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BGL-TSXV October 15, 2007
SEPTEMBER UPDATE ON CINCO MINAS AND GRAN CABRERA
HIGHLIGHTS
● 60 Tpd Mill Fully Operational
● First Doré Produced
● 2 Kilometers of Strike on Structure Added
Our Engineering Team has just returned from a three-week visit to our Properties and Offices in Mexico. Our Mining Engineer, Mr. Philip de Souza, P.Eng, toured the Cinco Minas Mine Site on separate occasions with both our QP Geologists (as defined by NI 43-101), Mr. Richard Munroe, B.Sc., FGAC.,P.Geol. and Sr. Baltazar Solano-Rico, M.Sc., of Behre Dolbear de Mexico, S.A. de C.V., and all met jointly to discuss an ongoing program for Cinco Minas.
We are able to report that considerable advances have been made at the mine site on all fronts, exploration, mining and processing; and as a result, we are able to better define the work that needs to be undertaken in order for us to join the ranks of successful producing miners in Mexico.
Minera San Jorge, S.A. de C.V., our Mexican joint-venture partner, has identified and constructed roads to new dumps from old workings to the northwest of El Abra. These materials will be analyzed and if worthwhile, will be added to the feed for our 60 tonne per day test mill facility. The dumps are known as Las Amarillas and Magdalena, and together with the other old workings further to the northwest have added a further one kilometre to the length of mineralized zones in our area of activity.
Exploration, which is continuing in the central section near the areas identified as El Abrita and El Kilo, has uncovered the northerly extension of El Abrita and the fault contact that separates El Abrita from the further northwest El Abra. This area, now named Cristo Rey, will be subjected to future surface drilling to define the zone northwest of the fault, which has clearly been down-thrown. Even further to the south towards Cerro Colorado, a new high road has been extended to an interesting mineralized ridge above an additional old working known as El Cohete. Good mineralization, newly uncovered by the Caterpillar, was sampled by Mr. Munroe and taken for analysis.
Suite 6, 3908-97 Street, Edmonton, AB, Canada T6E 6N2
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Guillermo Cuellar, our Mexican joint-venture partner’s geological advisor, has been concentrating his efforts on an area to the southeast of Cerro Colorado previously identified by Mr. Munroe as having significant mineralization. This new zone referred to as El Limon provides us with an additional approximate length of one kilometre of strike on the structure hosting the old rich mines that are the focus of our intentions.
Our immediate plans are to better define the total dump tonnage and raise it to a proven resource through additional channel sampling and more accurate surveying and in the near term, to institute a new infill drilling program at El Abra as well as a better definition at Cerro Colorado and El Limon. This program will allow for detailed mine planning and lead to the completion of a Feasibility and Ore Reserve Study for our larger operation.
The underground mining program initiated by MSJ on the Destajos horizon of the El Abra Mine, has intersected the south-eastern extremes of the old workings and is now progressing along those workings clearing and supporting them where necessary and enlarging them to allow for modern equipment access. This new access will allow for sampling/assaying and surveying of the old areas so as to allow for the calculation of insitu reserves for future mining. We are now reviewing this program to determine whether it would be advisable to mine a new footwall access to intersect with old workings that are known to extend into the footwall. This would provide a safe and permanent access from which underground diamond drilling could be done as well as allow access for the assay and sampling as noted above and also provide the infrastructure for low cost sub-level induced block-cave mining.
The 60 ton per day “pilot” mill is now fully operational. We now have to adjust grind parameters to achieve 80% -200 mesh from the present 20% - 200 mesh. This will enable us to reduce the retention time in the cyanide circuit as well as achieve higher recoveries, as the coarser particles will have been removed up front. This could be achieved from a low cost Cerro Colorado operation with an added sweetener from El Abra.
Our first “metal” was poured on September 7th and our second, witnessed by Messrs de Souza and Munroe, was poured on September 22nd, 2007. Management is currently reviewing their options before finalizing the selection of a buyer of the Doré.
On behalf of the Board Kelvin Williams, CEO For further information please contact: Kelvin Williams, President (780) 465-4129 Web: www.banderagold.com Suite 6, 3908-97 Street, Edmonton, Alberta, Canada T6E 6N2 · Tel (780)465-4129 · Fax (780) 469-6040
Suite 6, 3908-97 Street, Edmonton, Alberta, Canada T6E 6N2 · Tel (780)465-4129 · Fax (780) 469-6040
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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.