VANCOUVER, Dec. 11, 2012 /PRNewswire/ - Bear Creek Mining
(TSXV: BCM) / (BVL: BCM) ("Bear Creek" or the
"Company") is pleased to announce that the Corani
Environmental and Social Impact Assessment ("ESIA") was
filed with the Peruvian Ministry of Energy and Mines ("MEM")
on December 10, 2012. The ESIA
filing marks the beginning of the formal permit process for the
development of the Corani project and the ESIA is expected to be
approved by the end of 2013.
Earlier ESIA approval in 2013 is possible given the strength of
the study, the surrounding community support, and the success of
the initial public hearings conducted by the MEM.
Importantly, the ESIA incorporates water management features
designed to mitigate impacts and improve water quality and
availability for the sparse local communities during construction,
operation, and closure of the Corani project. Technical
observations from the MEM are to be submitted to the Company within
90 days following the formal public hearing which is expected to
take place during the first quarter of 2013.
Andrew Swarthout, CEO, states
"The ESIA submission represents an important milestone towards
building a mine by 2015 producing over 13 million ounces per year
silver at negative cash costs for the first 5 years of its 20 year
mine life. We have worked closely with central and local
authorities to insure that the project design addresses community
concerns, including improving water quality, quantity and
availability. Public workshops were successfully held in all
of the communities within a 50 km radius, with strong community
support. The workshop locations included Macusani, the
largest population center located 30 kilometers from the project
which will benefit the most from employment and a power substation
near the townsite. The project footprint has been tightened
and infrastructure modified to further reduce regional impacts and
expedite permit approval."
Mr. Swarthout continues "The ESIA is the final piece in taking
the project to a bankable feasibility study level. In 2013,
we will advance our financing plan which is expected to include
discussions with smelters and other off-take parties as well as
consideration of project and equipment debt financing or other
sources. We believe we have several alternatives which have a
high probability of significantly reducing the required equity
component for financing the construction of the Corani
project. As the ESIA process progresses early in 2013,
off-take, financing and metal streaming discussions can be
accelerated."
In parallel to the ESIA process, discussions with the government
and with local communities at Santa Ana continue towards a
negotiated settlement to allow Bear Creek to develop this low
capital, low technical risk silver heap leach deposit. The
Company remains optimistic that a settlement is achievable, which
would reopen additional financing and development alternatives for
both projects.
The ESIA is based upon the feasibility study SEDAR filed by the
Company on December 22, 2011 entitled
"Corani Project, Form 43-101F1 Technical Report, Feasibility Study"
(the "FS" or "Feasibility Study") following the completion
of the Corani FS (see News Releases dated November 9, 2011 and January 4, 2012) which establishes Corani as
having 270 million ounces silver plus 4.8 billion pounds of
combined lead and zinc in Proven plus Probable reserves (156
million tonnes grading 53.8 g/t silver, 0.90% lead and 0.49% zinc)
contained within an open pit mine having a 1.69:1 stripping ratio
and 22,500 tonnes per day processing rate. The FS provides
that the Corani project will produce an average of 13.5 million
ounces of silver and 250 million pounds of combined lead and zinc
per year during the first 5 years into separate, high-quality
lead-silver and zinc concentrates beginning in 2015, when it is
generally expected that such concentrates will be in short
supply. The FS estimates initial capital costs of
$574 million.
In response to the high-level of environmental sensitivity to
water-related issues raised in Peru since completion of the FS, the Company
has further strengthened certain design features, particularly
relating to water quality and quantity, which are expected to add
between US$30 million and $40 million
to the capital requirements once the permits are approved.
For example, a fresh water storage facility has been added which
will guarantee better quality municipal and agricultural water
supplies during dry seasons. In addition, certain
infrastructure has been relocated in order to restrict the project
to be within a single watershed. Increases are not expected to
negatively impact the project economics including internal rate of
return ("IRR") and rapid payback on capital (3.8 years at
base case), especially given the base case silver price assumption
in the Feasibility Study of $18 per
ounce.
All scientific and technical information
contained in this news release has been reviewed and approved by
Marc Leduc, P. Eng., President and
COO and Andrew Swarthout, P.Geo.,
the Chief Executive Officer of the Company, who serve as the
"qualified persons" within the meaning of National Instrument
43-101 ("NI 43-101").
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.
