Barkerville Gold Mines Reports Positive Results From Initial Test Mining of 80,000 Tonnes at Bonanza Ledge, Better Mine Grades and Solid Mill Performance

 

• Mine grades of 7.05 g/t compared favorably to plan of 6.5 g/t
• Mill recoveries on track at 91.6%
• Both mine and mill throughput exceeding initial target levels

TORONTO, Sept. 11, 2018 (GLOBE NEWSWIRE) -- Barkerville Gold Mines Ltd. (TSXV: BGM) (the “Company” or “Barkerville”) is pleased to announce positive results from its test mine at Bonanza Ledge. Barkerville’s Bonanza Ledge mine has allowed the company to assess mining methods, understand what ground conditions to expect in different lithological units, train a local workforce, and generate cash flow to offset some exploration expenditures.  All gathered data will add to the robustness of the company’s feasibility study, which will be released in 2019. 

Since the start of the Bonanza Ledge Project, approximately 80,000t have been extracted using long hole mining methods on two active levels.  The mining blocks mined so far yield better grade than expected with an average grade of 7.05 g/t compared to the planned 6.5 g/t and dilution is on track with the predicted 12%.  Cemented rock fill has been used as backfill.  During development, conventional drill and blast methods were used along with a road header (continuous miner).  The tested development methods will have a positive economic impact for the larger project at Cow and Island Mountain; major improvements on the performance and cost have been achieved in the last 5 months of operation. Significant reductions in operating cost has been made over the past few months, effectively reducing the initial $300/tonne CAD operating cost to $190/tonne CAD in the recent month.

Chris Lodder said, “We are very pleased with the progression of the mine and mill and we continue to improve daily with our project team in place.  The Bonanza Ledge Mine is proving the viability of our vision for the Cariboo project and the potential of growth to becoming a significant gold producer in British Columbia.”

Significant Impacts

• No lost time accidents have been recorded since the beginning of the Bonanza Ledge Project.
• All Mining infrastructure (ventilation, pumping, electricity) and development (over 1,000m) have been complete, and a local mining team is in place.
• The average head grade of 7.05 g/t was higher than expected 6.5 g/t.
• Mine production was able to achieve up to 2000tpd, mill production was up to 800tpd. 
• Over 70,000t of ore have been milled project to date.
• Milled recovery is 91.6% compared to the expected 92%, currently working toward further improvements including the recommissioning of a gravity circuit.
• Over 12,200 ounces produced to date.

Qualified Persons

Mining activities at the Cariboo Gold Project are administered on site by the Company’s Mine Manager, Paul Ratte. Francois Vezina, ing, P.Eng, MBA, Chief Operating Officer, is the engineer on record for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its exploration activities on the Cariboo Gold Project.

For further information on Barkerville Gold Mines Ltd. please contact:

Chris Lodder
President & Chief Executive Officer
155 University Avenue, Suite 1440
Toronto, Ontario, Canada
clodder@barkervillegold.com

About Barkerville Gold Mines Ltd.

The Company is focused on developing its extensive mineral rights package located in the historical Cariboo Mining District of central British Columbia. Barkerville’s Cariboo Gold Project mineral tenures cover 1,950 square kilometres; along a strike length of 67 kilometres which includes several past producing placer and hard rock mines, making it one of the most well-endowed land packages in British Columbia. Since the management change in mid-2015, the Company has unlocked the fundamental structural controls of gold mineralization. The Company’s Brownfield’s exploration team is focused on developing and delineating a mineable resource within the 7 kilometers of principle project area located near the town of Wells, British Columbia.  The Company’s Greenfield’s team is developing quality exploration assets throughout the remaining land package through systematic, scientific, exploration.  The operation’s team is focused on developing and mining the Bonanza Ledge and BC Vein deposits on Barkerville Mountain.  This operation allows the company to generate near term cash flow, train a local work force, keeps the present mining permit active, and de-risk’s the project through staged production growth.  Processing of material from these deposits is processed at the QR mill.  QR is a fully owned, permitted mill and tailings facility, located approximately 110 kilometres away from Wells, and can be accessed by an all-season road.

Cautionary Statement on Forward -Looking Information
Neither the TSX Venture Exchange (‘TSXV’) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.