Breakwater Resources Ltd. and Virginia Mines Inc. Provide Update on Coulon JV Project
08:01 EST Wednesday, November 14, 2007
TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - Breakwater Resources Ltd. (TSX:BWR) has fulfilled all its payment obligations totalling CA$180,000 and CA$7.5 million in exploration work and now owns a 50% interest in the Coulon JV property. Breakwater and Virginia are jointly reporting on the new results from Virginia's current exploration program on the Coulon JV property, located 15km north of the Fontanges airport, Quebec Middle North.
Current exploration includes prospecting and geological mapping, diamond drilling, a VTEM heliborne survey as well as borehole InfiniTEM surveys. The 18 new holes announced tested lenses 44 (7 holes), 43 (3 holes) and 08 (1 hole) and the area of the Spirit showing (7 holes).
LENS 44 YIELDS 9.31% Zn, 1.67% Pb, 0.88% Cu and 69.18 g/t Ag / 30.45m
Seven new holes tested lens 44 at vertical depths of 430m to 600m (longitudinal section 44/08). Hole CN-07-92 intercepted to a vertical depth of 460m a thick massive sulphide zone that graded 9.31% Zn, 0.88% Cu, 1.67% Pb and 69.18 g/t Ag over 30.45m, including two intervals that returned 10.64% Zn, 2.14% Cu, 1.46% Pb and 89.64 g/t Ag over 8.05 m (589.1 to 597.15m) and 12.51% Zn, 0.48% Cu, 2.19% Pb and 74.06 g/t Ag over 15.7m (603.85 to 619.55m). Located 35m further north, hole CN-07-105 intersected two main zones of massive sulphides that returned 7.4% Zn, 0.9% Cu, 1.33% Pb and 81.30 g/t Ag over 15.3m (474.45 to 489.75m) and 9.26% Zn, 1.31% Cu, 33.81 g/t Ag over 14.95m (534.15 to 549.1m). These intersections are at vertical depths of 430 and 450m respectively. Some other thinner massive sulphide lenses are also present in hole CN-07-105 (see table of results). The mineralized intersections of holes CN-07-92 and CN-07-105 represent the north extension of large mineralized zones previously announced in holes CN-07-85 and CN-07-85B, thus confirming the presence, at this depth, of a thick, high-grade zone within lens 44.
Furthermore, two of the new holes testing lens 44 confirmed the continuity of the mineralization at vertical depths of over 500m. Hole CN-07-106 intercepted, to a vertical depth of 530m, a massive sulphide zone grading 8.21% Zn, 0.72% Cu and 61.82 g/t Ag over 3.75m. Hole CN-07-103 intersected to a vertical depth of 575m a massive sulphide zone grading 6.39% Zn, 0.60% Cu and 13.47 g/t Ag over 3.50m. This intersection is the deepest one obtained to date in lens 44.
The three other holes testing lens 44 did not return economic intersections. Hole CN-07-95 crosscut at a vertical depth of 460m a semi-massive sulphide zone composed mainly of pyrite and pyrrhotite, which graded 0.36% Zn, 0.73% Cu and 8.5 g/t Ag over 8.6m. This sulphide zone is followed in the hole by a large alteration zone of nearly 100m thick. The presence of a pegmatite intrusion of approximately 40m in thickness in the core of this alteration zone might explain the absence of other mineralized intersections in hole CN-07-95. Finally, holes CN-07-100 and CN-07-109 intercepted alteration zones of 10 to 30m in thickness with disseminated sulphides locally, at vertical depths of 580m and 600m respectively. All these holes will be the object of borehole InfiniTEM surveys this fall.
Lens 44 is north-south oriented and is dipping vertically to steeply to the west. It is now confirmed over a lateral distance of 300m and at a vertical depth of 575m. Lens 44 remains totally open at depth. It is now without any doubt the most important mineralized lens on the Coulon JV project and is currently the focus of additional drilling.
