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

Barkerville Gold Mines Ltd.

October 19, 2012 21:25 ET

Barkerville Provides Update on its Technical Review

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2012) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) ("Barkerville" or the "Company") wishes to update its shareholders on the status of its response to the cease trade order (the "CTO") issued by the British Columbia Securities Commission (the "BCSC") as disclosed in the Company's press release dated August 15, 2012.

The Company is advised that the CTO will remain in place until the Company files a technical report acceptable to the BCSC and addresses all technical disclosure concerns.

Further to the News Release of June 6, 2012, (see News Release 12-011) the Company confirms that it has recently engaged Snowden Mining Industry Consultants Pty ("Snowden") to assist the Company in satisfying the conditions of the CTO, and continues to have a dialogue with the BCSC in an effort to satisfy their concerns.

As part of the technical review requested by Snowden, the Company advises that it has completed 14 surface diamond drill holes of which 9 were completed twin holes totaling 2,759.4 meters (9,053.1 feet) on Cow Mountain at the Cariboo Gold Project near Wells, central BC between September 22 and October 14, 2012. The total footage includes 5 drill holes abandoned due to hitting shafts and/or underground workings before target. The drilling was done respectively by four drill rigs of three drill contractors; namely, Standard Drilling & Engineering Ltd. of Vancouver, B.C. (two drill rigs); Armstrong Drilling Ltd. of Armstrong, B.C. (one drill rig); and Lone Peak Drilling of Kimberley, B.C. (one drill rig). All the drill holes are being logged, sampled including measuring bulk density of the drill core. Assay results of these drill holes will be released when available.

QR Mine and Mill

Gold mining operations have begun at the Company's QR Mine with the awarding of the mining contract to A.L. Sims & Son Ltd. The surface of the West Zone has been stripped to bedrock, and drilling and blasting are underway. The first bench blast was completed last week. It has been sampled and the assay results are pending and the surface zone will be drilled and blasted this coming week. Once this is mucked out, the focus will shift to mining the 962 Area stopes underground.

In addition to contract mining, A.L. Sims & Sons has commenced the raising of the tailings storage facility dams at the QR Mine site pursuant to Permit # M-198. The access road to the North Dam has been widened and access roads to clay borrow pits and sandy till pits have been completed. Dam raising has been ongoing for three weeks (see photos www.barkervillegold.com).

Further pursuant to Permit # M-198. "If the construction of the tailings dam raise to elevation 1029.3 meters is completed to the satisfaction of the Chief Inspector by September 30, 2012, the Permittee will not be required to post the additional security installment in the amount of the One Million Five Hundred Thousand dollars ($1,500,000) that would otherwise be due on that date." The Chief Inspector of Mines has extended this date as work has commenced.

Additionally "if the work and plans required under permit condition B.3(a) of this permit have been completed to the satisfaction of the Chief Inspector by December 15, 2012, the Permittee will not be required to post the additional security installment in the amount of Four Million One Hundred and Forty Thousand dollars ($4,140,000.00) that would otherwise be due on that date."

B3(a). "By December 31, 2012, the Permittee shall carry out all recommendations of the Klohn Crippen report entitled "Tailings Dam Seepage Assessment" dated January 12, 2012 and provide a summary report to the Chief Inspector. The summary report shall include the results of the field program and updated analysis, modeling, conclusions and recommendations for achieving seepage reduction sufficient to maintain the approved design height of a water cover over PAG wastes. The report shall also include a detailed 3rd party cost estimate to complete the mitigation work and an implementation schedule."

In addition to the 4 drill holes completed in 2011, the Company completed 4 HQ diamond drill water test holes of approximately 100 meters each during the last part of August 2012 on the Tailings Dam. These drill holes are part 2012, 9 hole program designed to be grouted to minimize dam seepage pursuant to B3(a) above.

The installation of an approximate 700m 3 phase power line to the West Zone has been completed which eliminates the need for diesel powered generators. Delivery of transformers is expected this week. Power is required for dewatering the workings and underground mining.

Bonanza Ledge

Upon completion of the QR Dam raise expected in early November 2012, mining will begin at Bonanza Ledge (see News Release 11-34 December 6, 2011) now fully permitted.

The technical information in this News Release has been reviewed and approved by Company Chief Geologist Jim Yin PhD. P. Geo. a Qualified Person as defined in National Instrument 43-101.

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. 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. The Company has completed significant drilling and exploration programs and together with the historical data is compiling all information to determine geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects. This news release has been prepared on behalf of the Board of Directors which takes full responsibility for its contents.

J. Frank Callaghan, President and CEO

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSX Venture Exchange. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

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