Bonita Capital Corporation

March 08, 2005 15:58 ET

Bonita Capital Corporation: Progress on Palmarejo Gold-Silver Project, Mexico


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BONITA CAPITAL CORPORATION

TSX VENTURE SYMBOL: BON.P

MARCH 8, 2005 - 15:58 ET

Bonita Capital Corporation: Progress on Palmarejo
Gold-Silver Project, Mexico

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - Bonita Capital
Corporation (TSX VENTURE:BON.P), a Canadian capital pool company
("Bonita") is pleased to provide an update on the drilling progress with
respect to the Palmarejo gold-silver project in the Temoris District of
Chihuaua, Mexico (the "Palmarejo Project"). Such updates are contained
in the press releases (the "Bolnisi Releases") of Bolnisi Gold NL
("Bolnisi") dated December 23, 2004 and February 10, 2005 attached as
exhibits hereto. As described in Bonita's press release dated November
22, 2004, Bonita, Bolnisi and Palmarejo Acquisition Corporation intend
to effect a business combination (the "Business Combination") through
which Bonita will acquire Bolnisi's interest in the Palmarejo Project.
It is anticipated that the Business Combination will close prior to
March 21, 2005.

The technical information contained in the attached releases was
reviewed by Bonita and compiled in accordance with the Listing Rules of
the Australian Stock Exchange Limited, by a competent person who is a
corporate member of the Australasian Institute of Mining and Metallurgy
and who has consented to the inclusion of such technical information in
the form in which it appears in this release. The competent person is
Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is
also a director of Bolnisi. Mr. Phillips is a qualified person under
Canadian Securities Administrators National Instrument 43-101 ("NI
43-101").

In addition, Bonita is pleased to announce that further to its press
release of November 22, 2004, Palmarejo Acquisition Corporation has
closed the financing (the "Financing") of 8,500,000 Palmarejo
subscription receipts (the "Palmarejo Subscription Receipts") at a price
of $1.00 per Palmarejo Subscription Receipt for total gross proceeds of
$8,500,000, where each Palmarejo Subscription Receipt will entitle the
holder thereof to acquire, upon exchange or deemed exchange, one
Palmarejo common share ("Palmarejo Common Share") and one-half of one
Palmarejo common share purchase warrant (the "Financing Warrants"). Each
whole Financing Warrant will entitle the holder thereof to purchase one
Palmarejo Common Share at a price of $1.50 for a period of 24 months
following the closing of the Financing. Commencing 180 days after the
closing of the Business Combination of Bonita, as more fully described
in the press release of Bonita dated November 22, 2004, Bonita (or the
subsequent entity following the closing of the Business Combination)
shall have the right to call all outstanding Bonita warrants issued in
exchange for Financing Warrants if the closing price of the Bonita
common shares is above $1.75 for 20 consecutive trading days. The net
proceeds of the Financing will be used for development of the Palmarejo
Project as detailed in the National Instrument 43-101 compliant
technical report (the "Technical Report") prepared by Mine Development
Associates, consulting geologists and engineers of Reno, Nevada, which
is currently available on the SEDAR website (www.sedar.com), and for
working capital.

In consideration of the services provided by Sprott Securities Inc., GMP
Securities Ltd., Dundee Securities Corporation and First Associates
Investments Inc. (the "Agents") in connection with the Financing, the
Agents will be entitled to receive, in aggregate, a cash commission
equal to 7.0% of the gross proceeds raised under the Financing and
non-transferable options to acquire up to 7% of the total number of
Subscription Receipts issued pursuant to the Financing each exercisable
for one Palmarejo Common Share and one half of one Palmarejo common
share purchase warrant at a price of $1.00 for a period of 24 months
after completion of the Financing.

Further, Bonita wishes to advise that at its meeting of shareholders
held on January 20, 2005, Michael Thomson, Bruce Ramsay, John Boddie,
Michael Rempel, James Crombie, David Fennell and Bruce McLeod were
elected as the board of directors of Bonita. Upon closing of the
Business Combination, Messrs. Thomson, Ramsay, Boddie and Rempel shall
resign and Norman Seckold, Peter Nightingale, Dudley Leitch, Ken
Phillips and Anthony Walsh shall become directors.

The securities of Bonita have not been and will not be registered under
the United States Securities Act of 1933, as amended, or the securities
laws of any state, and may not be offered or sold in the United States
or to any "US Person" (as defined in Regulation S under the Securities
Act of 1933) absent registration or an exemption from registration.

Completion of the Business Combination is subject to a number of
conditions, including but not limited to Exchange acceptance and if
applicable pursuant to Exchange Requirements, majority of the minority
shareholder approval. Where applicable, the transaction cannot close
until the required shareholder approval is obtained. There can be no
assurance that the Business Combination will be completed as proposed or
at all.

