Bellhaven Copper & Gold Inc.
TSX VENTURE : BHV

Bellhaven Copper & Gold Inc.

February 29, 2012 07:30 ET

Bellhaven Discovers a New Gold-Copper Porphyry at La Mina, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2012) - Bellhaven Copper & Gold Inc. (TSX VENTURE:BHV) ("Bellhaven" or the "Company") is pleased to release the first drill results from the La Garrucha prospect at the La Mina Project in the Cauca Belt of Colombia. The Company drilled six core holes into this newly discovered porphyry gold-copper system: LME-1037, -1039, -1040, -1042, -1044, and -1047. These drill holes targeted geophysical and geochemical anomalies, including rock-chip samples that exceed 0.7 g/t Au. These holes confirm La Garrucha as the fourth drill-indicated porphyry deposit on the La Mina concession.

Highlights of the drilling results include:

  • LME-1047: 64.00 m @ 0.55 g/t Au, 0.15% Cu, 2.9 g/t Ag or 0.84 g/t AuEq, and
  • LME-1040: 23.89 m @ 0.51 g/t Au, 0.19% Cu, 3.4 g/t Ag or 1.06 g/t AuEq

Four of these six holes encountered significant mineralization (see Table 1). The intercept reported above for LME 1040 occurred at the bottom of hole, and therefore the mineralized drill intercept remains open at depth.

The La Cantera Deposit comprised the Company's maiden NI 43-101 compliant resource (see news release dated September 13, 2011). The Company expects to report a mineral resource on the Middle Zone prospect during the first half of 2012. The El Limon prospect yielded positive drill results from the north end of the trend in April of 2011. Two drill rigs continue to work at La Mina, focused on the Middle Zone at this time.

For maps showing the location of these drill holes, as well as relevant geologic cross sections highlighting the gold-copper intercepts, please use the following link: http://file.marketwire.com/release/bell_image.pdf

Patrick Highsmith, Bellhaven's CEO, commented on the La Garrucha drilling:

"We are pleased to see that the maiden drilling program at La Garrucha delivered such significant intercepts from a discrete, new porphyry deposit at La Mina. The mineralization is similar to that which we continue to drill at La Cantera and Middle Zone. It is early yet, but the La Garrucha system is enriched in gold relative to copper, and the grades are higher than average for porphyry gold-copper systems in the Americas. These holes appear to be near the margin of a new system because the grades increase to the east and down-hole. We look forward to following up on these favorable intercepts and reporting the results in the near future."

Discussion of the Drill-Hole Results

The La Garrucha target is located approximately 600 m to the east of the La Cantera Deposit, near the eastern margin of the concession. The mineralization at La Garrucha is hosted in porphyritic intrusive rocks and breccia of diorite composition. So far geologists have identified at least two phases of porphyry in the area, but considerable work remains to be done to define the various rock types and their significance. As at La Cantera and Middle Zone, gold and copper at La Garrucha are most closely associated with chalcopyrite and magnetite, which occur as both disseminations and veins.

Table 1. New Drill-Hole Results for La Mina Gold-(Copper) Project, Colombia
Drill Hole From
(m)
To
(m)
Intercept
(m)
Au
(g/t)
Cu
(%)
Ag
(g/t)
AuEq
(g/t)
Prospect
LME-1037 345.20 376.00 30.80 0.43 0.06 9.9 0.53 La Garrucha
LME-1039 No significant intercepts La Garrucha
LME-1040 192.00 213.00 21.00 0.34 0.16 2.3 0.62 La Garrucha
258.00 288.00 30.00 0.36 0.13 5.9 0.58
294.45 322.90 28.45 0.32 0.15 1.7 0.58
331.20 355.09 23.89 0.51 0.19 3.4 0.85
including 340.00 355.09 15.09 0.64 0.25 4.7 1.06
LME-1042 No significant intercepts La Garrucha
LME-1044 264.65 281.94 17.29 0.69 0.08 6.0 0.82 La Garrucha
LME-1047 119.50 129.54 10.04 0.55 0.31 4.1 1.08 La Garrucha
154.00 172.40 18.40 0.31 0.15 1.6 0.57
178.25 242.31 64.06 0.55 0.15 2.9 0.80

Intercepts calculated using a 0.40 g/t AuEq cut-off grade. AuEq (g/t) = gold equivalent (g/t). AuEq (g/t) calculated assuming a long-term gold price of US $900/oz and a long-term copper price of US $2.25/lb. No adjustment has been made for metallurgical recoveries or net-smelter returns as these remain uncertain at this time. AuEq formula: AuEq g/t = Au g/t + [(Cu% x 22.0462 x 2.25)/(900/31.1035)] g/t; Ag values are not included. Gold and copper grades capped at 5 g/t Au and 2% Cu, respectively. Intercepts reported as down-hole lengths and may not represent true thicknesses.

These holes were drilled to the east or vertically to test magnetic and geochemical anomalies associated with the Garrucha series of porphyries and associated breccias (see Figures 1 through 5). All of the drill holes were collared in G1 breccia, but the longer intervals of porphyry style mineralization are encountered in the G2 breccia. Since these are the first holes in the area, the extent of the G2 breccia is not yet known. However, drill holes LME-1040, and LME-1047 bottom in strong G2 mineralization (≥ 0.80 g/t Au equivalent), indicating the system may strengthen to the east. In fact, the final 3.31m of LME-1047 averaged 1.01 g/t Au and 0.24% Cu, or 1.42 g/t Au equivalent.

