Peru projects showing strength for Bear Creek (July 23, 2007)

Vancouver — Peru continues to prove bountiful for Bear Creek Mining (BCM-V, BCEKF-O). The company recently announced new drill results from both of its Peruvian projects — the Corani silver-base metals project in the high Andes of the south and the Santa Ana silver property to the east — indicating both have strong potential to increase in size.

Bear Creek released results from 29 recent drill holes at Corani, a site that holds three defined deposits. Of significance, the results from one hole show the Minas Corani and Main Corani deposits are connected: hole 223A returned 20 metres grading 315.8 grams silver per tonne and 3.2% lead, filling a gap in the resource model with a high-grade intercept.

The recent drill program included both stepout drilling to expand outlined mineralization and infill drilling to convert inferred resources to measured and indicated. Hole 218 intersected a long silver interval in Minas Corani, hitting 117 metres of 71.8 grams silver, including 42 metres of 129.1 grams silver.

Hole 221A showed that the Corani system continues to the north of the outlined deposit, cutting 80 metres of 36.8 grams silver. At Main Corani, hole 211, stepped out west from the hangingwall, returned 106 grams silver and 1 gram gold over 10 metres. Mineralization remains open to the north and west of Minas Corani and Main Corani.

A December 2006 estimate put measured and indicated resources for Minas Corani, Main Corani, and Corani Este combined at 277.8 million contained ounces silver, at an average grade of 50.4 grams silver, plus inferred resources of 39.7 million contained ounces. Base metal levels are also significant, with measured and indicated estimates showing 172 million tonnes grading 0.83% lead and 0.42% zinc, plus indicated resources of 29.8 million tonnes averaging 0.57% lead and 0.27% zinc.

The latest resource estimate does not include any drilling on the Gold zone, a gold-enriched prospect 1.5 km south of the Corani area. Of the 38 drill holes that have tested about 1 km of strike, 33 have yielded intersections averaging 2 grams gold and 40.4 grams silver across 17 metres.

Bear Creek acquired Corani in January 2005 when the company entered into an option agreement with Rio Tinto (rtp-n, rio-l) to obtain a 70% interest in the property for payments totalling US$5.4 million over three years. Provided Bear Creek completes the payments, from 2008 onwards the property will be developed under a joint-venture agreement. If the resource is more than 10 million oz. silver, Rio Tinto has a claw-back option that would give Bear Creek a 40% full carried interest to production.

Bear Creek also released results for 13 diamond-drill holes at the north and south ends of its 100% owned Santa Ana project, about 200 km south of Corani. Of note, drill hole 26A hit 48 grams silver over 128 metres, including 14 metres at 84 grams silver, and hole 25 intersected 4 metres grading 119 grams silver.

In mid-May, Bear Creek released another set of Santa Ana results. Hole 2B intersected 152 metres grading 96 grams silver, including 52 metres of 240 grams silver, and ended in mineralization. The entire length of hole 2A (139 metres) returned 35 grams silver, and hole 23 cut 4 metres of 416 grams silver.

Staked by Bear Creek in 2004, only 50% of the 1.4-sq.-km area of geological interest has yet been tested by wide-spaced drilling. It is situated in the same epithermal belt as Corani and hosts primarily oxide silver mineralization in a near-surface setting.