bcMetals Corporation

bcMetals Corporation

October 30, 2006 09:00 ET

bcMetals Corporation: Red Chris Drilling Significantly Expands East Zone Mineralization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 30, 2006) - bcMetals Corporation (TSX VENTURE:C) ("bcMetals" or the "Company") is pleased to announce the results of assaying from two drill holes completed as part of the current drilling campaign on the Red Chris Project.

Highlights Include:

- Hole 06-324 East Zone has extended the mineralization below the bottom of hole 03-250 with an additional 271m averaging 0.87% Cu and 1.12 grams per tonne (gpt) Au

- Hole 06-321 Main Zone intersected a total of 363m averaging 0.77% Cu and 0.53 gpt Au

These two holes verify assays results and also extend the depth of mineralization from the earlier drilling campaigns.

The previously announced agreement between Global International Jiangxi Copper Mining Company Limited ("GIJCM") and bcMetals (the "Agreement") to develop the Red Chris Project requires the drilling of 4 to 6 holes to verify earlier drilling results. Five drill holes, of which two are reported herein, were selected within the Main and East Zones representing various drilling campaigns completed on the property.

These holes are being drilled in conjunction with bcMetals' current exploration program which is also looking to extend mineralization within the Far West and Gully Zones, to the southwest and outside current ultimate pit limits. Further assay results will be reported as they become available.

Drill Hole Results

Hole 03-250 from the Company's 2003, 16,500m, infill drilling campaign, was prematurely terminated at a down-hole length of 375m in 2.19% Cu and 2.26 gpt Au. Hole 06-324 was drilled parallel to 03-250 to a length of 701.04m in high grade mineralization, adding a weighted average of 271.15m at 0.87% Cu and 1.12 gpt Au (refer to table of drill intervals and assays following).

The assay results confirm the continuation of high grade mineralization to a depth of 635m below surface and to the north of the original hole within the East Zone. This depth is 280m below the bottom of the currently planned open pit within the East Zone. The Company is in process of reviewing options for the expansion of the current pit.

There is every expectation of mineralization continuing at depth as hole 06-324 was only terminated due to the capacity limitation of the drill rig when it was still in mineralization assaying 1.0% Cu and 1.47 gpt Au.

The verification drilling completed to date confirms the results of the earlier drilling undertaken on the Red Chris Project.

A summary of significant assay intervals over 0.2% Cu follows:

03-294 06-321
From To Length (Original) (Adjacent)
m m m Cu% Au gpt Cu% Au gpt
6.10 28.30 22.20 0.54 0.08 0.58 0.06
62.00 82.60 20.60 0.51 0.13 0.38 0.09
112.60 119.00 6.40 0.50 0.20 0.33 0.13
120.10 171.60 51.50 1.14 0.93 1.08 0.66
171.60 192.60 21.00 0.66 0.59 0.75 0.46
192.60 249.20 56.60 1.18 1.09 1.03 0.91
249.20 434.80 185.60 0.57 0.46 0.68 0.50
Total(1) 363.90 0.75 0.59 0.77 0.53

03-250 06-324
From To Length (Original) (Adjacent)
m m m Cu% Au gpt Cu% Au gpt
156.60 346.10 189.50 0.30 0.31 0.38 0.35
346.10 375.00 28.90 1.36 1.50 1.34 1.12
Original Length(1) 218.40 0.44 0.47 0.50 0.45
375.00 431.48 56.48 1.20 1.06
431.48 470.02 38.54 0.36 0.25
524.91 554.30 29.39 0.65 0.46
554.30 582.17 27.87 2.67 5.00
582.17 670.56 88.39 0.42 0.51
670.56 701.04 30.48 0.77 1.15
Extended Length(1) 271.15 0.87 1.12
Total(1) 489.55 0.71 0.82

Red Chris Economics

Investors are reminded that under the terms of the Agreement, GIJCM is responsible for providing all the equity capital required for site development costs, in conjunction with the previously negotiated US$110 million debt facility with Investec Bank (UK) Limited. Significantly, the GIJCM/Red Chris Mine Agreement shields bcMetals' shareholders from the risk associated with the possibility of site development cost overruns. The establishment of the Red Chris Mine Agreement remains subject to approval of the Company's shareholders, at a special meeting to be held November 30, 2006.

Red Chris project economics continue to be based on conservative spot prices of $1.05 / lb Cu and $400 / oz Au with hedging to maintain bank required loan covenants during the payback period. If higher Cu and Au prices of $1.50 / lb and $525 / oz are used, as reported recently in the base case economics for Galore Creek Feasibility Study(2), the Red Chris after tax IRR is 30.7% with an NPV5% of $500 million and a 2.5 year payback on a capital cost of C$250 million or less than 12.5% of the capital costs now projected for Galore Creek. Included in the Red Chris cash flow model, in addition to the above $250 million site cost, is the cost of a 138kV power line from Bob Quinn up Highway 37 to Tatogga, to connect with the line to the mine site. The Company believes that the first extension to the North American power grid would only go as far as Bob Quinn.

(1) Length Weighted Average

(2) Refer to Nova Gold Resources Press Release dated October 25, 2006

The cost of the Highway 37 powerline extension, between Bob Quinn to Tatogga, would be shared 75% GIJCM and bcMetals 25%.

A complete copy of the Agreement between GIJCM and bcMetals is filed on SEDAR under the Company's profile at www.sedar.com.

QA/QC Procedures

Sheri Burt, P.Geo., the qualified person under National Instrument 43-101, is responsible for supervising the drilling program, including core logging, splitting, sampling, security and transportation of the samples to the laboratory.

International Plasma Labs Ltd. ("IPL") of Vancouver, an ISO 9001:2000 registered laboratory, is conducting sample preparation and the primary assaying for copper and gold. ALS Chemex, also an ISO 9001:2000 registered laboratory based in North Vancouver, is performing the check assaying.

The drill core is split and logged on the property. Half of the core is submitted for assay. The remaining half is stored on the property for future reference. Split core samples are crushed to 80% passing 10 mesh. Approximately 250 grams are split off the coarse crush and pulverized to 90% passing 150 mesh. A 125 gram sample is assayed for copper (multi-acid digestion with AAS finish) and fire assayed ("FA") for gold (FA/AAS 30g). All gold assays 1.0 gpt or higher are re-assayed by FA with a gravimetric finish. Every 20th sample is sent to ALS Chemex for check assaying. ALS will return half of this sample to IPL as a blind duplicate for re-assay. The quality control program also includes the insertion, at the Red Chris property, of standards and blanks at a frequency of 1 in every 20 samples.

A complete description of the Company's QA/QC procedures is included in the 43-101 Technical Report filed on SEDAR at www.sedar.com and on the Company's web site at www.bcmetalscorp.com.

An update of the Red Chris resource based on results from the 2006 drilling campaign will be completed by the end of Q1-2007.

Ian Smith, President and Chief Executive Officer

This release contains forward-looking statements, including statements relating to bcMetals' future plans and objectives with respect to the development of the Red Chris Property and the proposed transaction with Global International Jiangxi Copper Mining Company Limited. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in bcMetals' business, including risks inherent in resource exploration and development. There can be no assurance that the arrangements with Global International Jiangxi Copper Mining Company Limited referred to herein will be completed as planned or that the Red Chris Property will be placed into production. Actual results may vary materially from those described in forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • bcMetals Corporation
    Ian Smith
    President and Chief Executive Officer
    (604) 683-0140
    (604) 683-0126 (FAX)
    Website: www.bcmetalscorp.com