Eaglecrest completes seventh gold concentrate shipment

Explorations Ltd. has completed its seventh gold concentrate shipment. The shipment has been received by the Met-Mex Penoles S.A. de CV smelter in Torreon, Mexico. The concentrates were produced at the onsite bulk sampling mill at Eaglecrest’s San Simon project.

The 1.28 tonne shipment contains approximately 122 ounces of gold at a grade of 95 ounces per tonne. Based on average mill feed grades of the individual bulk samples, the concentrates represent a weighted-average recovery of 92.5%. The shipment includes clean-up material and some partial lots in addition to concentrates that represent 64 bulk samples totaling 1619 tons, which were extracted July and August, 2007 in the run-up to the trial stoping program, at an average grade of 2.6 grams/tonne.

This gold concentrate shipment was produced from material extracted within the L463 gold shoot, said Hans Rasmussen, President and COO.

The production of the concentrate and the significant recovery has demonstrated that non-optimized standard flotation is effective in extracting gold in the Dona Amelia zone. The sale of these concentrates is used to offset some of our overall exploration costs at San Simon. Additionally, the subsequent stoping program in the L463 gold shoot has provided valuable information about different underground mining techniques and the distribution of gold in these shoots, he said.

The agreement with Penoles provides for Eaglecrest to receive payment for approximately 95% of the gold value in the concentrate. The settlement gold value is based on the average London spot gold price per ounce for the month following the arrival of the shipment to the smelter. After shipping costs and royalty payments to the Bolivian government, the company’s net receipts are approximately 84% of the gold value in the concentrate.