Nevada Pacific Gold Ltd.

Nevada Pacific Gold Ltd.

March 01, 2005 19:47 ET

Nevada Pacific Provides a Summary of Second Quarter Operating Activities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NEVADA PACIFIC GOLD LTD.

TSX VENTURE SYMBOL: NPG

MARCH 1, 2005 - 19:47 ET

Nevada Pacific Provides a Summary of Second Quarter
Operating Activities

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2005) - Nevada
Pacific Gold Ltd. (TSX VENTURE:NPG) wishes to announce the operating
results for the three months ended December 31, 2004 and the Company's
second fiscal quarter.

The Magistral Mine

The Magistral Mine revitalization program was completed in January 2005
and the mine is now in commercial production. With the completion of all
revitalization programs the mine has now entered a new phase of
operations and gold production is forecasted to continue to improve
going forward.

During the quarter the Magistral Mine produced 3,860 gross ounces,
(3,747 ounces of gold, net of royalties), and sold 3,563 ounces at an
average price of US$429. During the six months to December 31, 2004 a
total of 7,065 gross ounces (6,822 ounces of gold, net of royalties),
have been produced and 6,835 ounces have been sold at an average price
of $415. During the pre-commercial revitalization period all revenues
from the sale of gold were recorded as a reduction in operating costs
and the net amount was deferred as mine property. Since acquisition the
Magistral Mine has produced, as of December 31, 2004, 16,182 ounces of
gold. Silver continues to be stockpiled.

During the second quarter of fiscal 2005, management focused on waste
removal at the Magistral Gold Mine while the crusher circuit was being
upgraded. A total of 115,307 tonnes of ore and 1,312,696 tonnes of waste
were mined with a waste to ore strip ratio of 11.4:1. The average grade
of the mined ore was 1.6 grams gold per tonne for a total of 5,751
ounces of gold.

For the six months ended December 31, 2004, a total of 244,337 tonnes of
ore and 2,139,375 tonnes of waste were mined for a strip ratio of
8.8:1.The average grade of mined ore was 1.5 grams gold per tonne for a
total of 11,538 ounces of gold. The recoverable gold inventory remaining
on the heap at December 31, 2004 was estimated to be 4,207 ounces.

The Mine is experiencing improved results with the completion of the
revitalization project. The additional mine equipment added to the fleet
in October 2004 has resulted in increased tonnes being mined. The high
waste to ore stripping ratios in the current fiscal year related to the
San Rafael pit have ended. The completion of the waste removal will
result in a significantly lower strip ratio for the San Rafael pit going
forward. The modifications to the crushing circuit consisting of a
larger capacity screen, converting the primary crusher drive motor to
electric from diesel and closing the circuit were completed in late
January 2005. The crusher is now achieving the goal of sustained
throughput in excess of 250 tonnes per hour with a crush size in excess
of 80% of the product crushed to 1/2 inch minus as was forecasted in the
mine revitalization plan. The process plant has been upgraded to 6,500
cubic metres of solution per day and continues to realize a lower unit
cost relating to the higher throughput. There have also been several
administrative changes, including the relocation of the administrative
office to the mine site, and upgrades to the communications
infrastructure which will improve management of the mine.

Magistral Mine Exploration Review

Nevada Pacific controls an area of 400 square kilometres surrounding the
Magistral Mine. A systematic review of the near mine geology based on a
review of previous exploration data led to further surface sampling
which successfully demonstrated the potential to increase
resource/reserve adjacent to the mine and to discover and develop
additional resources throughout the mining camp. During the quarter
Nevada Pacific announced the commencement of a US$1 million exploration
and drilling program that will consist of up to 20,000 metres (65,000
feet) including both core and reverse circulation drilling. The program
will focus on targets in the immediate area of the Mine which are the La
Prieta High Grade Zone, Samaniego Open Pit, West San Rafael Zone, San
Rafael Open Pit, Lupita-Sagrado Corazon reserve/resource area, Lucy
Zone, South of Sagrado Corazon and the Cerritos Porphyry System.

Nevada Pacific US Exploration Projects

Cornerstone Project

An extensive surface based exploration program was conducted in the
quarter. The exploration program identified four zones of
mineralization: the Flag zone, CSZ zone, TR zone, and BuTr zone. Each
zone returned anamolous rock chip samples and elevated pathfinder
elements indicating strong potential at surface. Sampling at the Flag
zone outlined a north-south trending area, 3000 feet long by up to 850
feet wide, of anomalous soils and rock chips (with rock chip samples
returning up to 0.317 ounce per ton gold). The CSZ trend forms the
southern end of the Flag zone, but trends north-northwest along one of
the Cortez trend parallel structures, returned rock chip values up to
0.099 ounces per ton gold. Twenty-four of sixty-nine rock chips taken to
date contained assays greater than 0.025 opt gold.

