Bellhaven Receives Maiden NI 43-101 Resource Estimate for La Mina Gold-(Copper) Project, Colombia 1.0 Million oz Gold & 1.6 Million oz Gold Equivalent Demonstrated at La Cantera
1.0 Million oz Gold & 1.6 Million oz Gold Equivalent Demonstrated at La Cantera
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/13/11 -- Bellhaven Copper & Gold Inc. (TSX VENTURE: BHV) ('Bellhaven' or the 'Company') is pleased to announce that the first NI 43-101 resource estimate for its 100%-controlled La Mina Project has established inferred resources containing 1.0 Moz of gold and 1.6 Moz of gold-equivalent. All of these announced resources occur at the La Cantera prospect, one of several porphyry gold-(copper) prospects undergoing exploration by Bellhaven at La Mina, and the only one drilled sufficiently to date to allow for the calculation of resources.
The resource estimate was prepared by Scott E. Wilson Consulting, Inc. ('SEWC') in accordance with the definitions in the Canadian National Instrument 43-101 ('NI 43-101).
The complete NI 43-101 Technical Report will be filed within 45 days and will be available on the Company's website and www.sedar.com.
SEWC reported 40.56 Mt of inferred resources averaging 0.77 g/t gold, 0.31% copper, and 1.26 g/t gold-equivalent at La Cantera (based on 0.3 g/t Au cut-off grade; see Table 1), making La Cantera one of the highest grade porphyry gold prospects in the Americas.
Table 1. Total inferred resources for La Cantera prospect, La Mina Project,
Colombia.
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Cutoff Contained
Au Tonnes Au Cu AuEq Contained Cu lbs Contained
(g/t) ('000) (g/t) (%) (g/t) Au Oz ('000) AuEq Oz
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0.0 92,025 0.41 0.20 0.71 1,211,848 396,658 2,113,343
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0.1 71,498 0.51 0.23 0.88 1,178,012 368,251 2,014,945
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0.2 48,946 0.68 0.29 1.13 1,064,722 311,517 1,772,715
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0.3 40,563 0.77 0.31 1.26 1,009,053 279,822 1,645,010
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0.4 31,137 0.90 0.34 1.43 901,645 231,294 1,427,312
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0.5 25,763 0.99 0.35 1.54 819,465 200,959 1,276,190
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0.6 21,944 1.07 0.36 1.64 756,827 175,672 1,156,082
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AuEq Oz = Gold-equivalent ounces.
AuEq (g/t) calculated using the consensus (as of 6 Sept 2011) long-term
prices for gold ($1,100/oz) and copper ($2.50/lb). No adjustment has been
made for metallurgical recoveries or net-smelter returns as these remain
uncertain at this time. AuEq formula: AuEq g/t = Au g/t ((Cu% x 22.0462 x
2.50)/(1100/31.1)) g/t.
All quantities are rounded to the appropriate number of significant figures;
consequently sums may not add up due to rounding.
All resources reported above are inferred resources. Mineral resources are
not mineral reserves and do not have demonstrated economic viability. There
is no certainty that all or any part of the mineral resource will be
converted into mineral reserves.
Paul Zweng, Bellhaven's Interim CEO and Director, commented as follows:
'We are extremely pleased by the results of the NI 43-101 resource estimate for La Cantera, the first of which we believe will be several resource estimates going forward for La Mina's many prospects. The 1.26 g/t AuEq avg. grade establishes La Cantera as one of the highest grade resources for a porphyry gold-(copper) deposit in the Americas. The resources crop out on surface and therefore may be amenable to low-cost, open-pit mining as opposed to high-cost, underground mining.'
'But here's what the resource really means-it solidifies the value created by Bellhaven since it started drilling at La Mina in July, 2010. That is, the newly established resource allows one to derive a valuation for the project and the Company. For instance, most pre-production Canadian junior exploration companies are currently trading at $70 to $90 EV/AuEq oz resource. Using these metrics, the 1.6 Moz AuEq resources are consistent with a $112-144 M enterprise value. As a reference point, on last Saturday and prior to the announcement of these resources, the enterprise value for Bellhaven was approximately $43 M. Of course, the above valuation includes only La Cantera and does not account for the other gold-(copper) prospects at La Mina or the high-sulphidation epithermal gold projects in Panama. We remain very bullish on Bellhaven's future.'
