Apex Silver Mines Limited (AMEX: SIL) today provided an update regarding the company's restructuring and financing arrangements.
Letter of Intent for Sale of San Cristobal to Sumitomo
As announced on November 14, 2008, Apex Silver Mines Limited ("Apex Silver") entered into a non-binding letter of intent with Sumitomo Corporation ("Sumitomo") providing for the sale of Apex's interest in the San Cristobal mine to Sumitomo for a cash purchase price of $22.5 million, payable at the closing of the sale. Apex Silver would continue to manage the mine following the sale. Apex Silver and Sumitomo are continuing to negotiate definitive documentation related to this transaction. Upon completion of the sale, the holders of the Apex Silver $290.0 million in convertible notes would be entitled, under the existing terms of the notes, to redeem the notes for cash. The non-binding letter of intent is subject to significant conditions, including the restructuring of the Apex Silver convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
Termination of Derivative Positions
Apex Silver, Sumitomo and Minera San Cristobal, S.A. ("MSC") have entered into agreements with BNP Paribas and Barlcays PLC for the termination of the derivative positions established as a requirement of the San Cristobal project financing arrangements. Apex Silver paid approximately $59.0 million, or 65% of the final net settlement amounts with respect to the derivative positions, and repaid Sumitomo $7.5 million in respect of 65% of funding previously provided by Sumitomo to MSC to settle certain derivative positions. Apex Silver made these payments from the $91.0 million previously deposited by Apex Silver as cash collateral for the benefit of the counterparties to the derivative positions. Apex Silver received the remaining cash collateral, totaling $24.5 million.
Project Finance Loans Acquired by Sumitomo
Sumitomo has acquired 90% of the San Cristobal project finance loans from the lenders at par plus accrued interest, together with the right to exercise remedies of the lenders against MSC, Apex Silver and other Apex Silver subsidiaries. As previously disclosed, Apex Silver anticipates that Sumitomo, as the current holder of the San Cristobal project finance loans and the rights to exercise remedies against MSC, will have the right to accelerate the indebtedness outstanding upon a default by MSC or Apex Silver and its affiliates including the circumstances described in Apex Silver's quarterly report on Form 10-Q, for the quarter ending September 30, 2008. As noted in that filing, Apex Silver does not have, and does not expect to have, sufficient cash to fully settle its share of the obligations if they were to become immediately due and payable and has reclassified such obligations as short-term in its consolidated balance sheets.
Amendment to Sumitomo Loan Agreement
Under the terms of the Amendment to the Loan Agreement dated August 11, 2008 with SC Minerals Aktiebolag, a subsidiary of Sumitomo ("SC Minerals"), SC Minerals has agreed to increase by $25.0 million the amount available for borrowing by MSC. SC Minerals is the 35% shareholder of MSC. The additional $25 million is to be used solely to fund MSC's operating expenses. The $25.0 million is in addition to the $125.0 previously borrowed pursuant to the original Loan Agreement and subsequent Amendments to the Loan Agreement. The additional loan amount may be borrowed by MSC at any time on or before December 31, 2008. Apex Silver expects that MSC will borrow the full Additional Loan Amount on December 22, 2008.
If the full amount available under the amended Loan Agreement is fully drawn (including the Additional Loan Amount), no payments are made by MSC prior to maturity, and SC Minerals were to convert all amounts payable into MSC shares as of the maturity date, Apex Silver's indirect ownership interest in MSC would be reduced to approximately 40.5% (approximately 48.2% on conversion of principal only).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristobal mine and the restructuring of Apex Silver's capital structure, the expected continuation of Apex Silver as a management services and exploration company, and MSC's anticipated borrowing from SC Minerals. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo, and the risk that SC Minerals does not advance funds to MSC. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs
Thursday, December 18, 2008
MAG Silver Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA - MAG Silver Corp. (TSX: MAG)(NYSE-A: MVG) ("MAG") provides the following as an update to recent company activities.
MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets.
Presently MAG has two drills operating at Cinco de Mayo and one drill at each of Lagartos SE and Lorena. At Juanicipio, four drills in total are operating. Two drills are operating on the Valdecanas Vein completing the 100 metre by 100 metre grid pattern and two drills are operating on the Juanicipio Vein, located one kilometre south of the Valdecanas Vein. These holes are testing for deeper intersections on the western extension of the earlier high grade intercepts.
To the end of November approximately CDN$55.0M remains in the treasury.
