The Santa Maria mine, located in the mining district of Gomez Plata, 100 km north of Medellin, has a mining history extending back more than a century, as evidenced by old mine workings and historic documents of mining activities. Although lacking precise production records, the mining activity carried out was an important pillar for the local economy.

The Santa María deposit consists of a series of epithermal/mesothermal high grade gold and silver veins. Bellhaven recently completed a sampling program in several existing tunnels and mine portals, collecting a total of 295 rock samples from seven east-west trending veins. This sampling program identified multiple levels of mineralization within the precious metal vein system. The Aluchadero zone on the west side of the block is considered the deepest zone within the workings, and shows consistent vein thickness and values, giving an average assay of 50 g/mt of gold and 43 g/mt of silver over 40-cm thickness. The Santa Maria zone is considered to be at a higher level within the mineralized system with assay values of up to 200 g/mt of gold.

Bellhaven plans to further develop the tunnels along the Aluchadero veins, driving tunnels 1,200 m to the east and 250 meters to the west. In addition, the two levels will be connected by shafts, to block out drill delineated reserves to justify installing a plant of at least 300 mt/d capacity.

During this development period, the material extracted will be processed at the 50-mt/d plant located at the mine site. This will include crushing, milling, gravity separation of gold, concentration, cyanidation and zinc precipitation. Bellhaven’s first objective is to get the existing plant repaired, upgraded and operating at a production capacity of 1,000 oz/month of gold.

Work at the site has already commenced, according to the company, and is expected to be completed within 120 days. The benefits from this operation will be shared 50:50 between Bellhaven and the vendors until the vendors receive accumulated earnings of $250,000, at which time the benefits will be divided 80:20, with Bellhaven receiving 80%. Bellhaven will be the operator and has committed to invest $1 million over a three-year period in exploration and development work to earn an 80% interest. Bellhaven also has the option for a three year period to purchase an additional 10% interest for $1 million.