'Bellhaven will be presenting at the Precious Metals Summit conference on Thursday, September 15th, in Vail, Colorado as well as attending the Denver Gold Show the following week. We hope to meet with as many interested investors as possible during this time to explain to them why we are so excited about our achievement and progress at La Mina.'
Additional Results
SEWC differentiated within the above resource a higher grade subzone hosted by the C1 Porphyry and C1Bx, the principal host rocks at La Cantera. This higher grade subzone is comprised of 27.85 Mt of inferred resources averaging 0.92 g/t gold, 0.33% copper, and 1.44 g/t gold equivalent (0.3 g/t Au g/t cut-off grade; see Table 2).
Table 2. Inferred resources contained in C1 Porphyry and CIBx for La Cantera
prospect, La Mina Project, Colombia.
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Cutoff
Au Au Cu AuEq Cu lbs AuEq
(g/t) Tonnes (g/t) (%) (g/t) Au Oz (000s) Oz
----------------------------------------------------------------------------
0.0 29,227,071 0.88 0.32 1.38 827,004 206,568 1,296,476
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0.1 29,094,608 0.89 0.32 1.39 832,611 206,377 1,301,649
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0.2 28,391,478 0.90 0.33 1.41 821,618 204,718 1,286,885
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0.3 27,846,039 0.92 0.33 1.44 823,741 202,919 1,284,921
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0.4 24,717,853 0.99 0.34 1.52 786,838 185,439 1,208,290
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0.5 22,038,053 1.05 0.35 1.60 744,050 171,120 1,132,958
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0.6 20,324,423 1.10 0.36 1.66 718,870 161,838 1,086,684
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AuEq Oz = Gold-equivalent ounces. See footnotes for Table 1.
In addition to modeling gold and copper, SEWC also calculated inferred resources for the silver found at La Cantera. The total silver resources summed to 2.64 Moz based on a 0.3 g/t gold cut-off grade (Table 3).
Table 3. Total inferred silver resources.
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Cutoff Au (g/t) Tonnes Ag (g/t) Ag Ounces
------------------------------------------------------------
0.0 92,025,302 1.42 4,214,931
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0.1 71,498,479 1.64 3,778,851
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0.2 48,946,407 1.91 3,001,490
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0.3 40,563,028 2.02 2,640,491
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0.4 31,136,911 2.20 2,205,825
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0.5 25,762,948 2.36 1,950,937
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0.6 21,944,138 2.47 1,740,344
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All quantities are rounded to the appropriate number of significant figures;
consequently sums may not add up due to rounding.
All resources reported above are inferred resources. Mineral resources are
not mineral reserves and do not have demonstrated economic viability. There
is no certainty that all or any part of the mineral resource will be
converted into mineral reserves.
Introduction
The La Mina project ('La Mina', also known as Venecia) is located approximately 45 km southwest of Medellin in the Department of Antioquia, Colombia. La Mina consists of a number of porphyry gold-(copper) prospects currently undergoing exploration by Bellhaven, the most advanced of which is the La Cantera prospect, the subject of this press release. For maps showing the location of the La Mina project in Colombia, as well as the locations of the La Cantera prospect and the other gold-(copper) prospects at La Mina, please use the following link: http://media3.marketwire.com/docs/727558_figures.pdf
The geology of La Cantera consists of three principal rock types: (1) mafic to intermediate volcanic rocks of the Tertiary Combia Formation, (2) a porphyry pluton of intermediate composition (the 'C1 Porphyry'; formerly called the 'La Cantera Diorite') and its related intrusive breccia ('C1Bx'; formerly called the 'Early Intrusive Breccia') emplaced into the Combia volcanic rocks, and (3) a younger and barren-to-weakly mineralized porphyry stock termed the X1 Porphyry ('X1'), that was emplaced into the C1 Porphyry/C1Bx and the Combia volcanic rocks. The majority of the gold and copper emplaced at La Cantera is spatially associated with the C1 Porphyry and the C1Bx.
