Barkerville Gold Mines Ltd.

Barkerville Gold Mines Ltd.

February 29, 2012 08:30 ET

Barkerville Gold Mines Summarizes 2012 Exploration Work and Objectives

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2012) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) ("the Company", or "Barkerville") reports on its 2011 exploration work, drilling and objectives on its Cariboo Gold Project near Wells in central British Columbia. The work completed has led the Company to commission updated resource estimations for the Gold Quartz proposed open pit mine on Cow Mountain and to begin preparations for mining operations at its Bonanza Ledge open pit mine on the southwest flank of Barkerville Mountain.

The Company completed 238 diamond drill holes totaling 57,742 meters (189,439 feet) on both Barkerville and Cow Mountains in 2011, with assays pending on 33 drill holes. Additionally, the tables below summarize total diamond drill holes drilled by Barkerville and related Companies from 1995 through 2011 (see plan map on Company website and by various companies from 1935 through 2011. A total of 7,183 drill holes measuring 347,114 meters have been drilled on the Cariboo Gold Project to date, which will be analyzed in preparation of the NI 43-101 resource estimation and the more specific resource estimations at Gold Quartz, Bonanza Ledge and BC Vein.

During the second half of 2011, the Company achieved significant results from its drilling activities outside of the boundaries of the previously defined Gold Quartz proposed open pit. Management then expanded its goal of updating its Gold Quartz resource to updating it within and outside of its original boundaries. The Company engaged 4 drill contractors drilling with up to 8 drill rigs on the property to complete the drill program by year end 2011, so as to expeditiously receive an updated resource estimation based on the new proposed open pit parameters. A total of 255 drill holes totaling 54,781.7meters (179,729.9 feet) have been drilled outside the former resource calculation reported in the 2006 NI 43-101 report.

Barkerville Mountain 490 226,479.8 69,031.9 1998-2011 16.0 5,024.0 1,531.3
Cow Mountain 529 229,148.7 69,845.4 1995-2011 12.0 11,594.0 3,533.9
Golden Cariboo 60 28,710.0 8,750.9 2004-2007 0.0 0.0 0.0
Island Mountain 66 27,886.0 8,499.8 1999-2010 0.0 0.0 0.0
TOTAL 1145 512,224.5 156,127.9 1995-2011 28.0 16,618.0 5,065.2
Barkerville Mountain 538 240,591.4 73,333.2 1946-2011 16.0 5,024.0 1,531.3
Cow Mountain 2638 477,720.1 145,610.9 1935-2011 12.0 11,594.0 3,533.9
Golden Cariboo 60 28,710.0 8,750.9 2004-2007 0.0 0.0 0.0
Island Mountain 3947 391,788.9 119,418.7 1951-2010 0.0 0.0 0.0
TOTAL 7183 1,138,810.4 347,113.6 1935-2011 28.0 16,618.0 5,065.2

2011 Drilling Summary:

The Company completed 238 diamond drill holes totaling 57,742 meters (189,439 feet) on both Barkerville and Cow Mountains. Of the 238 drill holes:

  • 167 drill holes totalling 43,023 meters (141,151feet) were conducted on Cow Mt. to explore for gold in and around the proposed open pit. As a result, at least two visible gold-cosalite-pyrite-quartz vein zones were discovered and one pyrite-quartz vein zone was discovered.
  • 29 drill holes totalling 9,285 meters (30,461 feet) were targeting BC Vein on Barkerville Mountain. Most of these drill holes returned promising intercepts of pyrite and quartz veins. The 2011 drill holes, together with all other historic drill holes on the BC Vein (198 total holes), will be used in the upcoming NI 43-101 compliant gold resource.
  • 16 drill holes totalling 1,900 meters (6,233 feet) were conducted to follow up a new zone discovered by trenching on Barkerville Mountain.
  • 26 water monitoring holes were drilled totalling 3,534 meters (11,594 feet) on both Barkerville and Cow Mountains in 2011. These holes are and will be used to monitor water before and during mining.

Additional 2011 Development and Exploration Activities

  • An approximately 3 km long exploration road was built in the Grouse Creek area and two drill pads were completed along the road.
  • Construction of the haul road connecting the Bonanza Ledge gold mine and Barkerville Highway 26 was completed.
  • Trenching totaling 60 meters, 50m of which was on Cow Mt. and 10m on Barkerville Mountain was completed.
  • The Lowhee Creek compound was enlarged and doubled in size to be ready for mining the Bonanza Ledge gold deposit and in preparation for building a proposed mill at Cow Mountain. Two new core shacks were setup in the compound.
  • A database of the 7,183 drill holes completed between 1935 through 2011 on the Company's various properties is being compiled and is still underway.
  • The Company completed the acquisition of several properties within its 65km long gold belt including the acquisition of the remaining 50% of the Mosquito agreement and the 3% NSR purchase.
  • To further clarify the steps necessary to begin mining operations at the Bonanza Ledge, on December 6, 2011, the Company received approval of Mines Act permit M-238 to develop an open pit gold mine at Bonanza Ledge. The next steps necessary for mine start-up relate to receiving all necessary permits to receive and process Bonanza Ledge ore at the Company's QR mill facility 110km away by road.

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 update mineral resource estimates to continue with exploration and development of the Cariboo Gold Projects.

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)