Breakwater Resources Ltd.
TSX : BWR

Breakwater Resources Ltd.

December 21, 2005 15:57 ET

Breakwater Raises $6 Million for Exploration on Bouchard-Hebert and Langlois Properties

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2005) -

Attention Business Editors:

BREAKWATER RESOURCES LTD. (TSx:BWR) announces that it has raised C$6.0 million by issuing 10 million flow-through common shares at a purchase price of C$0.60 per common share. The shares were issued by way of private placement and have a four month hold period.

The proceeds of the flow-through financing will be used for exploration in Quebec around Breakwater's past producing Bouchard-Hebert mine and the Langlois mine, which is currently being developed.

Breakwater has 215 claims totaling 7,982 hectares surrounding Bouchard- Hebert's two mining leases. C$2.9 million has been budgeted to carry out ground and airborne geophysics and diamond drilling along with downhole geophysical surveying. The Bouchard-Hebert property covers 18 km of strike length within the Blake River Group of volcanic rocks which has hosted numerous world-class massive sulphide and gold deposits. The mill at Bouchard- Hebert remains in place pending the outcome of the exploration program planned for 2006.

On November 8, 2005, Breakwater announced that it would develop the Langlois mine in north-western Quebec. Current proven and probable mineral reserves at Langlois total 3.3 million tonnes grading 10.8% zinc, 0.82% copper and 52 g/t silver. Assuming an estimated average annual production of 54,000 tonnes of zinc contained in 98,000 tonnes of concentrate, Langlois has a seven year mine life. Measured and indicated mineral resources, which include proven and probable mineral reserves total 5.0 million tonnes grading 11.2% zinc, 0.79% copper and 54 g/t silver. Management believes the deposit has significant opportunities for increased reserves, especially in zone 97 which remains open at depth and to the east.

In addition, there are a number of surface exploration targets that have been identified along the geological corridor that hosts the Langlois deposits, as well as the Grevet B (100% Breakwater) and Orphee deposits (50% Breakwater, 50% Metco Resources Inc.).

Breakwater has budgeted C$3.1 million for exploration during 2006 outside its existing mining lease at Langlois. The work will consist of ground and airborne geophysics and diamond drilling along with downhole geophysical surveying.

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 three producing zinc mines: the Myra Falls mine in British Columbia, Canada; the El Mochito mine in Honduras; and the El Toqui mine in Chile. The Company is also developing the Langlois mine in Canada.

Cautionary Note on Forward Looking Statements

Certain statements included in this news release are forward-looking statements, which are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. They include estimates and statements that describe the Company's future plans, objectives and goals, including words to the effect that the Company or management expects a stated condition or result to occur. When used herein, words such as "will", "pending", "budgeted" and other similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties and subject to other factors, many of which are beyond our control that may cause the actual results or performance to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, fluctuations in ore grade, geological and environmental risks, problems during the development, construction and start-up phases of an underground mine, inadequacy of environmental insurance. For a more comprehensive review of risk factors, please refer to the Company's most recent annual report under "Management's Discussion and Analysis of Financial Results" and Form 40-F under "Risk Factors" on file with the Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission filed on SEDAR at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on these forward- looking statements.

Contact Information

  • Breakwater Resources Ltd. Torben Jensen Vice President, Engineering (416) 363-4798 Ext. 232 Email: tjensen@breakwater.ca
    or
    Breakwater Resources Ltd. Ann Wilkinson Vice President, Investor Relations (416) 363-4798 Ext. 277 Email: awilkinson@breakwater.ca