Several of the La Garrucha drill holes encountered epithermal-type calcite-silver veins. These veins also occur in each of the three previously drilled porphyry systems at La Mina. The veins often yield silver values of 15 g/t to more than 100 g/t. These holes include several such intervals, including 1.5m of 49.7 g/t Ag and 2.0m of 24.5 g/t Ag.

The table below summarizes the drill hole location and orientation information:

Table 2. Drill-Hole Data for La Mina Gold-(Copper) Project, Colombia
Hole
Num-
ber
East UTM
Coordinate
North UTM
Coordinate
Elevation
(m.a.s.l.)
Azimuth
(degrees)
Plunge
(degrees)
Total
Length
(metres)
Prospect
LME-1037 419822.5 654598.5 2007.1 090 -70 380.08 La Garrucha
LME-1039 419822.5 654598.5 2007.1 000 -90 500.93 La Garrucha
LME-1040 419833.7 654703.2 2011.9 090 -70 355.09 La Garrucha
LME-1042 419833.7 654703.2 2011.9 000 -90 391.66 La Garrucha
LME-1044 419833.7 654703.2 2011.9 045 -70 502.92 La Garrucha
LME-1047 419833.7 654703.2 2011.9 090 -60 242.84 La Garrucha
m.a.s.l. = metres above sea level

Laboratory Methodology and Quality Assurance

The sample preparation and analyses for the La Mina Project are primarily conducted by ALS Minerals laboratories in Medellin, Colombia; Lima, Peru; and La Serena, Chile. The Company maintains a secure chain of custody to the lab; and the lab makes use of industry standard sample preparation procedures. The copper, silver and multi-element analyses are performed by a four-acid digestion and ICP-AES finish. The gold is determined by fire assay of a 30-gram sample with an atomic-absorption finish in Lima or La Serena, depending on laboratory workflow.

ALS Minerals maintains an industry leading quality management system. Most ALS Minerals laboratories are registered or are pending registration to ISO 9001:2008; and a number of analytical facilities have received ISO 17025 accreditations for specific laboratory procedures. Bellhaven also maintains an independent QA-QC program involving the preparation, shipping, verification, and analysis of all samples. The QA-QC program includes the use of certified standard reference materials, blanks, as well as field and pulp duplicates. The quality control data associated with these results falls within acceptable ranges for all relevant parameters.

Granting of Incentive Stock Options

The Company also announces that it has granted in the aggregate 1,215,000 options to acquire a total of 1,215,000 common shares of the Company with an exercise price set at the close price of the Company's shares on the TSX Venture Exchange on February 29, 2012 or at such greater price as may be required in accordance with the policies of the TSX Venture Exchange. The options are exercisable for a five-year period from the date of grant. The options may include vesting restrictions as per the Company's stock option plan. This option grant is subject to exchange approval.

About the La Mina Porphyry Au-(Cu) Project

La Mina (also known as Venecia) lies within the Middle Cauca belt of Miocene-age volcanic and plutonic rocks in central Colombia known to host large porphyry gold deposits such as La Colosa (12.3 Moz Au), Titiribi (8.3 Moz Au), Quebradona, and Quinchia, as well as large epithermal gold districts such as Marmato (9.8 Moz Au).

In September, 2011, Bellhaven announced its first NI 43-101 compliant resource for the La Cantera deposit at the La Mina Project consisting of 1.0 Moz gold and 280 million pounds of copper (or 1.6 Moz gold equivalent) contained in 40.56 million tonnes of inferred resources averaging 0.77 g/t Au, 0.31% Cu, or a gold equivalent grade of 1.26 g/t (based on a 0.30 g/t Au cutoff grade). The average grade of 1.26 g/t AuEq makes La Cantera one of the highest grade porphyry gold-(copper) prospects in the Americas. Bellhaven is currently drilling at the Middle Zone and La Cantera deposits while also advancing other exploration targets to the drill stage.

This news release has been prepared under the supervision of Mr. Thomas J. Drown, P.Geo. Mr. Drown has more than 25 years relevant experience and is a British Columbia Professional Geoscientist. He is a senior project geologist with the Company at the La Mina Project and serves as the qualified person as defined by National Instrument 43-101.

About Bellhaven

Bellhaven Copper & Gold Inc. is a Canadian-listed (TSX VENTURE:BHV) exploration company exploring for gold and copper in Panama and Colombia. The Company's objective is to be a leader in responsible gold and copper development in Panama and Colombia. Bellhaven will focus on discovery, acquisition, and development of high-quality resources in a safe and responsible manner for the benefit of all of its stakeholders.

The Company's principal assets include the La Mina porphyry gold-(copper) project in the Middle Cauca belt of Colombia, the Pitaloza and three other high-sulphidation epithermal gold-(copper) and porphyry copper prospects located on the Azuero Peninsula in Panama.

For more information regarding Bellhaven, please visit our website at www.bellhavencg.com.

On behalf of the board of directors,

R. Patrick Highsmith, Chief Executive Officer

BELLHAVEN COPPER & GOLD INC.

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Neither the 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

  • Bellhaven Copper & Gold Inc.
    Nico Wells
    Corporate Communications
    North America: +1-303-470-8700, ext 24

    Bellhaven Copper & Gold Inc.
    Contact in Panama:
    Julio Benedetti
    President/Director
    Int'l No: +507-226-3967
    www.bellhavencg.com