Investors are cautioned that, except as disclosed in the filing
statement to be prepared in connection with the Business Combination any
information released or received with respect to the Business
Combination may not be accurate or complete and should not be relied
upon. Trading in the securities of a capital pool company should be
considered highly speculative.

The TSX Venture has in no way passed upon the merits of the Proposed
Transaction and has neither approved nor disapproved the contents of
this press release.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
U.S.



10 February 2005


The Manager Companies
Australian Stock Exchange Limited 20 Bridge Street
Sydney NSW 2000 (7 pages by email)
Dear Madam

RE: FURTHER PROGRESS ON PALMAREJO GOLD-SILVER PROJECT, MEXICO
and
CANADIAN TRANSACTION UPDATE


Palmarejo Gold-Silver Project

The Directors are pleased to announce latest drill results from the
Palmarejo Gold-Silver Project in the Temoris District, Chihuahua,
Mexico. The Company has an option to acquire a 100% interest in the
property.

Since the last update on 23 December 2004 assay results have been
received for 31 reverse circulation (RC) holes and 6 diamond core (DD)
holes. Full details are listed below, but some of the more significant
results include:

- 15.2 metres @ 11.5 g/t AuEq (PMDH154)

- 21.3 metres @ 6.7 g/t AuEq (PMDH166)

- 12.2 metres @ 8.7 g/t AuEq (PMDH143)

- 11.3 metres @ 7.8 g/t AuEq (PMDH125D)

- 6.1 metres @ 7.9 g/t AuEq (PMDH144)

- 19.8 metres @ 1.9 g/t AuEq (PMDH163)

There are currently 3 reverse circulation ('RC') and 3 diamond core
('DD') drill rigs contracted for drilling operations on the property.
One RC rig is returning to site after overhaul, one RC and 3 DD rigs are
working 2 x 12 hour shifts daily while the other RC rig operates 1 x 12
hour shift. All rigs are operating on the Palmarejo Project with the
objective of establishing a measured and indicated resource leading to a
minable reserve and bankable feasibility study for development and
further exploring and defining the extent of the major structures and
clavos to the southeast and at depth as drilled by PMDH125D.

Since drilling resumed on 7 January 2005 after the Christmas shutdown,
work has concentrated on drilling the La Prieta and La Blanca structures
and testing the depth extent of mineralisation intercepted earlier in
the program.

The majority of the infill drill holes have targeted the down-plunge and
down-dip continuity of the 'Rosario clavo' (new name) at the
intersection of the La Prieta and La Blanca structures.

PMDH154 returned 15.2 metres @ 11.5 g/t AuEq within quartz-vein breccia
and dense stockwork that makes up the Rosario clavo. The intercept
encountered in PMDH154, extends the known mineralisation of the Rosario
clavo from natural surface down-dip 200 metres. This is 50 metres below
the lowest underground level mined and at least 40 metres deeper than
previously drilled.

PMDH143 returned 12.2 metres @ 8.7 g/t AuEq and PMDH163 returned 19.8
metres @ 1.9 g/t AuEq. These holes intersected the 'Tucson clavo' (new
name) along the La Prieta structure. The Tucson clavo is approximately
750 metres east of the junction of the La Prieta and La Blanca
structures (Rosario clavo). The Tucson clavo is the most eastern clavo
drilled to date along the La Prieta structure before it flexes to the
southeast. Mineralisation extends further to the southeast where recent
surface trenching ('Hall's trenches') has exposed high grade
mineralisation.

RC drilling of the 76 clavo and 108 clavo along the La Blanca structure
has proved difficult due to unconsolidated rock overburden. Diamond core
drilling will be used to drill out these two clavos.

PMDH125D returned 11.3 metres @ 7.8 g/t AuEq. This hole targeted the
down-dip extension of mineralisation encountered in the 108 clavo on the
La Blanca structure. This mineralisation is open down dip and along
structure.

Details of the reported drill hole locations are as follows:



------------------------------------------------------------------------
Elev- Decli- Total
ation Azimuth nation RC Core Depth
Hole Northing Easting (m) (degrees) (degrees) (m) (m) (m)
------------------------------------------------------------------------

