BCGold Corp.

BCGold Corp.

November 09, 2010 14:58 ET

BCGold Corp. and Kestrel Gold Inc. Provide Exploration Update-Toe Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2010) - BCGold Corp. (or the "Company") (TSX VENTURE:BCG)(PINK SHEETS:BCGOF) and Kestrel Gold Inc. ("Kestrel") (TSX VENTURE:KGC) are pleased to announce results from a limited diamond drill program conducted on the Toe property, situated seven kilometres northwest of and along trend with Capstone Mining Corp.'s Minto Mine, in Yukon. The $380,000 drill program was funded by Kestrel and operated by BCGold Corp. as per stipulations under Kestrel's property option agreement with BCGold Corp. (see Toe Property Option Agreement below for more details).

2010 Toe Property Drill Program and Results

BCGold Corp. conducted a four-hole, 1,058 metre diamond drill program on the Toe property in order to test four Minto-type, coincidental geochemical and geophysical anomalies for near-surface copper-gold mineralization earlier this season. Although no significant copper or gold intersections were returned, a number of intervals of biotite alteration and magnetite enrichment in Granite Mountain granodiorite (the geological setting of Minto-type copper-gold mineralization) were encountered in two of the four drill holes.

BCGold Corp. and Kestrel are encouraged by geological observations, alteration distribution and intensity in the drill core and maintain that the Toe property holds excellent potential for Minto-type copper-gold mineralization. Both companies deem additional exploration to be warranted. This opinion is supported by Mr. Todd A. Ballantyne, P. Geo., consulting geophysicist to BCGold Corp. and Kestrel. Mr. Ballantyne suggests that drill target definition would be improved by conducting a pole-dipole induced polarization survey over the current gradient array survey area. Mr. Ballantyne further recommends that, before further drilling occurs on the Toe property and specifically on remaining induced polarization anomalies, a detailed pole-dipole induced polarization survey be conducted. He proposes this work in order to better resolve the induced polarization and resistivity targets with respect to their location, depth and extent. 

Drill targets on the Toe property to date have been defined primarily by using the results of mobile metal ion (MMI™) soil geochemical surveys and a combination of gradient array induced polarization and airborne magnetic geophysical surveys.

2011 Proposed Exploration on the Toe Property

BCGold Corp. and Kestrel are currently reviewing exploration results and formulating plans for the 2011 exploration season on the Toe property. In order to retain the Toe property option in good stead, Kestrel must issue 100,000 Kestrel common shares and make a cash payment of $25,000 to BCGold Corp. on or before June 1, 2011. In addition Kestrel must incur exploration expenditures of $350,000 in 2011.

Mr. Gary N. Lustig, P.Geo., a Qualified Person for the purposes of National Instrument 43-101, has reviewed the technical content of this news release.

BCGold Corp.'s Minto/Carmacks Copper-Gold Properties

BCGold Corp. is the largest land holder in the Carmacks Copper-Gold Belt. The 1,600 hectare Toe property is one of BCGold Corp.'s 17, one-hundred-percent-owned, Minto/Carmacks Copper-Gold Properties (16,985 hectares) in Yukon. The Company has spent approximately $4 million in exploration on the Minto/Carmacks Copper-Gold Properties over the past four years and has advanced seven of the properties to the drill-ready stage. The Company optioned two of these properties (Toe and Pepper) in 2010, to Kestrel and Goldbard Capital Corp. respectively.

The Minto/Carmacks Copper-Gold Properties are strategically located proximal and adjacent to Capstone Mining Corp.'s Minto Mine and Western Copper Corp.'s Carmacks Copper Project, which is in the advanced permitting stage and situated 42 kilometres south of Minto Mine. The Minto/Carmacks properties were staked in 2006, by Yukon prospector Shawn Ryan, over areas with certain geological, geochemical and geophysical characteristics known to indicate near surface, high-grade copper-gold mineralization in the district.

Toe Property Option Agreement

BCGold Corp. granted Kestrel the option to acquire up to a 60% interest in the Toe property over a four year period by paying $250,000 cash to the Company, issuing 400,000 Kestrel common shares to the Company, and spending $2,000,000 in exploration on the Toe property. Kestrel can earn an additional 10% interest in the Toe property by completing a bankable feasibility study, for a total interest of up to 70%. The Toe property is subject to a 2.5% net smelter returns royalty interest, which is held by BCGold Corp. and a third party.

About BCGold Corp.

BCGold Corp. (TSX VENTURE:BCG) is a Vancouver-based junior resource company focused on copper and gold exploration in under-explored historic and emerging mining districts in British Columbia and Yukon. BCGold Corp. acquires and develops conceptual, early and mid-stage, exploration opportunities and advances them towards resource development by using internal expertise, engaging preferred joint venture partners, and creating strategic alliances with major exploration and mining companies.

On behalf of the Board of Directors, 

Brian P. Fowler, P. Geo., President & CEO 

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future payments, expenditures and unit issuances and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of future payments, expenditures and unit issuances and the timing and success of future exploration, development and production activities.

Neither 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.

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