News Article
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| BGL-TSXV June 5, 2008 UPDATE ON RECENT ACTIVITIES We are pleased to announce that our program for the acquisition, exploration and development of properties of merit continues, notwithstanding the present interruption of efforts at Cinco Minas and Gran Cabrera in Mexico. We have recently reported on the state of our legal actions against MSJ, George S. Barnett and their associates. While we are very optimistic that our lawsuit will be successful and that our programs at Cinco Minas will finally be executed, the Board considers that BGL should proceed with other projects to enhance company and shareholder value. As previously reported, on October 22, 2004 BGL optioned the rights to acquire 80% of certain concessions in Antioquia, Colombia. These concessions, covering known gold bearing areas and named Belmira (for its locality), have been placed into our Colombian entity, Nueva California S.A. To maintain the option and fully earn the 80%, BGL was required to make certain payments (cash and shares) and to invest in property exploration: presently, all that remains is one option payment of US$ 85,000 and spending US$100,000 on property exploration, both by the end of October 2008. Upon completion, the mining rights will be transferred from the concession holder (Ms. M. Ramirez) to Nueva California; Ms. Ramirez will retain a 20% interest in future developments. Since execution of the Belmira agreement, we have continued a low key information gathering program which entailed a site visit in October 2005 by Peter Gommerud in the company of consulting geologist, Duncan Bain, P. Geo. (London, Ontario), and Jorge Gaviria, project geologist for Geosermin S.A. Prior to the site visit, a series of samples were taken and analyzed by IPL at Vancouver. The most notable sample returned a value of 19.6 g/mt Au. The Duncan Bain Report, under the heading ?Results of Preliminary Exploration?, states the following: The assays confirm the values of gold mineralization reported by Geosermin samples, ranging from 0.02 to 35.59 g/t Au for Geosermin and from 0.1 to 42.6 g/t Au for Duncan Bain Samples. In October 2005, we conducted an environmental examination to provide us with background data from which we could start exploration planning. This report was completed by Arturo Calle, an Environmental and Civil Engineer from Medellin, Colombia. In December 2005, a channel sampling program was undertaken by Fabian Aguirre, a Geological Engineer from Medellin to identify the extent of the main vein on the property. This ?La Filandia? vein, has been traced for a length of more than 8 kilometers. Recently, we requested the Behre Dolbear Group through the President of their Mexican subsidiary, Mr. Baltazar Solano-Rico (a Qualified Person as defined by NI43-101), to visit the property and determine an initial exploration program. Mr. Solano visited the site at the end of April 2008 and has provided a preliminary report wherein two phases of exploration are suggested. Mr. Solano?s report mentions the 8 km of La Filandia and further mentions a parallel structure known as La Atalaya that has also been traced for some 7 km. Among other stops, he visited a secondary narrow vein known as the El Yerbalito and makes the following observations: The vein is characterized by coarse-grained crystalline, white quartz with Mn and Fe oxides in fractures and filling small breccia voids. High grade, free gold values, reportedly in the order of 20 g/t Au, are associated to oxide material in the footwall contact. It is interesting to note that free gold enclosed in crystalline quartz with associated pyrite and marcasite was observed, therefore suggesting the presence of epigenetic gold not related to supergene enrichment of oxides as seen in Filandia and La Floresta. The Board has determined that we should follow the Behre Dolbear program as outlined by Mr. Solano. Given the necessity to activate personnel, we will target to be on the ground at Belmira ready to commence Phase I on July 1st this year. Three recent news releases from AngloGold Ashanti and Cambridge Mineral Resources are important when considering Belmira?s potential value. AngloGold Ashanti has two low grade high tonnage open-pittable deposits within 200 km of Belmira ? Gramalote 80km to our northeast and La Colosa, 200 km directly south. Cambridge Mineral Resources PLC has at its Quintana Mine, a low tonnage high grade underground deposit a further 60 km northeast of Gramalote. Both Gramalote and Quintana are on the same Antioquian Batholith as Belmira. AngloGold Ashanti reported in their 2007 Exploration Results a Resource at Gramalote of 2.12 million ounces of gold grading a diluted 1.14 g/tonne in 57.8 million tonnes. On May 6, 2008, AngloGold Ashanti provided an Inferred Resource totaling 12.9 M oz Au grading 0.86 g/tonne in 468.8 million tonnes on its La Colosa project. On April 22, 2008, Cambridge released information relating to the development of its Quintana Mine: current development has defined an Indicated and Inferred resource of 12,106 oz of Au. By themselves, these reports are encouraging, and when the advancement of Greystar Resouces Angustora project is also considered, Bandera concludes that Colombia offers good opportunities for the company and its shareholders. 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. 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. This news release including photographs is available on Bandera?s website at http://www.banderagold.com or on the SEDAR website at http://www.sedar.com/. On behalf of the Board Kelvin Williams President and CEO For further information please contact: Kelvin Williams, President and CEO (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. |
