Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

August 30, 2010 12:43 ET

Pacific Iron Ore Corporation Announces Exploration Update and Release of June 30, 2010 Financial Statements and Management Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2010) - Pacific Iron Ore Corporation (TSX VENTURE:POC), announces that it has filed its Financial Statements and Management Discussion and Analysis for the three and six months ended June 30, 2010 and 2009. These documents are now available on SEDAR.

2010 Exploration Update

The Corporation has continued to further explore the Bugaboo Creek area located near Port Renfrew on Vancouver Island and has completed the drilling of a further 22 diamond core holes in 2010. The results from these and the 28 core holes drilled in 2009 have be provided to Wardrop Engineering Inc, of Vancouver, British Columbia to update the 2008 engineering study. Mr. Austin stated "we are very pleased with the assays and iron intercepts achieved in the 2009 and 2010 Exploration Program and look forward to receiving an updated resource estimate from Wardrop. The previously estimate was an inferred resource of 7.8 million tonnes, grading 63% magnetite and was based on the 2008 Exploration Program. We believe our exploration efforts over the past two years have significantly increased the known size of the ore body. Mr. Austin also stated that "once drilling on the Bugaboo Creek prospect is complete the Corporation will return to the St Anthony's Gold Project in Ontario to complete approximately 10 diamond core holes with further assays on core samples to follow. Our initial work in 2009 has strongly encouraged us to expand our exploration efforts in an attempt to identify additional gold resources."

In June 2010, the Corporation negotiated the sale of its Separation Project to Mega Graphite Inc., in exchange for 990,901 common shares of the purchaser. The arrangement is conditional upon a number of factors including the obligation for the purchaser to gain a public listing on a Canadian exchange prior to May 19, 2011. The Corporation continues to hold the Separation Project in its mineral property accounts until the final conditions of the sale are satisfied.

2010 Results

During the first six months of 2010 the Corporation generated interest revenue of $1,685, incurred a net loss before income taxes of $423,039 and generated a net loss of $340,556 or $0.01 per common share. During the three month period ended June 30, 2010 the Corporation generated interest revenue of $1,119, incurred a net loss before income taxes of $171,553 and generated a net loss of $149,622 or $0.01 per common share.

Its major expenses included general and administrative costs of $271,837, stock based compensation expenses of $78,512 and the write-down of mineral properties surrendered by the Corporation of $74,375. The Corporation also received the benefit of recognizing future income tax recoveries of $82,483 during the quarter.

General and administrative costs totaled $271,837 in 2010 as compared to $202,658 in 2009, an increase of $69,179. The increase can be mainly attributed to the addition of a corporate President for the full period ($17,500); accounting costs ($9,660); legal costs ($5,833); amortization ($9,323); and investor and community relations charges incurred during the period. These expenditures are incurred in respect to the ongoing general administrative activities of the Corporation.

During 2010 and 2009, the Corporation determined that insufficient work was being completed on certain claims or the Corporation had decided to relinquish its interest in certain other mineral claims which did not exhibit significant potential for mineral deposits. In accordance with the Corporation's accounting policy for mineral properties and deferred exploration costs were written off during the period.

During the six months ended June 30, 2010 the Corporation incurred $954,895 in investing activities as compared to $507,036 for the same period in 2009. In 2010 the Corporation incurred $93,848 ($161,336 in 2009) with respect to acquisition, staking, recording and filing costs associated with its British Columbia and Ontario properties and $680,655 ($285,442 in 2009) on deferred exploration costs, principally in British Columbia. Miscellaneous equipment purchases in 2010 accounted for $10,904 ($13,912 in 2009). The funding of deposits on future exploration activity and working capital changes account for the remaining expenditures.

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 2010, 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.

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 TSX Venture Exchange nor its Regulation Services Provider (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)
    or
    Pacific Iron Ore Corporation
    Jeffery Austin
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    or
    Pacific Iron Ore Corporation
    Leonard Cornez
    Chief Financial Officer
    (403) 218-0294 or 1-866-682-5812
    (403) 265-2887 (FAX)
    www.pacificironorecorp.com