Barkerville Gold Mines Ltd.

Barkerville Gold Mines Ltd.

December 09, 2010 09:49 ET

Barkerville and Lhtako Dene Nation Sign Project Agreement to Develop Bonanza Ledge Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2010) - Barkerville Gold Mines Ltd. (the "Company" or "Barkerville") (TSX VENTURE:BGM)(FRANKFURT:IWUB) announces that it has entered into a Project Agreement (the "Agreement") with the Lhtako Dene Nation (Red Bluff Indian Band) ("Lhtako") of Quesnel, British Columbia. The parties will mutually benefit in the development of Barkerville's 100 percent-owned Bonanza Ledge Property located in the Cariboo Mining District of British Columbia.

The Agreement is a multi-year arrangement providing for preferential contracting, employment and training provisions, academic incentives, environmental review participation, and other economic benefits from the Bonanza Ledge Project, subject to permitting approvals and the Company's decision to commence production at the Bonanza Ledge property.

"I am very pleased we have been able to come to a beneficial arrangement," says Frank Callaghan, President & CEO of Barkerville Gold Mines. "We have been exploring in the Cariboo region for over a decade and have purposely cultivated our relationship with the Lhtako to ensure that we understand what needs to be done to deliver a socially and environmentally acceptable project in the region. It takes this level of mutual dedication and respect to operate to the high standards now required in British Columbia."

"This Agreement with Barkerville is another step forward in self-sufficiency for our community," says Lhtako Dene Chief Geronimo Squinas. "The relationship was started by my father and ex-chief Frank Boucher, and it has taken this time to build a level playing field for us to be able to participate in local mining development. I hope this signals to other B.C. First Nations communities that it is possible to share in economic development, if it is conducted in the right way."

About the Lhtako Dene Nation

With approximately 160 members, the Lhtako Dene Nation is a Dakelh (Carrier) First Nations government located in and around Quesnel, British Columbia. It is a member of the Carrier-Chilcotin Tribal Council, which includes both Tsilhqot'in and Dakelh communities. In 2009 the Lhtako entered into an agreement with the Province to harvest 75,000 cubic metres of mountain pine beetle-killed timber per year in the Quesnel Timber Supply Area over 15 years. The Lhtako, working with National Choice Bio Fuels, are building a new plant to process this low-grade timber into wood pellets, which are considered to be a renewable source of bio-energy. Groundbreaking for the plant took place in October 2010.

About Barkerville Gold Mines Ltd.

The Company has been focused on exploration and development of gold projects in the Cariboo Mining District in central British Columbia since 1994. The Company's mineral tenures now cover over 1,225 square kilometers of mineral tenures encompassing 7 past producing hard rock mines and three NI43-101 gold deposits, including the QR Mine & Mill. The QR Mine & Mill 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 and the Company began pouring dore gold in September of this year. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. and plans to relocate it to the gold deposits in the Barkerville Gold Camp near Wells, B.C. and upgrade it to a 2,000-tonne/day facility subject to all approvals. 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)