Barkerville Drilling Updates-Assays Pending
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/06/11 -- Barkerville Gold Mines Ltd. (TSX VENTURE: BGM)(FRANKFURT: IWUB) (the 'Company') reports an update to the ongoing diamond drilling campaign at its projects in the Cariboo Mining District in central B.C. 119 diamond drill holes (including 15 water monitoring holes) have been completed thus far to the quarter ending August 31, 2011 over Barkerville and Cow Mountains including the two new discovery areas. The Company has been informed that minor delays at the assay labs have been overcome and that 30 drill holes including several holes testing the potential extension of the new discovery area (see News Release of June 27th, 2011) along strike and on the opposite side (mine grid south) of the Cariboo Gold Quartz Mine shall be processed shortly. These holes have already been submitted with results now anticipated within the first week of September. Subsequent drill holes should be processed within regular timeframes. Drilling continues and assays will be released as soon as they are received.
The Company currently has four diamond drill rigs running with a fifth rig having arrived and will begin running this week. The Company is permitted to drill up to 1200 holes on Barkerville and Cow Mountains over the next three years. Campaigns include expansion drilling in, around and below current 43-101 resources, the Cariboo Gold Quartz Mine, BC Vein, the Bonanza Ledge Mine. The Company's two new discovery areas on Cow Mountain and Barkerville Mountain are also currently being drilled.
The access road to the Grouse Creek resumed last week where the Company is permitted to drill up to 92 drill holes for 14,000 meters and has budgeted $500,000 for this year. The permits allow for 46 drill pads, 25 test pits and 6.7 kilometers of exploration roads. Roadwork was delayed due to high amounts of snowfall last season. The Company expects that the resumption of road building will allow drilling to commence this year. The drill program is targeting both replacement and quartz vein styles of gold mineralization discovered during previous exploration seasons. Rocks sampling in 2008 returned up to 313 g/t gold in the area (please see news release of March 29, 2010).
The Grouse Creek area runs approximately 7 kilometers long and is South East of Barkerville Mountain, immediately adjacent to the Bonanza Ledge Zone. Grouse Creek is directly on trend with the past producing, Cariboo Hudson Gold, Cariboo Gold Quartz, Island Mountain Gold, Mosquito Creek Gold and Hard Scrabble Tungsten/Gold Mines as well as the Bonanza Ledge Gold deposit, all within a contiguous, 60 kilometer geological gold belt owned by the Company.
About Barkerville Gold Mines Ltd.
Since the mid 1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures now cover over 1,147 square kilometers, encompassing seven past producing hard rock mines and three NI 43-101 gold deposits, including the QR Mine & Mill. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in the first quarter of fiscal 2011 and the Company began pouring dore gold in September 2010. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. for relocation to the Barkerville Gold Camp near Wells, B.C. and upgrade to a 3,000-tonne/day facility subject to government approvals. In November 2010 the Company and the Lhtako Dene First Nation also signed a Project Agreement in relation to its Bonanza Ledge and Cariboo Gold Projects. The Company has not hedged any of its future gold production.
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.
On behalf of the Board of Directors
J. Frank Callaghan, President and CEO
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. All phases of the Company's operations are subject to environmental regulation and governmental approval and permits and there can be no assurance that the Company will obtain all the requisite permits for future development. Mining is an inherently risky business with large capital expenditures and cyclical metals markets.
Neither the 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.
Contacts:
Barkerville Gold Mines Ltd.
J. Frank Callaghan
President and CEO
(604) 669-6463 or Toll Free: 1-800 663-9688
(604) 669-3041 (FAX)
www.barkervillegold.com