PMDH125D 3031299 756709 1043 38 -80 100.3 178.3 278.6
------------------------------------------------------------------------
PMDH126D 3031857 756736 1231 50 -67 151.9 134.1 286.0
------------------------------------------------------------------------
PMDH146D 3031599 756256 1184 320 -83 169.2 109.5 278.7
------------------------------------------------------------------------
PMDH147D 3031428 756391 1064 6 -85 160.0 118.7 278.7
------------------------------------------------------------------------
PMDH148D 3031468 756150 1170 96 -61 0 395.0 395.0
------------------------------------------------------------------------
PMDH150D 3031343 756467 1040 44 -60 120.4 79.6 200.0
------------------------------------------------------------------------
PMDH156D 3031322 756633 1053 47 -80 0 77.4 77.4
------------------------------------------------------------------------
PMDH161D 3031553 756253 1180 64 -79 0 349.9 349.9
------------------------------------------------------------------------
PMDH162 3031989 756501 1228 62 -77 291.1 0 291.1
------------------------------------------------------------------------
PMDH164 3032022 756783 1210 19 -65 150.9 0 150.9
------------------------------------------------------------------------
PMDH166 3031965 756335 1220 48 -68 300.2 0 300.2
------------------------------------------------------------------------
PMDH167 3032072 756809 1201 62 -59 100.6 0 100.6
------------------------------------------------------------------------
PMDH168 3031791 756989 1120 68 -68 100.6 0 100.6
------------------------------------------------------------------------
PMDH169 3031791 756989 1120 0 -90 9.1 0 9.1
------------------------------------------------------------------------
PMDH170 3032089 756259 1165 340 -56 204.2 0 204.2
------------------------------------------------------------------------
PMDH171 3011989 756501 1228 38 -61.5 253.0 0 253.0
------------------------------------------------------------------------
PMDH172 3031989 756501 1228 46 -71 248.4 0 248.4
------------------------------------------------------------------------
PMDH173 3011989 756501 1228 38 -61.5 16.8 0 16.8
------------------------------------------------------------------------
PMDH174D 3031529 756230 1174 85.5 -63 0 360.9 360.9
------------------------------------------------------------------------
PMDH175D 3031977 756261 1200 41.5 -75 0 86.4 86.4
------------------------------------------------------------------------
PMDH176 3031989 756501 1228 46 -71 160.0 0 160.0
------------------------------------------------------------------------
PMDH177 3031989 756501 1228 62 -77 175.3 0 175.3
------------------------------------------------------------------------
PMDH178 3031931 756748 1236 6 -71 225.5 0 225.5
------------------------------------------------------------------------
PMDH179 3031973 756693 1229 18 -72 219.5 0 219.5
------------------------------------------------------------------------
PMDH180D 3031529 756230 1174 85.5 -73 0 161.0 161.0
------------------------------------------------------------------------
PMDH181 3031981 756652 1234 13.5 -56 204.2 0 204.2
------------------------------------------------------------------------
PMDH182 3031931 756748 1236 319 -75 248.4 0 248.4
------------------------------------------------------------------------


At the time of this announcement, drill holes PMDH175D, PMDH180D PMDH181
are in progress.

New assay results from the RC drill holes not previously reported from
the Palmarejo Gold-Silver Project are as follows:



------------------------------------------------------------------------
------------------------------------------------------------------------
Hole From To Interval Au Ag AuEq Comments
(m) (m) (m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------

