Breakwater Resources Ltd.
TSX : BWR

Breakwater Resources Ltd.

February 29, 2008 16:25 ET

Breakwater Resources Ltd.'s 2008 Forecast for Capital Expenditures

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2008) - In 2008, Breakwater (TSX:BWR) plans to spend $105.3 million on capital for the Company's operations. Of this amount, the bulk of funds are related to mine development at each of the minesites as well as continuing improvements to the Mochito and Toqui mines.



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Capital Expenditures ($ millions) 2008 Projection
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Mochito 24.2
Toqui 26.0
Langlois 42.4
Myra Falls 12.7
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Total Capital 105.3
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At Mochito, of the $24.2 million, we plan to spend $17.5 million within the mine, including mine equipment, infrastructure and development, $5.1 million on the work at Pozo Azul and Soledad tailings impoundment areas and the balance in the mill and on other projects. At Toqui, we plan to spend $10.3 million on mine development including access to Porvenir, $3.0 million on mine equipment and infrastructure, $1.0 million on the mill, $8.2 million on engineering and construction of a pastefill plant and $3.5 million on various other projects including the pre-feasibility study for a 1.0 million tonne per annum throughput mill. At Langlois, $10.2 million will be spent on mine equipment, $28.5 million on mine development, with the remaining $3.7 million spent in the mill and on other projects. At Myra Falls, we expect to spend $7.8 million on mine development, $2.2 million on the new tailings impoundment area, $1.0 million in the mill with the remaining $1.7 million to be spent on various projects.

Additionally, we expect our operating costs per tonne milled at each of our operations will be in the ranges set forth below.



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Operating Costs
(per tonne milled)
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Mochito US$53 - US$61
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Toqui US$40 - US$46
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Myra Falls C$97 - C$124
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Langlois C$85 - C$133
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Langlois' production is forecast to approximately double from 100,000 tonnes in the first quarter to just over 200,000 tonnes in the fourth quarter with weighted-average annual operating costs per tonne milled to be in the C$91 to C$101 range. Likewise, Myra Falls' production is forecast to ramp up from approximately 180,000 tonnes in the first quarter to approximately 205,000 in the fourth quarter with weighted-average annual operating costs per tonne milled to be in the range of C$105 to C$116.

Finally, please note an error was discovered in yesterday's disclosure of our forecast production. The correct numbers are set forth below:



Metal in Concentrate Contained Payable
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Gold (ounces)
Toqui 13,700 11,200
Myra Falls 18,700 14,000
Langlois 1,700 1,200
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34,100 26,400
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Forward-looking Information

Securities regulators encourage public companies to disclose projections or forecasts to help investors understand a company's future prospects. The foregoing forecasts, or "forward looking information" contained in this news release sets forth management's expectations about Breakwater's production for 2008 and its capital and exploration programs. This information is "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, assumes or other similar words.

We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with the mining business or events that happen after the date of this news release. You should not place undue reliance on this forward-looking information. As a general policy, we do not update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by securities laws and regulations.

Contact Information

  • Breakwater Resources Ltd.
    Ann Wilkinson
    Vice President, Investor Relations
    (416) 363-4798 Ext. 277