Separately, MAG has informed Fresnillo plc that, without prejudice to any of MAG's rights and interests, MAG has created an independent committee that is proceeding to identify and retain an independent valuator to prepare a valuation of MAG as required under applicable securities legislation. Under these rules, the valuation will be prepared at Fresnillo's cost. MAG continues to evaluate a number of strategic alternatives and no action is required by shareholders at this time.
Qualified Person: Dan MacInnis, P.Geo., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised and verified the preparation of the technical information in this release. Mr. MacInnis is not independent as he is the President, CEO and a director of MAG Silver Corp.
About MAG Silver Corp. (www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the silver mining industry. MAG and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources", that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
© MarketWire 2008
MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets.
Presently MAG has two drills operating at Cinco de Mayo and one drill at each of Lagartos SE and Lorena. At Juanicipio, four drills in total are operating. Two drills are operating on the Valdecanas Vein completing the 100 metre by 100 metre grid pattern and two drills are operating on the Juanicipio Vein, located one kilometre south of the Valdecanas Vein. These holes are testing for deeper intersections on the western extension of the earlier high grade intercepts.
To the end of November approximately CDN$55.0M remains in the treasury.
Separately, MAG has informed Fresnillo plc that, without prejudice to any of MAG's rights and interests, MAG has created an independent committee that is proceeding to identify and retain an independent valuator to prepare a valuation of MAG as required under applicable securities legislation. Under these rules, the valuation will be prepared at Fresnillo's cost. MAG continues to evaluate a number of strategic alternatives and no action is required by shareholders at this time.
Qualified Person: Dan MacInnis, P.Geo., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised and verified the preparation of the technical information in this release. Mr. MacInnis is not independent as he is the President, CEO and a director of MAG Silver Corp.
About MAG Silver Corp. (www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the silver mining industry. MAG and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources", that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
© MarketWire 2008
B2Gold Corp. Announces Additional Positive Exploration Drill Results From the Quebradona Gold Property in Colombia
VANCOUVER, BRITISH COLUMBIA, Dec 18, 2008 (MARKET WIRE via COMTEX) -- B2Gold Corp. (CA:BTO) ("B2Gold" or the "Company"), is pleased to announce further exploration drilling results from the Aurora target on the Quebradona property in Colombia. The Quebradona property is a joint venture with AngloGold Ashanti Limited ("AngloGold Ashanti").
The new drilling results from Quebradona confirm the good grade and consistency of gold mineralization from the first 16 holes (see press releases dated 02/07/08 and 08/05/08) in the Aurora system. The drilling intersected up to 380 metres ("m") at 1.1 grams per tonne of gold ("g/t Au") in Hole 24.
Quebradona Property
The Quebradona property is located 60 kilometres ("km") southwest of Medellin, Colombia. The new results from the Quebradona property are from an additional nine holes (holes 17 to 25), totaling 2,782.6 m drilled in the La Mama zone of the Aurora system. The additional holes followed up positive results obtained from the first 16 holes at Aurora. A total of 25 holes and 7,280.8 m have been drilled at Aurora in 2008.
In addition to Aurora, the Company has drill tested the Isabella, La Sola, Chaquiro and Tenedor gold-bearing porphyry systems outlined by prior surface sampling over a six by four km area. A total of 13,318.8 m in 43 holes were drilled at Quebradona in 2008, comprised of 7,280.8 m in 25 holes in Aurora, 803.1 m in four holes in Isabella, 1,900.1 m in six holes in La Sola, 1,987.6 m in five holes at Chaquiro and 1,347.2 m in three holes at Tenedor. Assay results are pending on La Sola, Chaquiro and Tenedor, and will be released as available but results are not expected to show significant gold mineralization. Assay results on Isabella were previously released (see press release dated 08/05/08).
The Aurora system consists of two strong porphyry gold occurrences contained within a suite of intermediate intrusive and volcanic rocks. The Aurora system covers an 800 by 700 m area and is comprised of the La Mama zone and the La Isla zone, separated by 200 m of late, unmineralized porphyry.
The additional nine holes drilled at Aurora tested the continuity of previously outlined gold mineralization in the La Mama zone. Of the 25 holes drilled at Aurora, 22 holes totaling 6,129.9 m tested La Mama and three holes totaling 1,150.9 m tested La Isla.
Highlights of the results from the additional nine holes (Holes 17 to 25) at Aurora are shown below.