------------------------------------------------------------------------
PMDH137 184.4 189.0 4.6 1.1 143 3.3 La Blanca QVBX
------------------------------------------------------------------------
PMDH138 105.1 106.6 1.5 0.5 91 1.9 La Prieta footwall
stockwork
------------------------------------------------------------------------
PMDH139 262.1 263.6 1.5 1.0 210 4.2 La Prieta QVBX
------------------------------------------------------------------------
PMDH140 No significant result
------------------------------------------------------------------------
PMDH141 No significant result
------------------------------------------------------------------------
PMDH142 No significant result
------------------------------------------------------------------------
PMDH143 13.7 18.3 4.6 0.6 89 2.0 La Blanca QVBX
and 21.3 24.4 3.1 1.8 198 4.9 La Blanca stockwork
and 27.4 28.9 1.5 1.1 129 3.1 La Blanca stockwork
and 60.9 62.4 1.5 3.9 381 9.8 La Blanca stockwork
and 70.1 71.6 1.5 0.6 65 1.6 La Blanca stockwork
and 79.2 80.7 1.5 0.5 76 1.7 La Blanca stockwork
and 92.9 105.1 12.2 3.5 332 8.7 La Prieta QVBX
------------------------------------------------------------------------
PMDH144 73.2 74.7 1.5 0.5 32 1.0 Hanging wall
stockwork
and 134.1 135.6 1.5 0.5 74 1.6 Hanging wall
stockwork
and 138.7 144.8 6.1 2.9 325 7.9 La Prieta QVBX
and 144.8 146.3 1.5 Open workings
and 149.4 150.9 1.5 0.9 56 1.8 La Prieta QVBX
------------------------------------------------------------------------
PMDH145 141.7 146.3 4.6 0.4 56.7 1.3 La Prieta QVBX
and 149.4 150.9 1.5 2.7 376 8.5 La Prieta QVBX
and 150.9 153.9 Open workings
------------------------------------------------------------------------
PMDH146 Precollar
------------------------------------------------------------------------
PMDH147 Precollar
------------------------------------------------------------------------
PMDH149 213.3 214.8 1.5 0.3 56 1.2 La Prieta QVBX
and 224.0 225.5 1.5 0.7 147 3.0 La Prieta footwall
stockwork
------------------------------------------------------------------------
PMDH150 Precollar
------------------------------------------------------------------------
PMDH151 No significant result
------------------------------------------------------------------------
PMDH152 105.1 114.3 9.2 1.1 111 2.8 La Blanca hanging
wall stockwork
and 117.3 123.4 6.1 0.9 164 3.4 La Blanca QVBX
and 126.5 129.5 3.0 2.1 358 7.6 La Blanca footwall
stockwork
and 131.0 135.6 4.6 0.7 101 2.3 La Victoria
and 155.4 158.5 3.1 1.0 129 3.0 La Prieta hanging
wall stockwork
and 204.2 205.7 1.5 3.3 207 6.5 La Prieta hanging
wall stockwork
and 225.5 227.0 1.5 6.1 867 19.4 La Prieta hanging
wall stockwork
and 236.2 237.7 1.5 4.9 20 5.2 La Prieta QVBX
and 254.5 256.0 1.5 1.7 133 3.7 La footwall stockwork
------------------------------------------------------------------------
PMDH153 No significant result
------------------------------------------------------------------------
PMDH154 224.0 225.5 1.5 1.6 237 5.2 La Blanca QVBX
and 227.1 230.1 3.0 1.6 155 4.0 La Blanca footwall
stockwork
and 233.2 248.4 15.2 6.6 318 11.5 Victoria/La Prieta
------------------------------------------------------------------------
PMDH155 No significant result
------------------------------------------------------------------------
PMDH157 No significant result
------------------------------------------------------------------------
PMDH158 No significant result
------------------------------------------------------------------------
PMDH159 103.6 117.3 13.7 3.9 484 11.3 La Blanca QVBX
and 166.1 167.6 1.5 0.0 75 1.2 Small vein
and 199.6 201.1 1.5 1.1 129 3.1 La Victoria stockwork
and 207.3 210.3 3.0 3.1 490 10.6 La Victoria vein
and 222.5 224.0 1.5 0.6 82 1.9 La Prieta hanging wall
stockwork
and 225.6 230.1 4.5 1.2 145 3.4 La Prieta QVBX
and 231.7 233.2 1.5 0.4 46 1.1 La Prieta stockwork
and 234.7 237.7 3.0 0.7 82 2.0 La Prieta QVBX
------------------------------------------------------------------------
PMDH160 76.2 79.2 3.0 0.5 123 2.4 La Blanca QVBX
------------------------------------------------------------------------
PMDH163 117.4 137.2 19.8 0.7 78 1.9 Inc. 3.0 metres open
workings
including 117.4 118.9 1.5 0.3 67 1.3 La Prieta QVBX
and 118.9 120.4 1.5 Open workings
and 120.4 124.9 4.5 1.1 63.5 2.1 La Prieta QVBX
and 129.5 132.6 3.1 0.4 51.5 1.2 La Prieta QVBX
and 132.6 134.1 1.5 Open workings
and 134.1 137.2 3.1 1.2 166.5 3.8 La Prieta footwall
stockwork
------------------------------------------------------------------------

------------------------------------------------------------------------
------------------------------------------------------------------------


------------------------------------------------------------------------
------------------------------------------------------------------------
Hole From To Interval Au Ag AuEq Comments
(m) (m) (m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------

------------------------------------------------------------------------
PMDH164 111.1 114.2 3.1 2.0 208 5.2 La Prieta hanging
wall stockwork
and 115.8 120.4 4.6 1.0 113 2.7 La Prieta hanging
wall stockwork
and 121.9 123.4 1.5 0.6 30 1.1 La Prieta hanging
wall stockwork
and 125.0 126.5 1.5 2.5 295 7.0 La Prieta hanging
wall stockwork
and 129.5 131.0 1.5 1.3 126 3.2 La Prieta hanging
wall stockwork
------------------------------------------------------------------------
PMDH165 105.2 106.7 1.5 2.1 395 8.2 La Blanca stockwork
------------------------------------------------------------------------
PMDH166 102.1 123.4 21.3 3.0 242 6.7 Inc. 4.5 metres open
workings
including 102.1 103.6 1.5 1.0 203 4.1 La Blanca hanging
wall stockwork
and 105.2 106.7 1.5 0.4 49 1.2 La Blanca hanging
wall stockwork
and 109.7 111.2 1.5 0.5 73 1.6 La Blanca hanging
wall stockwork
and 112.8 115.8 3.0 1.9 330 7.0 La Blanca QVBX
and 115.8 118.8 3.0 Open workings
and 118.8 120.4 1.6 25.6 1,645 50.9 La Blanca QVBX
and 120.4 121.9 1.5 Open workings
and 121.9 123.4 1.5 1.3 52 2.1 La Blanca footwall
stockwork
and 285.0 286.5 1.5 0.5 123 2.4 La Prieta QVBX
------------------------------------------------------------------------
PMDH167 No significant result
------------------------------------------------------------------------
PMDH168 10.6 12.1 1.5 1.0 80 2.2 La Prieta
------------------------------------------------------------------------
PMDH169 Hole abandoned
------------------------------------------------------------------------
PMDH170 94.5 112.8 18.3 1.0 227 4.5 La Blanca/La Prieta
QVBX
and 112.8 114.3 1.5 Open workings
and 114.3 117.3 3.0 1.3 230 4.8 La Prieta QVBX
and 117.3 121.9 4.6 Open workings
and 121.9 129.5 7.6 3.0 558 11.6 La Prieta QVBX
and 134.1 135.6 1.5 1.6 299 6.2 La Prieta footwall
stockwork
------------------------------------------------------------------------
PMDH171 195.1 201.2 6.1 Open workings
and 201.2 202.7 1.5 0.2 53 1.0 La Prieta hanging
wall stockwork
and 205.7 208.8 3.1 2.2 379 8.0 La Prieta QVBX
------------------------------------------------------------------------
PMDH172 10.7 13.7 3.0 0.5 107 2.1 La Blanca QVBX
and 213.4 219.5 6.1 1.8 222 5.2 La Prieta QVBX
------------------------------------------------------------------------

