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

Barkerville Gold Mines Ltd.

September 13, 2011 08:30 ET

Barkerville Intercepts up to 3.4 m (11.0 feet) of 459 g/T (13.393 oz/t) Gold Including 0.8 m (2.6 feet) of 1,942 g/T or 56.635 oz/T Gold-Discovers Second and Third Gold Zones on Cow Mountain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2011) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") reports the discovery of the second visible gold ("VG")-cosalite-pyrite-quartz mineralized zone returning up to 1,942 g/T or 56.635 oz/t (resplit 2,156 g/T or 62.875 oz/t) gold – the highest gold grade recorded to date in the area. The new zone is parallel/sub-parallel to the first VG-cosalite-quartz-pyrite zone on Cow Mt. reported by the company on June 27 and July 26, and is about 305 meters (1,000 feet) to the mine grid east. Both zones, running mine grid south and north, are outside the perimeter of the proposed Cariboo Gold Quartz ("CGQ") open pit on the northwest and west flanks of Cow Mountain on the company's project in central British Columbia.

A third mineralized zone, located mine grid southeast of the proposed CGQ open pit, returned assays grading up to 102 g/T (2.975 oz/t) gold in drill hole CM11-44, is controlled by drill holes CM11-28B & 29 on Pad G, CM11-43 on Pad H, CM11-44 & 45 on Pad M, and CM11-46, 47 & 48 on Pad J-K. The size of the controlled area of the zone is approximately 15 meters (50 feet) around.

The new VG-cosalite-quartz-pyrite zone is controlled respectively by drill holes CM11-85 & 86 on drill pad W, CM11-83& 84 on pad V, M11-93 on pad X6, and CM11-97 on X2 at present, which is about 244 long meters (800 feet). It is preliminarily interpreted that the zone plunges at depth to the mine grid south. Drilling of CM11-97 is still in progress.

For the first time, it is confirmed that, in addition to pyrite, quartz and cosalite (a bismuth and lead sulphide mineral) are also the dominant minerals to carry gold, especially visible gold. Length of visible gold in a quartz vein in CM11-85 is up to 0.7 centimeter and that in drill hole CM11-93 is 0.25-0.50 cm in size.

Drilling on Cow Mountain continues. The Company currently has five drill rigs in operation and a sixth is en route. Results will be released as they become available. Highlights are as follows (see full Table 1 below) and drill sections will be posted on the company's website at www.barkervillegold.com:

CM11-86
• 10.2 m (33.6 feet) of 4.37 g/T (0.101 oz/t) gold between 596.4' and 630.0'

CM11-85
• 2.7 m (8.8 feet) of 23.5 g/T (0.684 oz/t) gold between 934.2' and 943.0'
– including 0.5 m (1.5 feet) of 130 g/T (3.791 oz/T) gold between 938.5' and 940.0'

• 3.4 m (11.0 feet) of 459 g/T (13.393 oz/t) gold between 1,007' and 1,018'
– including 0.8 m (2.6 feet) of 1,942 g/T or 56.635 oz/T (resplit 2,156 g/T or 62.875 oz/t) gold between 1,010.4' and 1,013.0'.

CM11-84
• 3.2 m (10.6 feet) of 11.5 g/T (0.336 oz/t) gold between 296.4' and 307.0'
• 5.5 m (18.0 feet) of 3.48 g/T (0.102 oz/t) gold between 749.0' and 767.0'

CM11-83
• 10.8 m (35.4 feet) of 7.69 g/T (0.224 oz/t) gold between 731.6' and 767.0'
– including 1.7 m (5.6 feet) of 30.5 g/T (0.889 oz/t) gold between 751.4' and 757.0'

CM11-46
• 4.1 m (13.3 feet) of 6.02 g/T (0.175 oz/t) gold between 196.8' and 210.1'

CM11-45
• 1.2 m (3.9 feet) of 24.2 g/T (0.706 oz/t) gold between 208.0' and 211.9'

CM11-44
• 9.1 m (29.9 feet) of 7.90 g/T (0.230 oz/t) gold between 147.0' and 176.9'
– including 2.2 m (7.3 feet) of 29.0 g/T (0.846 oz/t) gold between 166.6' and 173.9'
• 6.2 m (20.3 feet) of 14.9 g/T (0.434 oz/t) gold between 227.0' and 247.3'
– including 0.6 m (1.9 feet) of 102 g/T (2.975 oz/t) gold between 233.0' and 234.9'
• 5.3 m (17.3 feet) of 12.4 g/T (0.360 oz/t) gold between 767.6' and 784.9'
– including 1.3 m (4.3 feet) of 44.0 g/T (1.283 oz/t) gold between 777.2' and 781.5'

