Bellhaven Ventures Inc.
TSX VENTURE : BHV

Bellhaven Ventures Inc.

October 11, 2005 09:30 ET

Bellhaven Ventures Inc. Signs an Option Agreement to Acquire the Cerro Chorcha Porphyry Copper Deposit in Panama

PANAMA CITY, PANAMA--(CCNMatthews - Oct. 11, 2005) - Bellhaven Ventures Inc. (TSX VENTURE:BHV) is pleased to announce that it has entered into an option agreement (the "Option") giving it the right to acquire all of the issued and outstanding shares of Cuprum Resources Corp. ("Cuprum"). Cuprum is a closely-held Panamanian company, the principal asset of which is the Cerro Chorcha porphyry copper property (the "Property") located in the western highlands of Panama. Shareholders of Cuprum include certain insiders of Bellhaven.

The Property covers 242 km2 and is located largely within the Comarca Ngobe-Bugle, an autonomous area ceded by Panama to the Ngobe-Bugle Indians. Cuprum has secured an exclusive agreement with the indigenous people of the region allowing exploration on the concession to proceed. The Guariviara zone is the only target on the concession block that has been tested to date with a drill program. Results of that program are summarized below.

A "Summary report of exploration, Cerro Chorcha project 1997/1998" completed in 1998 by Cyprus Amax quotes a combined oxide plus sulfide, "geologically constrained reserve" of 47.4 million tonnes (Mt) at 0.71% copper (at a 0.4% copper cutoff). This estimate qualifies as an "inferred mineral resource" according to the standards of NI 43-101 and is considered relevant and reliable by Bellhaven management. A qualifying report on the Cerro Chorcha project to NI 43-101 standards, including an updated resource estimate, is being prepared for Bellhaven by Peter Folk, P.Eng.

The Option is for a term expiring on the later of September 30, 2006 or the date that Cuprum obtains an approved concession with respect to the Property. In order to exercise the Option, Bellhaven will have to issue a total of 3,212,000 shares to the shareholders of Cuprum, which shares will be restricted from transfer for a period of four months and may otherwise be subject to resale restrictions imposed by the TSX Venture Exchange.

Under the terms of the Option, closing of the acquisition of Cuprum following exercise of the Option is subject to: 1) granting of a valid metallic mineral exploration contract, 2) completion of a NI 43-101 technical report for the Property, 3) completion of an independent valuation of the Property, 4) resolution of outstanding legal challenges affecting the concession, 5) approval of the transaction by the Company's shareholders, and 6) acceptance of the transaction by the appropriate regulatory agencies. Bellhaven management believes that these remaining issues will be resolved in a timely manner; this transaction will close, and exploration of the Property will resume.

Carl Nelson, Bellhaven's president and CEO, says, "With the acquisition of Cuprum, Bellhaven will add a significant porphyry copper project to its growing gold and copper portfolio. In addition to the Guariviara copper resource, we are excited by the exploration potential of the surrounding, highly prospective, Cerro Chorcha concession block."

Peter Folk, P.Eng., is the Independent Qualified Person as defined by National Instrument 43-101 responsible for ensuring that the geological information in this release is accurate.

Bellhaven Ventures Inc. is a Vancouver-based mineral exploration company with a portfolio of gold and copper properties in the Republic of Panama. The company has issued 11,846,022 shares and has no debt. For more information, please visit the website at www.bellhaven-ventures.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Carl Nelson"

Carl Nelson, President, CEO

BELLHAVEN VENTURES INC.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • Bellhaven Ventures Inc.
    Carl Nelson
    President & CEO
    (604) 684-6264
    (604) 684-6242 (FAX)