BGM receives mining permit for Bonanza Ledge Deposit in British Columbia

5 April 2017 (Last Updated April 5th, 2017 18:30)

Barkerville Gold Mines (BGM) has completed the permit amendment process required by the Mines Act (British Columbia) in Canada, as well as secured all the necessary permits to begin the development and mining of the Bonanza Ledge Deposit.

Barkerville Gold Mines (BGM) has completed the permit amendment process required by the Mines Act (British Columbia) in Canada, as well as secured all the necessary permits to begin the development and mining of the Bonanza Ledge Deposit.

The Bonanza Ledge Deposit is located on Barkerville Mountain near Wells in British Columbia.

The company has planned to commence development activity at the mine immediately, while the processing of mineralised material expected to start three months thereafter.

Mineralised material from Bonanza Ledge will be processed at BGM’s QR mill facility, which is located around 110km from the mine.

The mill and tailings facilities have permits and presently operational.

"This underground operation allows BGM to train a local workforce and gain expertise in mining and processing in the district."

BGM president and CEO Chris Lodder said: “This initial production is important to our growth plan in the Cariboo Gold Project.

“In addition to generating positive cash flow, this underground operation allows BGM to train a local workforce and gain expertise in mining and processing in the district.

“This experience will assist in the development of other deposits in the camp and the eventual construction of a new centrally located processing facility.

“In conjunction with this production, BGM’s aggressive exploration program continues and will eventually lead to a property scale mineral resource estimate.”

BGM has received the approval to produce up to 150,000t annually from the Bonanza Ledge mine, and nearly C$55m ($41m) in investment since 2015.

It currently has a technically and financially supportive major shareholder base that includes Eric Sprott, Osisko Mining and Osisko Gold Royalties.