------------------------------------------------------------------------
------------------------------------------------------------------------

Assay results from the diamond core drill holes at the Palmarejo
Gold-Silver Project include:

------------------------------------------------------------------------
------------------------------------------------------------------------
Hole From To Interval Au Ag AuEq Comments
(m) (m) (m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------

------------------------------------------------------------------------
PMDH125D 151.1 162.4 11.3 7.0 54 7.8 La Blanca
------------------------------------------------------------------------
PMDH126D 244.1 245.1 1.0 1.9 209 5.1 La Blanca QVBX
and 247.1 248.1 1.0 0.5 44 1.2 La Blanca QVBX
------------------------------------------------------------------------
PMDH146D Hole abandoned
------------------------------------------------------------------------
PMDH148D 332.9 333.4 1.5 9.9 819 22.5 La Blanca vein
------------------------------------------------------------------------
PMDH150D 174.1 174.6 0.5 1.5 15 1.7 La Prieta QVBX
and 175.1 176.6 1.0 0.6 69 1.7 La Prieta footwall
stockwork
------------------------------------------------------------------------
PMDH156D Hole abandoned
------------------------------------------------------------------------

------------------------------------------------------------------------
------------------------------------------------------------------------

Assay results from recent trench sampling at Hall's trenches on the La
Prieta structure include:

------------------------------------------------------------------------
------------------------------------------------------------------------
Trench ID Northing Easting Elevation Interval Au Ag AuEq
(m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------

------------------------------------------------------------------------
PMTR110 3031749 757066 1094 5.3 2.1 158 4.5
------------------------------------------------------------------------
PMTR110 3031749 757066 1094 2.2 2.4 214 5.7
------------------------------------------------------------------------
PMTR111 3031738 757104 1096 3.0 1.8 279 6.1
------------------------------------------------------------------------
PMTR112 3031700 757111 1083 3.5 5.7 532 13.9
------------------------------------------------------------------------
PMTR113 3131671 757141 1071 2.0 0.5 92 1.9
------------------------------------------------------------------------

------------------------------------------------------------------------
------------------------------------------------------------------------


Notes:

- Assays have been calculated using a 1.0 g/t AuEq cut off, no top cut
and a gold to silver price ratio of 1:65.

- The internal voids are historic underground workings and have been
excluded from the mineralised intervals reported above.

- Results are awaited for core drill holes PMDH147D, PMDH161D, PMDH174D,
PMDH175D and PMDH180D.

- Results are awaited for RC drill holes PMDH162, PMDH176 to PMDH179 and
PMDH181 to PMDH182.

- QVBX equals quartz vein breccia.

Drilling with 6 rigs will continue on the resource drilling program on
the La Blanca and La Prieta structures, the testing of depth extensions,
and in defining the likely economic limits of mineralisation such as
Hall's trenches (Hall's clavo?), 100 metres southeast, and the recently
discovered La Finca mineralisation, 1,000 metres southeast, of currently
drilled La Prieta mineralisation. Other significant mineralised
structures such as Los Hundidos in the immediate Palmarejo Project area
will also be drill tested as additional drill equipment is brought to
site.

Canadian Transaction

In summary, the 'Canadian Transaction' includes the following principal
steps:

- The Acquisition by Palmarejo Acquisition Corporation ('Palmarejo'), a
Canadian company, of Bolnisi's wholly owned USA subsidiaries, Ocampo
Resources, Inc and Ocampo Services, Inc which, only own Planet Gold SA
de CV, a Mexican corporation which holds Bolnisi's interest in the
Palmarejo Project.

