BCGold Corp. receives payment for first Engineer Mine Gold concentrate sale
Wednesday, Jun 27, 2012BCGold Corp. (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) (or the "Company") is pleased to announce receipt of a cash payment of US$107,000 (Net) for gold recovered from approximately 0.8 dry metric tonnes (dmt) of gold-rich gravity concentrate produced during the Company's 2011 bulk sampling program at the historic Engineer Mine property. By the terms of a recently signed concentrate purchase agreement with Auramet Trading, LLC (see May 2, 2012 news release: www.BCGoldcorp.com) the concentrate was sold to and refined by SiPi Metals Corp. ("SiPi").
SiPi determined the concentrate contained a total of 2,177.5 grams (70.0 oz) of gold, of which 2,112.2 grams (67.9 oz) were recoverable and payable to BCGold Corp. at a realized price of US$1,608 per ounce.
"This is an important achievement for BCGold Corp.," states Brian P. Fowler, P.Geo., President and CEO. "The Company generated US$107,000 in revenue from approximately 246 tonnes of bulk sample material mined from the Engineer Mine underground workings at a calculated head grade of 16.9 g/t Au. It is estimated that the current on-site gravity separation mill achieves 51% gold recovery; however, recent metallurgy bench-scale test work shows that greater than 70% recovery is achievable. Minor mill circuit modifications would increase gold recovery to the concentrate product and enhance BCGold Corp.'s potential revenue stream, thus providing grounds for larger scale selective bulk sampling and on-site processing at Engineer Mine."
The 2011 bulk sampling program discovered the upper limits of two high-grade gold shoots within the Engineer Vein on 5 Level of the underground workings. The two gold shoots plunge sub-vertically, where they are projected to be accessible from 6 and 7 Level, which are currently flooded. The Company has the necessary permits to dewater 6 and 7 Level and mine and mill a 4,000 tonne bulk sample from the high-grade gold shoots. The two gold shoots are a compelling exploration target between 5 and 7 Level, with a tonnage range of 6,000 to 8,600 tonnes, and a grade range of 30 to 60 g/t Au (1-2 oz/t Au) for 6,000 to 17,000 ounces of contained gold.
The potential quantity and grade of the bulk sample exploration target is conceptual in nature but inclusive within the Engineer Vein, which has a global NI 43-101 Inferred Mineral Resource of 30,800 tonnes grading 20.6 g/t Au (see March 4, 2011 news release: www.BCGoldcorp.com).
Investors are reminded that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There has been insufficient exploration to define this bulk sample exploration target as a Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.