Cerro Quema High-Sulphidation Gold Deposit, Panama

Overview
Cerro Quema is a development-ready, fully permitted (exploitation concession granted), high-sulphidation  type epithermal gold-(copper) resource located in the same belt of dacitic volcanic rocks as Bellhaven's nearby Pitaloza gold project on Panama’s Azuero Peninsula.

The current resource estimate at Cerro Quema is not NI 43-101 compliant, however measured and indicated resources have been calculated by third parties at 15.14 million tonnes at 0.93 g/t Au (451,400 oz).

Project History
Cyprus Amax Gold, along with Bellhaven Company President Julio Benedetti, discovered and drilled Cerro Quema in the mid-1990's. 

A positive feasibility study, also not NI 43-101 compliant, was completed by a subsequent owner in November 2002.  That study projected gold production of approximately 50,000 ounces per year over a mine life of four and a half years. 

The Company secured rights to 100% of the Cerro Quema project in 2007.  The 2002 feasibility study was updated in January 2009 for capital and operating costs, estimating a CAPEX of US$14 million and OPEX of US$8.33 per tonne.  The study also involved the design, construction (by Innovat Ltd.) and operation (by SGS Lakefield) of a 15 tpd Continous Vat Leach pilot plant. The pilot plant processed a 70 ton ore sample over 4 days, providing gold recoveries of over 90% in a 36 hour period.

Development Plans
On January 4th, 2010 the Company announced a letter of intent with Pershimco Resources (TSX-V: PRO) to develop Cerro Quema, whereby Pershimco can earn up to a 75% equity interest in the project, through payments and project spending of US$18.5 million, and can acquire an additional 10% interest for US$5 million.