Britannica Resources Corp.

Britannica Resources Corp.

September 19, 2005 11:59 ET

Britannica Eyes Gold Producer in Ecuador

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 19, 2005) - Britannica Resources Corp. (TSX VENTURE:BRR)(PINK SHEETS:BRRF) -

The company announces that it has opened negotiations for acquisition of a producing gold property located in Portovelo, Ecuador. The property, named Machala, is located within the Portovelo-Zaruma mining district or Oro Province, Ecuador which has historic gold production of 4.5 million ounces. The production has been derived from an extensive set of base metal rich veins that lie adjacent to a cluster of porphyry intrusions around which alteration and vein mineralogy are located.

The property is comprised of 45 hectares (112.5 acres) located on the north bank of the Amarillo River and contains an active underground operation.

The property was under active production until 1950 by Asarco and the mine was subsequently flooded below the level of the entrance when Asarco left the area at which time gold was valued $28/ounce. The property in addition to extensive underground working (14 levels below the entrance, 10 levels above) hosts a potential open pit resource within the concession.

Currently the mine is producing 120 to 150 tonnes per day which is the limit of the processing capability, from level three of the underground operations, with a grade averaging 3.6 g/t plus silver values of 30 g/t.

A report was prepared in 2001 for Minanca, the current owners of the property, to investigate the potential of the concession for open pit mining. The data to date has outlined a gold and silver mineralized system that offers a potential for approximately 127 million tonnes grading between 1.16 g/t and 8.02 g/t Au, yielding a potential resource of 4million plus ounces gold and 30 million plus ounces of silver. The reported values above are conceptual in nature and do not comply with the definitions of a National Instrument 43-101 mineral resource on the property. Additional exploration may or may not result in discovery of an economic mineral resource on the property. The above-quoted figures are reported as an exploration target, based on reasonable assumptions made from compiled data. These figures should not be construed to reflect a calculated resource (inferred, indicated or measured) under standards of National Instrument 43-101.

Further news will be made when it becomes available. Company representatives will be completing their due diligence on compiled data and title in the very near future.

Lee Balak, president.

Contact Information

  • Britannica Resources Corp.
    Lee Balak
    (604) 662-3004