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

July 26, 2011 08:00 ET

Barkerville Gold Mines Ltd.: New Zone on Cow Mountain Now Reaches 152 m in Strike and 311.75 m in Depth and Assays Include 11 m of 12.5 g/T Gold-Drilling Continues

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2011) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") reports further assays from the new discovery zone on Cow Mountain in central British Columbia. The drilling continues with four drill rigs currently running. Drill assays will be announced as they are received. Some highlights include (also see table attached):

  • 11.0 m of 12.5 g/T gold between 217.7 m and 228.8 m
    (36.2 feet of 0.364 oz/t between 714.3' and 750.5')
  • 12.4 m of 6.32 g/T gold between 82.8 m and 95.2 m
    (40.7 feet of 0.184 oz/t between 271.7' and 312.4')
  • 8.2 m of 4.17 g/T gold between x 288.0 and 296.2 m
    (26.8 feet of 0.122 oz/t between 944.9' and 971.7')

The new zone is adjacent to (striking NE), outside of the perimeter of, and now intersecting gold grades approximately 682 feet deeper below the floor elevation of the Gold Quartz proposed open pit mine. The Gold Quartz mine currently has a NI 43-101 compliant resource of 6,013,728 tonnes of 2.23 g/t indicated (430,885 oz) and 1,527,699 tonnes of 1.85 g/t (90,936 oz) inferred.

President & CEO J. Frank Callaghan states, "Expanding the size and grade of the proposed open pit on Cow Mountain has been one of the focuses of the Company this year. We are extremely pleased with the multiples of grade and depth we continue to find beyond the original 43-101 resource parameters on Cow Mountain. We will continue the resource expansion campaign aggressively with 4 drill rigs running on Cow Mountain and Barkerville Mountain."

True width of the new zone varies from approximately 2.1 m (6.9') and 7.9 m (25.9').

The controlled strike length of the newly discovered visible gold-cosalite-pyrite-quartz mineralized zone reaches about 152 meters (500 feet). The discovery is in an untested area outside the perimeter of the proposed Gold Quartz open pit on the northwest flank of Cow Mountain in central British Columbia. Previous results from 2 drill pads were released in a news release on June 27, 2011. Since those results, 7 additional holes have been drilled from 2 other drill pads. Total distance controlled by the four drill pads is approximately 152 meters (500 feet). More drill holes are being conducted along the strike and dip of the zone.

Full table including previous assays from new zone is below. New assays from holes CM11-33 to CM11-40 are outlined in bold, lower half of table.

