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BEAR CREEK REPORTS ON PERUVIAN GOVERNMENT STUDY ON MINING PERMIT PROCESSES WITHIN TWO SOUTHERN PUNO PROVINCES

May 24, 2011

VANCOUVER, May 24, 2011 /PRNewswire/ – Bear Creek Mining (TSX Venture: BCM /
BVL: BCM) (“Bear Creek” or the “Company”) announces that the Peruvian
government has issued a decree setting up a 180 day Multi-Sectorial
Commission comprised of ministers and elected local officials to study
and propose appropriate action in respect to mining activities within
the provinces of Yunguyo and Chucuito while the Peruvian government
resolves certain protests occurring in the Puno region. The government
called for the study in response to two weeks of strikes in the region
protesting mining, oil and gas, and hydroelectric activities.  The
Company’s Santa Ana project is located within the Chucuito province.
This suspension does not affect the Company’s mineral rights or the
status of the Santa Ana Environmental and Social Impact Assessment
(“ESIA”) which was in process at the time of the announced study. The
Company expects to continue its permitting process with the Ministry of
Energy and Mines (“MEM”) and is currently preparing its responses to
observations submitted by the MEM in the normal course of business. The
Company will also continue its plans for the development of its Santa
Ana project including its ongoing community relations and social
support programs, and detailed engineering.  The effect of the study
will likely be to delay approval of the ESIA until late 2011 compared
to the previously expected  mid-2011.

Mr. Andrew Swarthout, Bear Creek CEO, stated “Bear Creek has received
strong local community support on our Santa Ana project as demonstrated
by the formal public hearing successfully completed in our local
community at Santa Ana in February, 2011.  We are confident of the
ESIA’s approval following this study but now expect that the
commencement of construction will likely be delayed into mid-2012 with
production startup anticipated to occur in 2013 if the study runs the
maximum term of 180 days. Bear Creek is disappointed with the delay
that the study will cause which is the result of the pre-election
political situation in Peru but will assist the government in reducing
the political tensions which have arisen from communities distant from
and unaffected by the Santa Ana Project.  We are confident that the
protests will be successfully resolved allowing the return to the
normal, well-established permitting and other procedures that we and
all other mining companies in Peru operate under.”

About Bear Creek: 

Bear Creek is focused in Peru, a mineral-rich nation with a favorable
investment climate. The Company has recently completed a
Pre-Feasibility Study on its Corani Project and a Feasibility Study on
its Santa Ana Project, which together estimate measured and indicated
resources in excess of 500 million ounces of silver of which over 320
million ounces are in proven and probable reserves providing near-term
production potential and excellent leverage to silver prices. The
Feasibility Study for Santa Ana defines a low-cost “pure silver” mine
producing 5 million ounces annually in the first six years of an
estimated 11-year mine life. The Pre-Feasibility Study for the flagship
Corani Project estimates average annual production of 10 million ounces
for the first six years of an estimated 27-year mine life, with low
cash costs and fast payback of capital costs. Santa Ana is proceeding
towards permitting and construction while Corani is undergoing a
Feasibility Study.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

Regulatory footnotes:

All of Bear Creek’s exploration programs and pertinent disclosure of a
technical or scientific nature are prepared by or prepared under the
direct supervision of Marc Leduc, P. Eng., President and COO, Christian
Rios, P.Geo. Exploration Manager and the CEO, Andrew Swarthout, P.Geo.,
who serve as the Qualified Persons under the definitions of NI 43-101.
All diamond drilling has been performed using HQ diameter core with
recoveries averaging greater than 95%. Core is logged and split on site
under the supervision of Bear Creek geologists. Sampling is done on
two-meter intervals and samples are transported by Company staff to
Arequipa, Peru for direct shipping to ALS Chemex, Laboratories in Lima,
Peru. ALS Chemex is an ISO 9001:2000-registered laboratory and is
preparing for ISO 17025 certification. Silver, lead, and zinc assays
utilize a multi-acid digestion with atomic absorption (“ore-grade assay
method”). The QC/QA program includes the insertion every 20th sample of
known standards prepared by SGS Laboratories, Lima. A section in Bear
Creek’s website is dedicated to sampling, assay and quality control
procedures.

Certain disclosure in this release, including management’s assessment of
Bear Creek’s plans and projects, constitutes forward-looking statements
that are subject to numerous risks, uncertainties and other factors
relating to Bear Creek’s operation as a mineral exploration company
that may cause future results to differ materially from those expressed
or implied in such forward-looking statements. These risks,
uncertainties and other factors are disclosed in Bear Creek’s
continuous disclosure filings with Canadian securities regulators
including its most recent annual information form, available on www.sedar.com. Bear Creek expressly disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise. 

SOURCE Bear Creek Mining Corporation


Source: newswire



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