BCGold Corp.
TSX VENTURE : BCG
PINK SHEETS : BCGOF

BCGold Corp.

May 25, 2011 08:30 ET

BCGold Corp. Files NI 43-101 Technical Report and Announces 2011 Work Program for Engineer Gold Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2011) - BCGold Corp. (TSX VENTURE:BCG)(PINK SHEETS:BCGOF) (or the "Company") is pleased to announce it has filed an NI 43-101 Technical Report for the Engineer Mine on SEDAR. The report, completed by Snowden Mining Industry Consultants Ltd. ("Snowden"), provides Mineral Resource estimate details in addition to the previously reported Inferred Mineral Resource estimate of 41,000 tonnes grading 19.0 g/t Au at a 5 g/t Au cut-off (see press release March 4, 2011). The report recommends a three-year, two-phase, $10.2 million exploration work program to further explore the property for additional high-grade and bulk-tonnage gold resources, and to take the Engineer Mine property into small-scale production in the near term. The full report is available for download from the Company's website (www.bcgoldcorp.com).

Snowden estimates that historic mining, which was based on visual identification of ore, occurred at an elevated cut-off of approximately 25 g/t Au. At this cut-off, Snowden reports the Inferred Mineral Resource estimate is 14,000 tonnes grading 52.5 g/t gold for 23,600 contained ounces of gold (see Table I).

TABLE I
ENGINEER MINE MINERAL RESOURCE ESTIMATE (1)
Cut-OffCategoryVeinTonnesAu (g/t)Au (oz)
5 g/t Au(2)InferredEngineer30,80020.620,400
InferredDouble Decker10,10013.14,400
Total(3)41,00019.025,000
25 g/t Au(2)InferredEngineer10,4006020,100
InferredDouble Decker3,600303,500
Total(3)14,00052.523,600
Note:
(1) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
(2) The Mineral Resource estimate is reported on nominal cut-offs of 5 g/t Au and 25 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. The most likely cut-off grade for this deposit is not known and will need to be confirmed by the appropriate economic studies, but is likely to be around 7 g/t Au.

The estimate incorporates five partially explored and developed mineralized shoots of the Engineer and Double Decker veins from surface to 15 metres below 8 Level, adjusted for historical production. All shoots are accessible from 5 Level, the main access level of the mine, and both veins remain open along strike and down dip. The Engineer Mine property offers excellent potential for near-term, small-scale gold production from these five defined mineralized shoots and the Company is able to process any gold-bearing material with the fully operational and permitted 30 tonne per day gravity separation mill on the property. Historic mine records indicate that the Company can expect a significant silver credit to any proposed production.

Recommended Work Program

Snowden concludes that the Engineer Mine property represents an advanced exploration and resource development project, and that recent studies by BCGold Corp. enabled the future potential of the Engineer Mine to be realized. Snowden recommends that BCGold Corp. continue to advance the Engineer Mine property with a two-phase, $10.2 million exploration and development program with the following objectives:

  • Acquire bulk samples of the Double Decker and Engineer veins to determine sampling and metallurgical characteristics.
  • Evaluate mining techniques to optimise head grade.
  • Partially dewater the mine to assess lower mine workings.
  • Evaluate and optimise the 30 tonne per day pilot mill circuit.
  • Investigate the exploration potential of Shear Zone "A" as a bulk tonnage target.
  • Conduct a property-wide exploration program covering the Engineer Mine property and the adjoining Gold Hill property.

Phase I Exploration

BCGold Corp. is budgeting $1.5 million to conduct Phase I of the 2011 exploration program at Engineer Mine. The program is scheduled to commence in June and will entail limited underground rehabilitation and dewatering of the lower mine workings, bulk sampling from surface trenching and underground, test mining to optimize head grade, and evaluation and optimization of the 30 tonne per day pilot mill circuit. The proposed property-wide exploration program, which covers both the Engineer Mine property and the recently acquired Gold Hill property, will include airborne geophysics, mapping, prospecting, surface trenching, and a 1,500 metre diamond drill program.

Dr. Simon Dominy, FAusIMM(CP) FGS(CGeol), Executive Consultant, Snowden Mining Industry Consultants Ltd., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents 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 a 100% interest.

Engineer Mine was a high-grade gold producer that came to peak production in the mid-1920s and ceased operation 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 Au and 20 g/t Ag, 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.

In October 2010 the Company consolidated its land position around Engineer Mine by signing an option agreement 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 segment of the highly prospective Shear Zone "B" structure.

About BCGold Corp.

BCGold Corp. (TSX VENTURE:BCG)(PINK SHEETS:BCGOF) 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.

Contact Information