Table 1. SIGNIFICANT INTERCEPTS OF THE NEWLY DISCOVERED ZONE ON COW MT.
PAD DIP DDH# FROM TO WIDTH Au Ag
# FEET METER g/T oz/t g/T
N -46.1 CM11-25B 337.0 402.4 65.4 19.9 83* 2.429* 11*
including
352.1 385.0 32.9 10.0 165* 4.824* 23*
including
352.1 353.6 1.5 0.5 118 3.441 3.0
375.0 381.3 6.3 1.9 821 23.943 118
526.6 527.8 1.2 0.4 8.9 0.260 N/S
-55.4 CM11-26 NO SIGNIFICANT ASSAY (hole got stuck & abandoned)
-65.2 CM11-27 256.0 268.8 12.8 3.9 66.6* 1.941* N/S
including
259.0 266.0 7.0 2.1 121* 3.543* N/S
including
262.1 266.0 3.9 1.2 204 5.949 N/S
306.0 316.0 10.0 3.0 1.22 0.036 N/S
P -45.8 CM11-30 148.9 155.8 6.9 2.1 124* 3.63* 87.7*
including
148.9 150.7 1.8 0.5 313 9.128 326
163.0 171.9 8.9 2.7 3.35 0.098 N/S
452.8 454.8 2.0 0.6 1.00 0.029 N/S
487.0 488.3 1.3 0.4 2.04 0.059 N/S
894.0 895.3 1.3 0.4 20.5 0.598 1.0
-55.7 CM11-31 140.1 153.2 13.1 4.0 8.27* 0.241* N/S
including
144.4 149.4 5.0 1.5 20.9 0.610 3.2
186.9 205.9 19.0 5.8 5.64* 0.165* N/S
including
195.4 197.7 2.3 0.7 25.1 0.732 1.8
199.2 201.3 2.1 0.6 16.4 0.478 1.4
223.1 231.5 8.4 2.6 5.40* 0.158* N/S
including
230.2 231.5 1.3 0.4 30 0.875 1.6
248.5 255.6 7.1 2.2 1.11 0.032 N/S
434.5 443.6 9.1 2.8 1.21* 0.035* N/S
459.8 473.0 13.2 4.0 3.92* 0.114* N/S
510.2 522.3 12.1 3.7 9.54* 0.278* N/S
including
515.1 516.1 1.0 0.3 114 3.325 10.0
730.0 732.9 2.9 0.9 8.60 0.251 N/S
742.2 743.4 1.2 0.4 27.6 0.805 N/S
-63.1 CM11-32 164.0 172.6 8.6 2.6 20.2 0.589 1.4
423.2 425.2 2.0 0.6 2.89 0.084 N/S
432.5 434.6 2.1 0.6 1.10 0.032 N/S
465.5 467.5 2.0 0.6 23.3 0.679 1.6
552.4 553.5 1.1 0.3 4.12 0.120 1.6
Results July 26, 2011
-73.5 CM11-33 444.3 454.3 10.0 3.0 13.4* 0.392* 2.6*
including
444.3 446.2 1.9 0.6 70.0 2.041 12.8
647.2 667.3 20.1 6.1 1.68* 0.049* N/S
O -45.6 CM11-34 317.1 344.5 27.4 8.4 1.00* 0.029* N/S
787.4 792.9 5.5 1.7 2.16 0.063 N/S
812.5 821.9 9.4 2.9 3.97* 0.116* N/S
838.2 843.4 5.2 1.6 1.13 0.033 N/S
-59.5 CM11-35 264.0 277.7 13.7 4.2 1.23* 0.036* N/S
366.1 384.6 18.5 5.6 1.44* 0.042* N/S
574.7 587.5 12.8 3.9 9.94* 0.290* N/S
-74.6 CM11-36 322.0 328.7 6.7 2.0 14.0 0.408 N/S
374.0 419.0 45.0 13.7 3.54* 0.103* N/S
714.3 750.5 36.2 11.0 12.5* 0.365* N/S
-84.9 CM11-37 164.0 178.5 14.5 4.4 6.80* 0.198* 1.6*
including
173.9 178.5 4.6 1.4 20.9 0.610 4.6
237.0 250.0 13.0 4.0 1.77* 0.051* 2.0*
Q -44.4 CM11-38 187.0 192.0 5.0 1.5 12.6 0.367 N/S
225.0 229.5 4.5 1.4 1.0 0.029 N/S
271.7 312.4 40.7 12.4 6.32* 0.184* N/S
including
308.8 310.0 1.2 0.4 157 4.579 5.8
344.0 353.0 9.0 2.7 3.77* 0.110* 3.7*
661.8 675.4 13.6 4.1 3.64* 0.106* N/S
718.5 738.2 19.7 6.0 1.37* 0.040* N/S
934.7 939.0 4.3 1.3 1.02 0.030 N/S
944.9 971.7 26.8 8.2 4.17* 0.122* 3.6*
1020.0 1022.8 2.8 0.9 3.66 0.107 N/S
-54.3 CM11-39 842.6 850.8 8.2 2.5 2.20* 0.064* N/S
-69.3 CM11-40 78.4 79.8 1.4 0.4 9.55 0.279 N/S
216.4 239.5 23.1 7.0 6.42* 0.187 N/S
including
224.4 227.5 3.1 0.9 38.0 1.108 3.0
* Weighted

Drill core processing included descriptive logging and sampling for geochemical analyses. The HQ and NQ-size drill core was split in two halves using a splitter at the Company's Lowhee Creek Compound in Wells-Barkerville, central B.C. One-half of the core is put in a sample bag. After all the samples are placed in the rice bags at the mine site, they are transported by BGM's personnel to a shipping company in Quesnel for trans-shipment to Eco Tech Lab in Kamloops, B.C. Sample preparation and geochemical assaying is done at Eco Tech Lab, following their own internal standards for quality control and verification. The gold assaying method uses a standard fire assay with AA finish. ETL is certified under the Assayers Certification Program of B.C.

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 February 2010 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 it 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