Aurora Drill Holes 17 to 25 Assay Results
--------------------------------------------------------------------
From To Metres Gold Silver Copper
Location Hole # (m) (m) (m) (g/t) (g/t) (%)
--------------------------------------------------------------------
La Mama 17 Low Grade
--------------------------------------------------------------------
La Mama 18 Low Grade
--------------------------------------------------------------------
La Mama 19 0 208.1 208.1 0.90 1.9 0.124
--------------------------------------------------------------------
La Mama 20 0 454.5 454.5 0.69 1.8 0.124
--------------------------------------------------------------------
La Mama Incl. 135.00 264.10 129.1 1.00 2.2 0.124
--------------------------------------------------------------------
La Mama(i) 21(i) 0 91.25 91.25 0.72 2.2 0.119
--------------------------------------------------------------------
La Mama 22 0 80.30 80.30 1.01 3.3 0.209
--------------------------------------------------------------------
La Mama 23 136.00 195.20 59.20 1.66 2.5 0.192
--------------------------------------------------------------------
La Mama 24 0 379.9 379.9 1.09 1.6 0.161
--------------------------------------------------------------------
La Mama Incl. 60.72 141.00 80.28 2.02 2.1 0.206
--------------------------------------------------------------------
La Mama(i) 25(i) 2.00 369.65 367.65 0.67 1.6 0.126
--------------------------------------------------------------------
La Mama Incl. 2.00 80.00 78.00 1.08 2.6 0.157
--------------------------------------------------------------------
(i)Parts of holes 21 and 25 are currently being re-assayed to meet B2Gold's
QA/QC standards
Drilling has now tested a 700 by 400 m area of the La Mama zone with intercepts from the recent drilling returning up to 129 m of 1.0 g/t Au in Hole 20, 80 m of 1.0 g/t Au in Hole 22, 380 m of 1.1 g/t Au including 80 m of 2.0 g/t Au in Hole 24 and 78 m of 1.1 g/t Au in Hole 25. Significant gold mineralization has been outlined over a 400 m long by 150 m wide zone extending to at least 450 m in depth. The zone remains open at depth. The Company expects to prepare a National Instrument 43-101 compliant resource study based on this drilling at the La Mama zone of Aurora by early 2009.
At La Isla, significant gold mineralization has been outlined over a 300 m long by 50 to 100 m wide zone extending to at least 350 m in depth with the zone remaining open in all directions. Drilling at La Isla has encountered significant mineralization over a 250 by 200 m area with intercepts up to 182 m at 1.08 g/t Au in Hole 8. Further drilling will test the extensions of the zone.
Highlights of the previously released first 16 drill holes at Aurora are shown below.
Aurora Drill Holes 1 to 16 Assay Results - Previously Released
--------------------------------------------------------------------
From To Metres Gold Silver Copper
Location Hole # (m) (m) (m) (g/t) (g/t) (%)
--------------------------------------------------------------------
La Mama 1 4.05 165.92 161.87 0.97 2.50 0.154
--------------------------------------------------------------------
La Mama 2(i) 0 52.70 52.70 1.36 2.10 0.144
--------------------------------------------------------------------
La Mama 3 0 86.15 86.15 0.99 2.10 0.134
--------------------------------------------------------------------
La Mama Incl. 0 32.90 32.90 1.67 2.60 0.167
--------------------------------------------------------------------
La Mama 4 0.70 87.00 86.30 2.07 2.60 0.166
--------------------------------------------------------------------
La Mama 5 0 65.80 65.80 0.94 2.50 0.162
--------------------------------------------------------------------
La Mama 6 5.40 235.00 229.60 0.79 2.00 0.152
--------------------------------------------------------------------
La Mama Incl. 29.00 154.00 125.00 1.07 2.00 0.163
--------------------------------------------------------------------
La Mama 7 No significant values
--------------------------------------------------------------------
La Isla 8 0 439.00 439.00 0.61 1.00 0.127
--------------------------------------------------------------------
La Isla Incl. 256.60 439.00 182.40 1.08 1.20 0.190
--------------------------------------------------------------------
La Isla 9 136.00 223.00 87.00 0.54 1.80 0.138
--------------------------------------------------------------------
La Isla and 251.10 272.90 21.80 0.54 1.70 0.138
--------------------------------------------------------------------
La Mama 10 1.00 268.00 267.00 0.50 1.60 0.101
--------------------------------------------------------------------
La Mama 11 211.00 296.00 85.00 1.20 2.80 0.247
--------------------------------------------------------------------
La Mama Incl. 258.00 296.00 38.00 1.66 2.80 0.269
--------------------------------------------------------------------
La Mama 12 Low Grade
--------------------------------------------------------------------
La Mama 13 No significant values
--------------------------------------------------------------------
La Isla 14 182.00 262.70 80.70 1.02 0.80 0.176
--------------------------------------------------------------------
La Mama 15 0 49.00 49.00 0.34 0.90 0.081
--------------------------------------------------------------------
La Mama 16 Low Grade
--------------------------------------------------------------------
(i)Lost hole at 52.70 m in mineralization.
