Vancouver-based Barkerville Gold Mines (CVE:BGM) has received approval to build an open-pit gold mine at its Bonanza Ledge property in northern B.C.
The stock was changing hands at 97 cents on Tuesday, up 8% on more than double average volumes.
“Approval of the Bonanza Gold Mine is a major accomplishment for Barkerville Gold Mines in its close to 20 years of exploration in the region,” CEO Frank Callaghan said in a statement. “This will mean a lot to the residents of Wells, Quesnel and the Lhtako Dene Nation.”
The Bonanza Ledge property, located near the town of Wells, would produce 73,000 tonnes of ore per annum for four years, with gold grades averaging 9.05 grams per tonne. The deposit was discovered in 2000. A 10,000-tonne underground bulk sample taken in 2004 was estimated to contain 7,000 ounces of gold.
The “replacement mineralization” yields a softer, richer gold according to a Global TV News story posted on the company’s website, and could mean hundreds of jobs in addition to tourism, including for local First Nations.
Barkerville plans to truck the ore to the mill near Quesnel, B.C. for processing.
The mine is located next to Barkerville, a historic village that attracts hundreds of visitors a year who pan for gold and learn about the gold rush in B.C. that took place 150 years ago. At that time, prospectors flocked to the province in search of nuggets of gold found in the swift-moving streams, including Barkerville founder Billy Barker.
The mine could begin operations as early as February, according to the story on Global.
Image of Barkerville’s main street, taken in June 2004, is from Wikimedia Commons. (Credit: Kickstart70)
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