New gold mining projects to be developed in Venezuela's El Callao

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Monday, May 19, 2003 By: David Coleman

southeastern VenezuelaThe Venezuelan Guayana Corporation (CVG) is consolidating new mining projects in southeastern Bolivar State to create employment and regional economic progress.   Promotora Minera Guayana (PMG) has presented a exploitation developing plan for the Choco 10 gold concession to the of the CVG's corporate mining vice president stipulating an approximate annual production of 8,000 troy ounces placing it third in national ranking of importance.

Canadian Bolivar Gold which is quoted on the Toronto Stock Exchange is revealed as the majority stockholder in the El Choco 10 project in El Callao and counts on 70% of PMG shares with the remaining 30% to CVG's Ferrominera Orinoco.  Bolivar says it has 20 years experience for in Venezuela's mining sector; with exploration, development and production work at the Tomi mine, also in El Callao where shareholders are Deutsch Bank Australia, Royal Bank of Canada, Toronto Dominium Bank and others.

Bolivar Gold Group president Miguel de la Campa says a project feasibility study for the El Choco 10 goldmine has just been completed with a US$15 million investment.  A geophysical and geochemical analysis counts on 52,000 meters of drillings to support results that show technical and financial profitability.  It also indicates mineable resources of about 700,000 troy ounces of gold with new drillings to be performed to incorporate resources at Choco 4 owned by PMG.

Bolivar Gold's vice president of exploration, Jose Francisco Arata says that $55 million is earmarked for project investment ... $15 million on studies and $40 million on development ... "our goal is to start mine construction between October and November 2003 to produce gold by mid-April 2004 ... employment for the construction stage will be 100 direct jobs and 200-220 direct jobs for the operations.