Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

November 24, 2009 14:35 ET

Pacific Iron Corporation Announces 2009 Exploration Update and Release of September 30, 2009 Financial Statements and Management Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2009) - Pacific Iron Ore Corporation (TSX VENTURE:POC), announces that it has filed its Financial Statements and Management Discussion and Analysis for the three and nine months ended September 30, 2009. These documents are now available on SEDAR.

Pacific Iron Ore Corporation also announces that it is proceeding with its diamond core drilling program and the construction of site access roads on the St. Anthony's Project and has completed the 2009 diamond core drilling program on the Pearson project in British Columbia. The Corporation has sent the core samples gathered to ALS Chemex for further analysis. Mr. Montgomery, CEO of Pacific Iron Ore Corporation stated that "the 2009 drilling program has been very successful and the Corporation looks forward to releasing the assays and technical updates on these projects in the near future". Furthermore, the Corporation is now seeking potential partners to further its exploitation of the Separation Lake project. The current status of each is as follows:

Pearson Project:
POC has recently completed a 33 hole diamond drill program focusing on the Bugaboo Creek and Granite areas located within the Pearson Project. Initial results remain promising and the Corporation is focusing its efforts on expanding the initial iron ore resource estimates obtained from the 2008 Exploration program and further defining the large layered mafic/ultramafic intrusive which was identified in the Granite area. The Corporation believes this may exhibit disseminated magmatic sulphides consisting of pyrrhotite and chalcopyrite.

St. Anthony's Project:
Initial prospecting and mapping is well underway with channeling and grab sample collection completed. The Corporation has now commenced a 12 hole diamond drill coring program and has started the construction of site access roads. Management believes this project exhibits potential for gold, silver, minor copper, zinc and lead.

Separation Project:
The Corporation is now receiving expressions of interest from third parties to joint venture this property. If successful a joint venture would enable exploration of this project to commence earlier than originally planned and would preserve the Corporation's capital. Management believes it may exhibit the potential for the rare metal pegmatite of Petalite (lithium), tantalum and tin.

Results for the nine months ended September 30, 2009

Revenue of $5,933 consists of interest income earned on invested cash deposits.

General and administrative expenses totaled $309,667 in 2009 as compared to $253,759 in 2008, an increase of $55,908. These expenditures are incurred in respect to the ongoing general administrative activities of the Corporation. The increase in expenditures were associated with management of the corporation, daily accounting activities, filing of tax returns, consulting services provided in the preparation of interim statements, audit fees and regulatory filings and general corporate advisory services. In 2008, the Corporation did not have consultants and staff in place to perform these duties prior to April 2008. In addition the Corporation incurred additional costs associated with investor relations, insurance and Part XII tax which did not occur in 2008.

Write downs of mineral properties totaled $16,100 in 2009 as compared to $124,621 in 2008. After accessing the preliminary results of the 2008 Exploration Program, the remaining financial resources of the Corporation, the ability to raise additional capital and management's belief of the future potential of certain mining claims, the Corporation surrendered its rights to claims with a book value of $16,100.

Stock based compensation expense totaled $124,740 ($95,753 in 2008) and arises from the issuance of stock options and broker warrants by the Corporation. The Black-Scholes valuation model was applied in determining the expense for the period.

Income taxes during the period amounted to a net recovery of $394,100 as compared to a recovery of $125,861 in the prior year principally as a result of recognizing the future benefit of discretionary income tax deductions and net operating losses carried forward for income tax purposes.

The net loss for the nine months amounted to $51,599 as a result of the individual items set out above as compared to a net loss of $317,256 in the same period in 2008.

Corporate Direction and Strategy
Pacific Iron Ore Corporation is dedicated to the development of its iron ore deposits, located in the Port Renfrew area of Vancouver Island, British Columbia. With the success of the 2008 Exploration Program and the existence of sufficient capital resources to undertake additional exploration activities in 2009 the Corporation is well positioned to manage these difficult times. In order to maximize the returns on future exploration activity, the Corporation has initiated a detailed review of its claims located on Vancouver Island and in Ontario, with the intention of identifying other areas with similar potential to the Pearson Project.

For further information please refer to the Corporations profile on SEDAR which can be accessed at www.sedar.com.

Forward Looking Statements:
The TSX.V Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation beliefs the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Iron Ore Corporation
    Todd Montgomery
    President
    (403) 228-0607
    (403) 262-4860 (FAX)
    or
    Pacific Iron Ore Corporation
    Leonard Cornez
    Chief Financial Officer
    (403) 218-0294 or Toll Free: 1-866-682-5812
    (403) 265-2887 (FAX)
    or
    Pacific Iron Ore Corporation
    Jeffery Austin
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    www.pacificironorecorp.com