VANCOUVER, BRITISH COLUMBIA--(Marketwire -06/21/12)- Barkerville Gold Mines Ltd. (BGM.V)(IWUB.F) (the "Company" or "Barkerville Gold") reports it has now received all necessary approvals to begin preparations for mining and milling operations at the Bonanza Ledge Mine and QR Mill.
The Company's intention, with its Bonanza Ledge application in 2010, was to keep the QR Mine near Quesnel, B.C. in operation by utilizing ore reserves from that property and the proposed Bonanza Ledge Mine, near Wells, B.C. On December 5, 2011, the Company received final issuance of Mines Act Permit M-238 to develop the Bonanza Ledge open pit gold mine and since that time has been awaiting environmental approvals to mill the ore at QR Mill facility.
On June 12, 2012 the Company received Amended Permit 12601 issued under the provisions of the Environmental Management Act allowing for the dewatering of the Main Zone Pit to accommodate tailings from processing Bonanza Ledge ore and ore from the Dome Mountain Mine near Smithers, B.C., which the Company may process using the QR Mill as a toll mill.
On June 14, 2012, the Company received its draft permit amendment to Mines Act Permit M-198 to allow the custom milling of up to 300,000 tonnes of ore from the Bonanza Ledge Mine and up to 300,000 tonnes of ore from the Dome Mountain Mine, as well as the disposal of associated mine tailings in the QR Main Zone Pit. On May 1, 2012, the Company was issued an approval in draft form of an amendment to Bonanza Ledge Environmental Management Act permit PE-17876 to permit effluent discharge associated with active mining. Finalization of these last two permits is anticipated to take several weeks, but will not hold up preparations for mining and production at Bonanza Ledge. The Company anticipates shortly that it will commence the dewatering of the Main Zone pit to accommodate the start-up of mining at the Bonanza Ledge.
As all necessary permits are now in place to begin the preparations for mining, Company President and CEO, J. Frank Callaghan said, "The Bonanza Ledge deposit was discovered in March, 2000 with the gold price at US$285 per ounce through a drilling campaign during a distressed resource market. Management believes these current developments signify a great day for the mining industry in B.C. and has maintained a strong belief that with its partners in government and stakeholders within the surrounding communities, the Bonanza Ledge Mine would begin commercial production and be a positive economic driver within a rural area in the province of British Columbia."
The Bonanza Ledge open pit site has been logged and grubbed in preparation for mining and an agreement has been reached with forestry operators to utilize the 500 Forest Service Road to access the QR Mine. A BC Hydro power line upgrade to the QR Mine is currently underway, with completion expected towards the end of June 2012. At that time the Company anticipates re-commencing mining operations for additional gold production from existing reserves at the QR Mine (see News Release dated June 6, 2012).
Barkerville Gold and the Lhtako Dene First Nation's newly elected leadership met recently and agreed on the recipients for the annual scholarship awards provided for in an agreement between the Lhtako and the Company. This year, three Lhtako Dene youth will each receive the Chief Frank Boucher Award to assist with their post-secondary education. Approval of the Bonanza Ledge/QR Project will allow for this and various other benefits to continue to flow to the Lhtako on commencement of commercial production.
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 117,691.14 hectares, 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 and continued until December 2011. 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 all necessary 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 completed significant drilling and exploration programs and together with the historical data is compiling all information to determine geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects.
The technical information in this news release has been reviewed and approved by Company Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.
J. Frank Callaghan, President and CEO
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSX Venture Exchange. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
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.
Barkerville Gold Mines Ltd.
J. Frank Callaghan
President and CEO
604-669-6463 or Toll Free: 1-800 663-9688
604 669-3041 (FAX)