Bear Creek Reports on Peruvian
Government Study on Mining Permit Processes within Two Southern Puno Provinces
Vancouver, B.C. - Bear Creek Mining
(TSX Venture: BCM / BVL: BCM) ("Bear Creek" or the
"Company") announces that the Peruvian government has issued a decree
setting up a 180 day Multi-Sectorial Commission comprised of ministers and
elected local officials to study and propose appropriate action in respect to
mining activities within the provinces of Yunguyo and
Chucuito while the Peruvian government resolves
certain protests occurring in the Puno region. The government called for the
study in response to two weeks of strikes in the region protesting mining, oil
and gas, and hydroelectric activities. The Company's Santa Ana project is
located within the Chucuito province. This suspension
does not affect the Company's mineral rights or the status of the Santa Ana
Environmental and Social Impact Assessment ("ESIA") which was in
process at the time of the announced study. The Company expects to continue its
permitting process with the Ministry of Energy and Mines ("MEM") and
is currently preparing its responses to observations submitted by the MEM in
the normal course of business. The Company will also continue its plans for the
development of its Santa Ana project including its ongoing community relations
and social support programs, and detailed engineering. The effect of the study
will likely be to delay approval of the ESIA until late 2011 compared to the
previously expected mid-2011.
Mr. Andrew Swarthout, Bear Creek CEO, stated
"Bear Creek has received strong local community support on our Santa Ana
project as demonstrated by the formal public hearing successfully completed in
our local community at Santa Ana in February, 2011. We are confident of the
ESIA's approval following this study but now expect that the commencement of
construction will likely be delayed into mid-2012 with production startup
anticipated to be occur in 2013 if the study runs the
maximum term of 180 days. Bear Creek is disappointed with the delay that the
study will cause which is the result of the pre-election political situation in
Peru but will assist the government in reducing the political tensions which
have arisen from communities distant from and unaffected by the Santa Ana
Project. We are confident that the protests will be successfully resolved
allowing the return to the normal, well-established permitting and other
procedures that we and all other mining companies in Peru operate under."
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.
- End -
Andrew Swarthout - CEO, or Patrick De Witt - Investor
Relations
Phone: 604-685-6269 Direct: 604-628-1111
E-mail: info@bearcreekmining.com
For further information, please visit the Company's website (www.bearcreekmining.com)
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 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.
Copyright �
2011 BEAR CREEK MINING CORPORATION (BCM) All rights
reserved. For more information visit our website at http://www.bearcreekmining.com/ or send email to info@bearcreekmining.com ..
Message sent on Tue May 24, 2011 at 3:16:11 AM Pacific Time