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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2010) - BCGold
Corp. (or the "Company") (TSX VENTURE:BCG)(PINK SHEETS:BCGOF)
and Kestrel Gold Inc. ("Kestrel") (TSX VENTURE:KGC) are
pleased to announce results from a limited diamond drill program
conducted on the Toe property, situated seven kilometres
northwest of and along trend with Capstone Mining Corp.'s Minto Mine, in Yukon. The $380,000 drill program
was funded by Kestrel and operated by BCGold
Corp. as per stipulations under Kestrel's property option agreement
with BCGold Corp. (see Toe Property Option
Agreement below for more details).
2010 Toe Property Drill Program and Results
BCGold Corp. conducted a four-hole, 1,058 metre diamond drill program on the Toe property in
order to test four Minto-type, coincidental geochemical and geophysical
anomalies for near-surface copper-gold mineralization earlier this
season. Although no significant copper or gold intersections were
returned, a number of intervals of biotite
alteration and magnetite enrichment in Granite Mountain granodiorite (the geological setting of Minto-type copper-gold mineralization) were
encountered in two of the four drill holes.
BCGold Corp. and Kestrel are encouraged by
geological observations, alteration distribution and intensity in the
drill core and maintain that the Toe property holds excellent potential
for Minto-type copper-gold mineralization.
Both companies deem additional exploration to be warranted. This
opinion is supported by Mr. Todd A. Ballantyne,
P. Geo., consulting geophysicist to BCGold
Corp. and Kestrel. Mr. Ballantyne suggests
that drill target definition would be improved by conducting a
pole-dipole induced polarization survey over the current gradient array
survey area. Mr. Ballantyne further
recommends that, before further drilling occurs on the Toe property and
specifically on remaining induced polarization anomalies, a detailed
pole-dipole induced polarization survey be conducted. He proposes this
work in order to better resolve the induced polarization and
resistivity targets with respect to their location, depth and extent.
Drill targets on the Toe property to date have been defined primarily
by using the results of mobile metal ion (MMI(TM)) soil geochemical
surveys and a combination of gradient array induced polarization and
airborne magnetic geophysical surveys.
2011 Proposed Exploration on the Toe Property
BCGold Corp. and Kestrel are currently
reviewing exploration results and formulating plans for the 2011
exploration season on the Toe property. In order to retain the Toe
property option in good stead, Kestrel must issue 100,000 Kestrel
common shares and make a cash payment of $25,000 to BCGold
Corp. on or before June 1, 2011. In addition Kestrel must incur
exploration expenditures of $350,000 in 2011.
Mr. Gary N. Lustig, P.Geo., a Qualified
Person for the purposes of National Instrument 43-101, has reviewed the
technical content of this news release.
BCGold Corp.'s Minto/Carmacks Copper-Gold Properties
BCGold Corp. is the largest land holder in
the Carmacks Copper-Gold Belt. The 1,600
hectare Toe property is one of BCGold Corp.'s
17, one-hundred-percent-owned, Minto/Carmacks Copper-Gold Properties (16,985 hectares)
in Yukon. The Company has spent approximately $4 million in exploration
on the Minto/Carmacks
Copper-Gold Properties over the past four years and has advanced seven
of the properties to the drill-ready stage. The Company optioned two of
these properties (Toe and Pepper) in 2010, to Kestrel and Goldbard Capital Corp. respectively.
The Minto/Carmacks
Copper-Gold Properties are strategically located proximal and adjacent
to Capstone Mining Corp.'s Minto Mine and
Western Copper Corp.'s Carmacks Copper
Project, which is in the advanced permitting stage and situated 42 kilometres south of Minto
Mine. The Minto/Carmacks
properties were staked in 2006, by Yukon prospector Shawn Ryan, over
areas with certain geological, geochemical and geophysical
characteristics known to indicate near surface, high-grade copper-gold
mineralization in the district.
Toe Property Option Agreement
BCGold Corp. granted Kestrel the option to
acquire up to a 60% interest in the Toe property over a four year
period by paying $250,000 cash to the Company, issuing 400,000 Kestrel
common shares to the Company, and spending $2,000,000 in exploration on
the Toe property. Kestrel can earn an additional 10% interest in the
Toe property by completing a bankable feasibility study, for a total
interest of up to 70%. The Toe property is subject to a 2.5% net
smelter returns royalty interest, which is held by BCGold
Corp. and a third party.
About BCGold Corp.
BCGold Corp. (TSX VENTURE:BCG)
is a Vancouver-based junior resource company focused on copper and gold
exploration in under-explored historic and emerging mining districts in
British Columbia and Yukon. BCGold Corp.
acquires and develops conceptual, early and mid-stage, exploration
opportunities and advances them towards resource development by using
internal expertise, engaging preferred joint venture partners, and
creating strategic alliances with major exploration and mining
companies.
On behalf of the Board of Directors,
Brian P. Fowler, P. Geo., President & CEO
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to future payments, expenditures and unit
issuances and exploration, development and production activities. These
statements address future events and conditions and, as such, involve
known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. Such factors include, among
others, the timing of future payments, expenditures and unit issuances
and the timing and success of future exploration, development and
production activities.
Neither 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.
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