PC Gold Inc.

PC Gold Inc.

July 06, 2011 07:30 ET

PC Gold Commences Preliminary Economic Assessment for Pickle Crow Gold Project

OTTAWA, ONTARIO--(Marketwire - July 6, 2011) - PC Gold Inc. (TSX:PKL) is pleased to report that Micon International Limited ("Micon") has been retained to complete a National Instrument 43-101 ("NI 43-101") compliant preliminary economic assessment ("PEA") on the Company's Pickle Crow gold project, located in northwestern Ontario, Canada. Delivery of the completed PEA is anticipated by the end of the summer. In addition, discussions with candidates for the dewatering and rehabilitation of the mine are now also underway.

The PEA will evaluate several potential production scenarios, ranging from a base case mining only the high grade vein resources using the existing on-site mill, to a much larger operation drawing feed from the entire resource base. This approach is expected to offer the Company maximum developmental flexibility in the face of unsettled market conditions. Preliminary mine plans and pro forma cash flow projections will be provided for each scenario.

The basis of the PEA will be the 1.26 million ounce NI 43-101 inferred gold resource* estimate (10,150,000 tonnes averaging 3.9 g/t gold, cut and diluted) recently completed by Fladgate Exploration Consulting Corporation and audited by Micon. This includes an underground component comprising 1.1 million ounces (6,522,000 tonnes averaging 5.4 g/t gold), including a high grade vein component of 600,000 ounces (2,012,000 tonnes averaging 9.3 g/t gold). The bulk of the resource is located adjacent to the Pickle Crow mine's No. 1 Shaft, with existing underground development potentially providing access to the majority of the zones included in the estimate.

"The initial resource estimate delivered in April this year demonstrates something potentially game-changing for Pickle Crow", said Kevin Keough, President and CEO. "Millions of tonnes of new open pit and new bulk underground zones to complement high grade vein resources typical of the historical operation, all of which remain open for expansion. Unlike many other development-stage gold deposits, the fact we have these three styles of mill feed to potentially draw upon gives us an added degree of flexibility in mine design, allowing us to tailor the scale of a future operation to market conditions and our ability to finance.

With the better part of $10 million cash, we're well positioned to act on the guidance the PEA will offer and advance our exploration and development program for the remainder of the year without a need for additional capital. This will include permitting, dewatering and continuation of our ongoing exploration drilling at the Central Pat East discovery, and elsewhere on the property."

An animated video and rotating 3D model of the Pickle Crow gold mine, including underground development, stopes, principal veins and BIF hosted gold zones, and resources, can be viewed on YouTube at: http://www.youtube.com/watch?v=YRtBY26PXy8

Neil Pettigrew, M.Sc., P.Geo., Vice President, Exploration for PC Gold and the Company's Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this press release.

* NI 43-101 Inferred category. The NI 43-101 resource estimate was prepared by Fladgate Exploration Consulting Corporation, and audited and approved by Micon International Limited under the direction of Mr. B. Terrence Hennessey, P.Geo., MAusIMM, Vice President of Micon, an independent Qualified Person as defined by NI 43-101. Mr. Neil Pettigrew, Vice President, Exploration for PC Gold and the Company's Qualified Person, is also a partner in Fladgate. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured resource category.

This news release may contain forward looking statements characterized by words such as "believe", "estimate", "expect", "potential", "could", "project", "may", and similar expressions typically used to identify forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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