News Article
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| BGL-TSXV August 20, 2007 AUGUST UPDATE ON CINCO MINAS AND GRAN CABRERA Since our last news release on mining activities in late April, the rainy season has been upon us slowing activity somewhat, however considerable advancement of the project on both the Cinco Minas and Gran Cabrera properties has occurred. At Cinco Minas, testing continues on the mill circuitry including the crushers (jaw and cone), the ball mills (10 and 60 tonne), the agitation and settling tanks, the Merrill Crowe Zinc Precipitation Unit, the filter press, dore refinery and tailings pond. A new agitation tank, considerably larger than the two already in place has been constructed and is being added to the testing circuitry. This tank will actually be more integral to the expansion when the 250 tonne mill is brought online, but forms a valuable tool during the 60 to 70 tonne testing phase. A Falcon Gravity Concentrator, delivered in July has been set in place just behind the ball mills in the mill circuitry. The Gravity Concentrator has been added to the system in order to collect ?free? silver and gold which would not be collected in the cyanide process. It is expected that the amount of silver and gold collected in this manner could be as much as 1/3 of the silver and gold collected in the total circuit, so it is a very important part of the process. Infrastructure at the Cinco Minas property has advanced considerably since our last report including the commissioning of the new connection to the Federal Electrical Grid and installation of a new water line from creek sources a number of kilometers away which is to be used both for mine water supply and enhancement of the community?s system. The road system within the Cinco Minas area has been considerably improved and added to over the past number of months. The total length of roadway added to or which has been rebuilt exceeds 6 kilometers. The top of the Cerro Colorado area which is to be used as feedstock for the heap leach facility to be constructed later this fall is presently being sampled at the surface and at depth by use of an air-track drill. The upper portion of the deposit is weathered considerably and can be ripped and excavated by caterpillar rather than having to be drilled and blasted. It is expected that at least 30,000 tonnes and maybe as high as 50,000 tonnes of heap leach feed stock can be accessed in this manner allowing costs for mineralized grade materials supplied to the heap leach to be kept to a minimum. At Destajos, advancement has been made underground toward the old Destajos workings where a block of high grade mineralization in the vicinity of Tumi?s RC hole No. 30 exists. It is expected that the total amount of exploration in progress and to be completed in the near future will involve approximately 90 meters of drifting, 105 meters of cross-cuts plus about 60 meters of raising and shaft sinking (to levels approximately 10 meters above and below Destajos). This could develop a substantial amount of high grade mineralization (estimated to be 9,000 to 10,000 t) for short term operation (150 plus days) of the 60 to 70 tonne pilot plant. At Gran Cabrera, approximately 20 kilometers of new and/or refurbished roadway has been completed over the last number of months in order to advance exploration including exposure of mineralization, access to old workings, sampling by in-house geological teams and some mapping of the area. As well, the top of one of the many mineralized areas within the property has been stripped off allowing for sampling to take place and sufficient room for a helicopter to land if required. The total amount spent as a result of this activity is well in excess of $300,000.00 since the signing of the Option Agreement in November of 2005, and this expenditure will put us in an excellent position in order to be able to advance the property from a geological point of view. Behre Dolbear de Mexico, S.A. de C.V., our consulting geologists, are in the process of reviewing exploration and development activities. Baltazar Solano ? Rico, who heads up our geological team, will be working in conjunction with Bandera Gold Ltd. and our joint venture partner, Minera San Jorge, S.A. de C.V., to provide a geological exploration plan for the next six to twelve months. This is expected in the near future. Bandera Gold Ltd. is a Junior Canadian Exploration Company whose corporate strategy is to build shareholder value by finding and developing overlooked and undervalued mineral properties in North America and South America. By partnering with an experienced mining and mineral exploration entity, the Company?s core focus will be the continued exploration and advancement of the Cinco Minas property in Mexico to production, exploration of the Gran Cabrera property in Mexico and the exploration of the Belmira property in Colombia. On behalf of the Board Kelvin Williams, CEO For further information please contact: Kelvin Williams, President (780) 465-4129 Web: www.banderagold.com Or Micro Cap et al, Investor Relations at: (877) 642-7622 E mail: info@microcapetal.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements. |
