Corporate Summary
Barkerville Gold Mines Ltd. ("the Company") is a public company traded on the TSX Venture Exchange (BGM). The Company is focused on the Historic Cariboo Goldfields, terminus of the famous Cariboo Gold Rush.The Company commenced operations in the Cariboo District in 1994 and since that time has focused on the exploration and development of its gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass approximately 1,065 square km (106,484 hectares) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold production. Recorded gold production from the area totals more than 3.8 million ounces, including an estimated 2.64 million ounces from placer mining and 1.23 million ounces from lode mining.
In February of this year, the Company closed the acquisition of the QR Mine & Mill and an equity financing for $13.6 million. The QR Mine & Mill is located 110 kilometers by highway and all-weather road from the Barkerville Gold Camp.
The QR Mill is a permitted, 900 tonne per day gold mill, originally built by Kinross Gold Corp. in 1994 for an estimated $40 million capital cost and was their first operating gold mine, which operated for three years and subsequently closed due to low gold prices. Cross Lake Minerals Ltd. acquired the project in 2005 and incurred an estimated $34.5 million on mill upgrades, mine development and a new three-phase power line, which substantially offset initial start-up costs for the Company.
Mining operations started in February 2010 at the QR West Zone, ore hauling and stockpiling will continue until mid-May prior to the start up of the mill facility. Gold doré bars will be poured on site in Q2 of this year. It is the Company's objective to achieve 50,000 ounces of gold production in its first year operation from a combination of ore from the QR Mine and the proposed Bonanza Ledge open pit mine, currently in the final stages of permitting. $6,000,000 from our recently closed financing has been earmarked for mine production.
In addition, $4,000,000 from the recent financing has been budgeted for diamond drilling in several areas on our vast land package. In the past, much of the Company's resources were spent on permitting and feasibility work around our proposed mines. With these projects well underway, gold production, anticipated cash flow and a well funded treasury, the Company is now able to set its sights on extensive exploration campaigns. These campaigns will encompass four areas well known by our company - in, around and underneath our current NI43-101 resources at Barkerville and Cow Mountain, and large, unexploited areas previously mined on Island Mountain. Further blue-sky campaigns will be conducted over the remaining 9/10ths of the highly prospective 60-kilometer gold belt the Company has acquired over the past 15 years.