BCGold Corp. Secures 75% Interest in the High–Grade Engineer Gold Mine, B.C.
Vancouver, British Columbia, January 18, 2012 (TSX-V: BCG and PINK SHEETS: BCGOF) – BCGold Corp. (or the “Company”) is pleased to announce the vesting of an additional 15% interest in the Engineer Gold Mine property (the “Property”) to the Company, bringing its ownership in the Property to 75%. As per the terms of an amended option agreement (see January 14, 2010 news release) to acquire the Property from Engineer Mining Corp. (“EMC”), the Company has issued 2,105,263 common shares and 100,000 common share purchase warrants to EMC in exchange for the additional interest. The common shares issued are subject to a four month hold period as imposed by the TSX Venture Exchange. Each warrant will be exercisable to purchase one BCGold Corp. common share at a price of $0.12 for up to two years after the date of issuance.
BCGold Corp. holds the option to earn a 100% interest in the Property by electing to either make a cash payment of $400,000, or to issue $400,000 worth of common shares and 100,000 warrants to EMC prior to January 16, 2013.
In 2011, BCGold Corp. continued to advance the Engineer Gold Mine Property and the adjacent Gold Hill property by undertaking $1,060,000 in exploration and development work. The Company successfully mined 350 tonnes of bulk sample material from underground workings and an additional 50 tonnes from surface trenching. Approximately 246 tonnes of this material was processed on site using the gravity separation mill, which yielded approximately one tonne of gold-rich concentrate as three separate products (see December 14, 2011 news release). The 815 kg of Table Concentrate returned a weighted average grade of 2,140.1 g/t Au (62.4 oz/ton), with one subset bulk sample returning 6,485.8 g/t Au (189.2 oz/ton).
Assay results are pending for 190 kg of Sluice and 5 kg of High-Grade Gold Stream concentrates. Upon receipt of the remaining assay results, a diluted mining head grade will be calculated for the 246 tonne composite bulk sample. Management is highly encouraged by the 2011 program results and is currently planning a similar, considerably larger program with a significant diamond drilling component in 2012.
About the Engineer Gold Mine
Engineer Mine was a high-grade gold producer that came to peak production in the mid-1920s and ceased operation in the early 1930s. More than 560 kg of gold and 278 kg of silver were officially produced at realized grades exceeding 39 g/t Au and 20 g/t Ag, from high-grade epithermal quartz-carbonate veins on six of eight mine levels.
There are more than 25 known veins on the Property and only four have undergone limited production and exploration to date. All veins remain open at depth and little exploration has been conducted deeper than 200 metres below surface.
The Company consolidated its land position around Engineer Mine in 2010 by signing an option agreement to acquire a 100% interest in the adjacent Gold Hill property. The 2,100 hectare Gold Hill property includes the Happy Sullivan high-grade gold epithermal prospect and a 2.2 kilometre segment of the highly prospective Shear Zone “B” structure.
BCGold Corp.'s 2011 exploration and bulk sampling program was Phase I of a two-phase, three-year, $10.2 million exploration and development program recommended by Snowden Mining Industry Consultants Ltd. in their April 2011 National Instrument 43-101 Technical Report for the Engineer Gold Project. In their report Snowden recommends bulk sampling the Double Decker and Engineer veins to evaluate mining techniques and determine metallurgical characteristics, partially dewater the lower mine workings, evaluate and optimize the 30 tonne per day mill circuit, and continue investigating Shear Zone “A” as a bulk tonnage gold target.
About BCGold Corp.
BCGold Corp. (TSX-V: BCG) is a Vancouver-based junior resource company focused on copper and gold exploration and development 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. Currently, institutional investors hold 21% of the Company's outstanding shares and Kinross Gold Corporation holds 7%.
On behalf of the Board of Directors,
President & CEO
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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.