BCGold Corp.
TSX VENTURE : BCG

BCGold Corp.

October 04, 2010 08:40 ET

BCGold Corp. Expands Land Position at Engineer Gold Mine Property, B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2010) - BCGold Corp. (TSX VENTURE:BCG) (the "Company") is pleased to announce that it has signed an option agreement with Guardsmen Resources Inc. ("Guardsmen"), a private company registered in British Columbia, to acquire a 100% interest in Guardsmen's Gold Hill Property.

The Gold Hill Property partially surrounds BCGold Corp.'s historic Engineer Mine Property, situated 32 kilometres west of Atlin, B.C., and consists of 5 mineral claims (2,104 hectares), which include the Happy Sullivan high-grade gold epithermal prospect and a 2.2 kilometre long segment of the highly prospective Shear Zone "B" structure. (See Figure 1 attached)

This agreement, subject to TSX Venture Exchange (the "Exchange") approval, gives BCGold Corp. the option to earn a 100% interest in the Gold Hill Property over 4 years by issuing 100,000 BCGold Corp. common shares to Guardsmen within 5 days of Exchange approval, making $100,000 in staged cash payments to Guardsmen, and incurring $500,000 in exploration work the Gold Hill Property. Guardsmen retains a 2.5% net smelter return on the Gold Hill Property, which can be reduced to 0.5% by BCGold Corp. for a price of $1.5 million.

BCGold Corp. intends to conduct a property-wide soil geochemical survey on the Gold Hill Property in 2011 to target narrow-vein and bulk tonnage, shear-related gold mineralization.

High-grade and Bulk Tonnage Gold Potential

The Gold Hill Property overlays a north trending silicified shear zone (Shear Zone "B"), which measures up to 24 metres wide and extends from the northern portion of the Gold Hill Property (Happy Sullivan claim) and 3 kilometres southward, on to BCGold Corp.'s Engineer Mine Property.

The Company considers Shear Zone "B" and associated splays and fault intersections to offer excellent high-grade and bulk tonnage gold exploration potential.

"The Gold Hill Property acquisition exemplifies BCGold Corp.'s commitment to the Engineer Mine Camp", stated Brian P. Fowler, P. Geo., President and Chief Executive Officer of BCGold Corp. "The Company can now take a much broader view of the Engineer Mine gold mineralizing system and better explore its outer reaches and depth extent."

Previous Exploration Results at Gold Hill/Happy Sullivan

The Happy Sullivan prospect was explored for high-grade gold in the early 1930's by two adits and several trenches. A grab sample from a nearby quartz dump reportedly assayed 323.6 grams/tonne gold and 226.2 grams/tonne silver (British Columbia Minister of Mines Annual Report 1933, p. 81). 

In Guardsmen's 2006 Prospecting and Geochemical Survey Report on the Happy Sullivan Property (http://guardsmenresources.com/TEXT/Property_Text/Engineer/Happy%20Sullivan%202007%20Assessment%20Report.pdf) the following is reported:

  • Shear Zone "B" contains abundant vuggy quartz veins up to one metre wide with up to 10% disseminated arsenopyrite, pyrite, electrum and gold. 
  • A 2001 trench sample from the Happy Sullivan prospect averaged 1.8 grams/tonne gold across 15 metres. 

  • A number of other high-grade veins and gold showings, including the historic Sweepstake vein which measures up to 7.6 metres wide, occur peripheral to Shear Zone "B".

About the Engineer Mine Property

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

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 mine levels. The presence of visible gold was the primary method of identifying and following ore shoots in the veins.

Phase II Underground Drilling at Engineer Mine

BCGold Corp. is currently conducting a second phase of underground drilling at the Company's historic high-grade gold Engineer Mine. Phase II drilling is directed at further defining the geometry of high-grade gold shoots in the Engineer and Double Decker veins and upgrading and increasing the current potential mineral target at Engineer Mine to an National Instrument 43-101 compliant mineral resource estimate.

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.

Bruce Coates, P.Geo., geological consultant and a qualified person for the purposes of National Instrument 43-101, has reviewed and approved the information of a scientific or technical nature contained in this news release.

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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/bcg_10_04_2010_figure_1.pdf

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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