PANAMA CITY-- Bellhaven Copper & Gold, Inc. (TSX Venture: BHV)("Bellhaven" or the "Company") is pleased to announce the signing of a Definitive Agreement with the Property Vendors ("Vendors") of the Santa Maria Gold Mine and two contiguous exploration properties located in the Gomez-Plata District, Department of Antioquia, Colombia.
The Santa Maria mine located in the mining district of Gomez Plata, 100km north of the city of Medellin, has a mining history of more than 100 years, as evidenced by old mine workings and historic documents of mining activities. Although lacking precise production records, the mining activity carried out was an important pillar for the local economy.
The Santa Mar�a deposit consists of a series of epithermal/mesothermal high grade gold and silver veins. Bellhaven recently completed a sampling program in several existing tunnels and mine portals, collecting a total of 295 rock samples from seven (7), east-west trending veins. This sampling program identified multiple levels of mineralization within the precious metal vein system. The Aluchadero zone on the west side of the block is considered the deepest zone within the workings, and shows consistent vein thickness and values, giving an average assay of 50 g/t Au and 43 g/t Ag over 40 cm thickness. The Santa Maria zone is considered to be at a higher level within the mineralized system with assay values of up to 200 g/t Au.
For the next 12 months, Bellhaven is planning to further develop the tunnels along the Aluchadero veins, driving tunnels 1200 meters to the east and 250 meters to the west. In addition, the two levels will be connected by shafts, to block out drill delineated reserves to justify installing a plant of at least 300 tons per day capacity.
During this development period, the material extracted will be processed at the 50 ton/day plant located at the mine site. This will include; crushing, milling, gravity separation of gold, concentration, cyanidation and Zn precipitation. Bellhaven�s first objective is to get the existing plant repaired, upgraded and operating at a production capacity of 1,000 ozs of gold per month.
Work has already commenced, as planning and logistics were done during the extended due diligence period, and is expected to be completed within a period of 120 days. The benefits from this operation will be shared 50/50 between Bellhaven and the Vendors until the Vendors receive accumulated earnings of US$ 250,000, at which time the benefits will be divided 80/20, with Bellhaven receiving 80%. Bellhaven will be the operator and has committed to invest US$ 1.0 million over a three year period in exploration and development work to earn an 80% interest. Bellhaven also has the option for a three year period to purchase an additional 10% interest at a US$ 1.0 million price. The terms of this Definitive Agreement were announced in our news release of January 29, 2008..
This news release has been prepared under the supervision of Michael D. Druecker, Ph.D., CPG, who serves as the Qualified Person for this project under National Instrument 43-101.
About Bellhaven Copper & Gold
Bellhaven Copper & Gold Inc. is one of Panama's leading exploration companies. Bellhaven controls highly prospective gold and copper concessions, totaling over 500 square kilometers, that are located in some of the most mineral-rich regions in the country. Gold has been mined in Panama as far back as the 1500's, when the Spanish extracted a million ounces of high-grade ore from the Cana mine. During modern times, the Santa Rosa and Remance gold mines operated during the 1990's and the Molejon Gold Project is scheduled to come online in 2008. Bellhaven's Cerro Quema project is slated for production in 2009. Adding greatly to the strength of the Company is the fact that many of its senior management and board members are residents and/or citizens of Panama. These individuals have a record of success and achievement, and enjoy excellent working relationships with the government, the native Indian tribes, and within the worldwide mining community.
On behalf of the board of directors,
Julio C. Benedetti, President, CEO
BELLHAVEN COPPER AND GOLD, INC.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Additionally, this document may contain certain forward-looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements.
Contacts
Bellhaven Copper & Gold Inc.
Corporate:
Julio Benedetti, +011(507) 226.3967
or
IR & Financial:
Patrick M. Abraham, +507.340.9501 (Panama)
pabraham@panamerica-group.com
or
AGORACOM Investor Relations
www.agoracom.com/IR/Bellhaven
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