BCGold Corp.

BCGold Corp.

February 27, 2012 14:50 ET

BCGold Corp.'s Engineer Mine Bulk Sample Concentrate Averages 2,193.1 g/t (64.0 oz/ton) Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) - BCGold Corp. (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) (or the "Company") is pleased to announce final assay results and mining grades from the bulk sampling and on-site test milling component of the 2011 exploration program at the Company's Engineer Mine property. BCGold Corp. has received assay results from the 148.4 kg of Sluice Concentrate and 5.1 kg of High-Grade Gold Stream Concentrate produced while test milling six composite bulk samples mined from remnant portions of the Engineer and Double Decker Veins, some of which was outside of the currently stated mineral resource. This material was previously categorized as waste material by conventional chip sampling and drilling.

Gold was recovered in up to three separate concentrates from the on-site gravity separation mill for each of the six bulk samples. Sluice Concentrate returned an average gold grade of 550.7 g/t Au (16.1 oz/ton), with one subset bulk sample grading 1,091.5 g/t Au (31.8 oz/ton). The High-Grade Gold Stream Concentrate collected from the gravity circuit's finishing table returned a gold grade of 58,451.9 g/t Au (1,704.8 oz/ton or 5.8% Au). Incorporating the previously reported Table Concentrate results (see December 14, 2011 news release), test milling of 246.1 tonnes of bulk sample material in 2011 produced 969.2 dry kg of concentrate returning a weighted average grade of 2,193.1 g/t Au (64.0 oz/ton). An estimated 68.3 oz of gold is contained in the concentrate. Complete results are reported in Table 1.

Additional highlights of the 2011 Engineer Mine bulk sampling and test milling program include:

  • The 246.1 tonne composite bulk sample returned an average mining grade of 16.9 g/t Au (0.5 oz/ton),
  • Bulk sample 505-3B (68.9 tonnes) returned a mining grade of 44.6 g/t Au (1.3 oz/ton),
  • Approximately 60% (147 tonnes) of the composited bulk sample was mined from outside the limits of the currently stated Inferred Mineral Resource,
  • Bulk sampling results support the potential expansion of the Inferred Mineral Resource within the current underground workings,
  • Bulk sample mining grades are on average 850% higher than channel sample estimates,
  • Preliminary test milling averaged 51.3% gold recovery from the on-site gravity separation mill.

"BCGold Corp. is very pleased with the results of our bulk sampling and test milling program at Engineer Mine this past year," states Brian P. Fowler, P.Geo., President and CEO of BCGold Corp. "The Company has demonstrated the ability to identify and effectively mine high-grade vein material at Engineer Mine, and produce a marketable concentrate utilizing the on-site gravity separation mill. Management is confident that additional high-grade vein material will be identified by bulk sampling and that on-going metallurgy studies will provide the necessary information to optimize the mill recovery circuit."

BCGold Corp. is planning a staged $2.5 million exploration and development program at the Engineer Mine property in 2012. In addition to limited mine dewatering, geological mapping, sampling, and mine rehabilitation, the Company also intends to optimize the mill and continue to bulk sample and mill accessible high-grade gold mineralization. The Company is also planning an underground diamond drilling program targeting four previously untested veins as well as the Shear Zone 'A' and Shear Zone 'B' bulk tonnage exploration targets.

2011 Bulk Sampling and Test Milling Program

The bulk sampling and test milling component of BCGold Corp.'s $1.1 million 2011 exploration and development program entailed mining 350 tonnes of composite bulk sample material from underground workings and an additional 50 tonnes from surface trenching. Approximately 246 tonnes of this material was processed on-site, using the gravity separation mill, and yielded 969.2 kg of gold-rich concentrate as three separate products. Assay results for 815.6 kg of Table Concentrate were previously announced (see December 14, 2011 news release) returning a weighted average grade of 2,140.1 g/t Au (62.4 oz/ton), with one subset bulk sample returning 6,485.8 g/t Au (189.2 oz/ton).

Table 1 reports assay results and estimated contained gold for bulk sample concentrates produced using the on-site gravity separation mill.

Table 1
Bulk Sample Concentrate Assay Results
and Calculated Gold Content

Bulk Sample Tonnes
Table Concentrate Sluice Concentrate HG Gold Stream Total Concentrate Contained Gold
Dry kg Au (g/t) Dry kg Au (g/t) Dry kg Au
Au (g/t) Grams Ounces
DD Trench 9.4 15.5 379.3 7.6 109.6 - - 23.1 290.6 6.7 0.2
505-2 40.7 167.5 204.7 26.1 143.8 - - 193.6 196.5 38.0 1.2
505-3A 35.5 172.3 1,324.1 22.6 699.7 - - 194.9 1,251.7 244.0 7.8
505-3B 68.9 173.5 6,485.8 40.3 1,091.5 5.1 58,451.9 218.9 6,703.3 1,467.6 47.2
505-5* 69.7 228.1 1,382.2 44.2 322.5 - - 272.3 1,210.2 329.5* 10.6*
505-6 21.9 58.7 621.2 7.6 406.9 - - 66.3 596.7 39.6 1.3
Total 246.1 815.6 2,140.1 148.4 550.7 5.1 58,451.9 969.2 2,193.1 2,125.5 68.3

* Approximately 14 kg of hand specimens with >5% "wire" gold were removed from Bulk Sample 505-5 prior to crushing at the gravity separation mill (see December 14, 2011 news release) and is therefore not reported as contained gold in concentrate.


Bulk Sampling and Calculating Mining Grade

BCGold Corp. utilized bulk sampling at the Engineer Mine to determine gold grade, the character and distribution of the gold in the Engineer and Double Decker Veins, and to obtain metallurgical samples.