THE CONTINUITY OF LENS 43 ONCE MORE CONFIRMED BY THREE HOLES
Three new holes tested lens 43 and have once again proved the good continuity of this lens with three significant mineralized intersections (longitudinal section 43). Holes CN-07-99 intercepted at a vertical depth of 300m a massive sulphide zone that yielded 8.9% Zn, 1.95% Cu and 31.49 g/t Ag over 2.7m. This intersection extends the mineralization by 80m from holes CN-07-84 and CN-07-98 previously announced. Holes CN-07-104 and CN-07-104B confirmed the continuity of the mineralization at 70m over and under hole CN-07-79 (already published) respectively. Hole CN-07-104 intercepted at a vertical depth of 290m a disseminated to semi-massive sulphide zone that yielded 0.64% Zn, 0.90% Cu and 9.15 g/t Ag over 10.0m , including an interval grading 0.86% Zn, 1.23% Cu and 10.55 g/t Ag over 5.45m. As for hole CN-07-104B, it intersected a semi-massive to massive sulphide zone that yielded 4.06% Zn, 1.36% Cu and 13.93 g/t Ag over 1.75m at a vertical depth of 430m. This intersection is the deepest one obtained to date in lens 43.
Lens 43 is NE-SW oriented and seems to present a variable dip towards the northwest. The mineralization is confirmed over a lateral distance of 340m and at a vertical depth of 430m. It remains open in all directions and additional drilling is planned to pursue the evaluation of this very significant mineralized lens.
LENS 08
Only one hole tested lens 08 during the recent period (longitudinal 44/08). Hole CN-07-108 intercepted an alteration zone of several tens of metres in thickness, including many intervals with disseminated sulphides reaching up to 20% pyrite, 10% pyrrhotite and 1% chalcopyrite locally. This intersection is located at a vertical depth of 275m at the south border of lens 08.
Lens 08 is developed at the same stratigraphic level as lens 44 but is located 300m further north. It is north-south oriented and has a variable, but generally subvertical, dip. Lens 08 is now confirmed over a lateral distance of 250m and to a vertical depth of 410m and remains open at depth. It will be the object of additional drilling.
SPIRIT SHOWING AREA
Three new short holes tested the lateral extensions of the Spirit showing at 50m on both sides of the discovery. Holes CN-07-101A and 101B, on a section 50m south of the showing, and hole CN-07-102, on a section 50m north of the showing, intercepted favourable volcanics but did not intersect mineralization.
However hole CN-07-94A testing a weak Maxmin conductor located 330m southwest of the Spirit showing intercepted a disseminated to semi-massive sulphide zone that returned 4.11% Zn, 2.32% Cu and 62.08 g/t Ag over 6.15 m. Hole CN-07-94B, drilled directly under this intersection, intercepted a thin disseminated sulphide zone that yielded 1.09% Zn, 0.58% Cu and 17.5 g/t Ag over 1m. These two intersections are located at vertical depths of 30 and 40m respectively. Additional drilling will be needed to test the lateral extensions of this new mineralized zone and to evaluate its relation with the mineralization of the Spirit showing, located over 300m to the northwest.
Finally, holes CN-07-96 and CN-07-97, testing other Maxmin conductors located over 500m to the west of the Spirit showing, intercepted barren mineralized zones (pyrite-pyrrhotite-graphite).
The Spirit showing area remains very promising with a new economic-type intersection associated with a Maxmin conductor. Many other airborne EM conductors have not yet been confirmed by ground surveys because of the presence of many small lakes in the area. The area will be covered during the winter of 2008 with a surface InfiniTEM survey and will be the object of additional drilling.
VTEM HELIBORNE SURVEY
A VTEM heliborne geophysical survey has recently commenced on the Coulon JV project. This survey will total more than 6000 linear kilometres over a vast territory of more than 1000km2 covering the possible extensions of the fertile Coulon volcanic belt. This additional property was acquired following the identification of the Spirit showing in the summer of 2007. The survey should be completed by the end of November 2007.
New drill results are reported in the annexed table. All samples have been analyzed at the certified laboratory ALS Chemex in Val-d'Or.
Work is carried out by the personnel of Virginia Mines Inc, under the supervision of Mr. Paul Archer, geological engineer. Mr. Archer is a Qualified Person (as defined by National Instrument 43-101) and has more than 25 years of experience in exploration. Mr. Archer reviewed and approved the content of this press release.
