Progress continues on the BC Jobs Plan with the announcement of a Mines Act permit for the Barkerville Gold Mine, outside of Wells.

The mine, set to begin construction as early as next year, will provide 30 direct jobs at Bonanza Ridge and a further 40 jobs at the QR Mine once it becomes fully operational. As part of the BC Jobs Plan, announced earlier this year by Premier Christy Clark, the province expects to see eight brand new mines and another nine mining expansions operational in British Columbia by 2015.

The mine received approval of its Mines Act Permit from the Province on Nov. 29, 2011. About 73,000 tonnes of ore per year will be produced at the Bonanza Ledge Mine, which has current mine life of four years. The mine design is the culmination of geological exploration, engineering and environmental studies undertaken by the company in the Barkerville camp since the Bonanza Ledge deposit was discovered in 2000.

The larger area of Quesnel and region has been hard hit by losses in forestry due to the mountain pine beetle epidemic, and will also benefit as the QR mill will continue to operate to process the Bonanza Ledge ore. The mining, trucking and milling of ore at the nearby QR Mine could potentially begin within a month following the start of construction at Bonanza Ledge.

Community and First Nations consultation has taken place on the mine proposal over several years leading up to the application, and feedback has been incorporated in aspects of the project design. A memorandum of understanding is in place between the company and the Lhtako Dene First Nation providing for continued close co-operation and benefits related to development of the company's projects in the Cariboo region.

Quotes:

J. Frank Callaghan, president and CEO of Barkerville Gold Mines Ltd. -

"This will mean a lot to the residents of Wells, Quesnel and the Lhtako Dene Nation. It's been a joint effort to make this work with such a small environmental footprint, and the company is excited to begin development of the mine."

Quick Facts:

• Today, all of B.C.'s mines are profitable, tax revenues are rising and direct mining jobs are increasing.
• To ensure future prosperity, the Province is stepping up its permitting approval processes to ensure industry is in a position to achieve this growth, while continuing to maintain high health, safety and environmental standards.
• As well, the Province helps to ensure a profitable mining sector through the provision of variety of industry incentives:
• Mining Exploration Tax Credit provides a 20 per cent refundable tax credit for companies.
• Mining Flow Through Share Tax Credit provides a non-refundable 20 per cent tax credit. This incentive makes eligible exploration the second-lowest in Canada.
• New Mine Allowance provides the equivalent of a 133.3 per cent deduction of capital costs for mines that commence or expand production before Jan. 1, 2016.

Contact:

Sandra Steilo
Media Relations
Ministry of Energy and Mines
250 952-0617