MINING: GOOD NEIGHBOUR AND PROVIDER TO THE …cmebc.com/wp-content/uploads/newsletters/Motherlode_2012-06-01.pdf · june 2012 page 3 of 12 mining: good neighbour and provider to the

June 2012 Page 1 of 12

MINING: GOOD NEIGHBOUR AND PROVIDER TO THE WORLD WWW.CMEBC.COM

THE PRESIDENT’S REPORT The Chamber had a display in the mall for mining week and we will also have a table in Castlegar for the (rock and gem show) June 23/24. Thanks again to AMEBC for some funding of the display. We had some sad news with the passing of Paul Gergeley, our longtime Treasurer (see page 11). He will be missed. The rules to acquire and maintain mineral and placer title are about to change. The link below has a summary of the changes. http://www.empr.gov.bc.ca/Titles/MineralTitles/Notices/InformationUpdates/Documents/InfoUpdate34.pdf

A few months ago, I was on a quest to find a dog for my mom’s birthday. The family used to have a husky so I was looking for one. After searching the internet and not finding what I was looking for, I was surprised to find an ad for husky puppies located in Castlegar, a short drive away from where I live. I emailed the people and got an email back asking questions like do you have any experience with huskies? etc. They said they are like family so they wanted to know the puppies would go to a good home and asked more questions like how old are you, where do you live etc. I answered all the questions and said in the email that I would like to drive over and see the puppies, when could I come over? The next email said they would start the emigration paperwork and asked for more personal details and a fee..........emigration? The email went on to say they are located in Cameroon........Cameroon? The ad said Castlegar? I had this sinking feeling and I started googling and sure enough if you type in Husky puppy scam, you will see there is one called Cameroon puppy scam. You are probably wondering why I am telling this story in the Motherlode........well, I think it’s a good example of people using emotionally charged pictures of animals to relieve people of their assets. I think a similar thing can happen when pics of animals are used to push for road restrictions, habitat protection etc. The people of B.C. own the resources (assets) and they are supposed to be used for the maximum benefit of Canadians. People need to look past emotional pictures and ask, if we restrict half of B.C. for wildlife corridors, what will that do to our ability to pay for hospitals etc? There are US foundations funding environmental groups in Canada whose projects are definitely not intended to help Canadians develop our resources. Bill C-38 passed today and it will be interesting to see what information comes out about who is funding various groups. Governments of all stripes somehow keep making decisions that end up depriving Canadians out of developing our resources and getting the jobs and tax revenues. The NDP did it with Windy Craggy and the Liberals did it with the Flathead. It is always interesting to read American media reports about these issues and get a perspective that is not reported on the Canadian side. I wonder why mining on our side of the border is bad but good on the US side of the border?

http://www.empr.gov.bc.ca/Titles/MineralTitles/Notices/InformationUpdates/Documents/InfoUpdate34.pdf



Montana Lines Up with Arch Coal to Defend Mine

http://www.flatheadbeacon.com/articles/article/montana_lines_up_with_arch_coal_to_defend_mine/24781/ By Matthew Brown, Associated Press, 09-24-11

BILLINGS – The state of Montana and Arch Coal, Inc. will line up together in state court Tuesday against environmental groups seeking to derail the company's plan to mine a 1.3 billion ton reserve within the most productive coal region of the country. St. Louis-based Arch has paid $159 million to the state and Great Northern Properties to lease the Otter Creek coal tracts, located near the Northern Cheyenne Reservation. The deal has received strong backing from Montana Gov. Brian Schweitzer, a Democrat who wants to capitalize on the vast coal deposits in the Powder River Basin along the Wyoming border. The proposal has been fought by anti-coal groups and some local landowners who say it would industrialize a rural part of the state and help accelerate climate change. Otter Creek holds more coal than the United States consumes annually. Arch's plans include exporting the fuel to Asia through ports on the West Coast.

At Tuesday's hearing in Broadus, attorneys for the Sierra Club and other groups will ask state District Judge Joe Hegel to cancel the 10-year state lease. They want studies on mining impacts and the consequences of releasing huge volumes of the greenhouse gas carbon dioxide when the coal is burned. State officials and representatives of Arch say those environmental studies will come later, during the mine permitting process. They want Hegel to dismiss the case. But opponents say the proposal already would have enough momentum by the time Arch applied for a mining permit that it would be difficult or impossible to turn back, regardless of the impact. That runs counter to the state's obligation to fulfill the Montana constitution's guarantee of a "clean and healthful" environment, attorneys for the opponents said. "We're very concerned about the burning of this coal, whether it's burned in the United State or whether it's burned in China," said Jenny Harbine, a Bozeman attorney representing the Sierra Club and Montana Environmental Information Center.

