BCGold Corp. Signs Agreements To Sell Gold Concentrate From Engineer Mine, B.C.
- BCGold Corp. (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) (or the "Company") is pleased to announce that it has entered into a concentrate purchase agreement (the "Purchase Agreement") with Auramet Trading, LLC ("Auramet"), a New Jersey-based precious metals merchant, to facilitate the sale of approximately 0.8 dry metric tonnes (dmt) of gold-rich gravity concentrate produced during bulk sampling at the Engineer Mine in 2011. Auramet has arranged a secondary agreement between BCGold Corp. and Sipi Metals Corp. ("SiPi"), a precious metal refinery situated in Chicago, Illinois, with respect to refining terms and treatment charges for the recovery of gold and silver from the concentrate.
"This is an important milestone for BCGold Corp.," states Brian P. Fowler, President and CEO of the Company. "We have demonstrated that we can produce a marketable gold-rich concentrate while continuing to explore and advance the Engineer Mine property. The proceeds from this sale will be used to supplement our 2012 Engineer Mine exploration budget. Our efforts to forward sell substantially larger lots of gold concentrate to a suitable buyer are ongoing; the proceeds of such sales would be used to provide for mining and milling capital requirements and to finance continued exploration drilling to increase the mineral resource at Engineer Mine."
Terms of Sale
The Purchase Agreement provides for the Company to sell 100% of the total gold and silver content in its concentrate to Auramet using a flexible and comprehensive pricing and payment facility. This includes spot, pre/forward, and option pricing mechanisms, and spot, forward, and in-process basis payment mechanisms. The Company will select the appropriate mechanisms once initial confirmation sampling is completed by SiPi.
BCGold Corp.'s gold-rich concentrate is currently in transit to the Sipi refinery in Chicago and the Company expects payment prior to the start of the 2012 exploration and development program at the Engineer Mine.
About the Engineer Mine
BCGold Corp. has a 75% interest in the Engineer Mine property, with an option to earn a 100% interest. Engineer Mine was a high-grade gold producer that came to peak production in the mid-1920s and ceased operation in the early 1930s. More than 560 kg (18,000 oz) of gold and 278 kg (8,950 oz) of silver were officially produced at realized grades exceeding 39 g/t Au and 20 g/t Ag, from high-grade epithermal quartz-carbonate veins on six of eight mine levels.
There are two large shear zones and more than 25 known veins on the property; only four veins have undergone limited production and exploration to date. All shear zones and veins remain open at depth and little exploration has been conducted deeper than 200 metres below surface.
About BCGold Corp.
BCGold Corp. (TSX VENTURE:BCG)(PINKSHEETS:BCGOF) is a Vancouver-based junior resource company focused on copper and gold exploration and development in under-explored historic and emerging mining districts in British Columbia and Yukon. BCGold Corp. acquires and develops conceptual, early and mid-stage exploration opportunities and advances them towards resource development by using internal expertise, engaging preferred joint venture partners, and creating strategic alliances with major exploration and mining companies. Currently, institutional investors hold 21% of the Company's outstanding shares and Kinross Gold Corporation holds 5%.
BCGold Corp. is unique in that the Company not only exposes investors to the prospects of new discoveries, but is also positioned to offset exploration costs and minimize dilutive share issuances for capital by monetizing / forward selling gold concentrate recovered from on-site processing of bulk sample material at the Company's high-grade gold Engineer Mine property.
On behalf of the Board of Directors,
Brian P. Fowler, P. Geo., President & CEO
Some statements in this news release contain forward-looking information or forward-looking statements. These statements include, but are not limited to, statements with respect to future expenditures and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing and completion of contemplated financings, the actual use of proceeds, receipt of regulatory approvals and the timing and success of future exploration, development and production activities. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
BCGold Corp.
Corporate Communications
604-697-2403
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