PANAMA CITY, Jan. 30 /CNW/ -- Bellhaven Copper & Gold, Inc. (TSX-Venture:
BHV) ("Bellhaven" or the "Company") is pleased to announce the signing of an
exclusive Letter of Intent "LOI" with the property vendors of the Santa Maria
Gold Mine and two contiguous exploration properties located in the Gomez-Plata
District, Department of Antioquia, Colombia. Santa Maria is a high grade
mesothermal vein gold deposit, which has been in production for over 200
years. Currently the deposit includes the Santa Maria Vein Group, consisting
of five parallel veins and the high grade Aluchadero veins.
The terms of the LOI allow BHV to acquire an 80% interest in Santa Maria
by paying US$ 250,000 over a three year period and investing a minimum of US$
1,000,000 over the same period in exploration and development work. BHV will
have a 5-year option to acquire an additional 10% interest at a price of US$
1,000,000. The parties have agreed to sign a Definitive Agreement within 45
days pending legal due diligence.
Upon execution of the Definitive Agreement, BHV will initiate a work
program which will drive a 1,200 meters exploration/development tunnel along
the length of the high grade Aluchadero vein to join it with the Santa Maria
Vein Group. This tunnel will allow BHV to confirm ore grade and potential
reserves to be followed up by a drill program. The mineral extracted while
driving the tunnel will be processed in the existing mine facilities (50 tons
per day capacity) and the net profits will be divided equally among the
partners until the vendors receive a cumulative amount of US$ 250,000 (within
a three year period). Once the vendors have received the US$ 250,000, the net
profits will be divided 80/20 among the Parties with Bellhaven receiving 80%.
The Company plans to upgrade and increase plant capacity once sufficient
reserves are measured.
Julio Benedetti, Bellhaven's President and CEO, said the following at
"Bellhaven has spent over 2 years evaluating mineral properties in
Colombia and we are very pleased to have found a project with the potential of
Santa Maria. We have developed an excellent working relationship with the
current operators and look forward to a long and prosperous partnership. Not
only will this property add more production to our portfolio, but we
anticipate that this JV structure will allow Bellhaven to cover the property
payments and a significant portion of the exploration/development cost at
Santa Maria from the proceeds of the mine operation."
About Bellhaven Copper & Gold
Bellhaven Copper and Gold is one of Panama's leading exploration
companies. Bellhaven controls highly prospective gold and copper concessions,
totaling over 500 square kilometers, that are located in some of the most
mineral-rich regions in the country. Gold has been mined in Panama as far back
as the 1500's, when the Spanish extracted a million ounces of high-grade ore
from the Cana mine. During modern times, the Santa Rosa and Remance gold mines
operated during the 1990's and the Molejon Gold Project is scheduled to come
online in 2008. Bellhaven's Cerro Quema project is slated for production in
2009. Adding greatly to the strength of the Company is the fact that many of
its senior management and board members are residents and/or citizens of
Panama. These individuals have a record of success and achievement, and enjoy
excellent working relationships with the government, the native Indian tribes,
and within the worldwide mining community.
On behalf of the board of directors,
Julio C. Benedetti, President, CEO
BELLHAVEN COPPER AND GOLD, INC.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: Miguel Villahermosa, 1-866-599-5930, for
Bellhaven Copper & Gold, Inc., or AGORACOM Investor Relations,
http://www.agoracom.com/IR/Bellhaven Web Site: http://www.bellhavencg.com