BCGold Corp.
TSX VENTURE : BCG

BCGold Corp.

March 04, 2011 09:11 ET

BCGold Corp. Announces First Resource Estimate for Engineer Gold Mine, B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2011) -

"NOT FOR DISTRIBUTION IN THE UNITED STATES"

BCGold Corp. (or the "Company") (TSX VENTURE:BCG) is pleased to announce completion of the first NI 43-101 compliant mineral resource estimate for the Engineer Mine, British Columbia. The resource estimate incorporates five partially explored and developed mineralised shoots of the Engineer and Double Decker veins from surface to 15 metres below 8 Level, adjusting for historical production. All shoots are accessible from Level 5, the main access level, and both veins remain open along strike and down dip.

The Engineer and Double Decker veins have a total Inferred Mineral Resource of 41,000 tonnes grading 19.0 g/t Au for 25,000 ounces of contained gold. Brian P. Fowler, P.Geo, President and CEO of BCGold Corp., stated; "This resource estimate provides a sound basis for continued exploration (drilling and surface trenching), bulk sampling, test-mining and on-site milling this summer season. With only 4 veins partially explored and developed out of 25 veins and 2 mineralised shear zones discovered to date, the exploration upside for additional high-grade and shear-related, bulk tonnage gold at Engineer Mine is excellent."

The reported estimate, as shown in Table I, was completed by Snowden Mining Industry Consultants Limited ("Snowden"), of Weybridge, United Kingdom.

TABLE I
 
ENGINEER MINE MINERAL RESOURCE ESTIMATE (1)
At a 5 g/t Au Cut-off (2)
         
Category Vein Tonnes Au (g/t) Au ozs
Inferred Engineer 30,800 20.6 20,400
Inferred Double Decker 10,100 13.1 4,400
Total (3)   41,000 19.0 25,000

Note:

  1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  2. The Mineral Resource estimate is reported on a nominal cut-off of 5 g/t Au where the resource margin is defined by historical pay limits/payability. It is assumed that should production ever commence, the veins would be extracted by standard air-leg based narrow vein methods. Grades are diluted to a 1-metre stope width.
  3. Total tonnes have been rounded to the nearest 500 tonnes and ounces to the nearest 100 ounces and this may have resulted in minor discrepancies. The global grade is rounded to the nearest 0.5 g/t Au to indicate the accuracy of the estimate.

Snowden has independently reviewed the available Engineer Mine data and undertook a resource estimate based predominantly on historical data in conjunction with limited recent drilling results. Snowden has not been able to verify all of the historical data, but has in many cases viewed the relevant documents or copies thereof. Snowden has no reason to doubt their veracity.

This estimate is based on a VLP (vertical longitudinal section) approach with projection of ore shoots down-dip and along strike based on surface exposure and/or underground development. The global grade applied to each vein structure was based on the partitioning of grades from historical production figures and production records to indicate payability. All grades were diluted to minimum stoping width of one metre and a density factor of 2.8 tonnes/m3 was used in tonnage calculations. Three dimensional models for Engineer and Double Decker veins were constructed using Vulcan software and constrained by historical mining records and recent drilling. The Vulcan solids were used to define the primary mineralised material volume. A bulk density factor and payability factor were applied to define tonnage. Mined-out portions were subtracted where required, assuming a 1-metre stope width.

Dr. Simon Dominy, FAusIMM(CP) FGS(CGeol), Executive Consultant and General Manager (UK), Snowden Mining Industry Consultants Limited, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the contents of this news release.

The NI 43-101 Technical Report for the Engineer Mine mineral resource estimate will be filed on SEDAR within 45 days of the date of this news release.

About the Engineer Mine

BCGold Corp. owns a 60% interest in the Engineer Mine Property and has an option to earn 100% interest.

Engineer Mine was a high-grade gold producer that peaked in the mid-1920s and ceased production in the early 1930s, primarily due to water ingress issues. More than 560 kilograms of gold and 278 kilograms of silver were officially produced at realized grades exceeding 39 g/t gold and 20 g/t silver, respectively, from high-grade epithermal quartz-carbonate veins on six of eight mine levels.

There are more than 25 known veins on the property and only four have undergone limited production and exploration to date. All veins remain open at depth and little exploration has been conducted deeper than 200 metres below surface.

The results of the Company's 2010 drill programs substantiate, for the first time, the gold and silver grades of historic chip and channel samples; thus, BCGold Corp. has the required confidence to commission a NI 43-101 compliant mineral resource estimate. This resource estimate will provide the basis for additional drilling, underground rehabilitation, bulk sampling and partial dewatering of the underground workings of Engineer Mine.

In October 2010, the Company consolidated its land position around Engineer Mine by signing an option agreement with Guardsmen Resources Inc. to acquire a 100% interest in the adjacent Gold Hill property. The 2,100 hectare Gold Hill property includes the Happy Sullivan high-grade gold epithermal prospect and a 2.2-kilometre-long segment of the highly prospective Shear Zone "B" structure. BCGold Corp. intends to conduct a property-wide exploration survey on the Gold Hill property in 2011.

Pepper Property (Yukon) Option Terminated

BCGold Corp. also announces that the Pepper Property letter option agreement previously signed with Goldbard Capital Corp. (See BCGold Corp. News Release dated March 1, 2010), has been terminated and the property has reverted 100% to BCGold Corp. The Pepper Property is a drill-ready, copper-gold prospect situated 12 km northwest of Capstone Mining Corp.'s high-grade Minto Mine. The Pepper Property is available for option.

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. Kinross Gold Corporation holds 9% equity interest in BCGold Corp.

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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