Breakaway Says BHP Withdraws From JV After Drilling Review

BHP Billiton Ltd. (BHP) has decided to withdraw from a prospecting joint venture in Australia following a commercial and technical review of a drilling campaign at the 7.5-million-ounce Altia silver deposit, smaller partner Breakaway Resources Ltd. (BRW.AU) said Thursday.

In a statement, Breakaway said BHP had informed the company that it believed there was limited potential for the discovery to be mined in a way that would meet its commercial criteria--although drilling in 2010 and 2011 demonstrated the Altia project in Queensland lies within a broad system with silver, lead and zinc mineralization.

"The withdrawal now creates a significant exploration opportunity for Breakaway as it gives the company unrestricted access to three exciting advanced exploration targets that lie within the former joint venture area, and an extensive database of new geological information generated during the joint venture period," Breakaway said.

It said the existing inferred mineral resource at Altia remains intact.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]