Regulatory footnotes:
Please refer to the NI 43-101 technical report dated
December 22, 2011 entitled "Corani
Project, Form 43-101F1 Technical Report, Feasibility Study"
available under the Company's profile at www.sedar.com, as well as
the Company's news releases dated November
9, 2011 and January 4, 2012,
for further details of the mineral reserves, mineral resources and
the feasibility study in respect of the Company's Corani
project.
Cautionary Note regarding Forward-Looking
Statements:
This document contains "forward-looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. This information
and these statements, referred to herein as "forward-looking
statements", are made as of the date of this news release or as of
the date of the effective date of information described in this
news release, as applicable. Forward-looking statements
relate to future events or future performance and reflect current
estimates, predictions, expectations or beliefs regarding future
events and include, without limitation, statements in this news
release (or documents referred to herein) with respect to the
following in relation to the Company's Corani project: (i) the
filing, planned approval and timing of the ESIA; (ii) the planned
development of the project including the timing thereof; (iii) the
amount of mineral reserves and mineral resources; (iv) the amount
of future production over any period; (v) net present value and
internal rates of return of the proposed mining operation; (vi)
capital costs, including start-up, sustaining capital and
reclamation/closure costs; (vii) operating costs, including credits
from the sale of silver, lead and zinc; (viii) strip ratios and
mining rates; (ix) expected grades and payable ounces and pounds of
metals and minerals; * expected processing recoveries; (xi)
expected time frames; (xii) prices of metals and minerals; and
(xiii) mine life. In addition, forward-looking statements in
this news release include statements with respect to plans for a
negotiated settlement with applicable authorities in relation to
the Santa Ana project. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates",
"envisages", "assumes", "intends", "strategy", "goals",
"objectives" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements.
All forward-looking statements are based on the Company's or
its consultants' current beliefs as well as various assumptions
made by and information currently available to them. These
assumptions include, without limitation, the following in relation
to the Corani project: (i) the presence of and continuity of metals
at the project at modeled grades; (ii) the capacities of various
machinery and equipment; (iii) the availability of personnel,
machinery and equipment at estimated prices; (iv) exchange rates;
(v) metals and minerals sales prices; (vi) appropriate discount
rates; (vii) tax rates and royalty rates applicable to the proposed
mining operation; (viii) financing structure and costs; (ix)
anticipated mining losses and dilution; * metals recovery rates,
(xi) reasonable contingency requirements; and (xiii) receipt of
regulatory approvals on acceptable terms and in the timeframes
expected by the Company, including, without limitation, in relation
to the ESIA. Although management considers these assumptions
to be reasonable based on information currently available to it,
they may prove to be incorrect. Many forward-looking
statements are made assuming the correctness of other
forward-looking statements, such as statements of net present value
and internal rate of return, which are based on most of the other
forward-looking statements and assumptions herein. The cost
information is also prepared using current values, but the time for
incurring the costs will be in the future and it is assumed costs
will remain stable over the relevant period.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks exist that estimates, forecasts, projections and other
forward-looking statements will not be achieved or that assumptions
do not reflect future experience. We caution readers not to
place undue reliance on these forward-looking statements, as a
number of important factors could cause the actual outcomes to
differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates, assumptions and intentions
expressed in such forward-looking statements. These risk
factors may be generally stated as the risk that the assumptions
and estimates expressed above do not occur, but specifically
include, without limitation, risks relating to variations in the
mineral content within the material identified as mineral reserves
and mineral resources from that predicted; variations in rates of
recovery and extraction; developments in world metals and minerals
markets; risks relating to fluctuations in the Canadian dollar
relative to other currencies; increases in the estimated capital
and operating costs or unanticipated costs; difficulties attracting
the necessary work force; increases in financing costs or adverse
changes to global market conditions and the terms of available
financing, if any; tax rates or royalties being greater than
assumed; changes in development or mining plans due to changes in
logistical, technical or other factors; changes in project
parameters as plans continue to be refined; risks relating to
timing and receipt of regulatory approvals; adverse changes to
government approval processes; the effects of competition in the
markets in which the Company operates; operational and
infrastructure risks; and the additional risks described in the
Company's Annual Information Form, annual financial statements and
management's discussion and analysis for the year ended
December 31, 2011 and in the Corani
Feasibility Study referred to above. The foregoing list of
factors that may affect future results is not exhaustive.
When relying on our forward-looking statements, investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events. The Company does not
undertake to update any forward-looking statement, whether written
or oral, that may be made from time to time by the Company or on
behalf of the Company, except as required by law.
SOURCE Bear Creek Mining Corporation
