San Simon Project - Bolivia
Accelerate the development of San Simon into a world class Gold mine.
Eaglecrest Explorations Ltd. (EEL-TSX.V; EAT-Frankfurt) is an advanced gold exploration company with nearly 300 square kilometres of mineral title at the San Simon project in northeastern Bolivia.
The structures that host gold mineralization on the property are geologically identical to some of the major well-known quartz vein gold deposits and gold shoots, such as those found in Ghana in Western Africa, which have produced millions of ounces of gold.
Eaglecrest’s mission is to accelerate the development of San Simon into a world class gold mine.
Gold at San Simon is located in high-grade vertical gold shoots, similar to some of the major well-known gold deposits like Ghana in West Africa.
This discovery enabled the company to begin a close-spaced infill definition program, drilling holes that are spaced 25 metres apart rather than the usual 100 metres. To date, Eaglecrest has completed 12,975 metres of drilling in 64 holes at San Simon.
Eaglecrest began drilling another high-grade gold shoot (L484) about 150 metres west of where it began its infill delineation program. The company discovered thick gold mineralization in two holes that were previously drilled and discovered new high-grade gold intercepts which Eaglecrest is continuing to drill.
San Simon is located in northeast Bolivia, which has been a prolific mineral-rich country for centuries. In addition to having a high density of mineral occurrences, several international mining companies have moved forward with their Bolivian projects, including: Apex Silver Mines, Coeur d’Alene Mines Corp, Newmont Mining Corporation and Pan-American Silver Corporation.
The Bolivian government made two announcements in 2007 that demonstrate its commitment to facilitating the execution of mining projects. In May, a Presidential decree ensured all mining concessions that were active over the last three years will remain in force.
And in November, the Bolivian Congress approved a reform to the mining tax code, bringing more clarity and certainty to the mining industry. These announcements are great news for Eagelcrest, since the company can continue with its exploration program exactly as planned.
San Simon Project
San Simon is located 450 km north of Santa Cruz, Bolivia and 20 km from the border between Bolivia and Brazil. The project lies in the same belt of rocks that hosts the 1.6 million ounce Saõ Francisco (Yamana Gold) gold deposit in Brazil.
The San Simon Plateau has been mined ever since gold was first discovered there in the mid 18th Century by Jesuit monks who called the plateau Cerro del Oro (Gold Plateau).
The most active period of mining occurred in the 1990’s when the San Simon village had over 1,000 inhabitants and produced an estimated 75,000 oz of gold.
Access to the Plateau is two hours from by air (450 km) from Santa Cruz to Eaglecrest's two airstrips near the Company’s camp on the San Simon Project. Road access is 20 to 36 hours from Santa Cruz.
High Grade Gold Shoots
Gold at San Simon is located in high-grade gold shoots, thereby enabling Eaglecrest to accelerate the Trinidad zone to a gold resource
Gold Concentrate Production
Eaglecrest already produces gold concentrate as a by-product of its exploration program; the revenue is used to offset the company’s exploration costs
San Simon is strategically located in an underexplored gold mining belt, near a multi-million ounce gold producer in Brazil, and is geologically identical to several well-known gold deposits
Multiple New Target Zones Identified
Eaglecrest has identified multiple new target zones at San Simon, through the Company's district wide exploration initiative, one of which appears to be a 400 metre extension of gold mineralization currently being drilled at the Trinidad Vein
Experienced Management Team, Technical Crew and Board of Directors
Eaglecrest's world-class management team and technical crew are highly experienced and have a proven track record of gold and base metal discoveries
Strong Financial Position
$3.3 million (US) non-brokered financing, announced subsequent to year-end, provides Eaglecrest with operating flexibility to continue advancing the San Simon project to a world class gold discovery
Since we began using a new 3-D computer model to guide our exploration, over one-third of the new drill holes have returned intercepts of greater than 10 grams/tonne gold (See news releases dated March 3, 2008, April 8, 2008 and April 29, 2008). This is the best performance in Eaglecrest's history.
The Company has retained AMEC International to complete an independent resource calculation on the Trinidad zone in accordance with NI 43-101, but that process has been suspended until market conditions improve. The Company determined that it would be preferable to allocate its financial resources to exploration with a view to enhancing its assets-rather releasing news into a paralyzed marketplace. It is simply more practical to keep our eye on the bigger picture of keeping the team moving forward.
Our team is now focused on surface sampling and district-wide mapping. This is an inexpensive way to demonstrate the potential of the entire property (less than 5% of which has been explored). Any prospective buyer or joint venture partner will want to see this.
We are also currently discussing a business arrangement to purchase the drill rigs so a) we won't be slowed down when drilling resumes and b) we can lower operating costs.