Barkerville Gold Mines Ltd.

Barkerville Gold Mines Ltd.

September 20, 2010 07:00 ET

Barkerville Makes New Gold Discovery and Drills 22.6m of 6.93 g/T Gold at Bonanza Ledge

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2010) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) ("BGM" or "the Company") announces that it has discovered a new gold mineralized zone on Barkerville Mountain, outside of the known Bonanza Ledge gold deposit. Additionally, the Company has drilled a further 22.6m of 6.93 g/t at the Bonanza Ledge deposit.

New Zone

The new zone is located approximately 93 meters beyond the Bonanza Ledge deposit and was discovered by recent trenching. Result highlights include:

  • Trench #1: 38 feet grading 16.8 g/T gold

    • Including 30 feet @ 21.2 g/T gold

  • Trench #2: 17 feet grading 24.2 g/T

    • Including 12 feet @ 33.0 g/T gold

  • Trench #3: 17 feet grading 2.92 g/T gold

    • Including 9 feet @ 5.10 g/T gold

  • Trench #4: 10 feet grading 3.09 g/T gold

The initial controlled length of the new discovery is about 140 feet (42.7 meters), running east - west, with the total width yet to be confirmed. A large fault zone consisting of a fault gouge with fine-grained massive or semi-massive pyrite replacement and quartz-pyrite veins mainly controls this zone.

A large-scale drill program will be conducted at the discovery area as soon as drill permits are approved.

Bonanza Ledge Resource Expansion Drill Results

Further infill drilling results from mine grid southwest of the Bonanza Ledge deposit have also been received and include:

DDH drill hole BC10-10 intercepted:

  • 22.6 m of 6.93 g/T gold (54.6m – 77.3m)

    • Including 14.3m of 10.1 g/T gold (54.6m – 68.9m)

Mintec, an independent consulting company of Tucson, AZ, planned the final two DDH infill holes BC10-10 and BC 10-11 at the current Bonanza Ledge resource. Results for BC 10-11 are pending and will be released as soon as the assay certificates are received from the lab.

An expanded resource calculation and pit design for Bonanza Ledge based on this additional drilling conducted between September 2009 and present, after the original resource calculation was published, is forthcoming and will be reported when complete.

About Barkerville Gold Mines Ltd.

The Company has been developing its Cariboo Gold Project in Barkerville, B.C., which encompasses (from northwest to south east) the former producing Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (now on care and maintenance), Aurum Mine, Island Mountain Mine, Cariboo Gold Quartz Mine, Bonanza Ledge (proposed mine), the Cariboo Thompson Gold & Silver Mine and the Cariboo Hudson Mine. The Company commenced operations in the Cariboo District in 1994 and since that time has focused on the exploration and development of its gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass approximately 1,112 square km (112,484 hectares) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold production. Recorded gold production from the area totals more than 3.8 million ounces, including an estimated 2.64 million ounces from placer mining and 1.23 million ounces from lode mining. On February 2, 2010, the Company reported that it closed the acquisition of the QR Mine, Mill and its associated assets and began gold mining operations at the QR Mine.

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

Forward-Looking Statements

This news release contains forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's growth strategy, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. This news release may include statements regarding exploration results and budgets, reserve estimates, mineral resource estimates, work programs, capital expenditures, timelines including timelines for third-party studies and issuance of permits to operate by various government agencies, strategic plans, the market price of metals, costs, or other statements that are not a statement of fact. Estimates of ore reserves are, to a large extent, are based on the interpretation of geological data obtained from drill holes and other sampling techniques. This information is used to calculate estimates of gold cost and operating costs based upon anticipated tonnages and grades of gold to be mined and processed, expected recovery rates, comparable facility and equipment operating costs and other factors. As a result, it is possible that difference in such estimates could have a material adverse effect on the business, financial conditions and results of operations. There can be no assurance that the Company will be able to complete development on schedule or within budget due to, among other things, and in addition to those factors discussed above, changes in the economics of the projects, the delivery and installation of plant and equipment and cost overruns, or that the current personnel, systems, procedures and controls will be adequate to support operations. Also, 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. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements due to a variety of risks, uncertainties and other factors. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations and opinions should change. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as others, could cause results to differ materially from those stated.

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)