Bear Creek Mining Axes Generative Exploration to Cut Costs

Bear Creek Mining Corp. (TSXV:BCM) released a corporate update, noting that it has put further cost-reduction measures in place. Though the company plans to complete “a modified and optimized feasibility study” for its Corani project in Q1 2015, it is eliminating “[g]enerative exploration.” Christian Rios’ position as vice president of exploration will also be eliminated.

Negotiations with the Peruvian government on a settlement regarding the Santa Ana project will continue.

As quoted in the press release:

The Company has focused on reducing expenditures since 2011; however, the following measures significantly further that effort and support additional cost savings in the order of US$4M per year allowing for further preservation of the Company’s US$43M cash as of the second quarter of 2014. The Company may evaluate further reductions as market conditions require; however management feels that Bear Creek is in a good cash position to complete the objectives described in this news release and prolong its treasury as long as necessary.

Andrew Swarthout, president and CEO of Bear Creek, commented:

Bear Creek was originally established as, and owes its success, to its exploration roots. We regret that current market conditions cause us to reduce this component; however the Company’s mandate is to create shareholder value, and we are committed to conserve cash while moving our projects containing over 330M ounces of silver in Proven and Probable reserves defined by two feasibility studies towards permitting and production. We are deeply appreciative of Christian Rio’s efforts over the past 10 years. His leadership has added significant value to the Company’s principle assets, the Corani and Santa Ana projects, through enhancing our scientific understandings of the Corani metallurgical aspects and the opportunities for upside at Santa Ana.

Click here to read the full Bear Creek Mining Corp. (TSXV:BCM) press release.