Gold- and copper-bearing rocks at La Cantera outcrop on the surface, forming an irregular ellipsoidal pattern measuring approximately 250 m by 200 m. The porphyry-related alteration and mineralization has been traced from surface to a depth of 550 m and remains open at depth.
Resource Calculation
Bellhaven retained Scott E. Wilson Consulting ('SEWC') of Highlands Ranch, Colorado (USA) to prepare a NI 43-101 compliant resource estimate for the La Cantera prospect located at the La Mina project. Scott Wilson supervised all aspects on the resource estimation process.
This resource estimate is based on 19 drill holes totaling 7,884 m of diamond core drilling collared at La Cantera. These drill holes include 6,404 m drilled in the La Cantera resource area: 1,480 m contained in six holes drilled by AngloGold Ashanti/Bema Gold in 2006 and 4,924 m contained in 13 holes drilled by Bellhaven in 2010 and 2011. Results for the Bellhaven drill holes can be found in numerous press releases on our web site (www.bellhavencg.com). The La Cantera drilling was conducted on two N-S lines, three NW-SE lines, and two NE-SW lines to an approximate depth of 550 m.
The drill-hole data were imported into a Vulcan ISIS database and were validated to check that there were no errors or inconsistencies in the data. The drill-hole database was composited at a 2-m run length, compositing gold, copper, and silver assay values note. The majority lithology code was recorded for each composited interval. Grade estimation used 3,025 mid-interval sample composites. Variography was done on the composited drill-hole assay data.
The construction of the geological bench maps led to defining three primary lithology units representing the principal rock types: (1) C1 Porphyry and C1Bx, (2) 50-m 'extension' from C1 Porphyry/C1Bx into the volcanic wall rocks, and (3) X1 Porphyry. This 50-m extension was created because the drill-hole data indicated that mineralization in the C1 Porphyry and C1Bx units extended up to 50 m from C1 contacts into the volcanic unit. The digitized bench plan geology was verified independently by Bellhaven geologists and SEWC staff to ensure that the digital geological interpretation and the drill-hole data were consistent. The resulting geological polygons extended to a depth of 450 m. SEWC extended the deepest polygons to a depth of 650 m and doubled the area of each lithology polygon at that final depth to create a belled shape to the deposit.
A Vulcan block model was then created based on the three lithology units. The parent block size was 10 m on a side. The model allowed for the creation of sub-blocks, down to a minimum size of 2 m on a side to best fit the lithology shapes into the block model. The three lithology units, along with the surface topography, defined the boundaries where sub-blocks were used. The block model included variables to store lithology, gold grade, copper grade, silver grade, distance to nearest gold sample, number of gold samples used, number drill holes used, classification, and depth.
Based on the variography results, ordinary kriging was determined to be the best estimation technique, and it was used for the resource estimate with the parameters in Table 4. Three estimations were set up for each of the estimations of gold, copper, and silver, with one estimation per lithology unit for each metal. For each estimation run the block selection was restricted to within the respectable lithology unit. Hard boundaries were also set such that only composites matching the respective lithology could be used as part of the estimation. Sample intervals were only used if they were greater than 1.5 meters in length. With the exception of block and sample restrictions, the search parameters were the same for each estimation. A minimum of three samples was required to estimate a block, and no more than 21 samples were used. No more than three samples from a single drill hole were allowed per estimated block. For the ordinary kriging estimation, the nugget value was set to 0.184.
Table 4. Parameters used for the ordinary kriging estimation.
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Bearing Plunge Dip Semi-
Model Sill (Rotation (Rotation (Rotation Major Major Minor
Type Differential about Z) about Y) about X) Axis Axis Axis
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Spherical 0.137 48 17 -27 23 70 135
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Spherical 0.269 -56 -11 -3 118 32 290
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A density of 2.7 tonnes per cubic metre was used for the tonnage estimate, based on daily density measurements performed by Bellhaven geologists on drill-core samples (e.g., the observed global density for La Cantera is 2.714 based on 100 determinations from drill holes LM-DDH-019 as well as LM-DDH-022 through LM-DDH-027).
