Bear Creek Reports Peruvian Government Resolution
Which Potentially Further Delays Santa Ana Esia
Vancouver, B.C. - Bear Creek Mining
(TSX Venture: 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.
- 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 ..