Under the terms of the Colombian joint venture agreement (the "Agreement"), B2Gold has earned its 51% interest in the Quebradona property by completing 5,000 m of exploration drilling. In September 2008, B2Gold and AngloGold Ashanti reached an agreement to amend the Agreement and jointly fund an additional 10,000 m of exploration drilling at the Quebradona Property on a 51% B2Gold / 49% AngloGold Ashanti basis (see press releases dated 16/09/08).
An additional 8,318.8 m of the planned 10,000 m drilling was completed in 2008 and after receipt of all results, data and interpretation from the drilling program, AngloGold Ashanti will have 30 days to choose from the following participation alternative regarding further exploration at the Quebradona property: (i) elect to fund all future exploration as the operator at 65% and free carry B2Gold through to feasibility; (ii) elect to be the operator and fund on a pro-rata basis of 51% AngloGold Ashanti and 49% B2Gold; or (iii) elect to fund as the owner of a 49% interest with B2Gold as operator owning and funding to 51%.
The drilling program at the Quebradona property is reviewed and the results approved by Tom Garagan, B2Gold's Qualified Person under National Instrument 43-101. The Quebradona drill program utilizes extensive QA/QC (quality assurance and quality control) protocols for assaying and core sample handling that consist of the systematic insertion of blanks, standards and duplicates as well as using a secondary laboratory for regular check assaying. Core samples are cut with a diamond saw with one-half of the core placed in sealed bags and shipped directly to ALS Chemex Labs in Bogota, Colombia for sample preparation with the pulps subsequently sent to ALS Chemex Labs in Lima, Peru for gold fire assay and ICP analyses. Further Colombian Exploration
B2Gold has carried out approximately 30,000 m drilling on the 51% B2Gold / 49% AngloGold Ashanti Gramalote gold property in 2008 and drilling is continuing. B2Gold intends to publish a National Instrument 43-101 compliant resource calculation of the Gramalote Ridge zone on the property in January 2009.
At the 100% owned Mocoa copper molybdenum deposit, B2Gold has completed a 5,122 m drill program. B2Gold has a 2008 Colombian exploration budget of US$23 million.
Corporate Update
B2Gold maintains a strong financial position with approximately CDN$57.6 million in cash. The Company continues to explore and evaluate potential acquisition opportunities, capitalizing on the extensive experience and relationships that its management team has developed in the mining industry over the past 25 years. B2Gold's corporate objective is to build an intermediate gold company through exploration and acquisitions.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts:
B2Gold Corp.
Ian MacLean
Vice President, Investor Relations
(604) 681-8371
B2Gold Corp.
Kerry Suffolk
Manager, Investor Relations
(604) 681-8371
Website: www.b2gold.com
SOURCE: B2Gold Corp.
http://www.b2gold.com
Copyright 2008 Market Wire, All rights reserved.
The new drilling results from Quebradona confirm the good grade and consistency of gold mineralization from the first 16 holes (see press releases dated 02/07/08 and 08/05/08) in the Aurora system. The drilling intersected up to 380 metres ("m") at 1.1 grams per tonne of gold ("g/t Au") in Hole 24.
Quebradona Property
The Quebradona property is located 60 kilometres ("km") southwest of Medellin, Colombia. The new results from the Quebradona property are from an additional nine holes (holes 17 to 25), totaling 2,782.6 m drilled in the La Mama zone of the Aurora system. The additional holes followed up positive results obtained from the first 16 holes at Aurora. A total of 25 holes and 7,280.8 m have been drilled at Aurora in 2008.