These mineral resources conform to the definitions in the 2010 'CIM Definition Standards-For Mineral Resources and Mineral Reserves'. No reserves conforming to CIM standards have been estimated for this report because Bellhaven has not advanced their exploration and evaluation work to a point of developing plans, production schedules, and economic analysis.
Ongoing and Future Work
There are eleven principal targets within the limits of the La Mina concession defined by Bellhaven in addition to the La Cantera prospect. These include, Middle Zone, El Limon, La Garrucha, La Cristalina, La Arabia, El Incorea, and Central 1, -2, -3, -4, and -5. Bellhaven geologists continue to map and sample in those parts of the 1800 hectare concession that have not been previously explored seeking additional targets. Additional areas for soil sampling have been identified based on rock-chip sampling of drainages. Ground magnetic and induced polarization ('IP') surveys will be initiated to cover areas of favorable geology and/or airborne magnetic anomalies to evaluate further these exploration targets.
Bellhaven's drilling program at the La Mina Project continues with two man-portable core drills. One drill is working in the Middle Zone approximately 600 m north of the La Cantera area, and the other drill is working at La Garrucha target. To date, Bellhaven has completed nine drill holes (4,361 m) in the Middle Zone area. The results of this drilling have been described in previous press releases (e.g., October 12, 2010, November 17, 2010, August 2, 2011) and include LM-DDH-012 (94 m @ 0.76 g/t Au & 0.39% Cu starting at 326 m), LM-DDH-031 (101 m @ 0.71 g/t Au & 0.08% Cu starting at 0 m; 122 m @ 0.50 g/t Au & 0.21% Cu starting at 409 m). Drilling will continue in the Middle Zone until such time as there are sufficient data for a NI 43-101 resource estimate for this prospect. Geological modeling of the Middle Zone is ongoing and is helping to guide the drilling program.
Preliminary metallurgical test work is underway at Resource Development Inc. in Wheat Ridge, Colorado. This work includes gravity, flotation, and leach testing as well as work index determinations. The final report for this preliminary metallurgical work is expected later in October, 2011.
Qualified Person
Scott Wilson, President of Scott E. Wilson Consulting, Inc. of Highlands Ranch, Colorado prepared the La Mina resource estimates. Bellhaven will file a NI 43-101 technical report in support of the technical information in this press release within the required 45 days.
Mr. Wilson is an independent qualified person as defined by National Instrument 43-101 and has prepared or reviewed the preparation of the information which forms the basis of this press release. Mr. Wilson has no organizational ties to Bellhaven. He is a Certified Professional Geologist and member of the American Institute of Professional Geologists (CPG #10965) and a Registered Member (#4025107) of the Society of Mining and Metallurgy and Exploration, Inc., a professional association and designation recognized by the Canadian regulatory authorities. Mr. Wilson verified the data disclosed in this release, including the sampling procedures, analytical methods and results and test data underlying the information contained in this release. Verification included a review and validation of the applicable geological and assay databases and reviews of assay certificates.
Sample Preparation, Assays, QA/QC
ALS Colombia Ltda. prepared the drill-core samples for analysis. The sample preparation was done in Bogota (LMDDH-001 through LMDDH-024) and Medellin (LMDDH-025 through LMDDH-027). The prepared sample pulps were shipped to ALS Chemex's South American Central Lab in Lima, Peru for analysis. For all drill holes, gold was analyzed by fire assay on a 50-gram sample with an atomic-absorption finish. Samples with greater than 10g/t Au, the upper detection limit of the atomic-absorption finish, were re-run with a gravimetric finish. For holes LMDDH-001 through LMDDH-006 copper was analyzed using a four-acid digestion and AAS finish; silver and other elements were analyzed using a 4-acid digestion and an ICP-MS finish. For holes LMDDH-007 through LMDDH-027 copper, silver and other elements were analyzed using a four-acid digestion and an ICP-AES finish. Samples with greater than 10,000ppm Cu were re-run with a four-acid digestion and an AAS finish.
Bellhaven maintains a QA-QC program regarding the preparation, shipping, and checking of all samples. The QA/QC program includes the use of certified reference materials, blanks, as well as field- and pulp duplicates.
