creek:
Bear Creek is focused in Peru, a mineral-rich nation with a favorable
investment climate. The Company has recently completed a
Pre-Feasibility Study on its Corani Project and a Feasibility Study on
its Santa Ana Project, which together estimate measured and indicated
resources in excess of 500 million ounces of silver of which over 320
million ounces are in proven and probable reserves providing near-term
production potential and excellent leverage to silver prices. The
Feasibility Study for Santa Ana defines a low-cost "pure silver" mine
producing 5 million ounces annually in the first six years of an
estimated 11-year mine life. The Pre-Feasibility Study for the flagship
Corani Project estimates average annual production of 10 million ounces
for the first six years of an estimated 27-year mine life, with low
cash costs and fast payback of capital costs. Santa Ana is proceeding
towards permitting and construction while Corani is undergoing a
Feasibility Study.
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., President and COO, Christian
Rios, P.Geo. Exploration Manager and the 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
Arequipa, 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 sedar. 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.
SOURCE Bear Creek Mining Corporation