In addition to Aurora, the Company has drill tested the Isabella, La Sola, Chaquiro and Tenedor gold-bearing porphyry systems outlined by prior surface sampling over a six by four km area. A total of 13,318.8 m in 43 holes were drilled at Quebradona in 2008, comprised of 7,280.8 m in 25 holes in Aurora, 803.1 m in four holes in Isabella, 1,900.1 m in six holes in La Sola, 1,987.6 m in five holes at Chaquiro and 1,347.2 m in three holes at Tenedor. Assay results are pending on La Sola, Chaquiro and Tenedor, and will be released as available but results are not expected to show significant gold mineralization. Assay results on Isabella were previously released (see press release dated 08/05/08).
The Aurora system consists of two strong porphyry gold occurrences contained within a suite of intermediate intrusive and volcanic rocks. The Aurora system covers an 800 by 700 m area and is comprised of the La Mama zone and the La Isla zone, separated by 200 m of late, unmineralized porphyry.
The additional nine holes drilled at Aurora tested the continuity of previously outlined gold mineralization in the La Mama zone. Of the 25 holes drilled at Aurora, 22 holes totaling 6,129.9 m tested La Mama and three holes totaling 1,150.9 m tested La Isla.
Highlights of the results from the additional nine holes (Holes 17 to 25) at Aurora are shown below.
Aurora Drill Holes 17 to 25 Assay Results
--------------------------------------------------------------------
From To Metres Gold Silver Copper
Location Hole # (m) (m) (m) (g/t) (g/t) (%)
--------------------------------------------------------------------
La Mama 17 Low Grade
--------------------------------------------------------------------
La Mama 18 Low Grade
--------------------------------------------------------------------
La Mama 19 0 208.1 208.1 0.90 1.9 0.124
--------------------------------------------------------------------
La Mama 20 0 454.5 454.5 0.69 1.8 0.124
--------------------------------------------------------------------
La Mama Incl. 135.00 264.10 129.1 1.00 2.2 0.124
--------------------------------------------------------------------
La Mama(i) 21(i) 0 91.25 91.25 0.72 2.2 0.119
--------------------------------------------------------------------
La Mama 22 0 80.30 80.30 1.01 3.3 0.209
--------------------------------------------------------------------
La Mama 23 136.00 195.20 59.20 1.66 2.5 0.192
--------------------------------------------------------------------
La Mama 24 0 379.9 379.9 1.09 1.6 0.161
--------------------------------------------------------------------
La Mama Incl. 60.72 141.00 80.28 2.02 2.1 0.206
--------------------------------------------------------------------
La Mama(i) 25(i) 2.00 369.65 367.65 0.67 1.6 0.126
--------------------------------------------------------------------
La Mama Incl. 2.00 80.00 78.00 1.08 2.6 0.157
--------------------------------------------------------------------
(i)Parts of holes 21 and 25 are currently being re-assayed to meet B2Gold's
QA/QC standards
Drilling has now tested a 700 by 400 m area of the La Mama zone with intercepts from the recent drilling returning up to 129 m of 1.0 g/t Au in Hole 20, 80 m of 1.0 g/t Au in Hole 22, 380 m of 1.1 g/t Au including 80 m of 2.0 g/t Au in Hole 24 and 78 m of 1.1 g/t Au in Hole 25. Significant gold mineralization has been outlined over a 400 m long by 150 m wide zone extending to at least 450 m in depth. The zone remains open at depth. The Company expects to prepare a National Instrument 43-101 compliant resource study based on this drilling at the La Mama zone of Aurora by early 2009.
At La Isla, significant gold mineralization has been outlined over a 300 m long by 50 to 100 m wide zone extending to at least 350 m in depth with the zone remaining open in all directions. Drilling at La Isla has encountered significant mineralization over a 250 by 200 m area with intercepts up to 182 m at 1.08 g/t Au in Hole 8. Further drilling will test the extensions of the zone.
Highlights of the previously released first 16 drill holes at Aurora are shown below.