Timber Creek Project

Nevada Pacific recently acquired geologic data shows historical drilling
containing 20 feet of 0.06 opt gold, 10 feet of 0.035 opt gold and 25
feet of 0.01 opt gold distributed over an area measuring 1,600 ft by
1,000 ft. In addition, data also shows an anomalous copper, molybdenum
and zinc area measuring 7,000 ft by 5,000 ft of which a large portion of
this anomalous area falls on Nevada Pacific ground.

Keystone Project

Localized zones of massive sulfide mineralization mentioned in previous
news releases, is hosted in an area that measures 4,000 feet by 1,000
feet. Nevada Pacific plans to conduct an exploration and drilling
program along the margin of the intrusive to test the high-grade base
metal potential of the area. As part of the September 2004 joint venture
agreement between Nevada Pacific and Placer Dome U.S., Nevada Pacific
retains the rights to base metal and silver.

Amador Canyon Project

Drilling has demonstrated that the original exploration model of bulk
mineable silver does not exist in the area drilled by Nevada Pacific.
What was demonstrated was that high grade silver, up to 34 ounces over
five feet, is present in localized areas. Although management believes
that additional work is warranted in the southern half of the project
area Nevada Pacific has elected to write off 100% of capitalized
expenditures.

Placer Dome U.S. Joint Venture Agreement Exploration Projects

Limousine Butte Project

On September 7, 2004, the Company signed a binding letter agreement with
Placer Dome U.S., a wholly owned subsidiary of Placer Dome Inc., whereby
Placer Dome U.S. has the right to earn a 60% interest in the Limousine
Butte project by spending $4,000,000 on exploration over a five-year
period. Placer Dome can earn an additional 15% interest by completing a
feasibility study.

Recent staking of unpatented mineral claims by Placer Dome U.S. has
nearly doubled the land package at Limousine Butte to include 972
unpatented claims or just over 30 square miles (19,440 acres). Placer
Dome has completed additional detailed geologic mapping and sampling in
the Resurrection Ridge area, Pit area and to the southwest of
Resurrection Ridge. Current data indicates the potential for additional
mineralization to extend for an unknown distance southwest of the pit
area, along the margin of the caldera.

Keystone Project

On September 7, 2004, the Company signed a binding letter agreement with
Placer Dome U.S., whereby Placer Dome U.S. has the right to earn a 60%
interest in the Keystone project by spending $5,000,000 on exploration
over a five-year period. Placer Dome U.S. can earn an additional 15%
interest by completing a feasibility study.

Placer Dome continues gold exploration as per the above-mentioned
agreement. As a result of fieldwork conducted during the fall of 2004 by
Placer Dome U.S. two priority areas have been identified to date that
will be the major focus for early 2005.

BMX Project

On December 2, 2002 the Company signed a binding letter of agreement
with Placer Dome U.S. whereby Placer Dome U.S. has the right to earn a
60% interest in the BMX project by spending US$4 million over a five
year period. Placer Dome U.S. can earn an additional 10% interest (70%
total) by carrying Nevada Pacific through a feasibility study. Nevada
Pacific is the exploration operator at the BMX project.

Ross Zawada, P. Geo., is a Qualified Person as defined by National
Instrument 43-101 and is responsible for exploration program design and
quality control undertaken by the Company at their Mexican Operations.

Curt Everson, P.Geo., 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
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
optioned to Placer Dome. A description of these projects, including maps
and photographs can be viewed on the Company's website at:
www.nevadapacificgold.com.

ON BEHALF OF NEVADA PACIFIC GOLD LTD.

Richard J. Barclay, CEO and President

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. Nevada Pacific Gold
Ltd'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 Nevada Pacific Gold Ltd. will
derive therefrom. Nevada Pacific Gold Ltd. disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Nevada Pacific Gold Ltd.
    David Hottman
    (604) 646-0188
    (604) 646-0189 (FAX)
    www.nevadapacificgold.com
    No securities regulatory authority or stock exchange has reviewed or
    accepts responsibility for the adequacy or accuracy of this release.