Nevada Pacific Gold Ltd.

Nevada Pacific Gold Ltd.

July 28, 2005 09:15 ET

Nevada Pacific Moves to Leach Only Mode at Magistral Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 28, 2005) - Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) wishes to announce that the Magistral Mine has been moved to a leach only mode and that mining has temporarily been suspended. During this time the Company will continue to produce gold from an existing inventory of approximately 11,000 recoverable ounces of gold on the heap leach pad.

While the Mine has been cash flow positive since April 1, 2005 revenue projections are becoming increasingly difficult to meet given the increases in operating costs impacting the mining industry (fuel, reagents, tires and steel) as well as a dramatic increase in precipitation at the early stages of the rainy season. By placing the Mine in leach only mode the Company will be able to reduce costs while continuing to produce gold and silver from the heap pad inventory. The Company will monitor industry mining costs and will re-commence mining when costs are more favorable. Nevada Pacific believes that this decision will benefit shareholders by employing the increased positive cash flow to fund exploration and drilling programs at the Mine and on the many drill ready projects in Nevada.

In June exploration and development drilling at the Mine was suspended pending completion of a ground based geophysics program. One of the more significant geophysical anomalies outlined is an area adjacent to the La Prieta high-grade zone and a drilling program is being planned on this target.

In Nevada six of the Company's projects will see significant exploration or be drill tested this year; three by Placer Dome US and three by Nevada Pacific. Four of six programs are on the Battle Mountain/ Cortez Trend, one of the most prolific and active areas of global gold exploration.

Additionally the Company will conduct a follow up drill program on the Bat Ridge Project (see NPG Release 05-07 March 17, 2005) in Utah where historic drilling intersected a zone of high-grade gold/copper/silver mineralization in three holes.

Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns the operating 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.

Contact Information