The Application is for a 70,000 tonne/year open pit operation, with trucking to the Company's QR Mill near Quesnel, B.C., by existing highway and forest service road. No new infrastructure is required to support the operation. Upon approval, Bonanza Ledge ore will augment gold production at the Company's permitted QR Mine&Mill. The QR Mill is a 900 tonne/day facility currently in production and shipping gold dore bars.
In combination with the environmental review, the Company was required to communicate with local government, the public and First Nations during the preparation of its Application and to formally present the Application to check that issues heard during the pre-Application period have been satisfactorily addressed. Accordingly, the Company advertised and presented the Application at a community open house at Wells, B.C. in October 2010. The Company also continued to meet, and announced signing of a Project Agreement with the Lhtako Dene Nation in relation to the Project in early December 2010 (see News Release 10-37, December 9th, 2010).
Participating organizations in the multi-agency South Central Mine Development Review Committee include the B.C. Ministries of Natural Resource Operations, Environment, Transportation and Infrastructure, Forests, Mines and Lands, and Tourism, Trade and Investment; as well as First Nations in the vicinity of the Company's projects.
The Company is to submit an application for an amendment to existing Mines Act Permit M-198 at the QR Mine site to allow processing of the Bonanza Ledge ore at the QR Mill.
The Company's Cow Mountain Property is a future open pit operation with a new mill purchased in November 2010 (see News Releases November 8th and 18th 2010) to be located in the vicinity of Wells, B.C. The application for this larger scale operation will trigger review under the BC Environmental Assessment Act, and is anticipated for submission in 2011.
About Barkerville Gold Mines Ltd.
The Company has been focused on exploration and development of gold projects in the Cariboo Mining District in central British Columbia since 1994. The Company's mineral tenures now cover over 1,225 square kilometers of mineral tenures encompassing 7 past producing hard rock mines and three NI43-101 gold deposits, including the QR Mine&Mill. The QR Mine&Mill 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 and the Company began pouring dore gold in September of this year. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. and plans to relocate it to the gold deposits in the Barkerville Gold Camp near Wells, B.C. and upgrade it to a 2,000-tonne/day facility subject to all approvals. The Company has not hedged any of its future gold production.
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 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.
Barkerville Gold Mines Ltd.
J. Frank Callaghan
President and CEO
(604) 669-3041 (FAX)
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