Bolivar to move Hecla equipment to Choco 10 property

<a href=new.stockwatch.com>Stockwatch 2003-04-03 09:45 ET - News Release Mr. Robert Doyle reports

BOLIVAR GOLD CORP. ANNOUNCES ACQUISITION OF MILL

Bolivar Gold has acquired the processing facilities of Hecla Mining Company that are currently located at the Hecla Grouse Creek site in Idaho, USA. The crushing, grinding, gravity concentration, carbon adsorption and Merrill-Crowe precipitation facilities were designed to process 5,400 tonnes of gold ore per day.

Bolivar intends to relocate the equipment to its Choco 10 property, which is located in Bolivar state, Venezuela, where the company plans to develop a surface oxide gold resource currently consisting of 700,000 ounces indicated and 300,000 ounces in the inferred category. At the same time, the company will aggressively explore the sulphide potential immediately beneath the planned open pit. The Choco 10 property is the subject of a technical report prepared for Bolivar Gold by Stanley Bartlett, PGeo, of Micon International Limited, dated Nov. 26, 2002, and revised on Jan. 23, 2003, and which is available on SEDAR.

The company recently raised net proceeds of $14.4-million through the sale of 20.7 million special warrants at 75 cents each. The proceeds of this financing will be used to finance obligations related to the acquisition of the company's Venezuelan properties, the acquisition of the Grouse Creek mill as well as other costs related to the exploration and development of the Choco 10 property.

The acquisition of the Grouse Creek equipment is expected to enhance the overall economics of the Choco project as a result of the lower than planned cost and greater capacity. The original development plan envisioned a 4,000-tonne-per-day operation. As part of the detailed engineering the company will review alternatives in order to take advantage of this additional capacity.