International Wayside Gold Mines Ltd.

International Wayside Gold Mines Ltd.

September 15, 2009 10:43 ET

International Wayside Gold Mines Announces Upcoming Resource Development and Drill Programs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 15, 2009) - International Wayside Gold Mines Ltd. ("Wayside", the "Company"), (TSX VENTURE:WYG)(FRANKFURT:IWUB), announced today its near term development and drill programs designed to advance its NI 43-101 compliant resources at the Cariboo Gold Project.

Wayside's current NI 43-101 resources are as follows:

Grade Contained
Area Category(1) Tonnes (g/t) Gold Ounces(2) Prepared by
Gold Indicated 6,013,000 2.23 430,885 Giroux 2006
Quartz Inferred 1,527,000 1.85 90,936

Bonanza Measured 234,677 6.69 50,392
Ledge --------------------------------------------------
Indicated 334,433 5.31 57,140 Mintec 2009
Inferred 373,123 6.10 73,087

BC Vein Indicated 296,000 5.31 50,600 Giroux 2002
Inferred 291,000 2.40 22,400

QR Pre-feasibility study to be completed September 2009

(1)Conforms to NI 43-101, 43101CP and current CIM definitions for resources.
All numbers are rounded. (2)Cutoff grade is 0.69 gpt Au.

Upcoming Drill Programs and Resource Development

Bonanza Ledge -

Management received a positive Pre-Feasibility Study ("PFS") on the proposed Bonanza Ledge open pit gold mine (see News Release 09-22, Sept. 10, 2009) and is taking the necessary steps to advance the project to production. In addition, drilling to improve the resources is in progress.

With a $950 per ounce gold price, project economics in the PFS outline pre-tax cash flow during the 4 year mine life at $20.5 million, a pre-tax internal rate of return of 111.8% and a net present value (5% discount) of $16.3 million. The net present value figure applies only to the proposed Bonanza Ledge open pit gold mine and does not represent value relating to the Company's other NI 43-101 compliant resources.

Cariboo Gold Quartz -

A Notice of Work has been submitted to begin drilling 202 holes below the 1200' Level to develop additional ounces underneath the current NI43-101 compliant resource. Historic mining records suggest the grade is continuous with the area having a similar tonnage potential as that above the 1200' Level.

Wayside President J. Frank Callaghan states, "A Notice of Work will also be submitted to twin historic drill holes above the 1200' Level at Cariboo Gold Quartz, with the objective to bring the current 43-101 back to its pre-43-101 resource of 1 million ounces, indicated by two resource estimates".

BC Vein -

In March 2000, the Bonanza Ledge Zone was discovered in the footwall of the BC Vein on Barkerville Mountain. The BC Vein has now been traced as much as 1600 meters beyond the Bonanza Ledge Zone. Additional drilling on Cow Mountain to delineate the BC Vein's strike extension offset by the Lowhee Fault is in progress.

The current BC Vein NI 43-101 resource estimate will be updated to include an additional 106 drill holes (15,273 meters) drilled by the Company to date that have cut into the BC Vein and have not yet been added to the resource model.

About International Wayside Gold Mines

The Company has been developing its 106,484 hectare Cariboo Gold Project in Barkerville, B.C., which encompasses (from northwest to south east) the former producing Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (on care and maintenance), Aurum Mine, Island Mountain Mine, Cariboo Gold Quartz Mine, Bonanza Ledge (proposed mine), the Cariboo Thompson Gold & Silver Mine and the Cariboo Hudson Mine.

The Company has also entered into a letter of intent with 0373849 B.C. Ltd. (formerly Cross Lake Minerals Ltd.) ("Cross Lake") pursuant to which Wayside will purchase a subsidiary of Cross Lake holding all of Cross Lake's interest in the QR Mine and Mill (the "Sale Transaction"). Concurrently with the completion of the Sale Transaction, Wayside will enter into a Spin-off Transaction to transfer all of its properties, including the QR Mine and Mill, Cariboo Gold Project, and its assets, liabilities and obligations, to Barkerville Gold Mines Ltd. ("Barkerville"), a wholly-owned subsidiary of Wayside, in exchange for shares of Barkerville (the "Barkerville Shares") and will then distribute the Barkerville Shares to the shareholders of Wayside on the basis of one Barkerville Share for each share of Wayside. The Sale Transaction and Spin-Off Transaction (together, the "Transactions") will be structured as a Plan of Arrangement involving Wayside, its security holders, Cross Lake and Barkerville pursuant to the provisions of the B.C. Business Corporations Act. The final terms of the Transactions will be modified to the extent necessary to give effect to tax and legal advice to be sought by the parties.

Barkerville will make an application to list its shares on the TSX Venture Exchange (the "TSX.V"). This transaction is subject to meeting the usual listing requirements of the TSX.V, which will include having the necessary funds to meet the obligations of operating the QR Mine and Mill, conduct recommended work programs on its Cariboo Gold exploration projects, satisfy the necessary general and administrative expenses and having unallocated working capital. Completion under the Plan of Arrangement will also be subject to obtaining the necessary shareholder, regulatory and court approvals.

The technical information in this News Release has been reviewed and approved by Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.


J. Frank Callaghan, President and CEO

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

  • International Wayside Gold Mines Ltd.
    Andrew H. Rees
    604-669-6463 or Toll Free: 1-800-663-9688
    604-669-3041 (FAX)