Bear Creek Mining Corp V.BCM

HERE'S THE NEWS....looks good!

[bbucks99]

Re: News Release - Wednesday, August 23, 2006 Title: Corani Silver Resource Increased Measured & Indicated Up 477 Percent Deposit Still Open -------------------------------------------------------------------------------- Vancouver, B.C. - Bear Creek Mining (TSX Venture: BCM) ("Bear Creek" or the "Company") is pleased to announce the results of its recently completed resource estimate for the Corani project. The resource estimate is based on drilling and assay results received by the Company up to July 14, 2006 and include the results from 236 drill holes and 25 surface trenches. Highlights of this release include: The total resource has increased by 27% since March 2006 to 257 million ounces of silver, 2.80 billion pounds of lead and 1.58 billion pounds of zinc (measured and indicated categories) and 60 million ounces of silver (inferred category). The Measured and Indicated resource has increased 477% to 140.4 million tonnes at 56.9g/t silver, 0.90% lead and 0.51% zinc. High-grade cores in each of the 3 deposits cumulatively contain a resource of 71.3 million tonnes at 82 g/t silver, 1.17% lead and 0.62% zinc (measured and indicated categories) and 10.2 million tonnes of 71g/t silver, 0.84% lead and 0.34% zinc (inferred). Corani Este, Minas Corani and Main Corani all remain open and drilling continues to encounter high grade silver base-metal mineralization. Andrew Swarthout, President and CEO, stated "we are very pleased that in only a few months we have not only added significantly to the Corani silver resource but, as we have approached the drilling in a very deliberate manner, we have also converted large areas of Inferred resources into Measured and Indicated resources. We continue to focus on extending the resource into the many areas where the deposits remain open and exploring new targets. Future updates will include new drilling that we anticipate will extend and increase the total resource as well as convert Measured and Indicated resources into a Minable Reserve which should only require limited in-fill drilling given the continuity of mineralization. Metallurgical testing and a project scoping study are well underway, to be followed by a preliminary feasibility study expected in Q1-2007." The following block model estimate was prepared by Independent Mining Consultants of Tucson Arizona. John Marek P.E. acted as the independent qualified person as defined by Canada's National Instrument 43-101. Additionally the methods used in determining and reporting the resources are consistent with the CIM Best Practices Guidelines for the estimation of mineral resources and mineral reserves. Bear Creek Mining, Corani Project Mineral Resource Based on 16 g/t Ag Cut-off and Prudent Open Pit Constraints 23 August 2006 The resource is based on 236 diamond drilled core holes at a nominal drill hole spacing of 50 meters and 25 surface trenches; all the data in the possession of Bear Creek as of July 14, 2006. Fifty drill holes have been completed on site since the cut-off date for results. A complete list of drill holes used in this resource estimate can be found at Bear Creek's website (www.bearcreekmining.com). All analyses of the samples were performed by ALS Chemex in Lima Peru and a strict quality control and chain of custody protocol has been maintained throughout the project development. (To access the silver drill hole resource map directly please refer to: https://www.bearcreekmining.com/i/pdf/2006-08-20_CDR.pdf.) Since the Corani project is a poly-metallic silver-lead-zinc project a cut-off grade of 16 g/t Ag has been used in the reporting of the resource. The 16 g/t Ag cut-off was chosen as it reflects what is considered to be a prudent cut-off level to take into account the additional metal values. See footnote below for the assumptions used in the resource model. High Grade Core There are high grade cores to each of the 3 deposits and these zones could be mined separately to enhance project economics. At a 45 gm/t silver cutoff, the high grade cores contain a resource of 71.2 million tonnes of ore at a silver grade of 82 g/t Ag, 1.17% Pb and 0.62% zinc (Measured and Indicated), containing 188 million ounces of silver, 1.84 billion pounds of lead and 1.07 billion pounds of zinc. There is an additional 23 million ounces contained in the inferred category. These cores lie within a computer generated pit shape able to be mined with a stripping ratio of 2:1, or less. Bear Creek Mining, Corani Project High Grade Core at 45 g/t cut-off Contained in Smaller Open Pit Shapes 23 August 2006 Corani Este Corani Este has the highest grade and remains open to the west and northwest. The Inferred resource reported in March 2006 has been