Barkerville Gold Mines Ltd.

Barkerville Gold Mines Ltd.

August 24, 2011 08:00 ET

Barkerville Gold Announces Acquisition of Craze Creek Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2011) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") announces that it has entered into a letter agreement dated August 17, 2011 (the "Agreement") with Pacific Bay Minerals Ltd. (the "Vendor") to acquire 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, discovered by the Company in March 2000. Pursuant to the Agreement, the Company will issue to the Vendor an aggregate of 100,000 common shares of the Company at a price of $1.53 per share. Following completion of the acquisition, the Craze Creek Property will be 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 the Vendor. Such 1% net smelter return royalty can be purchased by the Company for CAD$1,000,000.

The acquisition will be subject to certain conditions including TSX Venture Exchange approval.

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 1,225 square kilometers, 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.

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)