BCGold Corp.
TSX VENTURE : BCG
PINKSHEETS : BCGOF

BCGold Corp.

June 26, 2012 08:40 ET

BCGold Corp. Receives Payment for First Engineer Mine Gold Concentrate Sale

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - BCGold Corp. (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) (or the "Company") is pleased to announce receipt of a cash payment of US$107,000 (Net) for gold recovered from approximately 0.8 dry metric tonnes (dmt) of gold-rich gravity concentrate produced during the Company's 2011 bulk sampling program at the historic Engineer Mine property. By the terms of a recently signed concentrate purchase agreement with Auramet Trading, LLC (see May 2, 2012 news release: www.BCGoldcorp.com) the concentrate was sold to and refined by SiPi Metals Corp. ("SiPi").

SiPi determined the concentrate contained a total of 2,177.5 grams (70.0 oz) of gold, of which 2,112.2 grams (67.9 oz) were recoverable and payable to BCGold Corp. at a realized price of US$1,608 per ounce.

"This is an important achievement for BCGold Corp.," states Brian P. Fowler, P.Geo., President and CEO. "The Company generated US$107,000 in revenue from approximately 246 tonnes of bulk sample material mined from the Engineer Mine underground workings at a calculated head grade of 16.9 g/t Au. It is estimated that the current on-site gravity separation mill achieves 51% gold recovery; however, recent metallurgy bench-scale test work shows that greater than 70% recovery is achievable. Minor mill circuit modifications would increase gold recovery to the concentrate product and enhance BCGold Corp.'s potential revenue stream, thus providing grounds for larger scale selective bulk sampling and on-site processing at Engineer Mine."

The 2011 bulk sampling program discovered the upper limits of two high-grade gold shoots within the Engineer Vein on 5 Level of the underground workings. The two gold shoots plunge sub-vertically, where they are projected to be accessible from 6 and 7 Level, which are currently flooded. The Company has the necessary permits to dewater 6 and 7 Level and mine and mill a 4,000 tonne bulk sample from the high-grade gold shoots. The two gold shoots are a compelling exploration target between 5 and 7 Level, with a tonnage range of 6,000 to 8,600 tonnes, and a grade range of 30 to 60 g/t Au (1-2 oz/t Au) for 6,000 to 17,000 ounces of contained gold.

The potential quantity and grade of the bulk sample exploration target is conceptual in nature but inclusive within the Engineer Vein, which has a global NI 43-101 Inferred Mineral Resource of 30,800 tonnes grading 20.6 g/t Au (see March 4, 2011 news release: www.BCGoldcorp.com). Investors are reminded that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There has been insufficient exploration to define this bulk sample exploration target as a Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

Financing Options for Infrastructure Upgrades

Larger-scale bulk sampling of the two accessible, high-grade Engineer Vein gold shoots provides an excellent opportunity for the Company to generate significant, near-term revenue for continued exploration and development. BCGold Corp. is evaluating a number of financing options to fund mine and mill infrastructure upgrade requirements, as well as mining and milling costs, so that larger bulk samples may be adequately processed. Financing options under consideration include, individually or in combination, the forward sale of gold concentrate, secured convertible debt, gold royalty, and an interest bearing loan facility repayable over a two-year period. The Company continues to seek a suitable partner and terms for this venture.

Darren O'Brien, P.Geo., Vice President Exploration for BCGold Corp. and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release. Images and video of BCGold Corp.'s 2011 bulk sampling and test milling at Engineer Mine can be viewed on the Company's website (BCGold Corp. bulk Sampling / test milling images and video: www.BCGoldcorp.com).

About the Engineer Mine

BCGold Corp. has a 75% interest in the Engineer Mine property, with 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. More than 560 kg (18,000 oz) of gold and 278 kg (8,950 oz) 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 two large shear zones and more than 25 known veins on the property; only four veins have undergone limited production and exploration to date. All shear zones and veins remain open at depth and little exploration has been conducted deeper than 200 metres below surface.

About BCGold Corp.

BCGold Corp. (TSX VENTURE:BCG) is focused primarily on gold exploration and development 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. Currently, institutional investors hold 21% of the Company's outstanding shares and Kinross Gold Corporation holds 5%.

BCGold Corp. is unique in that it not only exposes investors to the prospects of discoveries, but is also positioned to offset exploration costs by forward selling gold concentrate recovered from on-site processing of bulk sample material at the Company's high-grade gold Engineer Mine property.

On behalf of the Board of Directors,

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

Some statements in this news release contain forward-looking information or forward-looking statements. These statements include, but are not limited to, statements with respect to future expenditures 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 and completion of contemplated financings, the actual use of proceeds, receipt of regulatory approvals and the timing and success of future exploration, development and production activities. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

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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