ENGINEER MINE PROPERTY

Highlights:

• Past producing, high-grade epithermal gold and silver mine on property (Engineer Mine). 

• Two styles of gold mineralization being targeted:
  - Bulk-tonnage gold (Shear Zone “A”).
  - High-grade gold in new veins and
    extensions of historic veins.
   
• Potential near-term, small scale high-grade gold producer. 

• Permitted 25 tpd gravity separation mill on-site. 

• BCGold holds option to earn 100% interest in property. 

• BCGold plans to drill-test depth extensions of high-grade stopes on the Engineer and Double Decker veins between the 5th and 8th Levels of the mine. It is on the 8th Level, along the Double Decker vein, that historic sampling records indicate a 24.7 metre section averaged 38.0 grams per tonne (g/t) gold, containing a 10.0 metre interval averaging 84.3 g/t gold, across the width of the drift (Brinker Report, 1927). 

• Dewatering permit granted April, 2009. 

• Bulk sampling report received from Snowden Mining Industry Consultants Limited October, 2009. 

• Potential Mineral Target:
  100,000 -150,000 tonnes averaging 8-12 g/t Au (containing 26,000 - 57,000 oz Au). This estimate is conceptual in nature, non NI 43-101 compliant and based on a 3-D VulcanTM model developed by BCGold that incorporates historic geological maps and sections, chip samples and production records. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in this target being delineated as a mineral resource.
   
• A mineralogical report on the Engineer Mine is available for view:
  The Engineer Mine, Tagish Lake, British Columbia
  Mark H. F. Mauthner, Lee A. Groat and Mati Raudsepp
  Department of Geological Sciences University of British Columbia
  The Mineralogical Record, volume 27, July-August, 1996
  (Click to view)

BCGold has the right to earn 100% interest in the Engineer Mine Property, situated in the Atlin Mining District in northwestern British Columbia. The Property is home to the Engineer Mine, a historic high-grade gold producer. One of BCGold’s exploration strategies is to apply modern-day exploration concepts and approaches to yesterday’s mines to achieve new discoveries. The Engineer Mine Property represents an excellent opportunity for the Company, as it exhibits exploration upside in the form of both additional high-grade, and bulk-tonnage, low-grade gold (Au) mineralization targets.

Historically, the Engineer Mine produced gold and silver (Ag) from high grade veins. A total of 561,659 grams gold (Au) (18,058 ounces) and 278,373 grams silver (Ag) (8,950 ounces) was produced from 14,263 tonnes of ore at Engineer Mine in the period between 1913 and 1952. This equates to total realized gold and silver production grades of 39.38 g/t Au (1.15 oz/ton) and 19.52 g/t Ag (0.57 oz/ton) respectively. BCGold believes that there is potential for additional resources in new, as of yet undiscovered, veins as well as deeper and lateral extensions to veins that were previously mined, such as the name sake Engineer Vein. This was demonstrated in 2007, when BCGold sampled more than 85 metres below historic workings of the Shaft vein and discovered bonanza-grade mineralization in a select grab sample that assayed 860 g/t Au (25.08 oz/ton) and 1,774 g/t Ag (51.74 oz/ton)  (see BCGold press release February 28, 2008).

Even greater potential for new resources is believed to exist in the form of bulk-tonnage low grade gold mineralization in the shear zones. In particular, reference to historic underground chip sampling records from the 8th Level, the deepest level of the mine, suggest that there is excellent potential for a low grade (2-7 g/t Au) 0.5 - 2.0 million ounce gold deposit in the mine area of Shear Zone “A”. The reader is warned that this potential quantity is conceptual in nature. There has been insufficient exploration to define a mineral resource on Shear Zone “A” and it is uncertain that further exploration will result in this target being delineated as a mineral resource.

Shear Zone “A” is a northwest-trending splay of the terrane-bounding Llewellyn fault, with a protracted deformation history possibly beginning as early as Middle Jurassic. The sub-vertical Shear Zone “A” has been demonstrated, by drilling, to host multiple phases of hydrothermal breccia and quartz-carbonate veins that are genetically and temporally related to a nearby Eocene Sloko volcanic complex. The historically producing high-grade gold veins on the Property, the Engineer and Double Decker veins, are tensional veins associated with the latest reactivation of Shear Zone “A” and are spatially related to a hydrothermal event related to the Sloko volcanic centre.
 

last updated: January 14, 2010