http://www.flatheadbeacon.com/articles/article/montana_lines_up_with_arch_coal_to_defend_mine/24781/



CLINE MINING CORPORATION FILES SUIT AGAINST THE PROVINCE OF BRITISH COLUMBIA FOR EXPROPRIATION OF COAL PROPERTIES

Toronto, Ontario, Canada May 29, 2012. Cline Mining Corporation (“Cline Mining” or the “Company”) (TSX:CMK) has filed a notice of civil claim (the “Claim”) dated May 28, 2012 in the Supreme Court of British Columbia against the Province of British Columbia (the “Province”) with respect to Cline Mining’s Lodgepole, Sage Creek and Cabin Creek coal properties located in the Flathead Valley in Southeastern B.C. and the Province’s passing of the Flathead Watershed Area Conservation Act (the “Act”). Cline is seeking a declaration that its rights under its coal licenses and coal license applications for the Lodgepole, Sage Creek and Cabin Creek properties were expropriated, taken or injuriously affected by the Province’s passing of the Act and of the Flathead Watershed Area Order in Council and Regulation 41/2010 which created a Mineral and Coal Land Reserve on all lands within the Flathead River Watershed Area. Cline is also seeking compensation including, but not limited to, the loss of the value of the licenses and applications for licenses for these properties, estimated at in excess of $500 million on a net present value basis over the expected lives of the mines. Cline has retained counsel at Fraser Milner Casgrain LLP in Vancouver, BC to advance the legal proceedings on its behalf. About Cline: Cline has metallurgical coal property interests in British Columbia and in Colorado, U.S.A. with NI 43-101 independent Technical Reports. Cline Mining Corporation is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada. For more information see: www.clinemining.com

www.clinemining.com



Cranbrook, B.C., 06 June, 2012: Eagle Plains Resources Ltd. (EPL:TSX-V) has commenced diamond drilling on its 100% owned, road-accessible 1,600 ha Black Diamond project located 35km

west of Invermere, B.C. The claims were originally staked in 1993 and were explored by a partnership which included current directors and senior officers of Eagle Plains. The property was transferred into Eagle Plains in the late 1990’s.

Black Diamond Summary

The property contains a prominent structure which hosts quartz vein material up to 8m in width and locally contains high-grade silver, lead and zinc mineralization. Located within the Toby Creek area, the steeply-dipping north/south-oriented structure is exposed for approximately 760m vertically and is interpreted to have at least 3.5 km of strike-length within property boundaries. Historical pits, trenches and tunnels are located along irregular, exposed intervals over 3kms. Black Diamond saw limited production in 1906-1907. Tunnels up to 65m in length were driven into mineralization in three separate areas over 790m (2600’) on the north side of Toby Creek. Historical production of 47 tons of ore was reported, containing 1,929 oz. Ag (40.0 oz/t), and 15,801 lbs. Pb (63%)(source: MEMPR MINFILE). Zinc-rich material was probably left as waste, as evidenced by inspection of waste dumps.

In 1995, a four-hole, helicopter-supported drilling program was completed, funded by a private partnership. Four holes were drilled from a single set-up for a total of 179.1m. Results ranged from trace values to the best intersection in Hole 95-02 at 28.0m to 31.0m, which graded 93.73 g/t silver, 9.66% lead and 5.17% zinc over 3.0m, with elevated amounts of cadmium (true thickness estimated at approximately 1.4m).

Concurrent with the 1995 drill program, continuous panel-sampling of an historic 66m-long tunnel located 60m vertically below the drill set-up returned an average of 746.3 g/t silver, 25.0% lead and 4.95% zinc over a 24m section which ran along the structure. Within this section, 6m of the tunnel length assayed 1444.7 g/t silver, 50.4% lead and 5.37% zinc.

The high-grade vein mineralization is interpreted to be representative of a possible feeder structure which may present opportunities for larger manto-type deposits located elsewhere along the structure within host rocks in areas where exposure is limited.

