SEDAR Filing of Corani Feasibility Study 43-101; Peru

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VANCOUVER, Jan. 4, 2012 /CNW/ - Bear Creek Mining (TSX Venture: BCM /
BVL: BCM) ("Bear Creek" or the "Company") is pleased to announce that
Lisa May will become Director of Investor Relations for the Company,
effective January 3. Ms. May previously held positions with Rimfire
Minerals Corporation and Indicator Minerals Inc., before creating Lisa
D. May & Associates, an IR consulting firm. Most recently, Ms. May was
the Director of Investor Relations for Plutonic Power Corporation (an
alternative energy company) that merged with Magma Energy Corp. to form
Alterra Power Corp. In conjunction with the hiring, 75,000 stock
options at an exercise price of $3.67 per share, exercisable on or
before January 4, 2017, have been awarded in accordance with provisions
of the Company's Stock Option Plan.




Andrew Swarthout, CEO, states "Lisa brings strong experience in the
junior mining sector, including expertise with resource companies
having projects on the development path. Lisa will continue the
important liaison with our investors and will strengthen our management
team as Bear Creek moves the Corani and Santa Ana projects through
development. We thank Patrick De Witt, who is leaving to concentrate
his efforts on his securities advisory firm, for his significant
contributions over the past 7 years towards making Bear Creek one of
the premier silver companies in today's mining sector."




Also, on December 22, 2011, the Company SEDAR filed the 43-101 report
entitled "Corani Project, Form 43-101F1 Technical Report, Feasibility
Study" (the "FS" or "Feasibility Study") following the completion of the Corani Silver-Lead-Zinc deposit
Feasibility Study (see news release dated November 9, 2011). The
43-101 report describes an optimized mine plan with robust economics
for one of the world's largest, undeveloped silver and base metals
deposits. Highlights of the 43-101 report are (all figures in US
dollars):



Defines a significant undeveloped silver deposit containing proven and
probable mineral reserves of 270 million ounces of silver, 3.1 billion
pounds of lead and 1.7 billion pounds of zinc (156 million tonnes
grading 53.8 g/t silver, 0.90% lead and 0.49% zinc).






The base case after-tax net present value ("NPV") is $463 million at a 5% discount rate with an internal rate of return
("IRR") of 17.6% ($18/oz silver, $0.85/lb lead and $0.85/lb zinc). On a
pre-tax basis, the base case NPV at a 5% discount rate is $907 million
with an IRR of 29.7%.






At spot metals prices ($29.30/oz silver, $0.83/lb zinc, $0.90/lb lead on
December 22, 2011, the date the FS was filed on SEDAR), Corani has an
after-tax NPV of approximately $1.2 billion at a 5% discount rate and a
32% IRR ($2.1 billion NPV and 51% IRR on a pre-tax basis). The
December 22, 2011 spot metal prices were used in the economic model
contained in the FS to calculate the NPV and IRR, without adjusting any
of the other inputs. Readers are cautioned that this information is
supplementary only and although the FS does contain some sensitivity
analysis, this information should not be considered in isolation or as
a substitute for the net present values and internal rates of return
contained in the FS.






Average annual payable silver production is 13.4 million ounces per year
for the first five years and 8 million ounces per year over the
life-of-mine ("LOM"). On a silver equivalent ounce basis, average
annual payable production is 23.0 million ounces per year for the first
five years and 14.7 million ounces per year over the LOM.






Total cash cost is a negative $(0.45) per ounce of silver for the first
five years, with a LOM total cash cost of $3.40 per ounce of silver
(net of base metal credits at $0.85/lb lead and $0.85/lb zinc).






Project produces marketable lead and zinc concentrates. Metallurgical
testing has established conventional flotation recoveries.






Initial capital cost is $574 million with capital payback of 3.8 years
at base case metal prices, and 2.4 years at metal prices on December
22, 2011, the date the FS was filed on SEDAR. The capital payback
period using December 22, 2011 spot metal prices ($29.30 silver, $0.83
zinc and $0.90 lead) was calculated using the economic model contained
in the FS, without adjusting any of the other inputs. Readers are
cautioned that this information is supplementary only and although the
FS does contain some sensitivity analysis, this information should not
be considered in isolation or as a substitute for the capital payback
periods contained in the FS.






Mine life is 20 years.






Mill capacity is 22,500 tonnes per day.






Stripping ratio is 1.69:1 (waste:ore).






89 million ounces of measured and indicated silver resource ounces (134
million tonnes grading 20.5 g/t silver) represent potential future
reserve conversion. Additional new mineralization was intersected in
recent drilling near perimeter of proposed tailings dam.





Mr. Swarthout continues "We remain extremely pleased with the results of
the Corani Feasibility Study. Using metals prices on December 22, 2011
the date the FS was filed on SEDAR, of $29.30/oz silver, $0.83/lb zinc
and $0.90/lb lead, Corani has an after-tax NPV of $1.2 billion at a 5%
discount rate reflecting robust economics with strong leverage to
rising metals prices. The Feasibility Study establishes that the
project can be built using conventional mining and processing
technology. The Feasibility Study maximizes the value of the project
by defining a very large primary silver mine that leverages the base
metal credits resulting in very low cash costs per ounce of silver for
the first five years. Additionally, the production of high-quality lead
and zinc concentrates (126,000 tonnes per year) provides for excellent
financing alternatives in the form of concentrate off-take agreements.
The Feasibility Study, which provides the basis for the Environmental
and Social Impact Assessment to be submitted as the master permitting
document in Q2 2012, defines a project which complies with, and in many
respects exceeds, the standards for environmental and social
standards. Our timeline for approval is 12 months; however, based upon
indications from the Peruvian government that permitting times will be
shortened, we are hopeful that approval will be significantly sooner so
that we can consider financing alternatives prior to year-end 2012.
Production startup is targeted for 2015."




In other news, the Company will restart phase II drilling on its Tassa
gold-silver prospect following the holiday break on January 8th.
Drilling is to begin on hole #4 of a planned 10 drill hole program.
Drilling will also restart on the Company's La Yegua copper-moly
porphyry target in joint venture with JOGMEC in early January.
Discussions will continue with the Peruvian government regarding a
negotiated solution to the Santa Ana Supreme Decree issued in June,
2011.


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 and Andrew
Swarthout, P.Geo., CEO, who serve as the Qualified Persons 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
additional 14% 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.


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 costs,
which resulted in a total cash cost per ounce of silver of $3.66, net
of lead and zinc credits. 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 costs, which the Company
believes is consistent with cash cost disclosure used by its peers.




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 amount of mineral reserves and mineral resources; (ii) the
amount of future production over any period; (iii) net present value
and internal rates of return of the proposed mining operation; (iv)
capital costs, including start-up, sustaining capital and
reclamation/closure costs; (v) operating costs, including credits from
the sale of silver, lead and zinc; (vi) strip ratios and mining rates;
(vii) expected grades and payable ounces and pounds of metals and
minerals; (viii) expected processing recoveries; (ix) expected time
frames; * prices of metals and minerals; and (xi) mine life. 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. 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 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 to receipt of
regulatory approvals; 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, 2010 and in the PFS and FS
filed on the SEDAR website in CanadaThe 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.






For further information:

Andrew Swarthout - CEO, or Lisa May - Director of Investor Relations Phone: 604-685-6269 ext 247 Direct: 604-628-1111 E-mail: http://www.bearcreekmining.com/">www.bearcreekmining.com)