Vancouver, British Columbia--(Newsfile Corp. - July 19, 2024) - Bear Creek Mining Corporation (TSXV: BCM) (OTCQX: BCEKF) (BVL: BCM) ("Bear Creek" or the "Company") announces it produced 9,304 ounces of gold and 40,893 ounces of silver from the Mercedes Mine ("Mercedes") during the three months ended June 30, 2024 ("Q2 2024") and has engaged a number of expert consultants to participate in an intensive exploration initiative to identify new exploration targets proximal to the Mercedes operation and elsewhere within the approximately 70,000 hectare Mercedes project.
Eric Caba, President and CEO of Bear Creek, states, "As a result of efforts to optimize fundamental mine processes at Mercedes, recent marked improvements in many key metrics including gold grade and development meters continued during Q2 2024. However, as we had forecast in Q1 2024, some operating challenges at Mercedes have continued. Though production from the Marianas deposit decreased as expected as we proceeded to drive a new lateral ramp, the effect of this was less than internally anticipated as we were able to increase both grade and tonnage elsewhere. The new lateral ramp, furthermore, is expected to facilitate improved delineation drilling and ultimately production from Marianas later this year and into 2025, and is part of a larger strategy to improve the long term potential of the Mercedes operation. Feeding into that strategy is our recently initiated near-mine and district-wide exploration program that is combining traditional exploration techniques with Machine Learning tools to identify new exploration targets. This work has already generated several new near-mine targets under cover that we are actively investigating."
Exploration During Q2 2024 Bear Creek engaged a number of external subject-matter experts to work with the Company's Mercedes exploration team to identify new exploration targets both proximal to the current operations and on a district scale within the approximately 70,000 hectare Mercedes concessions. Mercedes consists of a number of a low-sulfidation epithermal deposits that are primarily controlled by large regional and secondary faults and the contact between two regional volcanic units. Previous interpretations, however, only tell part of the story and a more nuanced understanding of the controls on mineralization is fundamental to future discoveries. To this end, Bear Creek is working with a structural geology expert to unravel the complex structural history of the deposit area, better understand secondary controls on mineralization and develop strategies for the discovery of new ore bodies. Secondly, the Company has commenced a program to delineate new prospects, and potentially new mineral resources, proximal to Mercedes' current operations, to be followed by a second phase of work aimed at expanding the existing interpretation of the remainder of the Mercedes concessions with a view to defining key mineralized systems and new mineralization models. This holistic program integrates Machine Learning tools, aeromagnetic survey data, ground-based geochemistry and geological observations with concomitant interpretations. Additional information regarding the progress and results of these exploration initiatives will be provided in due course.
Q2 2024 Production Production and development results for the quarter ended June 30, 2024 are as follows:
Q1 2024
Q2 2024
Ore Mined (tonnes)
106,365
93,093
Ore Processed (tonnes)
109,280
95,727
Gold grade processed (gpt)
3.69
3.23
Gold recovery (%)
94%
93%
Gold ounces produced
12,228
9,304
Silver ounces produced
44,040
40,893
Development (meters)
2,780
2,569
At 3.23 grams per tonne ("gpt"), the average gold grade of ore processed during Q2 2024 was largely in keeping with the last two quarters, continuing the improvement in grade in comparison to the 2023 average of 2.77 gpt. Development totaled 2,569 meters during the quarter, again in line with the notably improved development achieved in the previous two quarters. A decrease in the tonnage of ore mined and processed led to lower gold and silver ounces produced during Q2 2024 in comparison to the first quarter of the year. This decrease in tonnes mined is due to delays in the preparation of certain mining faces as a result of equipment availability and because of remediations required to address rock instability.
The San Martin deposit continued to contribute the majority of Mercedes' Q2 2024 mined and processed tonnage, with lesser amounts contributed by the Marianas, Diluvio and Lupita deposits. The San Martin ventilation raise became fully operational during the quarter, which supported ongoing optimization of production from the deposit.
Bear Creek made the strategic decision in Q1 2024 to discontinue development of the central ramp at the Marianas deposit and to drive a new lateral ramp in substantially more stable rock, which development progressed during Q2. The central ramp was situated in the hanging wall of a significant shear zone which was contributing to the poor ground conditions, cost overruns and development delay experienced at Marianas in 2023. The decision to develop the new lateral ramp at Marianas was made knowing that there would be a reduction in the Au ounces produced in mid-2024. However, along with the new ventilation raise, which will improve cycle times and accelerate mining rates at the San Martin deposit, the Company anticipates production to improve in the latter half of the year. Furthermore, the lateral ramp will allow better positioning for ongoing infill drilling and development into other Marianas orebodies in late 2024 that are expected to contribute to production in 2025. Cost control initiatives, including contracts that help to replace aged machinery with equipment that is right sized for the extraction and exploitation of the Marianas ore body, are likewise continuing in an effort to further optimize and improve Mercedes' production results.
On behalf of the Board of Directors, Eric Caba President and Chief Executive Officer
For further information contact: Barbara Henderson - VP Corporate Communications Direct: 604-628-1111 E-mail: barb@bearcreekmining.com
NI 43-101 Disclosure Unless otherwise indicated, scientific and technical information in this news release is based on work programs and initiatives conducted under the supervision of, and/or has been reviewed and approved by, Andrew Swarthout, AIPG Certified Professional Geologist, a director of the Company who is a Qualified Person ("QP") as defined in NI 43-101. Additional information related to the Mercedes Mine and the Corani Project, including the Quality Assurance and Quality Control measures applied to the Company's sampling and assaying practices, is available in its Annual Information Form for the year ended December 31, 2022, available on its website and on SEDAR+.
Cautionary Statement Regarding Forward-Looking Statements This news release contains forward-looking statements regarding: the potential outcome of recent exploration initiatives; the anticipated benefits of the lateral development ramp under construction at the Marianas deposit and of the new ventilation raise at San Martin, and the timing thereof; expectations that production levels at the Mercedes mine will improve in the latter half of 2024; and the anticipated benefits of cost control and equipment optimization initiatives at Mercedes. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to assumptions related to the Company's planned development and operating activities, business objectives, goals and capabilities, assumptions related to gold and silver prices, and the expectation that anticipated development and operating results will not differ materially from expectations. As of its last reported financial results the Company had a working capital deficiency. There is no guarantee that sufficient funds will be available to meet the Company's financial obligations and the Company may be required to raise funds through the issuance of equity or by other means. There can be no assurances that such funding will be available, and if so, under acceptable terms and conditions. Although management considers the assumptions underlying its forward-looking statement to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and the risk exists that estimates, forecasts, projections, and other forward-looking statements will not be achieved or that assumptions on which they are based 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 expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but may include additional risks as described in the Company's latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR+. The foregoing list of factors that may affect future results is not exhaustive. 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.
Neither 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.