- The Financing whereby Palmarejo completes a financing of up to
CDN$8,500,000.

- The Business Combination following the Acquisition and the Financing,
between Palmarejo and Bonita Capital Corporation ('Bonita'), a Canadian
capital pool company listed on the TSX Venture Exchange, such that the
resulting company, which will indirectly hold Bolnisi's interests in the
Palmarejo Project, will be listed on the TSX Venture Exchange.

The Financing has been completed and was significantly oversubscribed.
Monies are currently held in escrow pending completion of the
Acquisition and Business Combination.

Documentation for the Acquisition and Business Combination is largely
complete, and is expected to be lodged with the TSX Venture Exchange in
approximately one week.

Other

In accordance with the Australian Stock Exchange Limited Listing Rules
5.10, 5.12 and 5.13, technical information contained in this report has
been compiled by a competent person who is a corporate member of the
Australasian Institute of Mining and Metallurgy and who has consented in
writing to the inclusion of such technical information in the form in
which it appears in this report. The competent person is Kenneth M.
Phillips, geologist of VOP Mining Services Pty Ltd who is also a
director of Bolnisi Gold NL.

For further information, contact Norman Seckold or Peter Nightingale on
(61-2) 92475300.



Yours sincerely

"signed"
Peter J. Nightingale
Director
pjn2924


Two maps are available on CCNMatthews' website at:

http://www2.ccnmatthews.com/database/fax/2000/308bon.pdf


23 December 2004


The Manager Companies
Australian Stock Exchange Limited
20 Bridge Street
Sydney NSW 2000 (4 pages by email)


Dear Madam

RE: DRILLING ESCALATES ON PALMAREJO PROJECT, MEXICO


The Directors are pleased to announce further results from the Palmarejo
Gold-Silver Project in the Temoris District, Chihuahua, Mexico, in which
the Company has options to acquire a 100% interest.

There are currently, 3 reverse circulation ('RC') drill rigs and 2
diamond core ('DD') drill rigs on site. One RC rig and both DD core rigs
are working 2 x 12 hour shifts daily.

Since 1 October 2004, drilling has concentrated on infill drilling on
the inferred resource and on the strike and dip extent of two
substantial ore shoots south along the La Blanca structure. These shoots
have been named the '76-clavo' and the '108-clavo' after the first drill
holes to intersect them.

Many drill holes in the current program have been precollared with RC to
be subsequently deepened by DD core drilling through the target
mineralised structures. The precollared RC holes are labelled
accordingly and show no assay results. DD core drilling advance is slow
due to poor recirculation of drill fluids caused by the brecciated
nature of the ore shoots and post mineral faulting, but steps are being
taken to improve progress.

Since the last update, assay results have been received for 22 RC holes
and 9 DD holes. Full details are listed below, however, of particular
note is:

- PMDH134D which returned 31.1 metres @ 20.3 g/t AuEq (including 18.7
metres @ 11.5 g/t Au and 1,095 g/t Ag for 28.4g/t AuEq). This was a twin
hole of PMDH078D (which failed to penetrate the entire La Blanca
mineralised zone). This result confirms the high grade and width of the
'76-clavo' on the La Blanca structure. A true width estimate for this
intercept is 25 metres.



Details of the reported drill hole locations are as follows:

------------------------------------------------------------------------
------------------------------------------------------------------------
Elev- Decli- Total
ation Azimuth nation RC Core Depth
Hole Northing Easting (m) (degrees) (degrees) (m) (m) (m)
------------------------------------------------------------------------
------------------------------------------------------------------------
PMDH123 3031367 756535 1088 50 -60 228.6 0 228.6
------------------------------------------------------------------------
PMDH124 3031327 756638 1053 47 -80 126.5 0 126.5
------------------------------------------------------------------------
PMDH125 3031299 756709 1043 38 -80 100.6 0 100.6
------------------------------------------------------------------------
PMDH125D 3031299 756709 1043 38 -80 100.3 178.3 278.6
------------------------------------------------------------------------
PMDH126 3031857 756736 1231 50 -67 152.4 0 152.4
------------------------------------------------------------------------
PMDH126D 3031857 756736 1231 50 -67 151.9 134.1 286.0
------------------------------------------------------------------------
PMDH127 3031934 756369 1238 2 -75 137.2 0 137.2
------------------------------------------------------------------------
PMDH128 303217 756181 1125 327 -55 140.2 0 140.2
------------------------------------------------------------------------
PMDH129 3031936 756757 1231 32 -64 213.4 0 213.4
------------------------------------------------------------------------
PMDH130D 3032075 756354 1174 10 -55 0 144.2 144.2
------------------------------------------------------------------------
PMDH131 3031778 756780 1187 97 -45 280.4 0 280.4
------------------------------------------------------------------------
PMDH132 3031913 756480 1250 6 -71 140.2 0 140.2
------------------------------------------------------------------------
PMDH133 3031915 756478 1250 90 -44 80.8 0 80.8
------------------------------------------------------------------------
PMDH134D 3031469 756156 1170 62.3 -52 0 407.6 407.6
------------------------------------------------------------------------
PMDH135 3031759 756367 1243 46 -48 251.5 0 251.5
------------------------------------------------------------------------
PMDH136 3031840 756387 1244 42 -43 282.0 0 282.0
------------------------------------------------------------------------
PMDH137 3031752 756289 1198 58 -46 233.2 0 233.2
------------------------------------------------------------------------
PMDH138 3032171 756188 1125 58.5 -47 109.9 0 109.9
------------------------------------------------------------------------
PMDH139 3032027 756138 1192 2 -48 294.1 0 294.1
------------------------------------------------------------------------
PMDH140 3031977 756126 1185 6 -53 303.3 0 303.3
------------------------------------------------------------------------
PMDH141 3032174 756191 1125 15 -49 100.6 0 100.6
------------------------------------------------------------------------
PMDH142 3032090 756163 1184 13 -52 167.6 0 167.6
------------------------------------------------------------------------
PMDH143 3032074 756360 1174 20 -50 152.4 0 152.4
------------------------------------------------------------------------
PMDH144 3032003 756738 1221 8 -47.5 167.6 0 167.6
------------------------------------------------------------------------
PMDH145 3032013 756580 1239 27 -77 167.1 0 167.1
------------------------------------------------------------------------
PMDH146 3031599 756256 1184 58 -83 167.6 0 167.6
------------------------------------------------------------------------
PMDH147 3031428 756391 1065 6 -85 160.0 0 160.0
------------------------------------------------------------------------
PMDH148D 3031468 756150 1170 96 -61 0 395.0 394.5
------------------------------------------------------------------------
PMDH149 3032089 756160 1184 344 -52 260.6 0 260.6
------------------------------------------------------------------------
PMDH150 3031343 756467 1040 44 -60 120.4 0 120.4
------------------------------------------------------------------------
PMDH151 3032089 756160 1184 9 -62 221.0 0 221.0
------------------------------------------------------------------------
PMDH152 3031981 756303 1225 39 -64 280.0 0 280.0
------------------------------------------------------------------------
PMDH153 3031489 757166 940 67 -60 60.0 0 60.0
------------------------------------------------------------------------
PMDH154 3032027 756168 1197 13 -77 318.5 0 318.5
------------------------------------------------------------------------
PMDH155 3031457 757182 928 75 -60 77.5 0 77.5
------------------------------------------------------------------------
PMDH159 3031965 756335 1220 39 -55 285.0 0 285.0
------------------------------------------------------------------------
PMDH160 3031808 756474 1240 44 -59 108.2 0 108.2
------------------------------------------------------------------------
PMDH161D 3031553 756253 1180 64 -79 0 121.5 121.5
------------------------------------------------------------------------
PMDH163 3032022 756783 1219 57 -61 169.2 0 169.2
------------------------------------------------------------------------
------------------------------------------------------------------------


At the time of this announcement, drill holes PMDH146D, PMDH156D,
PMDH157, PMDH158, PMDH162 and PMDH164 are in progress.

Assay results from RC drill holes not previously reported are:




------------------------------------------------------------------------
Hole From To Interval Au Ag AuEq Comments
(m) (m) (m) (m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------

