BEAR CREEK PROVIDES CORPORATE UPDATE
VANCOUVER, June 25, 2011 /CNW/ --
Peruvian Unrest at Juliaca Airport Occurring 160KM from Project Site
VANCOUVER, June 25, 2011 /CNW/ - Bear Creek Mining (TSX Venture: BCM /
BVL: BCM) ('Bear Creek' or the 'Company') reports that on June 25, 2011
the Peruvian government issued a Supreme Decree signed by President
Garcia reversing the Supreme Decree issued in 2007 which granted the
Company title over the mineral concessions covering the Santa Ana
Project. The Company and its legal advisors continue to strongly
assert that Bear Creek has complied with all legal requirements in
obtaining its rights to title under the 2007 Supreme Decree.
Furthermore, the Company and its advisors maintain that Environmental
and Social Impact Assessment ('ESIA') procedures, including public
consultations which exceeded the ESIA requirements were strictly
followed in accordance with Peruvian law. Therefore, the Company takes
the firm position that any modification or annulment to the Supreme
Decree which in 2007 granted Bear Creek titles to the mineral
concessions in full accordance with Peruvian law is illegal and
without basis.
The 2007 decree was required in order for a foreign company to obtain
title to mineral rights located within the 50 kilometer border regions
of Peru. There are as many as fifteen other foreign companies
investing in mineral exploration projects located within the Peruvian
border regions under similar decrees. This morning's decree states
that while the 2007 decree complied with all requirements for its
approval, the basis for reversing the 2007 decree are that conditions
have changed relating to the measure being in the public and State's
best interest; one of the requisite conditions for granting title to a
foreign controlled interest. The Company does not believe that the
conditions have changed that support the project being in the public's
and State's best interest. The rationale for the new decree apparently
stems from the prolonged anti-mining protests in the southern Puno
region most of which occurred 150 kilometers from Santa Ana and never
involved protests at site. Other conditions of this morning's decree
include the prohibition of any activity, including artisanal mining, to
extract minerals from the Santa Ana area. Bear Creek firmly believes
that stopping the Santa Ana project will not serve the best interest of
either the local communities or those of Peru.
Mr. Andrew Swarthout, Bear Creek CEO, stated 'The Company intends to
immediately and vigorously defend its rights at Santa Ana through all
available avenues, including provisions under the Canada-Peru Free
Trade Agreement and Peruvian appeal processes. Every effort was made on
the part of the Company to assist the national and local authorities in
reaching a solution to the politically motivated protests, even though
far removed from our project, while respecting our local communities'
desire for Bear Creek to build the Santa Ana Project as demonstrated by
their strong support and ratification, after over 200 public meetings
and workshops, at the final formal public hearing on February 23, 2011.
We firmly believe this was not the right decision for Peru, its vibrant
mining sector, local inhabitants or foreign investors.'
Mr. Swarthout continued 'The project is designed incorporating
international standards of environmental safeguards utilizing a
zero-discharge heap leach project design. In addition to having no
discharge, the project is located in a separate hydrologic basin;
therefore, the potential for contamination of Lake Titicaca is not
possible as alleged by the outside protestors. The project also
incorporates 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. Therefore, we continue to believe that Santa Ana will
assist the new government in achieving its goals of further reducing
poverty through the execution of environmentally sound mining projects
and look forward to once again moving the project forward once legal
actions are resolved. As well, the Company will be focusing on moving
the larger Corani project through its feasibility study for release
this fall.'
The Company will be holding a conference call Monday June 27(th) 2011. Details of the conference call will be disseminated Sunday June
26(th), 2011.
About Bear Creek:
Bear Creek Mining 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
(subject to the disclosure above). 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 (subject to the
disclosure above) while Corani is undergoing a Feasibility Study.
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, 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/25/c9228.html
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)