PC Gold Inc.
TSX : PKL

PC Gold Inc.

October 06, 2009 07:30 ET

PC Gold Starts Deep Drilling at Pickle Crow, Provides Exploration Update

OTTAWA, ONTARIO--(Marketwire - Oct. 6, 2009) - PC Gold Inc. (TSX:PKL) ("PC Gold" or "the Company") is pleased to report that a second drill has been added to the Phase II drill program presently underway on the Pickle Crow Gold Mine Property. The second drill, rated to 2,500 metres (8,200 feet) vertical depth, has completed the Phase I drill program wedge hole PC-08-014AW03 and is presently drilling a fourth wedge hole PC-09-014AW04. TECH Directional Services Inc. of Millertown, Newfoundland has been contracted to manage all aspects of down hole surveying and directional drilling using DEVICO instruments.

Wedge hole PC-08-014AW03 successfully intersected the No. 5 Iron Formation ("IF") / No. 5 Vein Zone and the No. 11 Vein, which in wedge hole PC-08-014AW01 (news release February 3, 2009) returned 8.20 g/t gold over 4.20 m (0.24 opt gold over 13.8 ft) (uncut), including 52.7 g/t gold over 0.60 m (1.54 opt gold over 2.0 ft) in the No. 5 IF / Vein Zone and 31.90 g/t gold over 0.5 m (0.93 opt gold over 1.6 ft) in the No. 11 Vein. Abundant VG was noted in the core and assay results from PC-08-014AW03 are expected shortly.

The current wedge hole PC-09-014AW04 is targeting the No. 5 IF Zone at the 3,800 foot (1,160 metre) level in the Shaft 1 area, where historical drill holes such as 4-38-38 returned up to 13.71 g/t gold over 12.95 m (0.40 opt gold over 42.5 ft).

Upon completion of the current wedge hole, the drill will be moved to a new site northeast of Shaft 1, where it will commence drilling a new mother hole to a vertical target depth of 1,700 metres (5,600 feet) below surface, undercutting the deepest workings of the former mine (1,160 metres / 3,800 feet). This mother hole and subsequent wedge holes will target the depth extensions of some of the richest historical ore bodies including the No. 1, No. 5, and No. 9 Veins in addition to the No. 1, Central and No. 5 IF Zones.

A location map and a cross section for the deep holes discussed in this news release can be viewed on the Company's website at: http://media3.marketwire.com/r/Drilling_2009_Maps_Sections_84.html.

Conduit Zone

Further to news September 28, 2009, announcing the discovery of a significant new gold zone at Pickle Crow with intercepts such as 9.53 g/t gold over 10.1 m (0.28 opt gold over 33.1 ft), including 28.91 g/t gold over 2.90 m (0.84 opt gold over 9.5 ft) in hole PC-09-036, and 5.55 g/t over 11.0 m (0.16 opt gold over 36.1 ft), including 14.83 g/t gold over 3.30 m (0.43 opt gold over 10.8 ft) in hole PC-09-037, drilling continues to test the Conduit Zone down plunge to the north and laterally to the northeast where the system remains open. Assays from these holes are anticipated in the near future.

Geophysics

In a press release dated June 1, 2009, the Company announced that previously unrecognized potential exists for the Pickle Crow Property to host a new type of deposit, disseminated-replacement-style gold mineralization associated with the contact of the Pickle Crow and Confederation assemblages. In follow up, Quantec Geoscience Ltd. is presently conducting a 115 line kilometre magnetometer survey as well as a 70 line kilometre ground based Titan 24 Induced Polarization / Resistivity (DCIP) survey over the mostly swamp covered area of the contact to the south of the mine. Selected areas to the north of the mine are also being surveyed. This work will provide high resolution near surface data and is capable of detecting disseminated sulphide mineralization to depths of 700 metres. Targets generated from these surveys will be prioritized for drilling this winter.

Historical Data Digitization and 3D Modeling

Digitization of historical data sets and modeling of the results is far advanced, with completion now exceeding 80% for data in the important Shaft 1 area. The database presently incorporates information from over 3,500 historical drill holes out of a total of over 4,500 identified drill holes. In addition, the model now contains information for some 52 kilometres of underground workings, historical resource blocks, stopes, and chip assays. Information derived from the 3D model has been invaluable in targeting the lateral and depth extensions of historical gold zones, and was instrumental in the discovery of the Conduit Zone.

Neil Pettigrew, M.Sc., P.Geo., Vice President, Exploration for PC Gold and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this press release.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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