International Wayside Gold Mines Ltd.
TSX VENTURE : WYG
FRANKFURT : IWUB

International Wayside Gold Mines Ltd.

October 07, 2009 02:25 ET

Wayside Drills 84.4m (277.0 feet) of 16.5 g/T (0.481 oz/t) Gold Including 37.5m (123.1 feet) of 36.1 g/T (1.052 oz/t) Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - International Wayside Gold Mines Ltd. (TSX VENTURE:WYG)(FRANKFURT:IWUB) ("Wayside", the "Company") announced today that it has received more results from its infill diamond drill program in the Bonanza Ledge Zone on Barkerville Mountain (Table 1).

The proposed 17 hole infill diamond drill program in the Bonanza Ledge Zone will upgrade its existing NI 43-101 resource from an inferred to indicated category. To date, 16 of 17 drill holes have been completed. BC09-01 through BC09-05, BC09-07 through BC09-09 (please see September 17 and October 5, 2009 News Releases), BC09-11 and BC09-12 have returned promising intercepts containing gold mineralization.

- Drill hole BC09-12 intercepted gold mineralization from 3.048 meters (10 feet below surface) to 87.48 meters (287 feet below surface):

-- 84.4 meters (277.0 feet) of 16.5 g/T (0.481 oz/t) gold,

--- including 37.5 meters (123.1 feet) of 36.1 g/T (1.052 oz/t) gold,

Results from the remaining holes in the infill program are forthcoming.

Cow Mountain Drill Program

Drill holes CM09-01 through CM09-03 were completed beside the Lowhee Creek on Cow Mountain and confirm the 2.2 km mine grid west extension of the BC Vein and Bonanza Ledge style mineralization.

Drill hole CM09-03, drilled approximately 2.2 km northwest of center of the proposed Bonanza Ledge open pit mine, intercepted a fine-grained pyrite replacement body in a fault zone (Lowhee Fault or related), which contains up to 60% fine-grained pyrite and returned up to 22.7 g/T gold (see October 5, 2009 News Release). Initial interpretation suggests the Company has discovered the northwest trend along strike of Bonanza Ledge style replacement mineralization, being similarly hosted in clastic rocks in the same mine trend. More drill holes are needed to have a better understanding of the pyrite replacement body locally, which could assist Wayside in its future exploration programs to identify similar zones along the approximately 60 km mine trend on the Company's property.

President and CEO J. Frank Callaghan notes, "The assays results returned from drill hole BC09-12 are the best the Company has seen at the Cariboo Gold Project to date". Additionally, Mr. Callaghan states, "Discovering Bonanza Ledge style mineralization 2.2 km northwest of the proposed Bonanza Ledge open pit mine is the most significant event since the initial Bonanza Ledge discovery in the spring of 2000 and marks a major step in outlining the Bonanza Ledge trend. Wayside will endeavour to expand its understanding and resources along this trend through upcoming exploration programs".

The results also verify that strike quartz veins including BC Vein extend 2.2 km onto Cow Mountain from Barkerville Mountain, though more drilling needs to be conducted to confirm the total length and depth along strike. Gold values returned from the strike vein are up to 20.5 g/T (see September 17, 2009 News Release).

About International Wayside Gold Mines

International Wayside Gold Mines has been developing its 106,484 hectare 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 has also entered into a letter of intent with 0373849 B.C. Ltd. (formerly Cross Lake Minerals Ltd.) ("Cross Lake") pursuant to which Wayside will purchase a subsidiary of Cross Lake holding all of Cross Lake's interest in the QR Mine and Mill (the "Sale Transaction"). Concurrently with the completion of the Sale Transaction, Wayside will enter into a Spin-off Transaction to transfer all of its properties, including the QR Mine and Mill, Cariboo Gold Project, and its assets, liabilities and obligations, to Barkerville Gold Mines Ltd. ("Barkerville"), a wholly-owned subsidiary of Wayside, in exchange for shares of Barkerville (the "Barkerville Shares") and will then distribute the Barkerville Shares to the shareholders of Wayside on the basis of one Barkerville Share for each share of Wayside. The Sale Transaction and Spin-Off Transaction (together, the "Transactions") will be structured as a Plan of Arrangement involving Wayside, its security holders, Cross Lake and Barkerville pursuant to the provisions of the B.C. Business Corporations Act. The final terms of the Transactions will be modified to the extent necessary to give effect to tax and legal advice to be sought by the parties.

Barkerville will make an application to list its shares on the TSX Venture Exchange (the "TSX.V"). This transaction is subject to meeting the usual listing requirements of the TSX.V, which will include having the necessary funds to meet the obligations of operating the QR Mine and Mill, conduct recommended work programs on its Cariboo Gold exploration projects, satisfy the necessary general and administrative expenses and having unallocated working capital. Completion under the Plan of Arrangement will also be subject to obtaining the necessary shareholder, regulatory and court approvals.

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. The gold values presented have been derived from assay data received from Eco Tech Laboratory Ltd. in Kamloops, B.C., using fire assay with an AA (atomic absorption) finish.



Table 1. SIGNIFICANT ASSAYS OF BC09-12

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# Drill Hole From To Width Gold
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Feet Feet g/T oz/t
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10.0 287.0 277.0 16.5 0.481
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including
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27.0 37.0 10.0 1.12 0.033
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61.9 67.0 5.1 1.53 0.045
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81.6 83.3 1.7 10.3 0.299
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108.6 111.7 3.1 7.20 0.210
--------------------------------------------------
118.7 123.1 4.4 64.5 1.881
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123.1 127.0 3.9 11.2 0.327
--------------------------------------------------
127.0 130.5 3.5 28.3 0.825
--------------------------------------------------
130.5 135.5 5.0 4.30 0.125
--------------------------------------------------
135.5 138.8 3.3 4.20 0.122
--------------------------------------------------
142.1 147.0 4.9 29.5 0.860
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147.0 153.2 6.2 46.0 1.341
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153.2 158.4 5.2 17.9 0.522
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158.4 167.0 8.6 47.5 1.385
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167.0 172.0 5.0 51.5 1.502
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1 BC09-12 172.0 177.0 5.0 170 4.958
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177.0 179.9 2.9 92.0 2.683
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179.9 187.0 7.1 127 3.704
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187.0 190.8 3.8 10.3 0.300
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190.8 197.0 6.2 2.04 0.059
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197.0 201.9 4.9 27.1 0.790
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201.9 203.2 1.3 34.5 1.006
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203.2 207.0 3.8 18.7 0.545
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207.0 212.4 5.4 19.6 0.572
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212.4 217.0 4.6 25.2 0.735
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217.0 222.0 5.0 21.5 0.627
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222.0 227.0 5.0 15.0 0.437
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227.0 231.7 4.7 7.90 0.230
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231.7 237.0 5.3 5.10 0.149
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237.0 240.4 3.4 2.70 0.079
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240.4 244.1 3.7 4.30 0.125
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244.1 247.0 2.9 1.77 0.052
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252.0 257.5 5.5 1.22 0.036
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On Behalf of the Board of Directors

J. Frank Callaghan, President & CEO

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.

Contact Information

  • International Wayside Gold Mines Ltd.
    Andrew H. Rees
    Director
    604 669-6463 or Toll Free: 1-800 663-9688
    604 669-3041 (FAX)
    Website: www.wayside-gold.com