Breakwater expands across the ocean

Breakwater Resources (BWR-T) has intersected significant base metal and silver mineralization at the Concordia deposit, three km northwest of its El Toqui mine in southern Chile.

In 2004, 31 holes have been drilled, totaling 3,712 metres. Highlights of the drilling include an intersection with a true width of 9.1 metres grading 18.58% zinc, 3.16% lead, 0.32% copper and 183 grams silver per tonne.

Eleven other holes intersected 3.7-11.5 metres (true width), grading 5.44-9.8% zinc, 0.71-10.96% lead, 0.13-1.71% copper and 32-165 grams silver per tonne. Eight additional holes intersected between 0.1-3.6 metres (true width) grading 0.63-12.71% zinc, .01-4.87% lead, .01-.62% copper and 4-111 grams silver per tonne.

Mineralization was intersected from 72-153 metres down-hole.

The best intersections to date are located within a 200-metre by 150-metre area. Drilling has been carried out at 25-50 metre spacing within this zone. The mineralization is still open in several directions. Nine holes intersected barren fossiliferous limestone and two intersected a fault.

As at Dec. 31, 2004, the estimated proven and probable reserves at El Toqui total 2.8 million tonnes grading 7.4% zinc, and 1.7 grams gold per tonne. The measured and indicated resource (which includes the aforementioned reserves) is 3.5 million tonnes grading 8.1% zinc and 1.6 grams gold per tonne. There is also an inferred resource of 2.99 million tonnes grading 8.4% zinc and 0.4 gram gold per tonne.

The mill at El Toqui has been expanded and the grinding plant capacity is currently 550,000 tonnes per year. The Dona Rosa mine, about 1.5 km south southwest of the El Toqui mill site, was further developed at the end of last year, to access the Aserradero deposit. This deposit has a total indicated mineral resource of 680,900 tonnes grading 9.1 grams gold per tonne and 6% zinc. It should contribute 25% of the mill feed this year.

The Estatuas deposit is about 2.5 km west of the Dona Rosa orebody. The deposit has an estimated indicated mineral resource of 1 million tonnes grading 8.5% zinc. There is an additional inferred mineral resource of 1.2 million tonnes grading 7.6% zinc.

In the past few months four holes were drilled, about 200 metres to the southeast of Estatuas, along the sediment-hosted mineralized horizon. The best intercept was 3.5 metres grading 1.84% zinc. Three holes failed to intercept significant mineralization.

Breakwater has five producing zinc mines, two in Canada, one in Honduras, one in Chile and one in Tunisia. The Myra Falls zinc, copper, gold and silver mine on Vancouver Island, B.C., is its latest acquisition. In July, Breakwater bought all the shares of Boliden Westmin (Canada), a subsidiary of Boliden AB of Stockholm, Sweden, thereby acquiring the mine.

At the end of last year, the estimated measured and indicated resource at the mine was 10.39 million tonnes grading 7.8% zinc, 1.4% copper, 1.7 grams gold and 56 grams silver per tonne. This includes proven and probable reserves of 7.7 million tonnes grading 6.3% zinc, 1.2% copper, 1.2 grams gold and 40 grams silver per tonne. The mine has been in production for over 30 years and has an expected mine-life of another 7-12 years.


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