TORONTO, ONTARIO--(Marketwire - Nov. 9, 2012) - Pacific Gold Corp. (OTCQB:PCFG)(PINKSHEETS:PCFG).
Pacific Gold announced today the following update on the status of the Company and each of its four subsidiaries.
Nevada Rae Gold
During the 3rd quarter of 2012 the Black Rock Canyon Mine mined and processed 16,300 cubic yards of gravel and produced 63 ounces of gold during 167 operating plant hours. The Company's goals for the 3rd quarter were 75,000 cubic yards of gravels processed.
The plant and equipment are in good repair and are able to process the required volume of gravels. The Mine has had numerous difficulties with obtaining staff that are capable of running the plant and mining gravels at productive rates. Some of the most identifiable problems are that mine employees have had trouble with maintaining proper spare parts inventory lists to keep equipment uptime, daily workflow monitoring by site management, and proper daily maintenance and removal of the geotextile bags. In order to resolve the staffing issues initial internal discussions have focused on reducing the amount of labor required at the Mine by using more automation. This would include reducing the number of geotextile bags, changing the current pond system to concrete ponds and adding a new dewatering screen. The Company plans to begin a more focused search to identify a suitable candidate to take over the daily management of the Mine.
As such the Company has temporarily ceased mining and screening operations at the site in order to properly evaluate how to proceed with making the screening operation run at a steady rate of production. The Company estimates that this process will take up to 120 days. NDEP has advised the Company that approval of any changes to the operation will take approximately 60 days from when the Company submits its design changes.
The Company is reviewing its initial Plan of Operations that was filed with the BLM and NDEP and plans to hire a new engineering firm to file an amended plan in 2013. Upon approval of the amended Plan by the BLM and NDEP, the Company will file for its additional necessary permits and reclamation bond in order to commence mining at the Olinghouse Placers. BLM and NDEP approval may take until 2014 to complete.
Pilot Mountain Resources
The Company is very pleased with progress to date made at Project W by Pilot Metals (a subsidiary of Black Fire Minerals). Since the time Project W was optioned to Pilot Metals significant improvements to the resource calculation have been made and Pilot Metals has advanced the project to meet with the expectations of management. Should Pilot Metals elect to exercise their purchase option they will be required to advance $500,000 to Pilot Mountain Resources in September 2013, along with two additional payments of $500,000 each in 2014 and 2015.
The Company paid its dividend of 1 share of Pacific Metals for each 420 shares of Pacific Gold Corp. on November 2nd, 2012.
Pacific Metals is working towards having a form 211 filed with the FINRA so that trading in Pacific Metals shares may soon begin. Once the market quote is established for the Company it will begin working to raise $500,000 in capital for its 2013 budget. The Company has a work plan for 2013 from its Geologist consultants for an estimated $300,000 of work to be performed in 2013 which includes preparing new maps, resource survey's and new drill holes on the Graysill claims.
Pacific Gold Corp.
The Company is holding its annual general meeting on November 13th in Las Vegas and hopes to approve a number of measures for financially restructuring the share capital of the Company. Following the meeting, the Company will actively look to raise $2 million in new debt and/or equity in order to complete its business plans in 2013 as outlined above. Without raising the necessary funding the Company may have to curtail some of its plans in 2013.
The Company would like to remind its shareholders that there will be no video or audio recording of the annual meeting permitted. As well any shareholders planning on attending the meeting should bring a valid photo identification as well as proof of share ownership.
To find out more about Pacific Gold Corp. (OTCQB:PCFG), visit the Company's website at www.pacificgoldcorp.com.
About the Company
Pacific Gold Corp.'s business plan provides for the acquisition and development of production-ready and in-production mining operations. The company is focused on alluvial gold and base metals operations located in western North America. Pacific Gold Corp. owns four operating subsidiaries: Nevada Rae Gold, Inc., which owns and operates the Black Rock Canyon gold mine, located in north-central Nevada; Pilot Mountain Resources Inc., which owns Project W, a large tungsten based deposit in Nevada; Fernley Gold, Inc., which has acquired exclusive lease rights to mine the Lower Olinghouse Placers in north-western Nevada; and Pacific Metals Corp., which owns claims in San Juan and Delores Counties, Colorado, encompassing the historic Graysill Mine.
This news release includes forward-looking statements that reflect Pacific Gold Corp.'s current expectations about its future results, performance, prospects and opportunities. Pacific Gold Corp. has tried to identify these forward-looking statements by using words and phrases such as "may", "will", "expects", "anticipates", "believes", "intends", "estimates", "should", "typical", "we are confident" or similar expressions. These forward-looking statements are based on information currently available to Pacific Gold Corp. and are subject to a number of risks, uncertainties and other factors that could cause the Company's actual results, performance, prospects of opportunities in the remainder of 2012 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.