Bellhaven Signs Definitive Agreement to Acquire up to 100% of the La Mina Porphyry Au-(Cu) Project, Colombia
PANAMA, REPUBLIC OF PANAMA–(Marketwire – May 17, 2010) -
Two Drill Holes Cut Wide & Shallow Intercepts of +1 g/t Gold with Significant Copper
- Hole 2: 94 m @ 1.12 g/t Au & 0.31% Cu (44 – 138 m)
- Hole 5: 90 m @ 1.28 g/t Au & 0.44% Cu (26 – 116 m)
Numerous Untested Targets Occur in the Concession
Bellhaven Copper & Gold, Inc. (TSX VENTURE:BHV – News; “Bellhaven” or the “Company”) is pleased to announce the signing of a definitive agreement (the “Agreement”) governing an earn-in option to acquire up to a 100% undivided interest in the La Mina porphyry gold-(copper) project in Colombia.
La Mina is an early-stage gold-(copper) project located in the Antioquia Department, approximately 45 km to the southwest of Medellin. The property is accessible by a paved road and by improved dirt road for the last 13 km. The known discovery is located at 1,750-1,850 m above sea level with power, water, and labor readily available.
The Company may earn up to an 80% interest by making a series of cash and common stock payments totaling US$6 million in value over a four-year period. Upon earning an 80% interest, the Company then may elect to earn an additional 20% interest, thereby controlling an undivided 100% interest in the project. To earn its additional 20%, Bellhaven must complete a NI 43-101 compliant feasibility study and make a cash payment within 36 months of having earned its 80% interest. The cash payment will be equal in value to US$20/oz on 20% of the gold ounces classified as proven reserve as defined by the NI 43-101 compliant feasibility study (see Table 1).
Paul Zweng, Bellhaven’s Interim CEO and Director, commented as follows:
“We are pleased to be acquiring such a high-quality gold-(copper) project as La Mina. The project is located in a safe and easy-to-access area, with an abundance of infrastructure. Work is already on going at the project site and we have begun the process of engaging a drilling company to suit project specifics.”
“Our goal is to deliver a NI 43-101 compliant resource within twelve to eighteen months of signing the definitive agreement. There is no certainty that this goal will ever be achieved as exploration projects, especially early-stage ones such as La Mina, are inherently fraught with risk. That said, two holes drilled at the La Cantera prospect on the concession already have delivered outstanding results-each hole contains a 90+ m intercept grading in excess of 1 g/t Au. Besides this one partially drilled area, there are numerous other targets on the concession that remain untested. We look forward to exploring and drilling these targets in the months ahead.”
To see the Tables and the rest of this news release please go to the Company website at www.bellhavencg.com
