Toronto, Canada, November 8, 2005
Breakwater Resources Ltd. is pleased to announce that it will develop the Langlois mine in
north-western Québec. Extensive engineering, metallurgical testing, mine re-design work and
exploration have been carried out in support of a revised mine plan. Given the existing
infrastructure and the work completed to date, which includes shaft infrastructure upgrades, new
ore passes and development work, the mine is ready for the drift development work to bring the
mine into production. It is expected this work will take 15 months with full commercial
production by mid-2007. The capital requirements to accomplish this will be incurred over this
period at the normal development expenditure rate.
Current proven and probable mineral reserves at Langlois total 3.2 million tonnes grading 10.8%
zinc, 0.82% copper and 52 g/t silver. Assuming an estimated average annual production of
54,000 tonnes of zinc contained in 98,000 tonnes of concentrate, Langlois has a seven year mine
life. Measured and indicated mineral resources, which include proven and probable mineral
reserves total 5.0 million tonnes grading 11.2% zinc, 0.79% copper and 54 g/t silver. The
deposit has significant opportunities for increased reserves, especially in zone 97 which remains
open at depth and to the east. Additionally, Breakwater intends to commence an extensive
surface exploration program around the Langlois mine.
Breakwater is excited by the prospect of developing the Langlois mine in a very strong zinc
market. We believe that the zinc price will continue to show strength in the coming years given
the shortage of new mines and the continued demand growth, driven primarily by China. We
believe that Langlois is one of the top zinc development projects with very low risk. It has been
well defined through drilling, well engineered and is located in one of the best political
jurisdictions for a mining project in the world. Additionally, given the existing infrastructure,
Langlois should be producing ore within 15 months, well ahead of other, greenfield development
projects.
Cautionary Note on Forward Looking Statements
Certain statements included in this news release are forward-looking statements, which are made
pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform
Act of 1995. They include estimates and statements that describe the Company’s future plans,
objectives and goals, including words to the effect that the Company or management expects a
stated condition or result to occur. When used herein, words such as “will”, “should”, “estimated”, “expected”, “opportunities”, “intended”, “believe”, “continued”, “prospect”, and
other similar expressions are intended to identify forward-looking statements. In particular,
statements relating to development, drilling, demand growth, production, mineral reserves, mine
life and exploration are forward-looking statements. Such forward-looking statements involve
inherent risks and uncertainties and subject to other factors, many of which are beyond our
control, which may cause the actual results or performance to differ materially from those
expressed or implied by such forward-looking statements. Such factors include, among others,
asset impairment, metal price volatility, fluctuations in foreign exchange rates, economic and
political events affecting metal supply and demand, fluctuations in ore grade or ore tonnes
milled, geological, operating and environmental risks, problems during the development,
construction and start-up phases of an underground mine and inadequacy of environmental
insurance. For a more comprehensive review of risk factors, please refer to the Company’s most
recent annual report under “Management’s Discussion and Analysis of Financial Results” and
Form 40-F under “Risk Factors” on file with the Canadian provincial securities regulatory
authorities and the U.S. Securities and Exchange Commission filed on SEDAR at
www.sedar.com. The Company disclaims any obligation to update or revise any forwardlooking
statements whether as a result of new information, events or otherwise. Readers are
cautioned not to put undue reliance on these forward-looking statements.
For further information please contact:
George E. Pirie
President and Chief Executive Officer
(416) 363-4798 Ext. 231
Richard Godfrey
Vice President, Finance and
Chief Financial Officer
(416) 363-4798 Ext. 276
|