CM11-43
• 5.5 m (17.9 feet) of 3.38 g/T (0.099 oz/t) gold between 775.9' and 798.3'

CM11-29
• 3.8 m (12.4 feet) of 5.24 g/T (0.153 oz/t) gold between 146.0' and 158.4'
– including 0.4 m (1.3 feet) of 46.0 g/T (1.341 oz/t) gold between 156.4' and 157.7'

CM11-28B
• 3.2 m (10.6 feet) of 5.80 g/T (0.169 oz/t) gold between 446.0' and 456.6'

TABLE 1

SIGNIFICANT INTERCEPTS OF 2011 DIAMOND DRILL HOLES ON COW MT.
PAD # DIP DDH# FROM TO WIDTH Au Ag
FEET METER g/T oz/t g/T
G -44.5 CM11-28 NO DRILL CORE (hole got stuck & abandoned)
-49.7 CM11-28B 75.8 76.8 1.0 0.3 3.04 0.089 N/S
171.2 172.5 1.3 0.4 12.4 0.362 2.8
284.4 296.0 11.6 3.5 2.09* 0.061* N/S
including
284.4 288.5 4.1 1.2 31.2 0.910 1.6
446.0 456.6 10.6 3.2 5.80* 0.169* 1.3*
496.0 499.5 3.5 1.1 1.26* 0.037* N/S
528.6 541.6 13.0 4.0 1.26* 0.037* N/S
583.9 584.9 1.0 0.3 2.00 0.058 N/S
743.3 747.1 3.8 1.2 2.79 0.081 N/S
1115.4 1116.5 1.1 0.3 1.56 0.045 1.0
1216.4 1219.6 3.2 1.0 1.19 0.035 N/S
1291.3 1292.7 1.4 0.4 2.94 0.086 N/S
-62.9 CM11-29 146.0 158.4 12.4 3.8 5.24* 0.153* 1.2*
including
156.4 157.7 1.3 0.4 46.0 1.341 3.2
247.4 253.0 5.6 1.7 8.43 0.246 N/S
286.3 293.0 6.7 2.0 1.03* 0.030* N/S
including
290.9 292.0 1.1 0.3 7.25 0.211 N/S
549.6 552.0 2.4 0.7 3.28 0.096 N/S
600.5 605.6 5.1 1.6 2.04 0.059 N/S
879.0 880.7 1.7 0.5 3.09 0.090 N/S
1113.2 1114.4 1.2 0.4 2.89 0.084 N/S
S -44.5 CM11-41 252.8 257.1 4.3 1.3 5.6 0.163 N/S
(hole got stuck & abandoned)
-59.6 CM11-42 NO SIGNIFICANT ASSAY (hole got stuck & abandoned)
H -45.0 CM11-43 166.4 176.1 9.7 3.0 1.38* 0.040* N/S
402.9 407.5 4.6 1.4 1.37 0.040* N/S
546.1 559.8 13.7 4.2 1.54* 0.045* N/S
731.8 740.6 8.8 2.7 1.68* 0.049* N/S
775.9 793.8 17.9 5.5 3.38* 0.099* N/S
M -47.1 CM11-44 109.0 110.7 1.7 0.5 1.78 0.052 N/S
147.0 176.9 29.9 9.1 7.90* 0.230* N/S
including
166.6 173.9 7.3 2.2 29.0 0.846 1.2
227.0 247.3 20.3 6.2 14.9* 0.434 1.4*
including
233.0 234.9 1.9 0.6 102 2.975 9.0
236.9 238.9 2.0 0.6 22.2 0.647 1.8
241.6 243.2 1.6 0.5 29.5 0.860 1.8
657.7 666.6 8.9 2.7 1.418* 0.041* N/S
767.6 784.9 17.3 5.3 12.4* 0.360* N/S
including
777.2 781.5 4.3 1.3 44.0 1.283 1.8
-59.5 CM11-45 74.8 76.3 1.5 0.5 24.4 0.712
80.2 85.1 4.9 1.5 25.6 0.747
208.0 211.9 3.9 1.2 24.2* 0.706*
230.2 232.6 2.4 0.7 2.57 0.075
310.4 313.0 2.6 0.8 2.88 0.084
330.5 332.9 2.4 0.7 12.0 0.350
J-K -44.6 CM11-46 196.8 210.1 13.3 4.1 6.02* 0.175* N/S
including
204.5 207.4 2.9 0.9 27.3 0.796 1.4
