LATIN AMERICA SPECIAL — Breakwater boosts El Mochito

Underground exploration at Breakwater Resources’ (TSE) El Mochito mine in Honduras has led to a 24% boost in minable reserves.

Drilling of the five active mining zones in the second half of 1994 resulted in an increase of 780,866 tonnes grading 7.8% zinc and 1.4% lead, plus 83 grams silver per tonne. Minable reserves now stand at 3.7 million tonnes grading 7.8% zinc and 1.4% lead, plus 83 grams silver. In addition, possible in situ reserves are estimated at 485,000 tonnes grading 7.6% zinc, 1.3% lead and 67 grams silver.

These reserves will sustain current production levels for more than 10 years. Underground exploration drilling in 1995 is expected to exceed 21,600 metres, a record for the mine. Reserves and production are expected to increase accordingly.

Recent drilling southwest of the Nacional zone has yielded encouraging results, with values of up to 18.5% zinc and 37 grams silver over 25 metres. Work to date suggests that a new zone may be present in this area. Further drilling is planned.

Exploration is also continuing along the stratigraphic contact between the Mochito shales and underlying limestone in the nose and south limb of the as-yet-untested Mochito anticline.