Current Program:

A single 400m drill hole is planned to further test the structure during this current exploration program. Supervision will be provided by J.K Ryley of TerraLogic Exploration Ltd., a wholly-owned subsidiary of Eagle Plains based out of Cranbrook, B.C. Contract diamond drilling services will be provided by FB Drilling Ltd., also of Cranbrook. The project will be conducted under the overall supervision of C.C. Downie, P.Geo., hereby identified as the “Qualified Person” www.eagleplains.com

www.eagleplains.com



MINERALS SOUTH 2012 CONFERENCE & TRADE SHOW

NOVEMBER 6TH TO 9TH, 2012

Prestige Lakeside Resort and Convention Centre, Nelson, BC

NOVEMBER 6 SHORT COURSE NOVEMBER 7 – 8 CONFERENCE AND TRADE SHOW NOVEMBER 9 FIELD TRIPS

For further information visit our website: www.cmebc.com or phone 250-352-5242

KOOTENAY GEM, MINERAL and FOSSIL SHOW Hosted by The Kokanee Rock Club & Selkirk Rock Club

June 23 & 24 2012

Saturday 10am – 5pm Sunday 10am-4pm

Castlegar & District Community Complex 2101 6th Ave. Castlegar, BC

Gems- Crystals – Minerals – Geode Cutting – Fossils – Jewelry

Lapidary Supplies – Dealers – Displays – Demonstrations Gold Panning – Rock Tumbling

Bring your Mystery Rock and Selkirk College Geology Department will help you identify it!

Adults - $4.00 Children 23 & under $2.00

http://www.cmebc.com/



Huakan Intersects 8.48m grading 9.41 g/t Au, 101 g/t Ag, 2.17% Pb and 4.31% Zn in Main Zone Drilling at J&L Submitted by huakan on Monday, June 4, 2012

June 4, 2012 – Vancouver, British Columbia. Huakan International Mining Inc. (TSX-V: HK) (the “Company”) announces drill results of the Main Zone from the first 10 holes of its 2012 planned 40 hole, 8,000 metre underground diamond drill program that is in progress at its J&L precious and polymetallic (gold-silver-lead-zinc) project, located near Revelstoke, British Columbia. The aim of the drill program is to increase the indicated resource category for the Main Zone deposit. There are six areas that are targeted to achieve 60 metre centres in this drill program, all outside the limits of the current Main Zone resource.

The first seven holes (DDH12-01 through DDH12-07) were drilled in an area of wide spaced historic drilling lying outside, but only 100 metres northwest and along strike of the Main Zone current resource. This target area is referred to as the Northwest Extension. The highlights of the new holes in the Northwest Extension area are tabled below. The results from the historic wide spaced drilling in the Northwest Extension area are tabled separately. The two sets of drillholes now provide 60 metre centres in this area and demonstrate continuity of the Main Zone in the Northwest Extension.

Table 1: Drilling Highlights from Northwest Extension

Hole

ID

From

(m)

To

(m)

Length (m) Au

(g/t)

Ag

(g/t)

Pb

(%)

Zn

(%)

DDH12-01 149.58 151.22 1.64 2.94 28.3 1.46 1.94

DDH12-02 182.57 183.95 1.38 2.69 41.7 1.84 1.82

DDH12-03 75.56 76.89 1.30 6.17 23.6 1.20 3.08

DDH12-04 139.90 146.55 6.65 5.23 34.6 0.90 2.18

DDH12-05 187.49 189.62 2.13 11.73 85.6 2.87 2.92

DDH12-06 198.68 199.61 0.93 5.28 62.1 3.08 2.77

DDH12-07 246.25 247.95 1.70 3.90 23.4 1.23 3.27

Table 2: Historic Drilling Highlights from Northwest Extension

Hole ID From (m)

To

(m)

Length (m) Au

(g/t)

Ag

(g/t)

Pb

(%)

Zn

(%)

91-13 124.90 126.50 1.60 6.02 72.7 3.19 3.11

91-34 124.40 129.00 4.60 5.64 36.6 1.16 1.49

91-56 256.30 257.50 1.20 2.06 64.9 1.83 2.47

91-57 220.90 225.00 4.10 4.57 81.9 3.48 4.63

91-59 258.20 260.40 2.20 7.30 59.8 3.44 2.91

91-62 247.80 249.60 1.80 5.68 11.8 0.64 1.47

07SJ-05 143.25 145.00 1.75 7.60 81.9 2.77 2.21

Three holes were also completed in a second target area (Area A), which attempts to extend the downdip limits of the Main Zone. Highlights of this drilling are tabled below and also demonstrate continuity of the Main Zone, which remains open downdip. Additional drilling is planned in this Area A to further extend Area A downdip.