Aurora Drill Holes 1 to 16 Assay Results - Previously Released
--------------------------------------------------------------------
From To Metres Gold Silver Copper
Location Hole # (m) (m) (m) (g/t) (g/t) (%)
--------------------------------------------------------------------
La Mama 1 4.05 165.92 161.87 0.97 2.50 0.154
--------------------------------------------------------------------
La Mama 2(i) 0 52.70 52.70 1.36 2.10 0.144
--------------------------------------------------------------------
La Mama 3 0 86.15 86.15 0.99 2.10 0.134
--------------------------------------------------------------------
La Mama Incl. 0 32.90 32.90 1.67 2.60 0.167
--------------------------------------------------------------------
La Mama 4 0.70 87.00 86.30 2.07 2.60 0.166
--------------------------------------------------------------------
La Mama 5 0 65.80 65.80 0.94 2.50 0.162
--------------------------------------------------------------------
La Mama 6 5.40 235.00 229.60 0.79 2.00 0.152
--------------------------------------------------------------------
La Mama Incl. 29.00 154.00 125.00 1.07 2.00 0.163
--------------------------------------------------------------------
La Mama 7 No significant values
--------------------------------------------------------------------
La Isla 8 0 439.00 439.00 0.61 1.00 0.127
--------------------------------------------------------------------
La Isla Incl. 256.60 439.00 182.40 1.08 1.20 0.190
--------------------------------------------------------------------
La Isla 9 136.00 223.00 87.00 0.54 1.80 0.138
--------------------------------------------------------------------
La Isla and 251.10 272.90 21.80 0.54 1.70 0.138
--------------------------------------------------------------------
La Mama 10 1.00 268.00 267.00 0.50 1.60 0.101
--------------------------------------------------------------------
La Mama 11 211.00 296.00 85.00 1.20 2.80 0.247
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La Mama Incl. 258.00 296.00 38.00 1.66 2.80 0.269
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La Mama 12 Low Grade
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La Mama 13 No significant values
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La Isla 14 182.00 262.70 80.70 1.02 0.80 0.176
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La Mama 15 0 49.00 49.00 0.34 0.90 0.081
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La Mama 16 Low Grade
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(i)Lost hole at 52.70 m in mineralization.
Under the terms of the Colombian joint venture agreement (the "Agreement"), B2Gold has earned its 51% interest in the Quebradona property by completing 5,000 m of exploration drilling. In September 2008, B2Gold and AngloGold Ashanti reached an agreement to amend the Agreement and jointly fund an additional 10,000 m of exploration drilling at the Quebradona Property on a 51% B2Gold / 49% AngloGold Ashanti basis (see press releases dated 16/09/08).
An additional 8,318.8 m of the planned 10,000 m drilling was completed in 2008 and after receipt of all results, data and interpretation from the drilling program, AngloGold Ashanti will have 30 days to choose from the following participation alternative regarding further exploration at the Quebradona property: (i) elect to fund all future exploration as the operator at 65% and free carry B2Gold through to feasibility; (ii) elect to be the operator and fund on a pro-rata basis of 51% AngloGold Ashanti and 49% B2Gold; or (iii) elect to fund as the owner of a 49% interest with B2Gold as operator owning and funding to 51%.
The drilling program at the Quebradona property is reviewed and the results approved by Tom Garagan, B2Gold's Qualified Person under National Instrument 43-101. The Quebradona drill program utilizes extensive QA/QC (quality assurance and quality control) protocols for assaying and core sample handling that consist of the systematic insertion of blanks, standards and duplicates as well as using a secondary laboratory for regular check assaying. Core samples are cut with a diamond saw with one-half of the core placed in sealed bags and shipped directly to ALS Chemex Labs in Bogota, Colombia for sample preparation with the pulps subsequently sent to ALS Chemex Labs in Lima, Peru for gold fire assay and ICP analyses. Further Colombian Exploration
B2Gold has carried out approximately 30,000 m drilling on the 51% B2Gold / 49% AngloGold Ashanti Gramalote gold property in 2008 and drilling is continuing. B2Gold intends to publish a National Instrument 43-101 compliant resource calculation of the Gramalote Ridge zone on the property in January 2009.
At the 100% owned Mocoa copper molybdenum deposit, B2Gold has completed a 5,122 m drill program. B2Gold has a 2008 Colombian exploration budget of US$23 million.
Corporate Update
B2Gold maintains a strong financial position with approximately CDN$57.6 million in cash. The Company continues to explore and evaluate potential acquisition opportunities, capitalizing on the extensive experience and relationships that its management team has developed in the mining industry over the past 25 years. B2Gold's corporate objective is to build an intermediate gold company through exploration and acquisitions.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts:
B2Gold Corp.
Ian MacLean
Vice President, Investor Relations
(604) 681-8371
B2Gold Corp.
Kerry Suffolk
Manager, Investor Relations
(604) 681-8371
Website: www.b2gold.com
SOURCE: B2Gold Corp.
http://www.b2gold.com
Copyright 2008 Market Wire, All rights reserved.
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