TORONTO, Aug. 31 /CNW/ - Breakwater Resources Ltd. ("Breakwater") is
pleased to provide an update on the exploration program at El Toqui, located
in southern Chile.
As of August 29, 2007, 36,410 metres of diamond drilling has been
completed with the objective of carrying out an in-fill and definition
drilling program on the Concordia North, Concordia South and Porvenir deposits
as well as exploring the Altazor and Melchor targets.
The 9,027m in-fill drilling program at Concordia North and Concordia
South is now complete. Mining commenced during the third quarter in Concordia
North and decline development is proceeding towards Concordia South. The
Concordia deposits will be an integral part of the production plans for El
Toqui in 2008. Two recent holes from the current program include DCA-153 which
had an intercept of 22.8 m @ 2.8% Zn, 0.1% Pb, 81 g/t Ag, 0.13 g/t Au, and
1.6% Cu and DCA-154 which returned an intercept of 8.49 m @ 21.8% Zn, 0.3% Pb,
172 g/t Ag, 0.21 g/t Au and 0.9% Cu.
A new exploration program has commenced to the east of Concordia South
and hole DCE-01 has intercepted strong mineralized manto. In a second
consecutive hit, hole DCE-02 intercepted +7 metres of massive sulphide
mineralization. DCE-03 hit barren coquina and DCE-04 has intercepted
mineralized manto split by a porphyry sill. Assays are pending. This drilling
is indicating that the Concordia East area may be connected to Concordia
South, potentially increasing the overall resources at Concordia.
The 18,718m in-fill and extensional drilling program at Porvenir is now
complete and plans have been developed for access to and mining of the
Porvenir deposit. A mining contractor has been selected for the development of
Porvenir with excavation work scheduled to commence by the end of September.
It is expected to take 16 months to fully develop Porvenir with first
production expected sometime early in 2009.
A new diamond drill program is currently underway 250m south-west of
Porvenir, within the area known as Los Boldos. Recently, a compilation of
information that deals with the potential of this area has been carried out.
According to older information and soil geochem anomalies, plus basic
alteration zonation patterns, there is a potential repetition of the Porvenir
mineralized system in this area.
George Pirie, President & CEO said, "We are very pleased with the results
of the 2007 exploration program at El Toqui. These results continue to support
our recent decision to commence a pre-feasibility study for a 1.0 million
tonne per annum mill." The El Toqui operation is currently constrained by the
capacity of the mill which runs at 1,475 tonnes per day or a current maximum
of 540,000 tonnes per annum.
Exploration drilling is a major component of a $10 million budget that
also includes testing of some high-priority distal stratigraphic targets
outside of the defined deposits within a defined NW-SE anomalous trend. The
more distal target drilling has proved the potential for continuity south-east
of the known mineralization within the favourable trend where the Toqui
mineralized system is hosted.
The exploration programs at El Toqui are under the supervision of Robert
McGuire, P.Eng. who is a qualified person as defined by National Instrument
43-101. All core samples are split in half at the drill site, with one-half of
the core sample sent to Andes Analytical Assay Ltda. in Santiago for sample
preparation and analysis by atomic absorption and fire assay for the gold
values and high silver values. The other half of the core sample is retained
on site. The pulp samples are sent to Assayers Canada in Vancouver, British
Columbia for further analysis by ICP methods.
Breakwater is a mineral resource company engaged in the acquisition,
exploration, development and mining of base metal and precious metal deposits
in the Americas and North Africa. Breakwater has four producing zinc mines:
the Myra Falls mine in British Columbia, Canada; the Langlois mine in Quebec,
Canada, the El Mochito mine in Honduras; and the El Toqui mine in Chile.
Certain information included in this press release, including any
information as to our future financial or operating performance and other
statements that express management's expectation or estimates of future
performance, constitute forward-looking statements". The words "expect",
"will", "intend", "estimate" and similar expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. The Company cautions the reader that such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements
of Breakwater to be materially different from the Company's estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other factors
include, but are not limited to, risks associated with the mining industry
such as government regulation, environmental and reclamation risks, title
disputes or claims, success of mining activities, future commodity prices,
costs of production, possible variation in ore reserves, resources, grade or
recovery rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes, the timing of estimated future
production, capital expenditures, financial market fluctuations, requirements
for additional capital, conclusions of economic evaluations, limitations on
insurance coverage, risks associated with using third-party contractors,
inflation as well as those factors discussed in the Company's most recent Form
40-F/Annual Information Form on file with the US Securities and Exchange
Commission and Canadian provincial securities regulatory authorities.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise, except as required by applicable law.
For further information:
For further information: Torben Jensen, Vice President, Engineering,
(416) 363-4798 Ext. 232; Ann Wilkinson, Vice President, Investor Relations,