GOLD: BCGold signs deal to develop and operate Engineer mine

BRITISH COLUMBIA - Vancouver-based BCGold Corp. has signed a letter of intent with Solid Holdings whereby Solid will finance and build a minimum 30-t/d mine, mill and gold refining operation at the historic Engineer gold mine 32 km west of Atlin.

The agreement runs for three years during which time Solid will mine the Engineer vein on 6 and 7 levels producing at least 10,000 oz of gold, with 1,500 oz to BCGold's credit. At the end of this time, Solid may elect to acquire a 50% interest in the Engineer mine that would then be operated as a 50:50 joint venture.

The Engineer mine produced 18,000 oz of gold and 8,950 oz of silver from the mid-1920s to the early 1930s from the Engineer and Double Decker veins. Grades exceeded 39 g/t Au and 20 g/t Ag. More than 5,500 metres of underground development remains as access to seven high grade gold veins and two bulk tonnage mineralized shear zones.

BCGold says it spent $3.6 million to acquire, explore and develop the Engineer property. The inferred resource is 41,000 tonnes grading 19.0 g/t Au at a 5 g/t cut-off, or 25,000 contained ounces. A small bulk sample was test milled in 2011. See BCGoldCorp.com for more information.