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

Barkerville Gold Mines Ltd.

June 06, 2012 08:00 ET

Barkerville Gold Mines Ltd.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2012) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company" or "Barkerville Gold") is pleased to provide a corporate update regarding its QR Mine, Bonanza Ledge, Cow Mountain and the Cariboo Gold projects.

QR Mine and Mill

On May 29, 2012, the Company submitted a mine plan to the Ministry of Energy and Mines ("MEM") to mine an anticipated and additional 10,000 ounces of gold at its QR Mine. Mining operations at the QR Mine have been on standby since December, 2011 when field conditions, together with the completion of the Company's then contract with miner, Procon Mining and Tunneling, left the aforementioned target unmined.

In the ensuing 2012 winter months the Company has also been working with MEM to permit the QR Mill site to handle ore from the Company's permitted Bonanza Ledge project. As the Company completes the necessary work to get these approvals it presently expects to mine the approximate 10,000 ounces at the QR Mine. A current BC Hydro power line upgrade is underway, with completion expected towards the end of June 2012, at which time the Company anticipates commencing mining operations for such additional production.

Bonanza Ledge

On December 6, 2011, the Company announced approval of Mines Act Permit M-238 to develop an open pit gold mine at its Bonanza Ledge project (the "Permit"). Since that time the Company continues to work on completing its production plan and the Bonanza Ledge open pit site has now been logged and grubbed in preparation for mining, the haul road from the mine site to Highway 26 has been bermed and completed and the site is now readied to haul ore to the QR Mill facility once production commences.

In addition to seeking regulatory approval to begin mining operations, the Company has also engaged Tucson, Arizona, based Mintec Inc. ("Mintec"), to update its September 2009 technical report to reflect, amongst other matters, the current costs associated with mining in preparation for mine start-up. The Company has also engaged Snowden Mining Industry Consultants Pty ("Snowden") to complete two Bonanza Ledge NI 43-101 technical reports based on the updated Mintec information once provided; and which is all expected to be completed by the end of August of this year.

Cow Mountain

In addition to the reports noted above, Mintec has also been engaged to complete an updated NI 43-101 technical report on the BC Vein on Barkerville Mountain together with an updated technical report on the proposed Gold Quartz project on Cow Mountain. Snowden is also engaged to prepare an updated technical report for Cow Mountain based on the updated Mintec information once provided.

Cariboo Gold Project

The Cariboo Gold Project, is located near Wells, British Columbia. The Company engaged Geoex Limited ("Geoex"), in September 2011, to complete an NI 43-101 technical report to be delivered by the end of January 2012. However, based on the encouraging results of the Company's recently completed drilling program, the Company determined that it was best to defer the effective date of the report and to wait until all assay data was received. The final, updated drilling database was made available to Geoex in late April 2012 and Geoex now anticipates delivering an initial draft of such technical report by mid-June of 2012.

J. Frank Callaghan, CEO of Barkerville Gold, commented: "We believe that 2012 will be a significant year for Barkerville Gold as we progress toward becoming a fully integrated gold exploration and production company."

Community and First Nations consultation has also taken place over several years leading up to the Company's application, and feedback has been incorporated in the project design. A Memorandum of Understanding is in place between the Company and the Lhtako Dene First Nation providing for continued close cooperation and benefits related to development of the Company's projects in the Cariboo region.

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 and continued until December 2011. 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 all necessary 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. On December 5, 2011 the Company received, under the British Columbia Mines Act, their Mine Permit approving the Mine Plan and Reclamation Program for Bonanza Ledge. The Company is awaiting permits to mill ore from Bonanza Ledge at the QR Mine facility. The Company has completed significant drilling and exploration programs and together with the historical data is compiling all information to determine geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects.

The technical information in this news release has been reviewed and approved by Company Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.

This news release has been prepared on behalf of the Board of Directors which takes full responsibility for its contents.

J. Frank Callaghan, President and CEO

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSX Venture Exchange. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

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