Barkerville Gold Mines Ltd.

Barkerville Gold Mines Ltd.

November 08, 2010 10:05 ET

Barkerville Completes Purchase of Second Gold Mill Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2010) - Barkerville Gold Mines Ltd. ("BGM" or "the Company") (TSX VENTURE:BGM)(FRANKFURT:IWUB) reports that the TSX Venture Exchange has accepted for filing a share purchase agreement dated Sept. 2, 2010, between International Bethlehem Mining Corp., Bethlehem Resources (1996) Corp. and Barkerville Gold Mines Ltd. whereby Barkerville will acquire all the issued and outstanding shares of Bethlehem Resources, a private B.C. company. The purchase includes the Goldstream mill facility, tailings pond, and related mineral leases and claims that are located in the Revelstoke Mining Division, British Columbia. Consideration (all amounts $CDN) is $750,000 and $1.5-million in common shares in the first year and $550,000 and $500,000 in common shares in the second year. The deemed value of the common shares will be calculated based on the volume-weighted average price of the company's shares for the 10 trading days ending on the day prior to the closing date, the six-month anniversary of the closing date, the 12-month anniversary of the closing date and the 18-month anniversary of the closing date subject to a floor price of not less than 92 cents per share.

The Goldstream Mill is a custom mineral processing plant fully permitted in its current location and is presently on care and maintenance. The facility has a name-plated milling capacity of 1,360 tonnes per day and residue from such operations can be accommodated in the adjacent tailings pond and surrounding properties.

It is the Company's intention, subject to approvals, to relocate, refurbish and upgrade the Goldstream mill facility to the base of Cow Mountain, near Wells, British Columbia, where two of Barkerville's NI43-101 gold resources and proposed open-pit deposits are located in Central British Columbia. Upon relocation, the Company plans to upgrade the mill with an additional ball mill and a carbon-in-pulp circuit, to an increased capacity of 2,000 tonnes per day. The Company's Bonanza Ledge proposed open-pit mine on the adjacent Barkerville Mountain is currently in the B.C. Mines Act approval process. The Cariboo Gold Project, encompassing Cow Mountain, is anticipated to re-enter the B.C. Environmental Assessment Process in the 4th Quarter of 2011.

Certain mineral claims are subject to either a 25-per-cent net profit royalty or a 2.5-per-cent net smelter return royalty and a 12.5-per-cent net profit royalty, at the election of the holder of the royalty interest.

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 1,112 square km (112,484 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, President and CEO

Forward-Looking Statements

This news release contains forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's growth strategy, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. This news release may include statements regarding exploration results and budgets, reserve estimates, mineral resource estimates, work programs, capital expenditures, timelines including timelines for third-party studies and issuance of permits to operate by various government agencies, strategic plans, the market price of metals, costs, or other statements that are not a statement of fact. Estimates of ore reserves are, to a large extent, are based on the interpretation of geological data obtained from drill holes and other sampling techniques. This information is used to calculate estimates of gold cost and operating costs based upon anticipated tonnages and grades of gold to be mined and processed, expected recovery rates, comparable facility and equipment operating costs and other factors. As a result, it is possible that difference in such estimates could have a material adverse effect on the business, financial conditions and results of operations. There can be no assurance that the Company will be able to complete development on schedule or within budget due to, among other things, and in addition to those factors discussed above, changes in the economics of the projects, the delivery and installation of plant and equipment and cost overruns, or that the current personnel, systems, procedures and controls will be adequate to support operations. Also, 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. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements due to a variety of risks, uncertainties and other factors. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations and opinions should change. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as others, could cause results to differ materially from those stated.

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)