Barkerville Gold Mines Ltd.
TSX VENTURE : BGM
FRANKFURT : IWUB

Barkerville Gold Mines Ltd.

March 23, 2010 00:00 ET

Barkerville Gold Begins Mining and Hauling Ore at QR Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2010) - Barkerville Gold Mines Ltd. ("Barkerville", the "Company") (TSX VENTURE:BGM)(FRANKFURT:IWUB) announces that it has been advised by its mining contractor, Procon Mining and Tunnelling Ltd. (Procon), that mining began as scheduled, on March 15, 2010 and that ore from the West Zone at the QR Mine is being mined, hauled and stock piled at the QR Mill ahead of commencing gold production at the facility.

Mining operations were initiated underground in the West Zone at the QR Mine on February 2, 2010, with gold production and the pouring of gold doré bars scheduled to commence in Q2 of this year. The Company's 900 tonne per day mill facility is located immediately above the underground mine and is fully permitted and operational. It is the Company's objective to achieve 50,000 ounces of gold production at this facility, from a combination of ore from the QR Mine and Bonanza Ledge open pit (currently in permitting). $6,000,000 of the recently closed $13.6 million equity financing has been budgeted for start-up capital and operational expenditures to begin mining and milling operations. An estimated $34.5 million in capital expenditures by the previous operator offsets initial start-up costs for the Company.

Further, the Company reports that detailed planning is underway for a development drilling program at the North Zone and will announce the start of work when details are finalized and permits are approved. The Company anticipates this will be next zone at the QR Mine developed for mining. 

The North Zone is largest zone of gold mineralization found to date at the QR Mine, with a drill indicated strike length of over 1000 meters. Previous work includes a large scale, 5 meter by 4 meter, 710-meter long decline (tunnel), which will be used to access the zone to complete further drilling and development. 23 diamond drill holes totaling 3,443 meters have been completed to date by the previous operator which will be expanded upon by the Company. An initial $4,000,000 from the recent financing has been budgeted for diamond drilling in this and several other gold resource expansion and exploration projects the Company has initiated this year.

About Barkerville Gold Mines Ltd.

The Company has been developing its Cariboo Gold Project in Barkerville, B.C., which encompasses (from northwest to south east) the former producing Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (now on care and maintenance), Aurum Mine, Island Mountain Mine, Cariboo Gold Quartz Mine, Bonanza Ledge (proposed mine), the Cariboo Thompson Gold & Silver Mine and the Cariboo Hudson Mine. The Company commenced operations in the Cariboo District in 1994 and since that time has focused on the exploration and development of its gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass approximately 1,065 square km (106,484 hectares) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold production. Recorded gold production from the area totals more than 3.8 million ounces, including an estimated 2.64 million ounces from placer mining and 1.23 million ounces from lode mining. On February 2, 2010, the Company reported that it closed the acquisition of the QR Mine, Mill and its associated assets and began gold mining operations at the QR Mine.

The technical information in this News Release has been reviewed and approved by Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.

On Behalf of the Board of Directors

"J. Frank Callaghan"
J. Frank Callaghan
President

This news release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Barkerville Gold Mines Ltd.
    Andrew H. Rees
    Director
    604-669-6463 or Toll Free: 1-800-663-9688
    604-669-3041 (FAX)
    www.barkervillegold.com