RESULTATS DE LA CAMPAGNE DE FORAGE AUTOMNE 2007/ RESULTS OF THE FALL 2007 DRILL PROGRAM
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Forage Ligne Longueur
Hole Line Station Azimut Dip Length
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GRILLE PRINCIPALE/MAIN GRID
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Lentille 44 Lens
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CN-07-92 14+00N 7+15E N085 -59 687
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inc.
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inc.
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CN-07-95 13+25N 7+20E N087 -62 693
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CN-07-100 14+00N 6+50E N085 -61 798
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CN-07-103 14+75N 7+00E N087 -60 750
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CN-07-105 14-75N 8+45E N087 -60 594
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CN-07-106 14+90N 7+20E N086 -57 720
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CN-07-109 12+50N 6+65E N086 -62 829
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Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
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GRILLE PRINCIPALE/MAIN GRID
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Lentille 44 Lens
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CN-07-92 589.10 619.55 30.45 28.95 0.88 9.31 1.67 69.18 0.26
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589.10 597.15 8.05 7.65 2.14 10.64 1.46 89.64 0.33
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603.85 619.55 15.70 14.95 0.48 12.51 2.19 74.06 0.32
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CN-07-95 571.40 580.00 8.60 8.00 0.73 0.36 0.02 8.50 0.17
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CN-07-100 PVS/NSV(i)
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CN-07-103 716.30 719.80 3.50 3.30 0.60 6.39 0.02 13.47 0.21
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CN-07-105 461.15 463.05 1.90 1.60 0.79 2.78 0.33 24.72 0.13
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474.45 489.75 15.30 13.00 0.90 7.40 1.33 81.30 0.18
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514.25 518.20 3.95 3.35 0.41 3.29 0.35 28.04 0.16
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522.00 525.70 3.70 3.15 0.33 3.44 0.60 38.40 0.07
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534.15 549.10 14.95 12.70 1.31 9.26 0.40 33.81 0.34
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CN-07-106 650.05 653.80 3.75 3.20 0.72 8.21 1.68 61.82 0.16
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CN-07-109 PVS/NSV
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Forage Ligne Longueur
Hole Line Station Azimut Dip Length
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GRILLE PRINCIPALE/MAIN GRID
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Lentille 43 Lens
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CN-07-99 6+64N 3+81W N125 -61 474
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CN-07-104 5+60N 4+20W N131 -50 421
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inc.
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CN-07-104B 5+60N 4+20W N128 -66 544
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Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
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Lentille 43 Lens
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CN-07-99 372.10 374.80 2.70 2.00 1.95 8.90 0.43 31.49 0.09
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CN-07-104 393.60 403.60 10.00 9.75 0.90 0.64 0.22 9.15 0.11
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398.15 403.60 5.45 5.30 1.23 0.86 0.35 10.55 0.11
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CN-07-104B 479.40 481.15 1.75 1.25 1.36 4.06 0.17 13.93 0.17
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Forage Ligne Longueur
Hole Line Station Azimut Dip Length
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GRILLE PRINCIPALE/MAIN GRID
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Lentille 08 Lens
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CN-07-108 17+75N 12+00E N267 -54 370
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Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
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Lentille 08 Lens
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CN-07-108 PVS/NSV
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Forage Ligne Longueur
Hole Line Station Azimut Dip Length
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GRILLE PRINCIPALE/MAIN GRID
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Secteur Spirit Area
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CN-07-94A 46+00N 56+00W N270 -45 125
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CN-07-94B 46+00N 56+00W N270 -70 84
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CN-07-96 46+50N 63+00W N225 -45 153
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CN-07-97 48+35N 65+65W N225 -45 96
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CN-07-101A 47+83N 58+22W N270 -45 87
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CN-07-101B 47+83N 58+22W N270 -70 160
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CN-07-102 48+83N 58+22W N270 -45 99
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Epaisseur
vraie
Forage De A Longueur True Cu Zn Pb Ag Au
Hole From To Length Thickness % % % g/t g/t
---------------------------------------------------------------------------
GRILLE PRINCIPALE/MAIN GRID
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Secteur Spirit Area
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CN-07-94A 39.00 45.15 6.15 - 2.32 4.11 0.02 62.08 0.02
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CN-07-94B 34.00 35.00 1.00 - 0.58 1.09 0.01 17.50 -
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CN-07-96 PVS/NSV
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CN-07-97 PVS/NSV
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CN-07-101A PVS/NSV
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CN-07-101B PVS/NSV
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CN-07-102 PVS/NSV
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PVS: pas de valeur significative
NSV: no significant value
FOR FURTHER INFORMATION PLEASE CONTACT:
Breakwater Resources Ltd.
