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

Barkerville Gold Mines Ltd.

September 08, 2011 08:30 ET

Barkerville Adds 2,975 Hectares To Its Cariboo Mining Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2011) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") announces that it has completed the purchase of the Antler Creek, Craze Creek and Roundtop Mountain Properties under the terms previously disclosed on August 23, 2011, August 24, 2011 and August 26, 2011 respectively (News Releases 11-24, 11-25 and 11-26).

J. Frank Callaghan, President and CEO, states, "The Company is pleased to complete the acquisition of these three prospective gold properties. The three properties are within the Company's main claim area that encompasses seven past producing historic mines as well as Barkerville's two proposed open pit gold mines. The acquisition adds approximately 2,975 hectares to the existing property totaling 117,691 hectares running about 60 kilometers in length (SE–NW) by 30 kilometers wide (SW–NE)."

The Company's Chief Geologist Jim Yin, PhD, P.Geo reports, "The Craze Creek and Roundtop Properties are in the same mine trend of the past producing mines including Cariboo Hudson, Cariboo Gold Quartz, Island Mountain Aurum, Mosquito Creek gold mines in addition to the Hardscrabble Tungsten Mine and the proposed Bonanza Ledge, high-grade open pit mine. The dominant unit underlying the properties is the Downey Succession, characterized by olive and grey micaceous quartzite and phyllite, with siltite and minor argillite. A band of limestone, limy siltstone and volcanic rocks occurs within the Downey succession. The volcanic rocks are believed to be metamorphosed dikes and sills."

"The Antler Property is next to the historic mine trend to the east. Downey Succession underlies mainly the east side of the Antler Property. The property is underlain by argillite, phyllite, quartzite, and limestones," Jim Yin adds.

The Antler Creek Acquisition was completed pursuant to an agreement dated August 18, 2011 between the Company and two arm's length Vendors, Timothy Young and Samuel Skiber whereby the Company purchased a 100% interest in certain mineral claims comprising 1,365.5 hectares in the Cariboo District of British Columbia, namely the Antler Creek Property which lies along Antler Creek southeast of Wells, BC and along the trend of Bonanza Ledge Zone. Pursuant to the agreement the Company paid the Vendors $10,000 and issued an aggregate of 30,000 common shares of the Company at a price of $1.55 per share which shares are subject to a hold period expiring December 31, 2011. The Antler Creek Property is subject to a 1% net smelter return royalty held in favour of the Vendors.

The Craze Creek Acquisition was completed pursuant to an agreement dated August 17, 2011 between the Company and Pacific Bay Minerals Ltd., an arm's length party, whereby the Company purchased the Vendor's 40% interest in certain mineral claims comprising 640.55 hectares in the Cariboo District of British Columbia, namely the Craze Creek Property which lies 20 km southeast and along trend of the Bonanza Ledge Zone. Pursuant to the agreement, the Company issued 100,000 common shares of the Company at a price of $1.53 per share to Pacific Bay which shares are subject to a hold period expiring January 1, 2012. The Craze Creek Property is subject to an existing 2.5% net smelter return royalty for the original vendors and a 1% net smelter return royalty held in favour of Pacific Bay. Such 1% net smelter return royalty can be purchased by the Company for CAD$1,000,000.

The Roundtop Mountain Acquisition was completed pursuant to an agreement dated August 26, 2011 between the Company and Roundtop Exploration Inc., an arm's length party, whereby the Company purchased a 100% interest in certain mineral claims comprising 729.4 hectares in the Cariboo District of British Columbia, namely the Roundtop Mountain Property which lies adjacent to the historic Cariboo Hudson Mine near Wells, BC. Pursuant to the agreement, the Company paid the Vendor a total of $26,000 and issued an aggregate of 20,000 common shares of the Company at a price of $1.56 per share which shares are subject to a hold period expiring January 2, 2012. The Roundtop Mountain Property is subject to a 2% net smelter return royalty held in favour of the Vendor. Such 2% net smelter return royalty may be purchased by the Company for CAD$1,000,000.

About Barkerville Gold Mines Ltd.

Since the mid 1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures now cover over 117,691.14 hectares, encompassing seven past producing hard rock mines and three NI 43-101 gold deposits, including the QR Mine & Mill. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in the first quarter of fiscal 2011 and the Company began pouring doré gold in September 2010. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. for relocation to the Barkerville Gold Camp near Wells, B.C. and upgrade to a 3,000-tonne/day facility subject to government approvals. In November 2010 the Company and the Lhtako Dene First Nation also signed a Project Agreement in relation to its Bonanza Ledge and Cariboo Gold Projects. The Company has not hedged any of its future gold production.

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, President and CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. All phases of the Company's operations are subject to environmental regulation and governmental approval and permits and there can be no assurance that the Company will obtain all the requisite permits for future development. Mining is an inherently risky business with large capital expenditures and cyclical metals markets.

Neither the 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

  • Barkerville Gold Mines Ltd.
    J. Frank Callaghan
    President and CEO
    (604) 669–6463 OR Toll Free: 1-800 663-9688
    (604) 669-3041 (FAX)
    www.barkervillegold.com