About the La Mina porphyry Au-(Cu) prospect
La Mina (also known as Venecia) lies within the Middle Cauca belt of Miocene-age volcano-plutonic rocks in central Colombia known to host large porphyry gold deposits such as La Colosa (12.3 Moz Au; AngloGold Ashanti), Titiribi (8.3 Moz Au; Sunward Resources), Quebradona (AngloGold Ashanti - B2Gold), and Quinchia (Batero Gold), as well as large epithermal gold districts such as Marmato (9.8 Moz Au; Medoro Resources).
In mid-2006, AngloGold Ashanti and Bema Gold drilled six holes at the La Cantera prospect, with DDH-02 (152 m @ 0.82 g/t Au, 0.26% Cu starting at 24 m) and DDH-05 (106 m @ 1.11 g/t Au, 0.40% Cu starting at 12 m) yielding 100 m intercepts of greater than 1 g/t AuEq at shallow depths. Bellhaven added to these encouraging results with DDH-08 (87.3 m @ 1.07 g/t Au, 0.30% Cu starting at 0.70 m and 72.7 m @ 0.88 g/t Au, 0.39% Cu starting at 197.1 m), DDH-09 (142.4 m @ 0.70 g/t Au, 0.29% Cu starting at 194.8 m), DDH-14 (126 m @ 1.02 g/t Au, 0.36% Cu starting at 100 m), and DDH-16 (205.3 m @ 0.91 g/t Au, 0.31% Cu starting at 12 m).
The most important host rocks observed in drill core include the Combia Formation intermediate composition volcanic rocks as well as a dioritic porphyry (C1) and its' related magmatic breccia (C1Bx). Alteration is typical of gold porphyry deposits as exemplified by a potassic-calcic core encircled by sericitic, intermediate argillic, and propyllitic alteration zones. Specifically, most of the gold and copper discovered so far at La Cantera are spatially associated with quartz-magnetite-chalcopyrite /- bornite veinlets in potassic altered porphyry and breccias containing elevated quantities of hydrothermal magnetite. As a result, the gold-bearing rocks are highly magnetic (ca. 200x10(-3)SI) which creates a sharp contrast with the barren and weakly magnetic intermediate argillic-altered rocks as well as the non-magnetic sericite-altered rocks that surround the potassic core.
Eleven other potentially important targets occur proximal to the La Cantera target: Middle Zone, El Limon, La Garrucha, La Cristalina, La Arabia, El Incorea, and Central 1, -2, -3, -4, and -5.
This release has been prepared under the supervision of Mr. Thomas J. Drown, P.Geo., who serves as the qualified person as defined by National Instrument 43-101 responsible for ensuring that the geological information in this release is accurate.
About Bellhaven
Bellhaven Copper & Gold Inc. is a Canadian-listed (TSX VENTURE: BHV) exploration company exploring for gold and copper in Panama and Colombia. The Company's objective is to become one of the best gold-copper companies operating in Panama and Colombia by discovering, acquiring, and developing high-quality resources in a safe and responsible manner to the benefit of all of its stakeholders.
The Company's principal assets include the La Mina porphyry gold-(copper) project in the Middle Cauca belt of Colombia, the Pitaloza and three other high-sulphidation epithermal gold-(copper) and porphyry copper prospects located on the Azuero Peninsula in Panama.
For more information regarding Bellhaven, please visit our website at www.bellhavencg.com.
On behalf of the board of directors,
Paul L. Zweng, CEO & Director
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading 'Risk Factors' and elsewhere in the corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The company does not assume the obligation to update any forward looking statement. Scott Wilson of Scott E. Wilson Consulting Inc., a 'Qualified Person' as defined by National Instrument 43-101 of the Canadian Securities Administrators, prepared the La Cantera resource estimation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Bellhaven Copper & Gold Inc.
Corporate Contact in North America:
Paul Zweng
CEO/Director
1-808-377-1947
pzweng@bellhavencg.com
Bellhaven Copper & Gold Inc.
Corporate Contact in Panama:
Julio Benedetti
President/Director
Int'l No: 507-226-3967
www.bellhavencg.com