Ann Wilkinson
Vice President, Investor Relations
(416) 363-4798 Ext. 277
Wednesday, November 14, 2007
News:BWR Drill Report +50% of Coulon JV Property
Tuesday, November 13, 2007
Warren Verbonac PDP Target=$30.00
BUY: Petrolifera Petroleum Ltd. In a research report, analyst David Beddis said that, while the company's third-quarter production exceeded second-quarter output, it was lower than expected. Petrolifera produced about 7,562 barrels of oil equivalent a day in the third quarter, up from 6,932 barrels of oil equivalent in the second quarter. However, in mid-August, Petrolifera said production had increased to 9,000 barrels of oil equivalent a day. The analyst said Petrolifera gave no update in a news release Monday about current production. The company has completed and/or tested eight wells at Puesto Morales, but other than the 1006 and 1050 wells, it hasn't been able to drill any of its planned high impact exploration wells. This is primarily due to the late arrival of its new rig from China and regulatory issues, Beddis said, and as a result management now believes that it won't be able to drill any exploratory locations until 2008. As a result of delays and drilling that has been pushed into 2008, Beddis lowered his 2007 production forecast to 8,800 barrels of oil equivalent a day from 10,500 barrels. He expects cash flow of C$1.64 a share, down from his previous estimate of C$1.98. Shares of the Calgary-based oil and gas company are trading up 5 Canadian cents at C$15.00 in Toronto Tuesday.
PDP-TSX: $14.95
Target: $30.00
Warren Verbonac
(403) 750-0497· wverbonac@octagoncap.com
Activity Update
• According to yesterday’s release, Petrolifera’s production in the current
quarter (Q3/07) of 7,563 boed is down from that of the Company’s last
release, of 8,890 boed (with productive capability at that time of over 9,600
boed).
• Our previous Q4/07 production estimate of 15,000 boed has been reduced to
10,000 boed, cutting estimated cash flow by $0.35 to $1.72 for 2007.
• Having had a series of production misses and setbacks during the last two
quarters, Petrolifera has decided to stop providing operating and financial
guidance, and has termed the Puesto Morales field as “at a very advanced
stage” – presumably, production may have peaked from this field.
• The Puesto Morales and Rinconada concession comprises less than 10% of
the Company’s net acreage in Argentina’s Neuquen Basin, which still
provides substantial ongoing drilling opportunities.
• Due to rig availability issues, 11 more locations are expected to be drilled by
year‐end, 10 locations short of the original target.
• Q3 results are expected November 6, including an update on the status of
the $37.7 million in asset backed commercial paper held by the Company.
• We continue to regard Petrolifera’s exploration inventory as one of the most
prospective of any junior. With the first drilling in Peru expected soon, there
is tremendous potential.
We are thus maintaining our BUY recommendation
and $30.00 target price.
Connacher Oil and Gas Limited of Calgary, Alberta was responsible for the creation and financing of Petrolifera and remains the single largest shareholder (13.3 million shares on a fully-diluted basis) Connacher also provides management services to Petrolifera.
Visit Connacher Oil and Gas Limited:
www.connacheroil.com
GMP Target is 19.00
TORONTO (Dow Jones)--GMP Securities L.P. cut its stock-price target on Petrolifera Petroleum Ltd. (PDP.T) to C$19 from C$23, noting that logistical challenges are leading to delays in conducting its Argentinian operations.
He said Petrolifera expects that a large portion of its field facilities at Puesto Morales will be completed by November, with the remainder to be completed by year-end. In a previous release, it had reported delays in completion of these field facilities.
In 2008, Beddis anticipates production of 16,000 barrels of oil equivalent a day, resulting in cash flow of C$2.53 a share. He had previously anticipated production of 19,000 barrels of oil equivalent a day and cash flow of C$3.25 a share in 2008.
GMP doesn't have an investment-banking relationship with Petrolifera and Beddis doesn't own shares of the company.
Company Web site: http://www.petrolifera.ca
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