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

J-Pacific Gold Inc.

October 26, 2006 11:26 ET

J-Pacific Gold to Commence Drilling at the Blackdome Gold Mine

Mine has a history of high grade gold production

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - J-Pacific Gold Inc. ("J-Pacific") (TSX VENTURE:JPN)(OTCBB:JPNJF), a Vancouver-based company engaged in the exploration of gold prospects in North America, is pleased to announce that a 4,000-metre drill program at the Blackdome Gold Mine is scheduled to commence by the end of October 2006. 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. Currently, the Blackdome gold project has an inferred mineral resource (A. Boronowski, 1999), as reclassified by SRK Consulting (2001), of 124,120 tonnes, averaging 12.8 grams gold per tonne (0.37 oz/ton) and 33.7 grams silver per tonne (0.98 oz/ton) and totalling 50,834 ounces gold and 134,386 ounces silver. The infrastructure and processing facilities remain at the mine, as well as the majority of permits for operation.

In making the announcement today, Michael Michaud, J-Pacific's President and CEO, said that the Company will embark on a planned drilling program that could identify new zones of gold and silver mineralization on the project while extending the zones of known mineralization and adding to the current mineral resource base.

"The Blackdome project offers a unique, lower-risk opportunity for J-Pacific Gold, due to the existing mining and processing infrastructure on the project and its exploration potential. The success of our drilling and underground exploration could lead to a production decision as early as the fall of 2007," Mr. Michaud said.

Since 2001, J-Pacific has compiled the past work at Blackdome and commissioned 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 epithermal gold-silver mineralization that could add to the current mineral resource base. Given these findings, J-Pacific is planning a minimum 4,000-metre core drilling program in approximately 17 holes designed to:

- Assess the down-dip/plunge 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 the area where the No. 1 and No. 2 veins potentially intersect, thereby forming a zone of greater dilatancy and allowing mineralized fluids to penetrate;

- Assess the previously untested northward strike extension of the No. 1 vein beneath Blackdome Mountain, potentially extending to the No. 17 vein, located approximately 1.3 kilometres to the north.

- Assess the potential of the down-dip/plunge 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 December 2006.

The exploration program is being undertaken by Coast Mountain Geological Ltd., a Vancouver-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.
    Nick Ferris
    Chairman
    (888) 236-5200
    or
    J-Pacific Gold Inc.
    Michael Michaud
    President and CEO
    (888) 236-5200
    (604) 684-6678 (FAX)
    Email: info@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