BCGold Corp.
TSX VENTURE : BCG
PINKSHEETS : BCGOF

BCGold Corp.

June 05, 2012 08:40 ET

BCGold Corp. Receives Positive Preliminary Metallurgical Results for Engineer Mine Gold Concentrate

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2012) - BCGold Corp. (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) (or the "Company") is pleased to announce the receipt of positive preliminary metallurgy results from Gekko Systems Pty Ltd. ("Gekko") that detail gravity and leach amenability test work performed on two samples collected during the Company's 2011 bulk sampling and test milling at the Engineer Mine. The samples included a 63 kg run-of-mine ("ROM") sample and a 4 kg table concentrate sample, which represent the 505-3 Shoot of the Engineer Vein.

Gekko's Metallurgy Results Highlights

  • A calculated ROM head grade of 54.9 g/t gold (1.6 oz/ton) and 40.6 g/t silver (1.2 oz/ton).

  • High gold and silver recoveries of up to 71.4% and 67.8%, respectively, using only gravity concentration methods, produced a concentrate grading 379.2 g/t gold (11.1 oz/ton) and 260.5 g/t silver (7.6 oz/ton).

  • Gold and silver recoveries from concentrate of up to 98% and 90%, respectively, by intensive leaching after 24 hours.

  • Engineer mill table concentrate returned 6,738 g/t gold (196.5 oz/ton) and 2,878 g/t silver (83.9 oz/ton).

Gekko's bench-scale laboratory test-work validated BCGold Corp.'s previous report for bulk sample 505-3B of a calculated head grade of 44.6 g/t Au (1.3 oz/ton) and table concentrate grade of 6,485.8 g/t Au (189.2 oz/ton), using the on-site gravity separation mill at Engineer Mine (see February 27, 2012 news release at www.bcgoldcorp.com).

Gekko's analytical results indicate that not all the gold and silver in the ROM sample was sufficiently liberated at the grind size utilized by the current on-site ball mill, and that there is recovery upside potential with modification of the gravity separation circuit. Gekko proposes that the gravity recovery of gold and silver could be improved by adding a secondary re-grind mill to the mill circuit and re-tabling the tails at a finer grind size, which may allow further reduction of the concentrate mass while maintaining high gold and silver recoveries. Gekko has designed a study to test this hypothesis and investigate the efficacy of these relatively inexpensive modifications to the on-site mill circuit. The Company has commissioned this study, which is expected to be completed in approximately 10 weeks.

"We are very pleased with Gekko's preliminary gravity recovery test work," commented Brian P. Fowler, President and CEO of BCGold Corp. "The ability to produce a high-grade gold concentrate with the potential of > 70% gold recovery reduces the requirement to install an on-site leaching circuit to produce a marketable product. We believe we can produce a marketable gold-rich gravity concentrate utilizing the Engineer mill and ship this material for off-site refining on an economic basis. The ongoing Gekko re-grinding study is expected to substantially improve the gravity recovery process and further enhance the economics of this project."

Background

In 2011, BCGold Corp. conducted bulk sampling and on-site test milling at the Engineer Mine property that produced 970 kg of gravity gold concentrate from 246 tonnes of ore; the average concentrate gold grade was 2,193 g/t (64.0 oz/ton). This concentrate is currently being refined for gold and silver recovery by SiPi Metals Corp. in Chicago, Illinois (see May 2, 2012 news release at www.bcgoldcorp.com).

In December 2011, BCGold Corp. submitted to Gekko a 63 kg ROM sample and a 4 kg table concentrate sample from the 69 tonne Engineer Vein bulk sample 505-3B to determine gold and silver recovery potential using continuous gravity recovery. BCGold previously reported bulk sample 505-3B returned a minable head grade of 44.6 g/t gold. The amenability of the ROM concentrate produced by Gekko and the table concentrate produced on-site to intensive cyanide leaching was also tested.

Gekko specializes in the design, development and distribution of innovative, low-cost mineral processing systems with a particular focus on gravity separation. Gekko-built systems reduce the environmental impact of mineral processing and have been installed worldwide.

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.

About the Engineer Mine

BCGold Corp. owns 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 new discoveries, but is also positioned to offset exploration costs and minimize dilutive share issuances for capital by monetizing/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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