Historic mining records and previous Company sampling records have shown that a major portion of the gold within the veins is free-milling coarse gold that occurs as clusters within mineralized shoots. Smaller volume samples using conventional drill core or channels are useful in locating veins, but often fail to intersect the clusters of free gold and therefore underestimate the average grade of the veins. This can lead to potentially misidentify mineralized vein material as waste rock. Large tonnage bulk samples return a more representative gold grade for the vein material as they sample a larger percentage of the mineralized shoot.

Table 2 demonstrates that bulk samples consistently returned much higher gold grades than estimated by smaller volume channel samples collected in previous programs by BCGold Corp. Mining grades calculated for the bulk samples returned gold grades more consistent with historic mining records.

Table 2
Bulk Sample vs. Channel Sample
Gold Grade Comparison

Bulk Sample Bulk Sample Mining Grade (Au g/t) Channel Samples % Difference
# Samples Predicted Grade
(Au g/t)
DD Trench 1.2 34* 0.95* +26%
505-2 1.7 2 0.56 +204%
505-3A 14.5 1 0.69 +2,001%
505-3B 44.6 1 2.37 +1,782%
505-5 >8.5** 3 36.49 N/A
505-6 4.3 2 1.12 +284%

* A total of 35 channel samples were collected from two benches of the Double Decker trench, with one of these samples assaying 979 g/t Au, as reported on August 16, 2011. The uncut average grade is 27.14 g/t Au when this high-grade sample is included in the calculation.
** Bulk Sample 505-5 does not include 14 kg of hand specimens with >5% "wire" gold which were removed prior to crushing at the gravity separation mill.

BCGold Corp. utilized the on-site gravity separation mill to back calculate the mining grade for the large tonnage bulk samples, incorporating the dilution normally associated with mining. For each of the six composite bulk samples, the contained amount of gold reporting to concentrate was estimated using gravimetric fire assays and/or metallics screen assays. Mill feed, table middlings, and tails samples were collected for gravimetric fire assay at 30 minute intervals to estimate the contained amount of gold reporting to concentrate and to tailings. The mining grade of the bulk samples was calculated by dividing the total contained amount of gold (in grams) by the tonnes milled.

Table 3 lists the tonnes milled, contained gold in concentrate, and the calculated mining grade for each of the six bulk samples. Mill recovery of gold reporting to concentrate averaged 51.3%, with a range of 41.8% to 58.6% for individual bulk samples. The mining grade for individual bulk samples ranged from 1.2 g/t Au to 44.6 g/t Au and averaged 16.9 g/t Au for all tonnes milled.

Table 3
Bulk Sample - Calculated Mining Grade

Bulk Sample Tonnes Milled Contained Gold in Concentrate
Mill Recovery
Mining Grade
(Au g/t)
DD Trench 9.4 6.7 58.6% 1.2
505-2 40.7 38.0 56.5% 1.7
505-3A 35.5 244.0 47.5% 14.5
505-3B 68.9 1,467.6 47.8% 44.6
505-5 69.7 329.5* 55.5% > 8.5*
505-6 21.9 39.6 41.8% 4.3
Total 246.1 2,125.5 51.3% 16.9

* Approximately 14 kg of hand specimens with >5% "wire" gold were removed from Bulk Sample 505-5 prior to crushing at the gravity separation mill (see December 14, 2011 news release) and is therefore not reported as contained gold in concentrate.

Discussion of Results

Management believes the Company's 2011 bulk sampling program and subsequent gold grade calculations, which utilized the gravity separation mill as a sampling tool, provides an accurate representation of the mining grade of the veins at Engineer Mine. Smaller volume samples such as channel samples or drill core samples are effective at delineating the veins and discovering new veins but underestimate overall gold grades due to the coarse grained nature and clustered distribution of the gold (the "High-Nugget Effect"). Channel samples and drill core samples are ineffective at determining vein grade and by themselves cannot be used to increase the tonnage or the confidence of the NI 43-101 Inferred Mineral Resource estimate without using larger volume bulk samples.

As the bulk samples are consistently returning mining grades much higher than the grade estimated by smaller volume samples, there is a strong possibility that some of the previously categorized waste material is actually mineralized. Bulk samples 505-3A, 505-3B and 505-6 are all from outside the limits of the currently stated Inferred Mineral Resource. These samples effectively returned bulk sample mining grades of 2001%, 1782%, and 284% respectively, higher than the averaged channel sample grades. Management is encouraged by these results and believes continued bulk sampling while test-milling will be an effective exploration tool for the Engineer Mine vein systems.

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 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 Company consolidated its land position around Engineer Mine in 2010 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.

BCGold Corp.'s 2011 exploration and bulk sampling program was Phase I of a two-phase, three-year, $10.2 million exploration and development program recommended by Snowden Mining Industry Consultants Ltd. in their April 2011 National Instrument 43-101 Technical Report for the Engineer Gold Project. In their report Snowden recommends bulk sampling the Double Decker and Engineer Veins to evaluate mining techniques and determine metallurgical characteristics, partially dewater the lower mine workings, evaluate and optimize the 30 tonne per day gravity separation mill circuit, and continue investigating Shear Zone "A" as a bulk tonnage gold target.

About BCGold Corp.

BCGold Corp. (TSX VENTURE:BCG) is a Vancouver-based junior resource company focused on copper and 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 by using internal expertise, engaging preferred joint venture partners, and creating strategic alliances with major exploration and mining companies. Currently, institutional investors hold 21% of the Company's outstanding shares and Kinross Gold Corporation holds 7%.

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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