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

J-Pacific Gold Inc.

May 02, 2007 09:00 ET

J-Pacific Commences Phase 2 Drilling Program at Its Blackdome Gold Mine

Drill program to build on success of fall 2006 program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 2, 2007) - J-Pacific Gold Inc. (TSX VENTURE:JPN)(OTCBB:JPNJF) is pleased to announce that it has commenced a 2,000-metre drill program at the Blackdome Gold Mine. The Blackdome Gold Mine is located in the Clinton Mining District of British Columbia, approximately 250 kilometres north of Vancouver and 70 kilometres west-northwest of the town of Clinton.

Between 1986 and 1991, the Blackdome Gold Mine was one of the highest-grade gold producers in western Canada, yielding 240,000 ounces of gold from 338,000 tonnes of ore. Between 1998 and 1999, the mine produced an additional 6,547 ounces of gold from 21,286 tonnes of ore from underground mining.

In making the announcement today, Nick Ferris, J-Pacific's President and CEO, said that the planned drilling program is focused on building on the successes of the 2006 Phase 1 results. Phase 2 targets potential new zones of gold and silver mineralization, while attempting to extend the zones of known mineralization with the goal of adding to the current mineral resource base. "Everything is in place at Blackdome to enable us to recommence production once we define an economic resource at this former highly productive mine site," said Nick Ferris.

In the fall of 2006, J-Pacific completed a Phase 1 program of 10 holes totalling 2,014 metres, which successfully tested the historical mining veins along strike, and demonstrated that they could contain significant gold mineralization.

Phase 2 will complete the drill targets outlined in studies by SRK Consulting (2001) and Roscoe Postle and Associates Inc. (2004). Both studies demonstrated that the Blackdome Project has the potential to host entirely new zones of epithermal gold-silver mineralization that could add to the current mineral resource base. Given these findings, J-Pacific is planning a minimum 2,000-metre core drilling program in approximately 10 holes, designed to:

- Assess the down-dip potential of gold mineralization, approximately 50 to 100 vertical metres below the previous mine workings on the No. 1 and No. 2 Veins and approximately 200 to 250 metres below surface.

- Assess the potential of an area where the No. 1 and No. 2 Veins may intersect. This would represent a prospective zone where a greater volume of mineralized fluids may have penetrated.

- Assess the previously untested northward strike extension of the No. 1 and No. 2 Veins beneath Blackdome Mountain, potentially connecting with the No. 17 Vein, located approximately 1.3 kilometres to the north.

- Assess the down-dip potential of gold mineralization in the Giant Vein.

This work, for which J-Pacific currently holds permits, is expected to be completed by the end of June 2007.

Coast Mountain Geological Ltd., a Vancouver-based geological services consulting company, is undertaking the exploration program under the supervision of John Harrop, J-Pacific's qualified person for this project as defined by NI 43-101 regulations, who has reviewed and approved this news release.

OTHER BACKGROUND

Currently, the Blackdome gold project has an inferred mineral resource (A. Boronowski, 1999), as reclassified by SRK Consulting (2001), of 124,120 tonnes, averaging 12.8g Au/t and 33.7g Ag/t and totalling 50,834 ounces gold and 134,386 ounces silver. The infrastructure and processing facilities remain at the mine, as do the majority of permits for operation.

On behalf of the Board of Directors

N. Ferris, 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, tonnes 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.
    Nick Ferris
    President and CEO
    1-888-236-5200
    (604) 684-6678 (FAX)
    Email: info@jpgold.com
    Website: www.jpgold.com
    or
    Marston Webb International
    Victor Webb
    Media Inquiries
    (212) 684-6601
    or
    Marston Webb International
    Madlene Olson
    Media Inquiries
    (212) 684-6601
    (212) 725-4709 (FAX)
    Email: marwebint@cs.com