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

Barkerville Gold Mines Ltd.

March 03, 2010 03:01 ET

Barkerville Gold to Begin Mining Ore at QR Gold Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2010) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) ("Barkerville", the "Company") announces that it has been advised by its mining contractor, Procon Mining and Tunnelling Ltd. (Procon), that start-up and dewatering operations are well underway at the West Zone at the Company's QR Gold Mine. Procon also advises that all necessary mining equipment has been mobilized and will be on site for operations to begin mining and hauling ore to the stockpile pad at the QR Gold Mill facility on March 15, 2010.

QR Gold Mine and Mill

Mining operations were initiated at the underground West Zone of the QR Mine on February 2, 2010, with plans to stockpile ore for 60 days ahead of commencing milling operations at the QR Mill. The 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.

Development planning is underway for the North Zone at the QR Mine and will be announced once definitive work and drill permits are submitted and approved. The North Zone is the largest known zone of gold mineralization at the QR project with a drill indicated strike length of over 1000 meters and is open at depth and on strike. The previous operator drove a large sized, 710-meter decline to the zone, which will be used to access it and complete further drilling to further delineate and develop this resource.

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 Rees
    Director
    604-669-6463 or Toll Free: 1-800-663-9688
    604-669-3041 (FAX)
    www.barkervillegold.com