Apr 07, 2011
Vancouver, BC -- Barkerville Gold Mines Ltd. (TSXV:BGM) (the "Company") wishes to report a corporate update on the Company's Bonanza Ledge project located near the town of Wells in central British Columbia. The Bonanza Ledge proposed open pit gold mine is a high-grade, disseminated gold deposit currently in the process of a provincial Mines Act Application to commence production. The Application is for a 70,000-tonne/year open pit operation that will augment the current gold production at the Company's QR Mill, a 900 tonne per day facility currently producing and shipping gold doré bars from it's underground mining operations at the QR Mine. The Application has passed through the government's 60-day formal review period.
The following has been quoted from a status update letter sent to the Company by the Chief Inspector's office:
"The South Central Mine Development Review Committee (SCMDRC) completed their technical review of the Bonanza Ledge Mines Act permit application between November 29, 2010 and January 28, 2011, within the mandated 60 day time period pursuant to the Health Safety Reclamation Code for Mines in BC. On Feb 2, 2011 the chair of the SCMDRC made recommendations in a report to the Chief Inspector of Mines with respect to the adequacy of the application, the adequacy of BGM's public consultation program and First Nations considerations.
The chairs conclusion was the technical review to date did not identify any significant strategic issues that could not be further satisfactorily addressed either through additional information or through permit conditions in either the Mines Act permit (MNRO), Environmental Management Act Effluent Permit (MOE) or other statutory approval, permit or authorization."
The Company is continuing to work closely with the office of the Chief Inspector who issues the Mines Act permit through the final stages of the permitting process. The Company will issue a news release upon the completion of the permitting process.
Work continues on completing a 4-kilometer haul road from the proposed Bonanza Ledge pit to the provincial Highway 26. The Company received approval for the road permit and commenced building the on-site haul road in January 2011 (see news release January 12, 2011). Logging of the entire stretch of roadway is now done with approximately 1.2 km of road left to be constructed. Once complete, the haul road will then be topped with crushed rock. It is anticipated that the road will be ready by June 2011. At the same time, the Company and its engineering contractors are completing work to ready the QR Mill facility to accept Bonanza Ledge ore.
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 1,225 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 February 2010 and the Company began pouring doré 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 it to a 2,000-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.
On behalf of the Board of Directors,
"J. Frank Callaghan"
J. Frank Callaghan
President and CEO
Tel: (604) 669 - 6463
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.
*please refer to cautionary note