Bear Lake Gold Ltd.

Bear Lake Gold Ltd.

July 21, 2009 15:23 ET

Bear Lake Gold Announces Data Inconsistencies that may Compromise Prior Technical Disclosure Related to the Larder Lake Property

LONGUEUIL, QUEBEC--(Marketwire - July 21, 2009) - Bear Lake Gold Ltd. (the "Company") (TSX VENTURE:BLG) today said that it has become aware of material inconsistencies regarding the Company's exploration data that appear to compromise the Company's prior reporting of exploration results in respect of the Company's Larder Lake Property. These matters were uncovered on Friday, July 17, 2009, when InnovExplo Inc., the independent technical consulting firm engaged by the Company to complete a resource estimation of the Bear Lake zone and draft a NI 43-101 technical report in respect of the Larder Lake Property, detected certain data inconsistencies and raised concerns with senior management of the Company. Management immediately brought these matters to the attention of the Board of Directors.

The Company said that the inconsistencies appear to involve core drilled to evaluate the Larder Lake Property and the validity and reporting of assay data related thereto, potentially affecting a significant portion of the database for the Bear Lake zone of the Larder Lake Property. Upon learning of these matters, the Company immediately commenced an investigation, both internally and externally with the assistance of InnovExplo Inc., which investigation has been proceeding expeditiously. Given the nature of these matters, the Company has retained Scott Wilson Roscoe Postle Associates to lead the technical investigation and Stikeman Elliott LLP to lead the legal aspects of the investigation and to advise the Board.

The Company said that although it is too early in the investigation to determine precisely the effect of the inconsistencies, based upon the results of the investigation to date it appears that the data inconsistencies are of a serious nature and the Company believes that the reporting of corrected assay results may result in significant reductions of gold values for some of the previously announced drilling intercepts.

Based upon what the Company has learned to date, the Company's Vice President Exploration, who has also been the Company's internal qualified person in respect of the technical content of the Company's public disclosure about its exploration program at the Larder Lake Property, has been suspended pending the finalization/outcome of the Company's complete internal investigation.

The Company's Chairman, David Fennell, said "The Board and I are deeply concerned about what we have learned and we are working with our independent advisors to ascertain as quickly as possible exactly the nature, scope and effect of the inconsistencies."

The Board has established a Technical Committee comprised of Messrs Fennell, Stephen Quin and Alex Horvath, to supervise the investigation, review internal technical procedures and make recommendations to the Board. The investigation will address, among other things, the extent of the time frame over which the inconsistencies occurred.

At this time the Company is not aware of any inconsistencies with respect to any of its projects other than the Larder Lake Property. The Company will review the data with respect to its other projects.

It is the Company's understanding that trading in the Company's shares will remain halted as the Exchange reviews this matter and the Company provides additional clarification to the Exchange on the status of its internal and external investigations.

The Company is investigating as quickly as possible and will provide additional information as soon as practicable.

Forward-looking Statements

This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Bear Lake believes, expects or anticipates will or may occur in the future, are forward-looking statements. These forward-looking statements reflect the current internal projections, expectations or beliefs of management of Bear Lake based on information currently available to them. Forward-looking statements are subject to a number of known and unknown risks and uncertainties beyond Bear Lake's control, including uncertainties related to the outcome of the investigation referred to herein, potential mineralization, exploration results, completion of work program, and availability of equipment necessary for the drilling program and future plans and objectives of the companies. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed from time to time in filings made by the companies with securities regulatory authorities. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Bear Lake undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be 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."

Contact Information

  • Bear Lake Gold Ltd.
    Carole Plante, Corporate Secretary
    450-677-2601 (FAX)
    Bear Lake Gold Ltd.
    Evie Sheppard, Legal Counsel
    450-677-2601 (FAX)