GOLD: Barkerville delivers 185K oz/year PEA for Cariboo project

[caption id="attachment_1003730355" align="aligncenter" width="496"] Initial underground mining will take place beneath Island and Cow mountains and the valley between them. (Image: Barkerville Gold Mines)[/caption] BRITISH COLUMBIA – Barkerville Gold Mines of Toronto has received a positive preliminary economic assessment of its flagship Cariboo gold project 83 km east of Quesnel. The project covers deposits on Island, Cow and Barkerville mountains and will recover gold in the QR mill in Wells. The PEA examines ramp access underground mining capable of producing 185,000 oz. of gold annually. The pre-production  capex is pegged at $305.5 million to be followed by $342.5 million in sustaining costs. All-in sustaining costs are estimated to be US$911.80 per oz. After taxes with a Canadian dollar worth 0.7 of a U.S. dollar and a 5% discount, the Cariboo project carries an after tax net present value of $541.1 million and an internal rate of return of 28.1%, the payback period is 3.1 years. Underground mining will be located beneath Island Mountain, Cow Mountain and the valley between them. There are four deposits – Shaft, Cow, Valley and Mosquito – over a length of 3.7 km reaching about 640 metres below surface. Longhole mining with longitudinal retreat on panels with sub-levels every 30 metres and a strike length between 8 and 20 metres. A fleet of 10- and 14-tonne load-haul-dumpers will move 4,000 t/d to an underground crusher. Crushed ore will be conveyed to the surface and be passed through sorters. The pre-concentrated material will feed a secondary crusher. Material screened to –12 mm will be trucked to the mill. In the mill the ore will be reground to 80% passing 45 microns ahead of a gravity circuit and then a carbon-in-pulp circuit. The mill also includes cyanide destruction, thickening, filtration, and tails (some of which will be used for paste fill in the mine). Gold recovery is anticipated to average 92.1% over the life of the mine. The total Cariboo gold project has measured and indicated resources of 13.5 million  tonnes grading 5.6 g/t gold containing 2.44 million oz. There is also an inferred resource of 11.9 million tonnes at 5.0 g/t gold containing 1.9 million oz. Take a tour of the Cariboo gold project at www.BarkervilleGold.com.