Breakwater Resources Ltd.

Breakwater Resources Ltd.

October 18, 2007 16:01 ET

Breakwater Temporarily Suspends Milling Operations at Its Mochito Mine (Honduras)

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2007) - Breakwater Resources Ltd. ("Breakwater") (TSX:BWR) announced today that it recently discovered discharge of water from the Soledad tailings impoundment area which has necessitated temporary suspension of milling operations at Mochito. Preliminary investigation has now shown that the discharge is related to the separation of the geotextile liner from the concrete decant structure. While some portion of the contact between the liner and the concrete has been exposed, efforts are now underway to lower the level in the pond to expose the balance and properly ascertain the extent of the separation and the nature of the required repairs.

Based on monitoring conducted to date, there are no indications of any adverse impacts on receiving waters including Lake Yojoa. No structural damages have been located at Soledad and none is thought to exist.

Mining at Mochito continues and will continue as long as is practical.

Alternatives, including the possible re-commissioning of the retired tailings facility, are being explored in an effort to return Mochito to normal mining and milling operations as soon as possible.

Until the investigation has concluded and a recovery plan established, no reliable estimate of when milling will resume can be given.

The Company intends to provide periodic updates as additional information becomes available.

This news release contains certain statements which constitute forward-looking information. These forward-looking statements are not descriptive of historical matters and refer to management's expectations or plans. These statements include, but are not limited to, statements concerning the Company's business objectives and plans; future production costs and volumes; sales volumes and realized prices; capital spending plans; expected plant availability; success of process changes; and production of base metal concentrates by the Company's operations.

Inherent in forward-looking statements are risks and uncertainties beyond the Company's ability to predict or control, including risks that may affect the Company's operating or capital plans, including risks generally encountered in the development and operation of mineral properties and processing facilities such as unusual or unexpected geological formations, unanticipated metallurgical difficulties, ground control problems, process upsets and equipment malfunctions; risks associated with environmental compliance and permitting, including those created by changes in environmental legislation and regulation; social and political risks associated with operations in foreign countries; and risks associated with legal proceedings.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: that there is no material deterioration in general business and economic conditions; that the Company receives regulatory and governmental approvals for its development projects and other operations on a timely basis; that there is no unforeseen deterioration in the Company's costs of production or production and productivity levels; that the Company is able to procure mining equipment and operating supplies (including tires) in sufficient quantities and on a timely basis; that engineering and construction timetables and capital costs for the Company's development and expansion projects are not incorrectly estimated or affected by unforeseen circumstances; that costs of closure of various operations are accurately estimated; that environmental and other proceedings or disputes are satisfactorily resolved; and that Breakwater maintains its ongoing relations with its employees and with its business partners and joint venturers.

Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Readers should also carefully consider the matters discussed under "Risk Factors" in the Company's Annual Information Form. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise, except as may be required under applicable laws.

Contact Information

  • Breakwater Resources Ltd.
    Torben Jensen
    Vice President, Engineering
    (416) 363-4798 Ext. 232