News Releases
20-Aug-2014
BCGold Corp. Terminates Engineer Mine Gold Streaming Agreement
read pdfVancouver, British Columbia, August 20, 2014 (TSX-V: BCG) - BCGold Corp. ("BCGold" or the "Company") announces that it has discontinued discussions to finalize the US$1.7 million gold streaming agreement that was previously announced on July 21, 2014. During the Company’s due diligence it became evident that the gold streamer is not capable of meeting all of BCGold’s requirements to finance mine development, continued bulk sampling and gold concentrate production at the Company’s 100% owned Engineer Mine property.
"BCGold has resumed efforts to source a legitimate partner with a proven financial and business track record in advancing small-scale gold production opportunities such as Engineer Mine," states Brian P. Fowler, P.Geo., President and CEO of BCGold Corp. "BCGold continues to receive and evaluate other expressions of interest to earn-in and/or finance small-scale gold production and exploration at Engineer Mine."
Engineer Mine Bulk Sampling Opportunity
BCGold Corp. owns a 100% interest in the Engineer Mine property with no underlying royalties. On July 9, 2014, the Company announced receipt of a detailed mine plan developed by STRATIS Consultants Inc. to provide for continued gold production from bulk sampling high-grade gold vein mineralization at Engineer Mine. The revised 3-year STRATIS base case proposal provides for costs and infrastructure upgrades to support obtaining a 6,000 tonne bulk sample in Year 1, for an initial investment of $1.7 million*. Base case net proceeds also provide for mining and processing an additional 10,000 tonnes of bulk sample material in the following 2 years. The bulk sampling head grade is expected to be 1.0 ounce/ton gold (31 grams/tonne). Engineer Mine produced 18,000 ounces of gold at an average mining grade of 39 g/t gold in the early 1920’s. BCGold holds all necessary operating permits to dewater the mine workings, and mine and mill up to 4,000 tonnes of bulk sample in 2014. The Company can apply to increase the bulk sample tonnage permit annually, on an as needed basis.
* Readers are cautioned that the Company has not completed a pre-feasibility or feasibility study which establishes mineral reserves with demonstrated economic and technical viability. Further, the Company cautions readers that any potential production may not be economically feasible and historically projects taken to production without establishing reserves through a feasibility study have a much higher risk of economic or technical failure.
Paul Wojdak, P.Geo., Vice President of Exploration for BCGold and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.
About BCGold
BCGold 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. The Company acquires and develops conceptual, early and mid-stage exploration opportunities and advances them towards resource development. BCGold has generated 27 early to mid-stage gold and copper-gold properties in British Columbia and Yukon.
BCGold’s primary gold asset is the 100% owned, historic high-grade gold Engineer Mine property, where the Company has defined a gold concentrate production opportunity through continued exploration, bulk sampling and on-site milling. The Company has recently consolidated its land position at Engineer Mine, acquiring key claims believed to partially overlay the source area for the Engineer Mine gold mineralizing system. The Company’s strategy at Engineer Mine is to focus exploration for an economic shear-hosted gold deposit and to continue efforts to secure a qualified partner to finance the gold concentrate production opportunity.
On behalf of the Board of Directors,
Brian P. Fowler, P. Geo.
President & CEO
For further information, please contact:
Brian P. Fowler, President & CEO
Tel: 604-697-2401
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.
Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, but are not limited to, statements with respect to contemplated financings, use of proceeds of financings, reorganizations 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, the completion of reorganizations and the timing and success of future exploration, development and production activities. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of its mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. 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.