One would think after San Gold and Rubicon had their 43101's ammended and revised downwards after the same Peter George expert analysis that this will be the mother of all revisions. Sidenote:BGM's so called deposit would make G's Redlake look like lowgrade moose pasture.

Barkerville to release full Cow Mountain report to BCSC

2012-07-11 23:35 PT - News Release

Mr. Frank Callaghan reports

BARKERVILLE CLARIFIES TECHNICAL DISCLOSURE

As a result of a review by the British Columbia Securities Commission (BCSC), Barkerville Gold Mines Ltd. is clarifying its technical disclosure.

On June 28, 2012, the company issued a news release reporting an indicated resource and geological potential at its Cow Mountain property. On July 4, 2012, the company received a technical disclosure review letter from the BCSC asking the company to provide additional information to the BCSC to support the indicated resource estimate and exploration target disclosed in the original news release. In an effort to provide a timely response to the BCSC, the company's qualified person, Peter T. George, provided a draft technical report to the BCSC immediately, which was not complete and not due under NI 43-101 standards of disclosure for mineral projects until 45 days after the original news release (Aug. 13, 2012).

Upon review of the incomplete draft technical report, the BCSC expressed concerns about certain of the methods, parameters and assumptions that were used to estimate the mineral resources and potential exploration targets at Cow Mountain, as well as the estimates themselves. The BCSC expressed concern that the disclosure in the original news release of a 10.6-million-ounce indicated gold resource (69 million tonnes grading 0.154 ounce per tonne) and 65 to 90 million additional ounces in potential is inadequately supported in the draft technical report and estimated in a manner that appears contrary to normal industry practice and therefore could be construed as misleading.

A summary of the concerns of the BCSC regarding the resource estimate disclosed in the original news release include:

1. The drill-hole assays were not composited before estimating resource grade;
2. The estimates do not apply grade capping, despite most of the gold in the reported 2011 drill intersections being in thin, high-grade intersections;
3. The resource appears to be unconstrained by the geological model of the gold-hosting structures;
4. Failure to cap and use of an unconstrained bulk-tonnage resource model is likely to have resulted in material overestimation of grade and tonnage of the resource;
5. No external cut-off grade.

A summary of the concerns of the BCSC regarding the exploration target relate to what was initially perceived as a lack of local data used to estimate potential tonne and grade ranges along strike for such geological potential. For example:

1. Using the indicated resource as a basis for the quantity and grade of potential exploration targets in other locations along strike;
2. Grade ranges of estimates of potential set an apparent arbitrary plus or minus 15 per cent above and below average grade of the resource;
3. Tonnage ranges apparently arbitrary based on percentages above and below the resource tonnage.

The company has indicated it will file a complete draft NI 43-101-compliant technical report with the BCSC as soon as possible to respond to the BCSC's specific concerns and is working diligently with Mr. George to provide the same. The company, in discussion with Mr. George, is confident that the supporting appendices to his draft technical report, which had not been completed and provided to the BCSC in the first instance, will adequately address the recent comments from the BCSC.

The BCSC has suggested that the company complete an audit of the resource estimate and exploration target and, predicated on the company's prior receipt and review of the final technical report from Mr. George, and in further consultation with the BCSC at that time, the company may immediately determine to engage a further qualified person for that purpose.

Until this technical disclosure review by the BCSC is resolved, the company cautions investors not to rely on either the indicated resource estimate or the geological potential disclosed in the original news release.

The company confirms that it will file on SEDAR a technical report supporting its Cow Mountain estimates within the required 45-day period following the June 28, 2012, news release, and that it will promptly announce any material changes to its estimates that result from the audit or preparation of the report.

The technical information in this news release has been reviewed and approved by the author Mr. George, PGeo, and the company's chief geologist Jim Yin, PhD, PGeo, both qualified people as defined in National Instrument 43-101.