BCGold Corp.
TSX VENTURE : BCG

BCGold Corp.

August 25, 2010 09:00 ET

BCGold Corp. to Commence Phase II Drill Program at Engineer Gold Mine Property, B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2010) - BCGold Corp. (TSX VENTURE:BCG) (or the "Company") is pleased to announce that a second phase of underground drilling at the Company's historic high-grade gold Engineer Mine Property, situated 32 kilometres west of Atlin, B.C., is scheduled to commence in mid-September of this year.

Phase II drilling ensues in response to the Company's achievement of its Phase I drilling objective, which was to confirm that high-grade gold shoots persist at depth at Engineer Mine. "Phase I drilling clearly demonstrated that the high-grade gold system at Engineer Mine remains open at depth and that high-grade gold shoots are predictable and more or less continuous, which is in line with the non-uniform distribution (nugget effect) of high-grade gold mineralization inherent to most narrow vein, coarse gold vein systems," stated Brian P. Fowler, P.Geo., President and CEO of BCGold Corp.

Phase II drilling will be directed at further defining the geometry of high-grade gold shoots in the Engineer and Double Decker veins and upgrading and increasing the current potential mineral target at Engineer Mine to an NI 43-101 compliant mineral resource estimate.

BCGold Corp. has contracted Ampex Mining Ltd. of Whitehorse, Yukon to excavate drill bays on the main access level of the mine (Level 5) and Lyncorp Drilling Services Inc. of Smithers, B.C. to drill up to 1,500 metres on the Double Decker Vein and along the Engineer Vein over a strike and dip length of approximately 200 metres and 150 metres, respectively.

Phase I Drill Results at Engineer Mine

In July, five holes (640 metres) were drilled from a single underground setup on Level 5 of the mine. Three holes targeted high-grade gold extensions of the Double Decker Vein above and below the deepest level of the mine (Level 8) and two holes targeted shallow, oblique extensions of the Engineer Vein, immediately below Level 5.

Double Decker Vein/Drill Holes BCGE10-01, BCGE10-02, BCGE10-03

The Level 8 Double Decker high-grade gold shoot remains open at depth, along strike and up-dip to Level 5. Assay results for drill holes BCGE10-01 and BCGE10-02 were previously reported (see BCGold Corp. news release July 8, 2010) and include the following highlights:

  • BCGE10-01 intersected coarse visible gold in two stringer veins, 21 metres vertically below Level 8, that averaged 22.32 g/t (0.65 oz/ton ) gold and 7.94 g/t (0.23 oz/ton) silver over 0.96 metres (3.15 feet).

  • BCGE10-02 was lost in a stope, 11 metres above Level 8.

BCGE10-03 successfully hit the Double Decker Vein 32 metres above Level 8 and averaged 0.34 g/t gold and 1.25 g/t silver over 0.95 metres.

Engineer Vein/Drill Holes BCGE10-04, BCGE10-05

BCGE10-04 targeted the Engineer Vein 20 metres below Level 5, towards the southwest and down-dip of a partially mined high-grade gold shoot. This drill hole intersected 30 centimetres (true width) of vuggy, fine grained quartz at 51.50 metres depth within a stringer zone that averaged 0.24 g/t gold and 4.81 g/t silver over a core length of 0.80 metres.

BCGR10-05 targeted the shallow depth extension of a similar gold shoot towards the northeast. Three vein/breccia zones were intersected, the best of which averaged 0.28 g/t gold and 1.03 g/t silver over 1.70 metres.

Overview

Management acknowledges that drill holes BCGE10-03, BCGE10-04 and BCGE10-05 returned low gold grades, but remains optimistic about forthcoming drill results at Engineer Mine. Low gold grades can be attributed to the "nugget effect" (see above), which is inherent to the sampling of narrow vein, coarse gold systems such as that at Engineer Mine, and management believes that the important factor is that the Double Decker and Engineer veins persist at depth and contain the appropriate alteration assemblage known to be associated with high-grade gold mineralization at Engineer Mine.

Mr. Bruce Coates, P.Geo., a Qualified Person for the purposes of National Instrument 43-101, has reviewed the technical content of this news release.

About the Engineer Mine Property

BCGold Corp. has an option to earn 100% interest in the Engineer Mine Property.

Engineer Mine was a high-grade gold producer that peaked in the mid-1920s and ceased production in the early 1930s, primarily due to water ingress issues. More than 560 kilograms of gold and 278 kilograms of silver were officially produced at realized grades exceeding 39 g/t gold and 20 g/t silver, respectively, from high-grade epithermal quartz-carbonate veins on six mine levels.

The presence of visible gold was the primary method of identifying and following ore shoots in the veins. There are more than 25 known veins on the property; only four have undergone limited production and exploration to date. All veins remain open at depth and little exploration has been conducted deeper than 200 metres below surface.

Sample Analysis and Quality Control

Drill core samples were prepared by Eco-Tech Laboratories Ltd., a subsidiary of the global Alex Stewart Group, BC Certified Assayers, in Whitehorse, Yukon, and assayed by an ISO 9001:2000 certified laboratory in Kamloops, B.C. Samples were delivered directly by a BCGold Corp. representative, with chain of custody documented. Quality control consisted of the insertion of certified reference materials (standards), blanks and duplicates into the sample shipment by BCGold Corp. personnel.

Gold analyses for core samples from drill hole BCGE10-01 were done using a metallic screen fire assay process. In this method drill core samples were crushed to 70% passing through 10 mesh, then split to achieve a 250 gram subsample. The subsample was pulverized to 95% passing through -150 mesh. The entire sample was weighed, rolled and homogenized and then passed through a 150 mesh screen. The resulting -150 mesh fraction was homogenized and two subsample portions were fire assayed. All of the resulting +150 mesh oversize material was fire assayed. The resultant fire assay beads were digested with a nitric acid followed by hydrochloric acid and then analyzed for gold by AAS to 0.03 g/t detection limit. The results for the two -150 mesh values and single +150 mesh value were then calculated based on the original sample weight providing a net gold value.

Gold analyses for core samples from drill holes BCGE10-02 to BCGE10-05 were done using a fire assay of a 30 gram pulp and an atomic absorption finish. In addition, the samples from all holes were analysed for a 4-6 element package of major and trace elements by ICP-AES/MS analysis following a four acid digestion.

About BCGold Corp.

BCGold Corp. (TSX VENTURE:BCG) is a Vancouver-based junior resource company focused on copper and gold exploration in under-explored, historic and emerging mining districts in British Columbia and Yukon. BCGold Corp. acquires and develops conceptual, early and mid-stage exploration opportunities and advances them towards resource development by using internal expertise, engaging preferred joint venture partners and creating strategic alliances with major exploration and mining companies.

On behalf of the Board of Directors,

Brian P. Fowler, P.Geo.
President & CEO

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future payments, expenditures and unit issuances and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of future payments, expenditures and unit issuances and the timing and success of future exploration, development and production activities.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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