converted to a resource that contains 92% Measured and Indicated categories. One drill continues to extend the deposit to the west and northwest. Minas Corani The Minas Corani resource occurs in two separate zones; the West Limb and the East Limb. Exploration since March 2006 has demonstrated that there is economic mineralization between the two limbs where potential to increase resources exists. Additionally, the deposit remains open to the north, east and west. Two drill rigs continue to expand the resource at Minas Corani. Main Corani The resource includes additional material in both the foot wall and hanging wall of the main vein. The hanging wall of the main vein, in particular, remains open along much of its strike length. High Grade Zinc The zinc at the Corani project tends to occur in discrete high-grade zones. Applying a 1% zinc cut-off to the material within the 16 g/t silver model, there are 26.6 million tonnes resource (measured and indicated) averaging 1.94% Zn representing 72% (1.14 billion pounds) of the contained zinc in 19% of the tonnes. This is important for enhancing the economics of zinc recovery as these areas can be specifically targeted in the flotation flow-sheet to optimize recovery of the higher zinc grades. Exploration Upside Upside continues to exist in all three deposits as well as in new areas such as La Curva. The source for the mineralization has yet to be found and more exploration drilling is being performed under thin, prospective post-mineral cover. Future Work Bear Creek continues to explore the Corani project with 4 drill rigs; one on Corani Este, two on Minas Corani and one on the La Curva prospect. These drilling results are expected to further increase the resources of the project as new data is included into future resource estimates, the next of which is expected prior to year end. Bear Creek has moved its Lima, Peru offices to Av Parque Sur 420, San Isidro, Lima, Peru. Our new numbers are: telephone: [phone] fax [phone]. Please see news release dated 13 March 2006 for previously announced resource estimate. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. - End - Andrew Swarthout - President and CEO, or Patrick De Witt - Investor Relations Phone: [phone] Direct: 604-628-1111 E-mail: [e-mail] For further information, please visit the Company's website (www.bearcreekmining.com) Regulatory footnotes: Resource methodology utilized linear kriguing with grade restraint boundaries. Assumptions used in Resource model by IMC are as follows: Silver Price= $9.35/oz; Zinc Price= $0.82/lb; Lead Price= $0.44/lb; Silver Recovery= 85%; Zinc Recovery= 65%; Lead Recovery= 65%; Smelter charges: Silver= $0.40 per ounce; Zinc= $0.135 per pound; Lead= $0.113 per pound; Mining Costs per tonne= $1.10; Process cost per tonne= $8.50; G&A per processed tonne= $0.85; Pit Slopes= 42 degrees. Actual results will vary based upon completion of metallurgical testing: All of Bear Creek's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of David Volkert, P.Geo., Bear Creek's Vice President of Exploration, who serves as the qualified person (QP) under the definitions of National Instrument 43-101. All diamond drilling has been performed using HQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Bear Creek geologists. Sampling is done on two-meter intervals and samples are transported by Company staff to Cusco, Peru for direct shipping to ALS Chemex, Laboratories in Lima, Peru. ALS Chemex is an ISO 9001:2000-registered laboratory and is preparing for ISO 17025 certification. Silver, lead, and zinc assays utilize a multi-acid digestion with atomic absorption ("ore-grade assay method"). The QC/QA program includes the insertion every 20th sample of known standards prepared by SGS Laboratories, Lima. A section in Bear Creek's website is dedicated to sampling, assay and quality control procedures. Certain disclosure in this release, including management's assessment of Bear Creek's plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Bear Creek's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. *Any reference to the potential quantity & grade of mineralization at Corani is conceptual in nature, there has been insufficient exploration to define a mineral resource on the property and it is uncertain if further exploration will result in discovery of a mineral resource on the property. Readers are cautioned not to place undue reliance on forward-looking statements. Bear Creek expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. -------------------------------------------------------------------------------- Copyright © 2006 BEAR CREEK MINING CORPORATION (BCM) All rights reserved. For more information visit our website at https://www.bearcreekmining.com/ or send email to [e-mail] .