J-Pacific Gold Inc.
TSX VENTURE : JPN
OTC Bulletin Board : JPNJF

J-Pacific Gold Inc.

January 17, 2007 11:24 ET

J-Pacific Gold Begins New Drilling Program at the Montgolfier Project, Quebec

Promising recent survey identifies unique potential for gold mineralization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - J-Pacific Gold Inc. ("J-Pacific" or "the Company") (TSX VENTURE:JPN)(OTCBB:JPNJF), a company engaged in the exploration of gold prospects in North America, announces today that it has commenced a 10,000-metre core drilling program at its Montgolfier Project. J-Pacific notes that the results of a geophysical survey and reinterpretation of historical data have identified the project's unique potential to host gold mineralization. The Montgolfier Project is located in the Casa Berardi region of northwestern Quebec, some 85 kilometres west of Matagami and 40 kilometres east of the Casa Berardi gold deposit.

The drilling program is based on the recommendations of SRK Consulting Inc. ("SRK"), which was commissioned in September 2006 to perform a reinterpretation of historical exploration data. In arriving at its conclusions, SRK also undertook interpretation of new high-resolution magnetic and apparent resistivity data, acquired in 2005 via an airborne geophysical survey completed by Fugro Airborne Surveys.

In SRK's opinion, the character of the Montgolfier Project is of sufficient merit to complete an initial drilling program of approximately 10,000 metres, designed to investigate eight conceptual targets with 27 boreholes.

The Montgolfier Project straddles the Casa Berardi Tectonic Zone, approximately 30 kilometres east of the Casa Berardi Mine, where Aurizon Mines Ltd. has outlined a mineral reserve of 4.9 million tonnes grading 7.69 g Au/t (equivalent to 1,211,471 oz Au), with an indicated mineral resource of 2.7 million tonnes grading 5.11 g Au/t (equivalent to 443,583 oz Au), and an inferred mineral resource of 5.7 million tonnes grading 6.50 g Au/t (equivalent to 1,191,183 oz Au) (Source: Aurizon Mines Ltd. website).

Announcing the start of the drilling program today, Michael Michaud, President and CEO of J-Pacific Gold, says that while the presence of gold reserves and resources at the Casa Berardi Mine does not necessarily indicate that gold resources will be delineated on the Montgolfier Property, SRK believes there are similarities in the stratigraphy and structural setting of the Montgolfier Property to those of the Casa Berardi Mine, as well as other occurrences of gold mineralization elsewhere in the Casa Berardi Tectonic Zone.

Mr. Michaud says that between 1984 and 1991, several companies (including Teck Exploration, Placer Dome, Golden Hope and Golden Shield) carried out exploration on the property: "We now have the opportunity to confirm the data produced by these larger companies and to add to this new research, which will hopefully identify further evidence of gold mineralization."

The drilling is being completed by Major Drilling Group International Inc., and the on-site geological expertise is being provided by IOS Services Geoscientifiques Inc., a Quebec-based geological services consulting company, under the supervision of Michael Michaud, J-Pacific's qualified person for this project as defined by NI 43-101 regulations, who has reviewed and approved this news release.

On behalf of the Board of Directors

M. Michaud, President and CEO

Statements in this press release, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, some of which are described below. Such forward-looking statements include comments regarding the establishment and estimates of mineral reserves (and non-reserve mineralized material), future increases in mineral reserves, the recovery of any mineral reserves, construction cost estimates, construction completion dates, equipment requirements and costs, production, production commencement dates, grade, processing capacity, potential mine life, results of feasibility studies, development, costs and expenditures. Factors that could cause actual results to differ materially include timing of and unexpected events during construction, expansion and start-up; variations in ore grade, tons mined, crushed or milled; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms for equipment, construction, working capital and other purposes; the availability of adequate power and water supplies; the availability of adequate mining equipment; technical, permitting, mining or processing issues; and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management.

The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the past 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • J-Pacific Gold Inc.
    Michael Michaud
    President and CEO
    (604) 684-6677 or 1-888-236-5200
    or
    J-Pacific Gold Inc.
    Nick Ferris
    Chairman
    (604) 684-6677 or 1-888-236-5200
    (604) 684-6678 (FAX)
    Email: ir@jpgold.com
    Website: www.jpgold.com
    or
    Marston Webb International - Media Inquiries
    Victor Webb
    (212) 684-6601
    or
    Marston Webb International - Media Inquiries
    Madlene Olson
    (212) 684-6601
    (212) 725-4709 (FAX)
    Email: marwebint@cs.com