Breakwater Resources Ltd.
TSX : BWR

Breakwater Resources Ltd.

May 08, 2006 08:01 ET

Breakwater Resources Enters Into Agreement With Virginia Mines on the Coulon Property

TORONTO, ONTARIO--(Marketwire - May 8, 2006) -

Attention Business Editors:

Breakwater Resources Ltd. ("Breakwater") (TSX:BWR) is pleased to announce the signing of an agreement with Virginia Mines Inc. ("Virginia") on the Coulon project, located in the James Bay region of the Province of Quebec.

In accordance with the agreement, Breakwater has the option to acquire a 50% interest in the Coulon property in return for C$6.5 million in exploration expenditures and cash payments totalling C$180,000 over an 8-year period. Virginia will be the operator until the completion of a positive pre- feasibility study.

The Coulon project is the host to polymetallic, massive-sulphide lenses, which returned values of up to 15.39% Zn, 3.12% Pb, 117 g/t Ag and 0.46% Cu over 10.5 m on the Dom zone and of up to 1.31% Cu, 12.63 g/t Ag, 0.59% Zn over 38.13 m on the Nord Dom zone. The Coulon project located 15 km from the Fontanges airport, lies in an unexplored volcanic belt and is characterized by a geological assemblage typical of belts hosting volcanogenic, massive- sulphide deposits that have made north-western Quebec and north-eastern Ontario one of the world's richest regions of polymetallic deposits. A budget of nearly CA$500,000 is foreseen for the second half of 2006 on the property.

About Breakwater

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 north-western Quebec, Canada. Commercial production is expected by mid-2007.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of around $35 million. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

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) 363-4798 Ext. 277