1.60 MILLION OUNCES TOTAL MEASURED AND INDICATED AND 2.16 MILLION OUNCES INFERRED

TORONTO, ON. – May 2, 2018 – Barkerville Gold Mines Ltd. (BGM – TSX-V) (“BGM” or the “Company”) is pleased to announce the maiden Mineral resource estimate for Cow and Island Mountain deposits at its 100% owned Cariboo Gold Project located in Wells, B.C. The underground mineral resource estimate incorporates the Cow Mountain (“Cow”) and Valley Zones (“Valley”) on Cow Mountain and Shaft Zone (“Shaft”) and Mosquito Creek (“Mosquito”) on Island Mountain at a cut-off grade of 3.0 g/t Au (“grams per metric tonne”). A mineral resource on Bonanza Ledge and BC Vein is also included. The resource is defined over 6 kilometers of BGM’s 67-kilometer-long land package. Infill and exploration drilling is ongoing and resource updates will be presented annually. The mineral resource estimate was conducted by Talisker Exploration Services Inc. and validated by InnovExplo Inc., an independent consulting firm based out of Val-d’Or, Quebec.

Cariboo Gold Project Mineral Resource

  • 1.60 million ounces of gold in the measured and indicated category (8.1 million tonnes grading 6.1 g/t Au)
  • 2.16 million ounces of gold in the inferred category (12.7 million tonnes grading 5.2 g/t Au)

The maiden Mineral resource estimate for Cow and Island Mountain deposits is built upon over 210,000 meters of diamond drilling from BGM’s 2016 and 2017 drill campaigns, and historically verified drill data using a total of 2,328 drillholes. The mineral resource estimate is supported by a robust 3D litho-structural model of the gold-bearing vein corridors. A strong understanding of the controls of mineralization enabled the Company’s technical team to construct a mineral resource estimate constrained by lithology, alteration, structure and mineralization. A total of 181 vein corridors were modelled.

 

Table 1: 2018 Cariboo Gold Project Underground Mineral Resource Estimate reported at a 3.0 g/t Au cut-off grade

Cariboo Gold Project Mineral Resources
Deposit Tonnes Au (g/t) Au Oz
Measured
Bonanza Ledge 264,000 7.3 61,900
Indicated
Bonanza Ledge 63,400 4.8 9,700
BC Vein 444,900 6.4 91,600
Mosquito 247,000 9.5 75,700
Shaft 4,373,200 5.9 835,600
Valley 769,600 5.8 142,700
Cow 1,947,800 6.1 381,800
Total Indicated 7,845,900 6.1 1,537,100
Total Measured and Indicated 8,109,900 6.1 1,599,000
       
Inferred      
BC Vein 173,400 4.6 25,400
Mosquito 699,200 6.0 135,600
Shaft 7,357,000 5.1 1,213,000
Valley 2,454,300 5.4 423,400
Cow 2,047,300 5.4 358,300
Total Inferred 12,731,200 5.2 2,155,700

Given the nature of these vein corridors, extensions down dip and along strike are highly plausible. Drilling has occurred to depths of 600 meters from surface. BGM plans to drill down dip and along strike of mineralized vein corridors to define additional resources at Cow and Island Mountain. BGM intends to drill underground once permitting and construction of an exploration drift is complete. The mineral resource estimate reported herein represents the first mineral resource estimate on Cow and Island published by the new management team. The robust 3D litho-structural model that defines the controls of mineralization allows the exploration team to define additional mineral resource much more efficiently, lowering the cost per discoverable ounce. This model can be applied to the remaining 65 kilometers of strike.

In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), an updated technical report for the Cariboo Gold Project will be filed on SEDAR and the Company’s website within 45 calendar days of this disclosure.

Chris Lodder, President and CEO of BGM commented, “The discovery of this initial, robust, underground resource coupled with our planned exploration decline at Cow and Island Mountain as well as unparalleled potential for significant resource expansion at depth and on strike, places BGM on a path to become a significant gold mining company in Western Canada.”

Mineral Resource Estimate for Cow and Island Mountain deposits

The mineral resources disclosed in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) standards on mineral resources and reserves definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council.

  • Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
  • Geologic and vein corridor modeling was completed by BGM Chief Resource Geologist Tessa Scott, P.Geo. A total of 181 vein corridors were modelled at a minimum thickness of 2.0 meters.
  • The drill data includes all historically verified and validated data and drilling from the 2016 and 2017 exploration campaigns.
  • Resource Estimation was completed by Talisker Exploration Services Geologist Leonardo Souza, MAusIMM (CP).
  • Each of Christine Beausoleil, P.Geo and Carl Pelletier, P.Geo, of Innovexplo Inc. has reviewed and validated the mineral resource estimate and are both independent “Qualified Person” (as defined in NI 43-101) responsible for the 2018 mineral resource estimate. The effective date of the 2017 mineral resource estimate is May 2, 2018.
  • Results are in-situ and undiluted.
  • The mineral resource estimate is reported at a cut-off grade of 3.00 g/t Au. Cut-off grades must be re-evaluated considering prevailing market conditions (including gold prices, exchange rates and mining costs).
  • An average density of 2.75 g/cm3 was established for all zones.
  • Samples are composited within the vein corridor solids and lengths vary by zone (Cow 3.0 m, Valley 1.4 m, Shaft 2.0 m, and Mosquito 3.0 m).
  • A three-step capping procedure has been applied to composite data for each zone. Capping was implemented at three distances for each deposit and ranges from 15 to 60 m depending on the zone.
  • Resources were estimated using Datamine Studio RM 1.3 software within the modeled vein corridors using hard boundaries. Ordinary Kriging interpolation method was used to estimate the resource in a sub-blocked model (parent block size = 5 meters x 5 meters x 5 meters).
  • The inferred and indicated resource categories were constructed manually for each vein corridor.
    • For blocks to be categorized as indicated, blocks must be informed by two drill holes with a minimum distance of approximately 25 m to the nearest drill hole. The classification can extend for 30 m where the mineralization trend was demonstrated by multiple adjacent holes.
    • For blocks to be categorized as inferred, the blocks must be informed by two drill holes with a minimum distance of approximately 50 m to the nearest drill hole. The classification can extend up to 100 m as the vein corridor model is tightly constrained.
  • Ounce (troy) = metric tons x grade / 31.10348. Calculations used metric units (meters, tonnes, g/t).
  • The number of metric tons was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations as per NI 43-101.
  • Neither the Company nor InnovExplo Inc. is aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate
  • The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated Mineral Resource category.
  • All figures have been rounded to reflect the relative precision of the estimates. Mineral Resources are reported at a cut-off grade of 3.0 g/t gold based on CAD $1,664 per troy ounce gold and gold metallurgical recoveries of 87.4 percent. 