Table 3: Drilling Highlights from Area A

Hole ID From

(m)

To

(m)

Length (m) Au

(g/t)

Ag

(g/t)

Pb

(%)

Zn

(%)

DDH12-08 171.75 174.74 2.99 2.88 73.29 3.63 9.35

DDH12-09 192.38 193.61 1.23 4.13 71.88 3.03 2.68

and 206.55 208.11 1.56 1.94 20.94 0.21 0.06

DDH12-10 207.70 216.18 8.48 9.41 101.39 2.17 4.31



The 2012 diamond drill program is under the supervision of Paul Cowley, P.Geo., the Company’s Qualified Person and VP Exploration. BQTW-sized core samples have been cut in half and sent to ALS Laboratory Group in Kamloops, BC. Samples are assayed for gold by fire assay (50 gram charge) as well as assayed for silver, lead and zinc. The Company inserted standards, blanks and duplicate samples throughout the sample sequence as quality control checks.

Paul Cowley, P.Geo. and VP Exploration, states “We are pleased with Main Zone continuity demonstrated thus far beyond the limits of Main Zone current resource. The deposit is open both up and down dip and along strike with excellent potential to expand the current resource.”

To date 30 holes have been completed in four of the target areas. Assays are pending for holes DDH12-11 to DDH12-30. Drilling continues.

The first seven holes of the program also encountered Yellowjacket mineralization, which will be reported separately. For further information see: www.huakanmining.com

http://www.huakanmining.com/



Vancouver, British Columbia, June 5, 2012 (TSX-V: BCG and PINK SHEETS: BCGOF) – BCGold Corp. (or the “Company”) is pleased to announce the receipt of positive preliminary metallurgy results from Gekko Systems Pty Ltd. (“Gekko”) that detail gravity and leach amenability test work performed on two samples collected during the Company's 2011 bulk sampling and test milling at the Engineer Mine. The samples included a 63 kg run-of-mine (“ROM”) sample and a 4 kg table concentrate sample, which represent the 505-3 Shoot of the Engineer Vein. Gekko's Metallurgy Results Highlights

� A calculated ROM head grade of 54.9 g/t gold (1.6 oz/ton) and 40.6 g/t silver (1.2 oz/ton).

� High gold and silver recoveries of up to 71.4% and 67.8%, respectively, using only gravity concentration methods,

produced a concentrate grading 379.2 g/t gold (11.1 oz/ton) and 260.5 g/t silver (7.6 oz/ton).

� Gold and silver recoveries from concentrate of up to 98% and 90%, respectively, by intensive leaching after 24 hours.

� Engineer mill table concentrate returned 6,738 g/t gold (196.5 oz/ton) and 2,878 g/t silver (83.9 oz/ton).

Gekko's bench-scale laboratory test-work validated BCGold Corp.'s previous report for bulk sample 505-3B of a calculated head grade of 44.6 g/t Au (1.3 oz/ton) and table concentrate grade of 6,485.8 g/t Au (189.2 oz/ton), using the on-site gravity separation mill at Engineer Mine (see February 27, 2012 news release at www.bcgoldcorp.com). Gekko's analytical results indicate that not all the gold and silver in the ROM sample was sufficiently liberated at the grind size utilized by the current on-site ball mill, and that there is recovery upside potential with modification of the gravity separation circuit. Gekko proposes that the gravity recovery of gold and silver could be improved by adding a secondary re-grind mill to the mill circuit and re-tabling the tails at a finer grind size, which may allow further reduction of the concentrate mass while maintaining high gold and silver recoveries. Gekko has designed a study to test this hypothesis and investigate the efficacy of these relatively inexpensive modifications to the on-site mill circuit. The Company has commissioned this study, which is expected to be completed in approximately 10 weeks. “We are very pleased with Gekko's preliminary gravity recovery test work,” commented Brian P. Fowler, President and CEO of BCGold Corp. “The ability to produce a high-grade gold concentrate with the potential of > 70% gold recovery reduces the requirement to install an on-site leaching circuit to produce a marketable product. We believe we can produce a marketable gold-rich gravity concentrate utilizing the Engineer mill and ship this material for off-site refining on an economic basis. The ongoing Gekko re-grinding study is expected to substantially improve the gravity recovery process and further enhance the economics of this project.” Background In 2011, BCGold Corp. conducted bulk sampling and on-site test milling at the Engineer Mine property that produced 970 kg of gravity gold concentrate from 246 tonnes of ore; the average concentrate gold grade was 2,193 g/t (64.0 oz/ton). This concentrate is currently being refined for gold and silver recovery by SiPi Metals Corp. in Chicago, Illinois (see May 2, 2012 news release at www.bcgoldcorp.com). In December 2011, BCGold Corp. submitted to Gekko a 63 kg ROM sample and a 4 kg table concentrate sample from the 69 tonne Engineer Vein bulk sample 505-3B to determine gold and silver recovery potential using continuous gravity recovery. BCGold previously reported bulk sample 505-3B returned a minable head grade of 44.6 g/t gold. The amenability of the ROM concentrate produced by Gekko and the table concentrate produced on-site to intensive cyanide leaching was also tested. Gekko specializes in the design, development and distribution of innovative, low-cost mineral processing systems with a particular focus on gravity separation. Gekko-built systems reduce the environmental impact of mineral processing and have been installed worldwide. Darren O'Brien, P.Geo., Vice President Exploration for BCGold Corp. and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release. For more information see: www.bcgoldcorp.com

