Barkerville Gold Mines LTD. - April 2011
Production – Resource Expansion – Exploration
A Gold Producer with Huge Growth Potential
Barkerville Gold Mines is a public company traded on the TSX Venture Exchange (BGM) and on the Frankfurt Stock Exchange (IWUB). Barkerville Gold Mines has been focused on the exploration and development of its gold projects in the Historic Cariboo Goldfields -terminus of the famous Cariboo Gold Rush of the 1860’s - in central British Columbia, Canada, since 1994. Barkerville Gold Mines’ mineral tenures in the Historic Cariboo Goldfields now encompass more than 112,000 hectares, covering the 60km long by 20km wide geological belt. The mineral tenures include 7 past producing mines and two of Barkerville Gold Mines’ own proposed open pit mines, currently in the permitting process.
Production
On February 2, 2010, Barkerville Gold Mines closed the acquisition of the QR Mine and Mill and all of its associated assets. Furthermore, the Company also announced the start of mining operations at the QR Mine (West Zone) on the same day. On September 15, 2010, Barkerville Gold Mines announced that the Company had poured its first gold bar and had achieved full commercial production. Barkerville Gold Mines plans to process material from its proposed Bonanza Ledge open pit mine (in permitting), as well as the ore from the permitted QR West Zone Mine at the QR Mill. Combined, the Company plans to achieve 50,000 oz of gold production in 2011. The Company has not hedged its gold production.
The 900‐tonne‐per‐day QR Mill facility, is a CIP mill designed for an output of 70,000 ounces of gold per annum for that location. The mill is located 110 kilometers by all‐weather road from Barkerville Gold Mines’ Cariboo Gold Project and proposed Bonanza Ledge open pit mine.
Production Growth – Second Mill Purchased
On November 8, 2010, Barkerville Gold Mines closed the acquisition of a second mill – the Goldstream Mill – from nearby Revelstoke, British Columbia. It is the Company's intention, subject to approvals, to relocate, refurbish and upgrade the Goldstream mill facility to the base of Cow Mountain, near Wells, BC, where two of Barkerville's NI43-101 gold resources and proposed open-pit deposits are located in Central British Columbia. Once permitted and operational, the Company plans to increase production levels to over 100,000 oz of gold per year, utilizing the Goldstream mill.
The Company's Bonanza Ledge proposed open-pit mine on the adjacent Barkerville Mountain is currently in the BC Mines Act approval process. On April 7, 2011, Barkerville Gold Mines issued a press release updating the permitting of the Bonanza Ledge project. The Company reported that the proposed Bonanza Ledge mine has successfully completed the British Columbia Governemnt’s 60 day review period and that the Company is working with the Government to successfully complete the permitting process. Barkerville is budgeting to commence mining operations in at Bonanza Ledge in June of 2011, after construction of the newly permitted haul road is complete (permitted in January of 2011) and the mining permit has been received.
The Company’s third proposed mine, the Cariboo Gold Project, encompassing Cow Mountain, is anticipated to re-enter the BC Environmental Assessment Process in the 4th Quarter of 2011. Once permitted and operational, the Goldstream mill and the Cariboo Gold Project open pit mine would increase the Company’s gold production to over 100,000 ounces per year.
Expansion and Exploration
Barkerville Gold Mines is permitted to drill 1300 drill holes for over 300,000 meters worth of drilling over the next three years. The Company has planned and budgeted for a $10 million, 100,000 meter exploration and development program for 2011. The program is scheduled to explore underneath, and along strike of the Company’s current NI43-101 gold projects as well as in areas that are geologically favorable and highly prospective but are yet to be explored.
-Growing Ounces
On October 6, 2010, the Company announced the start of a 122 hole drill program on the Cariboo Gold Quartz project. The purpose of this drill program is to bring the resource back up to its historic resource of over 1 million ounces at approx. 4 grams per tonne. Currently, the NI43-101 resource stands at 431,000 oz Indicated and 91,000 oz Inferred. On February 10, 2011, the Company announced the first of the drill results from the program – 16.7 meters of 15.9 g/T gold and 32.6 meters of 10.8 g/T gold that was drilled 190 meters NorthWest of the proposed pit.
Furthermore, the Company is drilling the North Zone at QR – the largest known area of mineralization at QR – that does not have a NI43-101 compliant resource. The North Zone is drill indicated to be over 1km long and open along strike and at depth. The Company plans on mining the North Zone after the current West Zone.
-Exciting New Discovery
On September 20, 2010, Barkerville Gold Mines announced that, through trenching, the Company had made a significant discovery approx. 100 metres from the Bonanza Ledge proposed open pit on Barkerville Mountain. On March 21, 2011, the Company announced the first drill results from the newly discovered zone – 14.1 meters of 12.1 g/T. Further drill results are pending.
-Updating NI43-101 Compliant Resources
Barkerville Gold Mines has commissioned updated NI43-101 resource estimates on all projects as the Company has not updated the NI43-101 gold resources since 2006. In the time since, the Company has drilled nearly 400 drill holes that will be added to the resource estimates. The Company is expecting an update on the Bonanza Ledge project in April/May, on the BC Vein in June and the Cow Mountain project in July.