Barkerville Gold Mns Ltd BGMZF

RE:new 43-101 on Sedar.com today

[Cognition777]

- resource estimate verified but unchanged for Barkerville Mtn (Bonanza & BC Vein).
- recommendation to proceed with development and to expand drilling into potential targets.
see brief to follow... (bold text by cog)

Conclusions and recommendations

The objective of InnovExplo’s assignment was to prepare a mineral resource estimate for the Barkerville Mountain deposit. The deposit includes the Bonanza Ledge and BC Vein zones and covers the past producing Bonanza Ledge mine. This technical report and the mineral resource estimate presented herein meet this objective.

After conducting a detailed review of all pertinent information and completing the 2017 Mineral Resource Estimate, InnovExplo concludes the following:

•  The geological and grade continuities of the two (2) gold-bearing zones of the Barkerville Mountain deposit have been demonstrated.

•  For an underground scenario, the Barkerville Mountain deposit contains an estimated 64,400 ounces of gold in the Measured category, 94,400 ounces in the Indicated category, and 18,600 in the Inferred category.
  (same as before - cog)

•  No comparison was made to the last MRE for the Bonanza Ledge in 2009 by Mintec because they used an open pit approach and the resource was partially mined in 2014.

•  A reconciliation exercise was attempted for the Bonanza Ledge pit, but the results are of limited usefulness due to insufficient information.

•  The potential is high for upgrading Inferred Resources to the Indicated category with more diamond drilling in the BC Vein Zone.

•  Mineralization associated with AP veins was observed on the hanging wall of the BC Vein shear zone. Conditional on additional drilling, these AP veins could be modelled new zones.

•  There is potential to add resources to the Bonanza Ledge Zone on strike and at depth along the Footwall Fault.

  InnovExplo considers the 2017 Mineral Resource Estimate to be reliable, thorough, based on quality data, reasonable hypotheses, and parameters compliant with NI 43- 101 and CIM standards regarding mineral resource estimations.

  Based on the results of the 2017 Mineral Resource Estimate, InnovExplo recommends that the Barkerville Mountain deposit be advanced to the next phase, which would be the preparation of a pre-feasibility study on the Bonanza Ledge and BC Vein zones.

  InnovExplo recommends completing the permitting underway and the continuation of the community outreach program, while at the same time completing the characterization of the mining project environment.

  Further definition drilling is also recommended to upgrade Inferred resources to the Indicated category and to more accurately assess the potential of the BC Vein Zone.

  At the property scale, InnovExplo recommends an update of the Mineral Resource Estimate on Cow Mountain and Island Mountain using all recent information from the 2015 to 2017 drilling programs to define a global resource for the Cariboo Gold Project. 

In summary, InnovExplo recommends a two-phase work program for the geological program as follows:

Phase 1

o Preparation of a pre-feasibility study on the Bonanza Ledge and BC Vein zones, including environmental and metallurgical study

o Mineral resource estimate on Cow Mountain and Island Mountain deposits

Phase 2

o Definition drilling to upgrade Inferred resources to an Indicated category on the BC Vein Zone

o Additional drilling to define the AP vein zones on the hanging wall of the BC Vein Zone

InnovExplo has prepared a cost estimate for the recommended two-phase program to serve as a guideline for the project. The budget for the proposed program is presented in Table 26.1.1.

The estimated cost for Phase 1 would amount to approximately $1.12 million and would include environmental and metallurgical study.

The estimated cost for Phase 2, which would include definition and exploration drilling program, is approximately $3 million.