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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
BCGold Corp. (News - Market indicators) (or the "Company") is pleased to announce panel sampling assay results from 6 and 7 Level of the Company's 100%-owned historic Engineer Mine. As previously reported (see August 9, 2012 and August 27, 2012 news releases), BCGold Corp. successfully dewatered 6 and 7 Level of the mine, which have been submerged since the mine closed in 1928, to access the down plunge extent of the 505-3 and 505-5 gold shoots hosted within the Engineer Vein. BCGold Corp. geologists surveyed, mapped, and collected 190 panel samples along the length of the vein for 74 m on 6 Level and 173 m on 7 Level.
Mapping and panel sampling successfully identified the 505-3 and 505-5 shoots on 7 Level, 61 m below 5 Level. It is estimated that an additional 50 m of drift development would be required on 6 Level to intersect the two shoots. The Company is also pleased to report that the 505-2 shoot has been re-established on 6 and 7 Level after being cut off by a feldspar porphyry dyke on 5 Level. According to historic records the 505-2 shoot was an important production stope on the upper four mine levels. Significant results from panel sampling are reported in Table 1.
Table 1 - Engineer Vein Panel Sample Assay Composites
||0.04 to 17.84
||0.09 to 29.30
||6.04 to 81.69
||0.09 to 41.73
BCGold Corp. also received assay results for three high-grade grab samples collected from the Engineer Vein on 6 and 7 Level, and from the Shaft Vein in a surface trench. As previously reported, numerous clusters of roscoelite with visible gold were identified (see August 27, 2012 news release). These results confirm the presence of nuggety, bonanza-grade gold in all three locations. Results are reported in Table 2.
Table 2 - High Grade Grab Samples
||6 Level / 505-2 Shoot|
||7 Level / 505-2 Shoot|
"The Company is very pleased with these results," states Brian P. Fowler, P.Geo., President and CEO of BCGold Corp. "A number of very important elements were confirmed by the 2012 dewatering program. Firstly, the Company demonstrated the ability to dewater the workings with little difficulty. Secondly, the Company's historic development records for 6 and 7 Level were verified. Thirdly, our geologists potentially identified a high-grade gold shoot within the Shaft Vein with a minimum 113 m vertical extent. And most importantly, we have confirmed that three important gold shoots within the Engineer Vein persist at depth. Panel assay results are in fact better than BCGold Corp.'s vein channel assay results on 5 Level, which were demonstrated by the 2011 bulk sampling program to underestimate gold mining grades by an average factor of 850%. This large gold grade disparity is directly related to the presence of nuggety, bonanza-grade gold which has been observed on all levels of the Engineer Mine sampled to date. BCGold Corp. will continue to source financing, to continue development and bulk sampling at Engineer Mine, by way of earn-in agreement, royalty agreement or gold concentrate forward sale arrangement."
In 2011 BCGold Corp. delineated the Shaft Vein, which lies approximately 215 m northeast of the Engineer Vein, for over 50 m along strike by surface trenching; this year mapping and sampling of the exposed vein identified eight clusters of roscoelite with coarse visible gold-a mineralogy previously thought to only occur in the Engineer Vein. One of the grab samples assayed returned 15,280 g/t Au (445.7 oz/ton) and BCGold Corp. previously reported a high-grade grab sample of the Shaft Vein, 113 m vertically below on 5 Level, that assayed 860 g/t Au (25.1 oz/ton). The Shaft Vein has never been drill tested and is an excellent exploration target.
BCGold Corp. also received mobile metal ion (MMI) soil sampling assay results from the soil orientation program conducted over portions of the Engineer and Gold Hill properties; results are being compiled and will be reported in due course.
Quality Control / Quality Assurance
A panel sampling technique was employed to collect samples of vein material for assay analysis due to the high-nugget effect of coarse gold distribution in the Engineer Vein. The vein was divided into one metre sample intervals along strike, and multiple cuts were taken across the vein using a pneumatic chipper. Multiple cuts across the vein create a more representative sample; as opposed to channel samples, which use just a single cut per sample interval. Blanks, standards and duplicates were inserted into the sample stream to monitor laboratory performance.
Panel samples were submitted to Inspectorate Exploration and Mining Services of Richmond, British Columbia, where they were analyzed for gold using a 1,000 gram metallic screen assay and other elements using multi-element inductively coupled plasma (ICP) analysis. High-grade grab samples were analyzed for gold using a one-assay ton fire assay with a gravimetric finish.
Darren O'Brien, P.Geo., Vice President, Exploration for BCGold Corp. and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.
BCGold Corp. wishes to announce a non-brokered private placement of up to $750,000 through the issuance of up to 4.7 million Units at a price of $0.16 per Unit. Each "Unit" will comprise one common share and one-half of a common share purchase warrant (a "Warrant"). Each whole Warrant is exercisable to purchase one BCGold Corp. common share at a price of $0.22 per share for a period of one year from the date of the close of the financing (the "Closing"). The Warrants are subject to an accelerated expiry date, which comes into effect when the trading price of BCGold Corp. common shares closes at or above $0.30 per share for twenty consecutive trading days in the period commencing four months after the Closing. In such an event the Company will give expiry acceleration notice ("Notice") to Warrant holders and the expiry date of the Warrants will be 30 days from the date of Notice.
This private placement is subject to TSX Venture Exchange approval and all securities are subject to a four-month hold period. It is anticipated that officers and directors of the Company will participate in this offering. Finder's fees will be payable in connection with the private placement, in accordance with the policies of the TSX Venture Exchange.
Proceeds from this financing will be used to complete in-house scoping studies, continue metallurgical studies, and refine bulk-tonnage gold exploration targets for drill testing in 2013 at the Engineer Mine property, and for general working capital purposes.
About BCGold Corp.
BCGold Corp. (News - Market indicators) is focused on exploration and development of its 100%-owned historic Engineer Mine and adjoining Gold Hill properties, situated in northwestern British Columbia. Since 2007 the Company has incurred approximately $3.5 million in expenditures to demonstrate the exploration upside and near term mining potential of these properties. BCGold Corp. is unique in that it exposes investors to the prospect of discoveries while being positioned to offset exploration costs by monetizing / forward selling gold concentrate recovered from on-site processing of high-grade gold bulk samples at Engineer Mine.
BCGold Corp. has generated 27 early to mid-stage gold and copper-gold properties in British Columbia and Yukon that it will continue to advance by sourcing preferred joint venture partners.
On behalf of the Board of Directors,
Brian P. Fowler, P.Geo., President & CEO
Some statements in this news release contain forward-looking information or forward-looking statements. These statements include, but are not limited to, statements with respect to future expenditures 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 and completion of contemplated financings, the actual use of proceeds, receipt of regulatory approvals and the timing and success of future exploration, development and production activities. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.