Mineral Resource Estimate for Barkerville Mountain

  • The 2018 MRE was prepared by Christine Beausoleil, P.Geo. and Carl Pelletier, P.Geo, of InnovExplo Inc., both indedpendent qualified persons as defined by NI 43 101. The effective date of the estimate is May 1, 2018.
  • These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
  • Results are presented in-situ and undiluted.
  • The estimate includes two (2) gold zones.
  • The official underground resource is reported at a cut-off grade of 3.00 g/t Au. Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
  • Density (g/cm3) data was established on a per zone basis and ranges from 2.72 to 3.20 g/cm3.
  • A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed.
  • Compositing was done on drill hole sections falling within the mineralized zones (composite = 2.0 m for BC Vein and Bonanza Ledge; distributed tails).
  • High-grade capping (g/t Au) was done on composited data and varies from 32 to 70 g/t Au based on the statistical analysis of individual mineralized zones. Restricted search ellipsoids were used during the BC Vein interpolation using 1/2 variographic ranges and a threshold of 21 g/t Au.
  • Resources were estimated using GEOVIA GEMS 6.7 software from drill hole sampling, using a 2-pass Ordinary Kriging interpolation method in a block model (block size = 2 m x 2 m x 5 m).
  • The Inferred category is only defined within areas where blocks were interpolated during Pass 1 or Pass 2 where continuity is sufficient to avoid isolated blocks being interpolated by only one drill hole, and isolated blocks were reclassified as “exploration potential” on a visual basis. The Indicated category is only defined by blocks interpolated by a minimum of two drill holes in areas where the maximum distance to drill hole composites is less than 20 m for blocks interpolated in Pass 1. The Measured category is only defined by blocks interpolated by a minimum of three drill holes in areas where the maximum distance to the closest drill hole composite is less than 10 m for blocks interpolated in Pass 1 and in close proximity with the sampled open pit (< 40m).
  • Ounce (troy) = metric tons x grade / 31.10348. Calculations used metric units (metres, tonnes, g/t).
  • The number of metric tons was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in NI 43 101
  • InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate

About the Cariboo Gold Project

The Company is focused on developing its extensive mineral rights package located in the historical Cariboo Mining District of central British Columbia. BGM’s Cariboo Gold Project mineral tenures cover 1,950 square kilometres; along a strike length of 67 kilometres which includes several past producing placer and hard rock mines, making it one of the most well-endowed land packages in British Columbia. Since the management change in mid-2015, the Company has unlocked the fundamental structural controls of gold mineralization. The Company’s Brownfield’s exploration team is focused on developing and delineating a mineable resource within the 7 kilometers of principle project area located near the town of Wells, British Columbia. The Company’s Greenfield’s team is developing quality exploration assets throughout the remaining land package through systematic, scientific, exploration. The operation’s team is focused on developing and mining the Bonanza Ledge and BC Vein deposits on Barkerville Mountain. This operation allows the company to generate near term cash flow, train a local work force, keeps the present mining permit active, and de-risk’s the project through staged production growth. Processing of material from these deposits is processed at the QR mill. QR is a fully owned, permitted mill and tailings facility, located approximately 110 kilometres away from Wells, and can be accessed by an all-season road.

 

QA/QC and Core Sampling Protocols

Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently stored on site at the Company’s secure facility in Wells, BC. Numbered security tags are applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC) samples at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance. The QAQC program was designed and approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company’s Qualified Person, Maggie Layman, P.Geo., Vice President Exploration.

 

Drill core samples are submitted to ALS Geochemistry’s analytical facility in North Vancouver, British Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed and 250 grams is pulverized. Analysis for gold is by 50g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are re-analyzed using a 1,000g screen metallic fire assay. A selected number of samples are also analyzed using a 48 multi-elemental geochemical package by a 4-acid digestion, followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS).

Qualified Persons and 43-101 Disclosure

As per National Instrument 43-101 Standards of Disclosure for Mineral Projects, Maggie Layman, P.Geo. Vice President Exploration, is the Qualified Person for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its exploration activities on the Cariboo Gold Project.

 

The Independent and Qualified Persons for the Mineral Resources Estimate update, as defined by NI 43-101, is Christine Beausoleil, P.Geo., and Carl Pelletier, P.Geo., both of InnovExplo Inc. and confirm having reviewed this press release and that the scientific and technical information is consistent.

 

ON BEHALF OF THE BOARD

“Chris Lodder”                                  

Chris Lodder, President, CEO & Director

 


Figure 1: Plan Map Showing Modelled Vein Corridors on Island and Cow Mountains Barkerville Gold Mines
 

Figure 2: Cariboo Gold Project Longitudinal Section Barkerville Gold Mines