Bralorne Gold Mines Ltd. has provided the following update of activities at its Bralorne mine operation located near Gold Bridge, British Columbia.
High grade results were recently obtained for surface drill holes. The most significant was hole SB11-21 which intersected 23.35 ounce gold per ton over 3.1 feet (800.55 g/T over .95 meters). This intercept is a new high grade record for exploration holes since the current company started exploring the area. It is a new discovery on a structure that lies parallel to and 160 feet north of the BK vein and about 500 feet west of the BK 800 stope. The core interval consists of a faulted zone of quartz and altered wall rocks. Visible gold was observed in the quartz fragments.
Elsewhere along the BK zone, hole SB11-011 assayed 0.20 ounce per ton gold over a core length of 3.8 feet, and SB11-13 assayed 0.67 ounce per ton gold over a core length of 1.8 feet. Two other holes intersected visible gold, including SB11-23, which intersected visible gold in a previously unrecognized quartz vein located east of the BK 800 stope, and SB11-24 which intersected visible gold in a quartz vein interpreted to be the BK-South vein, also located east of the BK 800 stope. Assays are pending on these last holes.
Hole UB11-003 intersected 0.64 ounce per ton gold over a core length of 2.7 feet on the BK-North vein (BKN). This intercept is situated about 90 feet along strike from the previously announced intercept for hole UB-002, which assayed 6.59 ounce gold per ton over 0.9 feet. The BKN structure is a newly recognized vein that lies approximately 150 feet north of and parallel to the BK vein. Recent 3-D modeling suggests that the 2006 BK Zone discovery hole SB06-109b (1.1 foot vein of 11.781 ounce gold per ton and 1.2 foot of 7.203 ounce gold per ton) was on the BKN vein. The mineralization encountered in hole UB11-03 is correlated with one the of the six new parallel structures to the BK vein identified in the news release dated August 3, 2011. More drilling is planned for these veins from underground.
Total drilling to date amounts to 30 holes completed for a total of 16,568 feet of core, with most of the holes targeted at the BK-3 Zone. Twenty-seven holes were drilled from surface, twenty-three of which intersected the extension of the BK3 zone above the targeted area for the decline, as well as parallel structures. Three holes have been completed with the underground rig to test above the BK 800 stope. Significant intercepts are listed in the table below.
Cautionary Note: The company considers all intercepts assaying 0.1 oz/ton Au or greater as significant, but cautions that these intercept data are preliminary in nature and not conclusive evidence of the likelihood of the occurrence of an economic mineral deposit.
All holes were drilled at NQ size and the core was cut in half with a diamond saw for sample collection. One half of the core was sent for analysis at Eco Tech Laboratory Ltd. at Kamloops BC. Eco Tech is part of the Stewart Group of companies and currently applies a quality management system at this particular laboratory that is certified to meet the requirements of ISO9001:2008 for geochemical assay services. Gold concentration in quartz veins was determined by the metallics fire assay method. Quality control for fire assays is monitored by inclusion of reference standards and blank samples at a frequency of 10% each. Duplicate analyses will be performed on rejects of selected samples.
The BK-3 decline was advanced 172 feet in September, with a total of 289 feet remaining to go until the mineralized zone is intersected at the 3700 foot elevation. An incline to intersect the vein at the 3800 foot elevation was also advanced 133 feet, with 236 feet remaining.
On the Bralorne 800 Level, a man-way raise was advanced 88 feet from 800 level toward the BK3 workings, with 302 feet remaining. Broken muck remaining in the BK 800 stope continued to be withdrawn and taken to the surface stockpile.
Milling operations continued testing the bulk sample of stockpiled material, producing both gravity and flotation concentrates. Total year to date gold produced at the end of September was 2,520 ounces. Gold dore smelted from the gravity concentrate totaled 1,588 ounces, gold in flotation concentrate is estimated at 872 ounces with the balance of ounces being in-circuit inventory. The dore represents 65% of the gold production. As of September 30, a total of 10,792 tons (dry) had been milled, with an average feed grade of 0.254 ounce/ton gold and a recovery of 91%. Mill availability for September averaged 90%; downtime resulted from minor equipment failure and interruptions to the power supply from BC Hydro. The average throughput achieved was 81 tons per day for the days the mill operated. The Company is progressing towards an agreement for the sale of the flotation concentrate and is evaluating alternatives for shipping this material.
Beacon Hill Consulting Ltd. has been retained to provide an updated Preliminary Assessment report to include adjustments for the increased gold price since their last update in 2007. The report is anticipated to be finalized in the next month.
Dr. Matt Ball, P.Geo., Chief Operating Officer for the Company, is the Qualified Person who prepared the exploration information contained in this news release. Mr. Jasman Yee, P.Eng., Metallurgist, is the Qualified Person responsible for the mill results as reported.
The Bralorne mine is located 150 air miles from Vancouver, BC. The Company is re-developing the former and very successful Bralorne, Pioneer and King gold mines. From 1928 to 1971, these three operations produced 4.15 million ounces of gold from 7.9 million tons of ore (equaling a grade of 0.53 ounces per ton). Bralorne, Pioneer and King represent the largest historic gold producers in the Canadian Cordillera. The Company remains well funded with no long-term or short-term debt.