BGM Announces Updated Underground Resource For Cariboo Gold Project

2.4 MILLION OUNCES TOTAL MEASURED AND INDICATED, AND 1.9 MILLION OUNCES INFERRED 

TORONTO, May 29, 2019 - Barkerville Gold Mines Ltd. (BGM – TSX-V) ("BGM" or the "Company") is pleased to announce the updated underground resource estimate for Cow, Island and Barkerville Mountain deposits at its 100% owned Cariboo Gold Project located in Wells, B.C.

Cariboo Gold Project Mineral Resource

• Measured and Indicated Resource of 2.4 million ounces of gold (13.2 million tonnes grading 5.6 g/t Au) a 50% increase from the 2018 resource;
  
  
• Inferred Mineral Resource of 1.9 million ounces of gold in the inferred category (12 million tonnes grading 5.0 g/t Au);
  
  
• The mineral resource estimate has factored in the internal dilution which allows BGM to consider larger mining methods in some of the deposit areas to reduce operating costs in a future scale operation, allows potential for better resource to reserve conversion, and better continuity;
  
  
• The 2019 Mineral Resource estimate on Cow and Island Mountains covers the corridor of the Cow, Valley, Shaft, and Mosquito deposits over a strike length of 3.7 kilometers, a maximum width of approximately 700 meters, down to a maximum depth of 600 meters and an average depth of 350 meters below surface;
  
  
• 249 vein corridors were modelled with average dimensions of 300 meters by 300 meters by 3 meters with thickness of the vein corridors ranging from 2 meters to 40 meters;
  
  
• The BC Vein deposit is 1.7 kilometers in strike length, 0.5 meters to 37 meters in thickness, and 400 meters in depth.

The mineral resource estimate incorporates the Cow and Valley Zones on Cow Mountain, Shaft and Mosquito Creek Zones on Island Mountain and BC Vein and Bonanza Ledge on Barkerville Mountain at a cut-off grade of 3.0 g/t Au ("grams per metric tonne"). The resource is defined over 6 kilometers of BGM's 67-kilometer-long land package. Infill and exploration drilling are ongoing on the property. The mineral resource estimate was conducted by Talisker Exploration Services Inc. under the supervision of InnovExplo Inc., an independent consulting firm based out of Val-d'Or, Quebec. A video summarizing the mineral resource estimate is present in this press release.

The mineral resource estimate for Cow and Island Mountain deposits is built upon over 400,000 meters from BGM's 2015 to 2018 drill campaigns, and historically verified drill data using a total of 3,426 drillholes. 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. The mineral resource estimate is supported by a robust 3D litho-structural model of the gold-bearing vein corridors. The 2018 exploration and category conversion drill program was successful in improving the precision of vein corridors; a total of 249 vein corridor solids were individually modelled. Average dimensions of a vein corridor are 300 meters by 300 meters by 3 meters with thickness of the vein corridors ranging from 2 meters to 40 meters.  The resource estimate includes the internal dilution of the sandstone host within the vein corridors. Vein corridors are defined as a high-density network of mineralized quartz veins within the sandstones. Additional models were made for Bonanza Ledge and BC Vein. Table 1 summarizes the Mineral Resource estimate and Tables 2 and 3 demonstrate the grade sensitivity of the resource model at varying cut off grades. A 3D model with the updated geological model and block model is available on the link below.

https://vrify.com/embed/projects/183/sites/788

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

Mineral Resource Estimate notes: 

• Christine Beausoleil, P.Geo and Carl Pelletier, P.Geo, of InnovExplo Inc. has reviewed and validated the mineral resource estimate for Cow, Mosquito, Shaft, Valley and BC Vein deposits and updated the Bonanza Ledge mineral resource estimate. Both are independent "Qualified Person" (as defined in NI 43-101) responsible for the 2019 mineral resource estimate. The effective date of the 2019 mineral resource estimate is May 29, 2019;
• Specific extraction methods are used only to establish reasonable cut-off grades for various portions of the deposit. No Preliminary Economic Analysis, Pre-Feasibility Study or Feasibility Study has been completed to support economic viability and technical feasibility of exploiting any portion of the mineral resource, by any particular mining method
• 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;
• Geologic and vein corridor modeling of Cow, Valley, Shaft, Mosquito and BC Vein were completed by BGM Chief Resource Geologist Tessa Scott, P.Geo. and BGM Geologists Natalie Cook, GIT. and Raja Yarra, GIT. The Resource Estimation was completed by Talisker Exploration Services Geologist Leonardo Souza, MAusIMM (CP);
• A total of 249 vein corridors were modelled for Cow and Island Mountains deposits, and a total of two (2) gold zones for Barkerville Mountain Deposits. 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;
• The estimate is reported for a potential underground scenario at cut-off grades of 3.0 g/t Au. The cut-off grades were calculated using a gold price of USD1,300 per ounce, a CAD:USD exchange rate of 1.3; mining cost of $42/t; processing cost of $75/t; and G&A of $22/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.);
• A density of 2.8 g/cm³ was established for all zones of Cow, Valley and Shaft, 2.76 for Mosquito, 2.72 g/cm³ for BC Vein zone and 3.2 g/cm³ for Bonanza Ledge zone;
• A three-step capping procedure has been applied to composite data for Cow, Valley, Shaft, Mosquito and BC Vein zones. Restricted search ellipsoids were used varying from 10 to 60 g/t Au at three different distance varying from 25 to 100 m for each deposit. Bonanza Ledge high-grade capping was done on composited data at 70 g/t Au;
• Resources for Cow, Valley, Shaft, Mosquito and BC Vein zones were estimated using Datamine Studio RM 1.3 software using hard boundaries on composited assays (Cow 3.0 m, Valley 1.5 m, Shaft 2.0 m, Mosquito 3.0 m and BC Vein 1.6 m). Ordinary Kriging interpolation method was used in a sub-blocked model (parent block size = 5 meters x 5 meters x 5 meters). Resources for Bonanza Ledge were estimated using GEOVIA GEMS 6.7 software using hard boundary on composited assays at 2.0 m. Ordinary Kriging interpolation method was used in a block model (block size = 2 m x 2 m x 5 m);
• Results are presented in-situ, with minimum width diluted to 2 meters. 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 thousand. 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 other than disclosed in the 2018 NI 43-101 Technical Report for the Cariboo Gold Project and Mineral Resource Estimate by InnovExplo Inc.

Table 2: Grade Sensitivity on Measured and Indicated Resource categories for the Cariboo Gold Project

Table 3: Grade Sensitivity on Inferred Resource category for the Cariboo Gold Project

The vein corridors are modelled to an average depth of 350 meters, exploration drilling has intersected mineralization at depths below 700 meters from surface. BGM is currently drilling down dip and along strike of mineralized vein corridors to define additional resources at Cow and Island Mountain. BGM intends to drill from underground infrastructure once permitting and construction of an exploration drift is complete. 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 continuing resource growth shows improved knowledge of the grade distribution, vein corridor thickness and continuity within and at depth and on strike as a function of the infill drilling. Drilling will now continue to add upside not just within the current resource area but all along the 67 km mineralized trend controlled by BGM."

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 kilometers; along a strike length of 67 kilometers 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 upgrading and expanding the May 2018 43-101 resource within the 8 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 completing required studies in order to permit underground mining on Cow and Island Mountains.

Cautionary Statement on Forward -Looking Information
Neither the TSX Venture Exchange ('TSXV') nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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

SOURCE Barkerville Gold Mines Ltd.