------------------------------------------------------------------------
PMDH111 NSR
------------------------------------------------------------------------
PMDH112 210.3 213.4 3.1 0.8 84 2.1 La Blanca hanging
wall stockwork
------------------------------------------------------------------------
PMDH114 36.6 38.1 1.5 0.7 76 1.9 La Blanca QVBX
------------------------------------------------------------------------
PMDH116 NSR
------------------------------------------------------------------------
PMDH117 94.5 96.0 1.5 1.4 less 1.4
than 5
------------------------------------------------------------------------
PMDH118 Precollar
------------------------------------------------------------------------
PMDH119 Precollar
------------------------------------------------------------------------
PMDH120 NSR
------------------------------------------------------------------------
PMDH121 NA NA NA Precollar
------------------------------------------------------------------------
PMDH122 125.0 135.6 10.6 0.5 76 1.5 La Blanca hanging
wall stockwork
------------------------------------------------------------------------
PMDH123 Precollar
------------------------------------------------------------------------
PMDH124 Precollar
------------------------------------------------------------------------
PMDH125 Precollar
------------------------------------------------------------------------
PMDH126 Precollar
------------------------------------------------------------------------
PMDH127 130.2 136.2 6.0 UG workings void
------------------------------------------------------------------------
PMDH128 111.3 120.4 9.1 0.7 90 2.1 La Blanca QVBX
------------------------------------------------------------------------
PMDH129 178.3 179.8 1.5 1.1 134 3.2
and 181.4 184.4 3.0 1.2 145 3.5
and 185.9 187.5 1.6 0.4 53 1.2 La Prieta QVBX
and 189.0 190.5 1.5 1.1 151 3.4
and 192.0 193.5 1.5 0.8 33 1.3
------------------------------------------------------------------------
PMDH131 240.8 243.8 3.0 1.2 63 2.1 La Prieta QVBX
------------------------------------------------------------------------
PMDH132 64.0 65.5 1.5 0.3 76 1.5 Victoria
and 99.1 100.6 1.5 1.2 125 3.1 La Prieta QVBX
and 105.2 106.7 1.5 0.5 54 1.3 La Prieta QVBX
------------------------------------------------------------------------
PMDH133 45.7 48.8 3.1 1.4 281 5.7 La Blanca QVBX
------------------------------------------------------------------------
PMDH135 143.3 144.8 1.5 0.3 48 1.1 La Blanca QVBX
and 158.5 161.5 3.0 0.7 129 2.7
------------------------------------------------------------------------
PMDH136 134.1 137.2 3.1 0.8 154 3.2 La Blanca QVBX
and 172.2 173.7 1.5 0.9 121 2.7
------------------------------------------------------------------------

Assay results from the diamond core drill holes at the Palmarejo
Gold-Silver Project include:

------------------------------------------------------------------------
Hole From To Interval Au Ag AuEq Comments
(m) (m) (m) (m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------
PMDH093D Hole abandoned.
------------------------------------------------------------------------
PMDH097D NSR
------------------------------------------------------------------------
PMDH113D 59.6 61 1.4 0.3 139.8 2.5 La Blanca QVBX
------------------------------------------------------------------------
PMDH115D 40.0 40.6 0.6 3.2 402 9.4 La Blanca football
and 50.9 65.0 14.1 1.8 326 6.8 stockwork Oxidised La
Prieta footwall
------------------------------------------------------------------------
PMDH118D NSR
------------------------------------------------------------------------
PMDH119D NSR
------------------------------------------------------------------------
PMDH121D NSR
------------------------------------------------------------------------
PMDH130D 18.0 20.8 2.8 0.95 137 3.0 Twin of PMDH020/La
Blanca hanging wall
stockwork
and 22.5 23.9 1.4 0.9 125 2.8 La Blanca footwall
stockwork
and 54.7 55.8 1.1 4.4 less 4.4 Victoria vein
than 5
and 107.8 108.9 1.1 1.8 175 4.5 La Prieta QVBX
------------------------------------------------------------------------
PMDH134D 319.8 330.3 10.5 0.8 107 2.5 Twin of PMDH078D/La
Blanca hanging wall
stockwork
and 330.3 332.2 1.9 0.1 32 0.6 QVBX
and 332.2 350.9 18.7 11.5 1,095 28.4 La Blanca stockwork
and QVBX
includes 339.3 339.8 0.5 148.5 17,347 415.4 La Blanca internal
stockwork
------------------------------------------------------------------------


Notes:

- Assays have been calculated using a 1.0 g/t AuEq cut off, no top cut
and a gold to silver price ratio of 1:65.

- The internal voids are historic underground workings and have been
excluded from the mineralised intervals reported above.

- Results are awaited for core drill holes PMDH125D, PMDH126D, PMDH148D
and PMDH161D.

- Results are awaited for RC drill holes, PMDH137 to PMDH163.

- QVBX equals quartz vein breccia.

- NSR equals No significant result.

- NA equals Not applicable.

- A number of short low grade (less than 2 g/t AuEq) intervals, while
included in the database, have been omitted from the above assay result
tables.

Drilling will halt for the Mexican Christmas shutdown on 17 December
2004 and will resume on 7 January 2005. Immediate future drilling is
aimed at infilling existing drilling patterns to enable upgrading of
resource status to measured and indicated while further defining clavos
(ore shoots) on the La Blanca and La Prieta structures and exploratory
drilling on extensional structures in the greater Palmarejo/Trogan area.

In accordance with the Australian Stock Exchange Limited Listing Rules
5.10, 5.12 and 5.13, technical information contained in this report has
been compiled by a competent person who is a corporate member of the
Australasian Institute of Mining and Metallurgy and who has consented in
writing to the inclusion of such technical information in the form in
which it appears in this report. The competent person is Kenneth M.
Phillips, geologist of VOP Mining Services Pty Ltd who is also a
director of Bolnisi Gold NL.

For further information, contact Norman Seckold or Peter Nightingale on
(61-2) 92475300.



Yours sincerely

"signed"
Peter J. Nightingale
Director
pjn2867


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Bonita Capital Corporation
    Michael G. Thomson
    (239) 390-3334
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.