| 2023 Mercedes Production at High End of Guidance with
43,860 Ounces of Gold Produced January 16, 2024, Vancouver, British Columbia - Bear Creek Mining Corporation (TSXV: BCM) (OTCQX: BCEKF) (BVL: BCM) (“Bear Creek” or the “Company”) announces it produced 13,478 ounces of gold and 52,144 ounces of silver from the Mercedes Mine (“Mercedes”) during the three months ended December 31, 2023 ("Q4 2023"). Consequently, Mercedes production for 2023 totaled 43,860 ounces of gold and 167,019 ounces of silver, placing it near the high end of the Company’s most recent production guidance of 39,000 – 45,000 gold ounces (see Bear Creek news release dated November 24, 2023). Eric Caba, President and CEO of Bear Creek, states, "We are extremely pleased that the efforts we have made at Mercedes to improve production are finally bearing out, with a 47% increase in gold production in Q4 compared to Q3 2023. Q4 2023 saw month-over-month improvements culminating in an output of 5,198 gold ounces in December 2023 – the highest monthly level of gold production at Mercedes since April 2019. We have had to go back to fundamental basics in the mine and focus on increasing development, managing costs, and placing key talent in the right positions. There is still a lot to be done on all fronts, but we believe the corner is being turned. With the gold and silver stream burdens having been reduced as of January 1, 2024, we look forward to continuing to optimize Mercedes’ profitability through 2024 and to testing the many promising exploration targets within the Mercedes property. Our confidence in the potential for the discovery of additional mineralization remains strong as does our commitment to maximize Mercedes’ generation of free cash flow.” Production and development results for the quarter and year ended December 31, 2023 are as follows: | | Q1 2023 (1) | Q2 2023 (1) | Q3 2023 (1) | Q4 2023 | Full Year 2023 (2) | | Ore Processed (tonnes) | 134,487 | 125,135 | 126,208 | 135,918 | 521,749 | | Gold recovery (%) | 95.5 | 94.5 | 94.0 | 93.6 | 94.9 | | Gold grade processed (gpt) | 2.91 | 2.42 | 2.40 | 3.30 | 2.77 | | Gold ounces produced | 12,025 | 9,199 | 9,159 | 13,478 | 43,860 | | Silver ounces produced | 40,105 | 39,841 | 34,928 | 52,144 | 167,019 | | Development (meters) | 1,044 | 1,353 | 1,791 | 2,833 | 7,071 | - See Bear Creek news releases dated April 14, July 18 and October 20, 2023
- Full year 2023 numbers may not add due to rounding
Directly underlying the improvements in production during Q4 2023 were higher gold grades and increased working faces. The gold grade of ore processed increased to 3.30 grams per tonne (“gpt”) in Q4 2023 from 2.40 g/t the previous quarter. Development meters steadily increased over the course of the year, reaching a total of 2,833 meters in Q4 202, an increase of 1,042 meters over the previous quarter. Improving development meters, which results in increased working faces, has been a key component of the Company’s multi-faceted strategy to improve Mercedes’ production. Mercedes’ 2023 production was comprised of contributions from four main deposit areas: Marianas, San Martin, Diluvio and Lupita. During 2023 Bear Creek changed mining methodologies at the San Martin and Marianas deposits in order to better align the mining method with the geological and structural conditions of each deposit. The San Martin deposit became a key contributor to consolidated gold production during Q4 2023 as mining faces progressed into the higher grade heart of the San Martin deposit. During the last quarter, Bear Creek focused on further refining the mining and blasting methods utilized at San Martin to reduce dilution and optimize production while reducing processing costs. San Martin is expected to continue to be a significant contributor to Mercedes’ gold production in 2024. Delineation drilling at the Marianas deposit has returned numerous intersections and zones of high-grade gold mineralization – in some cases with grades up to 20x the average gold grade of the current Marianas reserves (see Bear Creek news releases dated February 22 and August 30, 2023). The deposit, however, is also structurally complex with challenging ground conditions and it has proven difficult to control dilution. As a result, the gold grade per tonne of ore mined from Marianas was lower than planned during the second half of 2023. During the last quarter, Bear Creek commenced a transition from sublevel caving mining methods to a mixture of sublevel stoping and cut and fill, to more effectively reduce dilution and optimize grade. Monitoring of the impact of these changes is ongoing. On January 1, 2024 reductions to the Mercedes gold and silver stream obligations took effect pursuant to the restructuring agreement (the “Restructuring Agreement”) with Sandstorm Gold Ltd. and its subsidiaries (collectively “Sandstorm”) announced by the Company on September 28, 2023. The Sandstorm Gold Stream has now been reduced from 600 oz to 275 oz per month and silver deliveries under the Nomad Silver Stream have been fully suspended until April 2028. In combination with the completion of the Nomad Gold Stream on September 27, 2023, the stream burden on Mercedes has been reduced by approximately 78%. The Company expects these stream reductions to positively impact the Company’s free cash flow. Closing of the Restructuring Agreement, including issuance of a 1% net smelter returns royalty on Corani and payment of up to $10 million in the form of common shares of Bear Creek, is expected in the coming weeks, subject to TSX-V approval. Readers are referred to the Company’s news releases September 28 and November 24, 2023 for additional information regarding the Sandstorm Restructuring. On behalf of the Board of Directors,
Eric Caba
President and Chief Executive Officer For further information contact:
Barbara Henderson - VP Corporate Communications
Direct: 604-628-1111
E-mail: barb@bearcreekmining.com
www.bearcreekmining.com |