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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2011) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company") is pleased to report it has received approval of Mines Act Permit M-238 to develop an open pit gold mine at its Bonanza Ledge property near Wells, British Columbia.
The Application, submitted to the B.C. Chief Inspector of Mines in accordance with Part 10.12 of the Health, Safety and Reclamation Code for Mines in British Columbia in August 2010 was formally accepted for review on November 29, 2010. The proposal was reviewed by strategic provincial and federal government agencies, with coordination by the B.C. Ministry of Mines Kamloops office and subsequently by the Chief Inspector's office in Victoria, B.C.
Approximately 73,000 tonnes of ore per year will be produced at the Bonanza Ledge Mine, for a current mine life of four (4) years. The average grade is approximately 9.05 grams per metric tonne (or approximately 0.264 ounces per short ton). The mine design is the culmination of geological exploration, engineering and environmental studies undertaken by the Company in the Barkerville camp since the Bonanza Ledge deposit was discovered in 2000. This work included the extraction of a 10,000 tonne underground bulk sample at Bonanza Ledge in 2004 containing approximately 7,000 ounces of gold.
Frank Callaghan, president and CEO of the Company said: "Approval of the Bonanza Ledge Gold Mine is a major accomplishment for Barkerville Gold Mines in its close to twenty years of exploration in the region. The company has invested its resources in the development of the property and the QR mill, and it's great to see this project come to fruition.
This will mean a lot to the residents of Wells, Quesnel and the Lhtako Dene Nation. It has been a joint effort to make this work with such a small environmental footprint, and the Company is excited to begin development of the mine."
The mine site is on the southwest face of Barkerville Mountain at an elevation of approximately 1,480 m (4850') above sea level and within roughly two kilometers of Highway 26. Existing access is in place to truck the mineralized material to the company's permitted QR Mill, near Quesnel, B.C. for processing to gold doré.
Community and First Nations consultation has taken place on the mine proposal over several years leading up to the Application, and feedback has been incorporated in aspects of the project design. A Memorandum of Understanding is in place between the Company and the Lhtako Dene First Nation providing for continued close cooperation and benefits related to development of the Company's projects in the Cariboo region.
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 that 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.