http://www.bcgoldcorp.com/

http://www.bcgoldcorp.com/

www.bcgoldcorp.com



Vancouver, May 29th, 2012 – Golden Dawn Minerals Inc. (TSX-V: GOM; FRANKFURT: 3G8) (the “Company” or “Golden Dawn”) is pleased to announce that it has acquired from Mineworks Ventures Inc. (Mineworks), a 130 tonne-per-day permitted processing facility and adjacent tailings pond located on the Boundary Falls Property for a consideration of a royalty of $5 per tonne of material processed. The facility is accessed via Trans-Canada Highway No.3, two kilometers (km) west of the City of Greenwood and via a 2 km secondary road on the Boundary Falls Property. The facility has all infrastructure including power and water, located within 100 meters (m) of the number 7 adit of the historic May Mac Mine, which is located on the Boundary Falls Property.

The Boundary Falls Property, along with the contiguous Wild Rose and Tam O’Shanter Properties cover an area of around 3,000 ha, and are collectively called the Greenwood Precious Metal Project. The historic Wild Rose Mine Portal is located on the Wild Rose Property, 2 km north of the historic May Mac Mine and the associated processing facility. For more information see: www.goldendawnminerals.com

COMMENCING OF PHASE 1 DRILLING PROGRAM ON ROYAL ATTWOOD PROJECT, BRITISH COLUMBIA

Hi Ho Silver Resources Inc. will be commencing the phase 1 drilling program at the Royal Attwood project, near Grand Forks, B.C., once funds are in place, through a continuing joint venture with Golden Dawn Minerals Inc. The Royal Attwood project is located in the Greenwood mining district, south-central British Columbia, approximately 24 kilometres northeast of the famous Buckhorn mine operated by Kinross Gold Corp.

Hi Ho Silver Resources looks forward to a rewarding exploration season for 2012. The phase 1 drilling budget will allow for a minimum 2,500 metres of core diamond drilling over 12 predefined targets. These targets have been determined from a series of testing including: airborne geophysics, soil sampling and more recently a Titan24 ground survey.

The information in this document has been reviewed and verified by Mike Dufresne, MSc, PGeol, of APEX Geoscience Ltd., a qualified person. The programs will be supervised by Mr. Dufresne. For more information see: www.stockwatch.com HHS

www.goldendawnminerals.com

http://www.stockwatch.com/





It is with great sadness that we announce the sudden passing of Paul Gergely, at the age of 80, on Friday, May 18th.

Born and raised in Revelstoke, Paul moved on to Castlegar and Nelson where he and his lovely wife Carol raised their family and Paul indulged his passion for music. Paul plied his trade with many musical groups; especially as long time member and director of the Nelson Community Band. In addition to his musical pursuits, Paul enjoyed his bowling, golf, “coffee-time” and aqua-fitness. He often kept busy sorting music or volunteering at the local chamber of mines. The highlight of any week would be a high stakes card game with the “gang”. Paul is predeceased by his wife Carol, twin brother Ted and sister Margaret. He is survived by his daughters Linda, Sharon (Steve) Fabro, Barb and granddaughters Marley and Abbey. Thanks for all the beautiful music. A celebration of life will be held at a later date. In lieu of flowers, donations in Paul’s memory may be sent to the Nelson Community Band or the MS Society of BC. Arrangements are under the direction of Thompson Funeral Services Ltd.

Paul volunteered at the Chamber of Mines of Eastern B.C. as our Treasurer. Many presidents have come and gone but Paul was there for decades. Paul worked for Wood Valance Hardware and it was there that he came into contact with the mining industry. Wood Valance used to supply Cominco and other local mining companies in the Kootenay’s. Paul was a great guy and will be missed.

Memorial service to celebrate Paul’s life will be held on Thursday, July 5th at 2:00 pm at the Hume Hotel. The Nelson

Community band will also be playing several of Paul’s favourites at Lakeside Park on Canada Day, July 1st.



215 HALL STREET NELSON, BC V1L 5X4

PHONE (250) 352-5242

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