Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

June 28, 2011 18:12 ET

Pacific Iron Ore Corporation Announces Completion of Port Renfrew 2011 Spring Drilling Program and Release of March 31, 2011 Financial Statements and Management Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - June 28, 2011) - Pacific Iron Ore Corporation (TSX VENTURE:POC), announces that it has filed its Financial Statements and Management Discussion and Analysis for the three months ended March 31, 2011. These documents are now available on SEDAR.

2011 Drilling Activity

During the first five months of 2011 POC has drilled an additional 17 diamond drill core holes on the Port Renfrew Project. The locations for which were determined in consultation with Wardrop Engineering Inc., of Vancouver, British Columbia ("Wardrop"). Also in January 2011 Wardrop update its 2009 resource estimate for the Bugaboo Creek Area located within the Pearson Project, to assess the results of the 2008 Exploration Program and provide recommendations for additional diamond drilling to be completed in 2011. In their report, Wardrop estimated that the Bugaboo Creek deposits which comprises a small component of the Port Renfrew Block, contain inferred resources of 14.2 million tonnes grading 60% magnetite, prior to taking into account any update required as a result of the 2011 Exploration Program.

2011 Results

During the first three months of 2011 the Corporation incurred a net loss of $563,077 or $0.01 per common share as compared to a net loss of $507,565 or $0.01 per common share in the first three months of 2010.

Its major expenses included:

Operating expenses totalled $44,988 in 2011 as compared to $51,265 in 2010 an decrease of $6,277. In 2011, the major categories of expenditure were as follows:

  • Amortization of equipment of $9,880 ($8,880 in 2010).
  • Consulting costs of $22,200 ($22,200 in 2010) relating to operational management services provide to the Corporation which did not pertain to exploration or financial services
  • Travel costs of $238 ($4,169 in 2010) incurred in transporting staff, advisors and investors to the Corporation's principal mining properties.
  • Office, rent and utility expenses of $5,513 ($5,292 in 2010).
  • Automotive related costs of $4,872 ($6,743 in 2010).
  • Insurance costs of $1,975 ($3,881 in 2010).

Mineral property acquisition costs and exploration costs expensed during the period totalled $73,798 as compared to $32,835 in 2010 due to higher costs associated with maintaining access to claims where significant exploration costs had not be incurred.

General and administrative expenses totalled $112,661 in 2011 as compared to $89,829 in 2010, an increase of $73,801. In 2010, the major categories of expenditure included:

  • Legal and accounting fees $73,102 ($59,146 in 2010). The costs are associated with annual audit, adoption of International Financial Accounting Standards ("IFRS") and review procedures, filing of tax returns, consulting services provided in the preparation of interim statements and regulatory filings and general corporate advisory services. Also see disclosures with respect to related party transactions.
  • Advertising, Investor relations, corporate communication and security exchange fees totalling $35,457 ($22,347 in 2010).
  • Insurance costs of $3,586 ($3,953 in 2010).

Stock based compensation expense totalled $77,942 ($28,930 in 2010) and arises from the issuance of stock options and broker warrants.

During the three months ended March 31, 2011 the Corporation incurred $274,255 in capital expenditures related to the Port Renfrew Project as compared to $222,120 for the same period in 2010.

During 2011, subject to maintaining sufficient capital resources to support its activities, the Corporation anticipates spending approximately $2,000,000 on exploration activities to fulfill its flow through expenditure commitments. Limited amounts will be spent on the acquisition of mineral properties and equipment. During 2011, the Corporation will focus its efforts on the Port Renfrew property in British Columbia and the St. Anthony Project in Ontario. These expenditures will be financed with the Corporation's existing working capital balances. Should equity markets permit, the Corporation will consider the issuance of additional equity to finance these activities.

Corporate Direction and Strategy

Pacific Iron Ore Corporation is dedicated to the development of its strategic mineral deposits, located in the Port Renfrew area (iron resources) of Vancouver Island, British Columbia, as well as, in the Kenora area (gold resources) of Ontario. With the success of the previous exploration and the existence of sufficient capital resources to undertake additional exploration activities in 2011, the Corporation is well-positioned to continue its exploration efforts.

It is the objective of Pacific Iron Ore Corporation to delineate 20 million tonnes of high-grade iron ore in the existing deposits and complete a pre-feasibility study for the production of iron concentrates to be sold directly to the Far East. It is believed that the high-grade nature of the deposits, proximity to tide-water, and the existence of Port Facilities such as the Port of Naniamo Duke Point facility, will significantly benefit the potential projects economics along with the current high demand and pricing for iron concentrates. The Corporation has set an objective to identify sufficient resources to allow for a production capacity of 2 million tonnes per year of iron concentrates from the site.

Company Contacts:

For further information please refer to the Corporations profile on SEDAR which can be accessed at www.sedar.com, visit our website at www.pacificironorecorp.com or contact:

Forward Looking Statements:

The TSX.V Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation beliefs the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Iron Ore Corporation
    Todd Montgomery
    CEO
    (403) 228-0607
    (403) 262-4860 (FAX)

    Pacific Iron Ore Corporation
    Jeffery Austin
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    www.pacificironorecorp.com