391.9 413.8 21.9 6.7 1.03* 0.030* N/S
542.5 543.9 1.4 0.4 1.46 0.043 N/S
708.7 725.1 16.4 5.0 1.72* 0.050* N/S
766.6 780.8 14.2 4.3 1.01* 0.030* N/S
1108.0 1121.8 13.8 4.2 2.20* 0.064* N/S
-59.0 CM11-47 171.4 183.9 12.5 3.8 1.60* 0.047* N/S
337.3 342.1 4.8 1.5 1.40* 0.041* N/S
-44.6 CM11-48 55.8 80.4 24.6 7.5 1.80* 0.052* N/S
99.0 114.8 15.8 4.8 1.03* 0.030* N/S
U -43.8 CM11-81 234.5 236.0 1.5 0.5 2.18 0.064 N/S
-61.0 CM11-82 NO SIGNIFICANT ASSAY
V -44.6 CM11-83 205.5 215.0 9.5 2.9 1.44 0.042 N/S
235.5 245.2 9.7 3.0 4.22* 0.123* N/S
341.9 345.9 4.0 1.2 1.74* 0.051* N/S
361.8 362.8 1.0 0.3 25.5 0.744 1.0
731.6 767.0 35.4 10.8 7.69* 0.224* N/S
including
751.4 757.0 5.6 1.7 30.5 0.889 2.0
787.0 799.9 12.9 3.9 4.29* 0.125* N/S
including
793.4 795.7 2.3 0.7 23.4 0.682 1.2
859.7 867.0 7.3 2.2 34.5 1.006 N/S
1039.4 1055.6 16.2 4.9 12.7* 0.369* N/S
including
1047.9 1050.0 2.1 0.6 92.0 2.683 8.0
-61.0 CM11-84 40.0 71.5 31.5 9.6 1.58* 0.046* N/S
105.8 108.9 3.1 0.9 5.20 0.152 1.0
197.0 207.0 10.0 3.0 7.95* 0.232* N/S
296.4 307.0 10.6 3.2 11.5* 0.336* N/S
348.6 352.8 4.2 1.3 3.18 0.093 N/S
440.8 460.6 19.8 6.0 1.24* 0.036* N/S
584.4 588.3 3.9 1.2 8.62 0.251 N/S
597.0 600.5 3.5 1.1 2.00 0.058 N/S
724.6 729.9 5.3 1.6 1.38 0.040 N/S
729.9 737.0 7.1 2.2 1.17* 0.034* N/S
749.0 767.0 18.0 5.5 3.48* 0.102* N/S
W -44.9 CM11-85 394.8 395.8 1.0 0.3 1.10 0.032 N/S
407.8 409.5 1.7 0.5 7.10 0.207 N/S
676.6 687.0 10.4 3.2 4.10* 0.120* N/S
including
679.2 681.3 2.1 0.6 20.1 0.586 N/S
735.2 747.0 11.8 3.6 4.08* 0.119* N/S
934.2 943.0 8.8 2.7 23.5* 0.684* N/S
including
938.5 940.0 1.5 0.5 130.0 3.791 1.4
1007.0 1018.0 11.0 3.4 459* 13.393* 29.9*
including
1010.4 1013.0 2.6 0.8 1,942 56.635 126
-60.4 CM11-86 197.0 210.6 13.6 4.1 1.84* 0.054* N/S
252.2 254.2 2.0 0.6 2.05 0.060 N/S
316.0 317.0 1.0 0.3 3.80 0.111 N/S
527.0 537.0 10.0 3.0 1.86* 0.054* N/S
596.4 630.0 33.6 10.2 4.37* 0.101* N/S
Note: N/S - no significant assay;
* weighted

Drill core processing included descriptive logging and sampling for geochemical analyses. The HQ and NQ-size drill core was cut/split in two halves using saws and 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 and a metallic gold assay for those samples with visible gold. 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 1,147 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.

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