Breakwater Resources Ltd.
TSX : BWR

Breakwater Resources Ltd.

August 31, 2007 14:48 ET

Breakwater Provides Exploration Update, El Toqui Mine, Chile

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2007) -

Attention Business Editors:

Breakwater Resources Ltd. ("Breakwater") (TSX:BWR) 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.

Contact Information

  • Breakwater Resources Ltd. Torben Jensen Vice President, Engineering (416) 363-4798 Ext. 232
    or
    Breakwater Resources Ltd. Ann Wilkinson Vice President, Investor Relations (416) 357-5511