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Bear Creek has assembled properties that have significant geological merit yet are still in the early stages of exploration, and continues to evaluate other potential acquisitions in Peru and neighboring nations.
DON MARCELO
The Don Marcelo project is situated in Ancash Department, within the Cordillera Negra, about 50 kilometres south of Barrick's Pierina Mine.
Bear Creek can acquire 75% of the 1,100-hectare property through staged payments totaling $4 million over four years, to include a geophysical survey and a minimum of 1,500 metres of drilling in the first year. The Company can increase its interest to 100% by making a one-time cash payment based on the amount of recoverable gold or gold-equivalent in Measure & Indicated resources defined in a pre-feasibility study. Prices escalate from $10 million for up to 2 million ounces of gold, $20 million for 2-5 million ounces, and up to $30 million for more than 5 million ounces.
The project covers north-east trending vein sets, stockworks and breccias hosted in Upper Miocene Calipuy andesite volcanics. The areas of interest measure about 1,500 by 500 metres and 2,000 by 100 metres respectively, around a possible central volcanic dome complex. Vuggy, massive and granular silica are the main hosts of gold mineralization.
A surface sampling program has returned anomalous gold values from 89 of 316 samples, with six assays above 1 g/t gold and up to 3 g/t gold. Elevated mercury values suggest that Don Marcelo is exposed at the higher levels of an untested epithermal system with gold potential at very shallow depths. Additional sampling followed by geophysics and drilling is planned for the second half of 2007.
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