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TSX-V: BGM $0.150
10-30-2014 Volume: 182870 Change: -0.010

Operations

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Bonanza Ledge

Bonanza Ledge Overview


The Bonanza Ledge Mine, for which the Company received a positive pre-feasibility study in September 2009 (updated in June 2013), is a gold mine on the southwest flank of Barkerville Mountain, about 2 km northwest of the Barkerville Historic Town site. The study involved the focused efforts of a team of independent qualified persons, professionals and consulting companies that included EBA Engineering Consultants Ltd. (Initial Report), F. Wright Consulting Inc. (Metallurgy), and Mintec (Resources and Reserves) and Snowden Mining Industry Consultants Inc.(2013 study update). The study estimated a Measured + Indicated Resource of 102,000 oz/au @ 7.63 g/t and an Inferred Resource of 70,000 oz/au @ 7.78 g/t with a cut-off of 1.7 g/t. With the initial pre-feasibility study in hand the Company received a mining permit from the Province of British Columbia in December 2011 and began mining operations in March 2014.

History

In March 2000, the company discovered an entirely new style of mineralization from that previously exploited in the Camp; drill hole BC2K-03 identified a new zone beneath the BC Vein on Barkerville Mountain. The style of mineralization, although similar to previously recognized mineralization in the Cariboo Gold Belt, occurs within a different stratigraphic setting (age and lithology), comprised of gold-bearing massive, banded and stringer pyrite in the footwall of the B.C. vein/fault system, a northwest trending and steeply northeast-dipping quartz vein from which several pyritic ore shoots were historically mined from the Cariboo Gold Quartz Mine workings.

This discovery included intercepts of 24.5 ft grading 0.27 oz/ton, 28 ft grading 0.30 oz/ton and 18.7 ft grading 0.42 oz/ton. Subsequent drilling yielded additional encouraging drill intercepts that included 84.7 ft grading 0.72 oz/ton, 44.5 ft grading 1.25 oz/ton and 57.7 ft grading 0.61 oz/ton.

From 2000 to 2008, the company completed 268 diamond drill holes totaling 33,158 m (including 6,213 m of underground drilling) targeting the Bonanza Ledge zone. Additionally, as work progressed toward a pre-feasibility report, the company completed the extraction and processing of a 13,000 wet tonne bulk sample in 2005.

Based on the successes of these previous drill programs, the company expanded its planned drilling program through to 2013. The program consisted of 20,000 meters of diamond drilling to further explore at depth, along strike and within the Bonanza Ledge deposit area.

In May 2010, Barkerville confirmed that Bonanza Ledge style disseminated gold mineralization is present at depth. Diamond drill hole BC10-03 intercepted up to 50% pyrite replacement below 500 ft returning 3.8 g/t gold from 505.6 ft to 510 ft. The current Bonanza Ledge NI 43-101 resource has only been defined to a depth of 250 ft. Further exploration is now planned to follow up on these new deeper targets with several more diamond drill holes to be drilled both at depth and along trend of the Bonanza Ledge deposit.

In March 2014, the Company announced the commencement of mining operations at the Bonanza Ledge Mine and upon receipt of the necessary permits started trucking the ore for processing at the QR Mill facility in July 2014.

The discovery of the Bonanza Ledge style of mineralization has implications for future exploration on the Barkerville Mountain, Cow Mountain, Island Mountain claim groups and is open to the southeast, to the northwest and to depth. Stratigraphy similar to that hosting the Bonanza Ledge mineralization occurs structurally below the metaturbiditic Rainbow sequence on Island Mountain and represents a viable and previously unexplored exploration target.

*please refer to cautionary note