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

Barkerville Gold Mines Ltd.

February 01, 2011 10:04 ET

Barkerville Releases Q3 Financials

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") has released its third quarter 2010 financial statements and related management discussion and analysis. The Company recognized $1,740,141 in revenue from sales of 1,223 ozs of gold at $1,422.847/oz. The Company reports a net loss of $21,657,285 for the period ended November 30, 2010 or $0.34 per share as compared to a net loss of $5,218,497 or $0.12 per share for the period ended November 30, 2009.

J. Frank Callaghan says, "Reporting our first quarter of revenue from gold production is an important milestone for the Company. We look forward to continuing production ramp up and an aggressive exploration and drilling program to expand current gold resources."

The first gold dore bar from the QR Mine and Mill was poured on September 8th weighing 314.1 troy ounces (9.77 kg). Production ramp-up and mill optimization continued successfully through the quarter with continuous gold dore production through the facility's CIP and gravity circuits. For the quarter, the Company shipped a total of 10 gold dore bars totaling 98.904 kg to Johnson Matthey, a gold refiner located in Brampton, Ontario. The sale of the first 6 bars was settled during the quarter with the sale of bars 7 through 10 settling the following month in the subsequent quarter.

Interim financial statements, MD&A and related documents have been filed and can be viewed on SEDAR at www.sedar.com.

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 doré 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)
    www.barkervillegold.com