Nevada Pacific Gold Ltd.

Nevada Pacific Gold Ltd.

August 04, 2005 09:15 ET

Nevada Pacific Moves Drill to Cornerstone Project on Cortez Trend

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 4, 2005) - Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) is pleased to announce the commencement of a 10,000 ft. drill program on the Company's 100 percent owned Cornerstone Project, located in Eureka County, Nevada. The drill program consists of 10,000 feet of reverse circulation drilling in up to 17 holes primarily targeting the Flag Zone. The Cornerstone Project forms part of the Battle Mountain/Cortez Gold Trend and lies 12 miles southeast of the 10 million ounce Cortez Hills/Pediment deposit (Placer Dome 60% - Kennecott 40%), three miles east of the Company's 100% owned Keystone project and immediately adjacent to the 1.4 million ounce Tonkin Springs gold property owned by US Gold.

The Flag zone is 3,000 feet long by up to 850 feet wide and trends north-northwest, parallel to the structural fabric of the Cortez Trend. A series of 500-foot holes will be drilled in fences across the Flag Zone oriented due west at a 45 degree angle to test these near vertical structures. One or two holes are planned to be drilled to 1,000 feet. Twenty-four of sixty-nine rock chip samples taken from the Flag Zone contained between 0.025 opt gold and 0.317 opt gold and elevated pathfinder elements (See NPG release 05-36 October 15, 2004).

The exploration model at Cornerstone is: sediment hosted Carlin style gold mineralization controlled by steeply dipping feeder structures. Gold mineralization has been found in three different host rocks on the property, Devonian lower plate rocks (Horse Canyon Formation), Ordovician upper plate rocks (Vinini Formation) and in jasperoids outcropping within the overlying Tertiary volcanics.

The Cornerstone Project lies within the 36 square mile Tonkin Springs project area owned by U.S. Gold Corporation. Additional claim staking by Nevada Pacific within this area has increased the size of the Cornerstone Project from 3.3 square miles to 4.8 square miles.

"Recent corporate events at US Gold Corporation and several other companies with land in the area are a strong indication of how the gold mining industry views the exploration potential of the gold rich Cortez Trend. Nevada Pacific now controls 16 square miles of ground in this exciting area with the Keystone and Cornerstone properties. The Phase I drill program on Keystone is complete and the rig has been moved onto Cornerstone. These are very promising exploration properties and a very exciting time for Nevada gold exploration," stated David Hottman, Chairman.

Mr. Curt Everson, P.Geol., M.Sc., is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company in Nevada.

Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns the Magistral Gold Mine in Mexico and an exploration property portfolio covering approximately 75 square miles of mineral rights including portions of two significant gold producing belts in the State of Nevada. The Company's BMX, Keystone and Limousine Butte projects are under joint venture agreement to Placer Dome U.S. A description of these projects, including maps and photographs can be viewed on the Company's website at


David Hottman, Chairman

Cautionary Statement on Forward-Looking Information

Certain information set forth in this report contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties including: the results of current operation and exploration activities; market reaction to future operation and exploration activities; significant changes in metal prices; currency fluctuations; increases in production costs; differences in ore grades; recovery rates; and tonnes mined from those expected; changes in mining, or heap leaching rates from currently planned rates; the timing and content of work programs; geological interpretations; receipt and security of mineral property titles; general market and industry conditions; and other factors detailed in the Company's public filings.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise an, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements, and accordingly, no assurance can be given that the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

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

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