PC Gold Inc.
TSX : PKL

PC Gold Inc.

May 02, 2011 07:30 ET

PC Gold Drills 251 Metres of 0.82 g/t Gold at CPE; Commences Development Permitting for Underground High Grade Resources (1.1 Million Ounces at 5.4 g/t) in Pickle Crow Mine

OTTAWA, ONTARIO--(Marketwire - May 2, 2011) - PC Gold Inc. (TSX:PKL) is pleased to report that ongoing step-out drilling at the newly discovered shallow gold system at Central Pat East ("CPE") has produced what is believed to be the longest gold bearing intercept in the history of the Pickle Lake mining camp, 0.82 g/t Au over 251.05 metres (206 gram-metres) including 1.46 g/t gold over 89.45 metres, in hole PC-11-131.

The latest drilling results underscore the potential for CPE to host a near surface, open-pittable resource as add-on potential to the recently released high quality 1.26 million ounce NI 43-101 gold resource located in the Pickle Crow gold mine just 2 kilometres to the southeast. This includes 1.1 million ounces averaging 5.4 g/t, which the Company is presently focused on developing. As part of this development work, the Company has committed funds to complete a preliminary economic assessment and is in the process of arranging permitting to allow for dewatering and potential reconditioning of the 1.2 km deep shaft system at Pickle Crow, thereby enabling underground development of these high grade ounces.

Highlights:

  • Hole PC-11-131: 0.82 g/t gold over 251.05 metres from 224.00 to 475.05 metres, including 1.46 g/t gold over 89.45 metres, and 2.64 g/t gold over 12.15 metres
  • Continued expansion of the gold system footprint, with gold-arsenic mineralization intersected 550 metres to the southwest (PC-11-129)
  • Hole PC-10-119: 0.39 g/t gold over 110.20 metres from 32.30 to 142.50 metres, and 0.85 g/t gold over 53.10 metres from 259.90 to 313.00 metres
  • Hole PC-11-125: 0.27 g/t gold over 194.00 metres from 38.00 to 232.00 metres including 0.70 g/t gold over 47.07 metres and 2.24 g/t gold over 10.92 metres
  • New, upwardly revised values for previously released hole PC-10-108: 0.75 g/t gold over 137.50 metres from 114.00 to 251.50 metres, including 4.01 g/t over 17.35 metres and 6.10 g/t gold over 9.02 metres

Significant assays for two holes (PC-10-107 and 119) completed late in 2010, and nine holes (PC-11-121, 124, 125, 126, 127, 128, 129, 130 and 131) completed since the beginning of the year, are presented in Table 1, below. The bulk of the holes were drilled into the core area of the CPE discovery, which is presently interpreted as a roughly columnar-shaped vertical body, while holes 107, 127, and 129 tested the periphery of the system. Six of the eight holes within the core area cut broad mineralized intervals of gold mineralization with associated disseminated arsenopyrite in volcaniclastic and chemical sediments, including subintervals of semi-massive arsenopyrite, quartz veining and flooding. Recent drilling indicates that the mineralization has both stratigraphic (a preference for chemical sediments) and structural (presence of quartz-arsenopyrite veinlets at high angles to bedding) controls. As a general rule the most intense mineralization has been seen at deeper levels, suggesting the potential for higher grade root zones underlying the broad, low grade near surface envelope.

Outside the CPE core area, hole PC-11-129, drilled approximately 550 metres to the southwest along the trend of magnetic and EM anomalies associated with CPE, returned 0.12 g/t gold and 482 ppm arsenic over 31.60 metres, including 1.92 g/t gold and 3033 ppm arsenic over 1.00 metre.

The Company's policy (http://www.pcgold.ca/en/QAQC_Procedures_46.html) for all assays returning greater than 10 g/t gold from initial assaying, is to additionally carry out a pulp metallic analysis. This step is taken to ensure that the coarse nuggety gold fraction is captured. Pulp metallic assays for previously released hole PC-10-108 (press release, January 10, 2011) have now been received, resulting in an increase to the grade. The new, upwardly revised values for this hole include 0.75 g/t gold over 137.50 metres from 114.00 to 251.50 metres, including 2.24 g/t gold over 35.65metres, 4.01 g/t gold over 17.35metres,6.10 g/t gold over 9.02 metres, and 31.03 g/t gold over 1.50metres.

Commenting on the results, Kevin Keough, President and CEO, said: "Central Pat East continues to evolve as a bulk tonnage target, with potential for high grades at depth. Our drilling to date has focused on establishing the size of the system, gaining a better understanding of the core areas, and testing for high-grade shoots within the low grade envelope similar to those found at the Central Patricia Mine to the southwest. While we continue to evaluate CPE, we're pushing hard on our top priority, namely, development of the high grade ounces in our Pickle Crow Gold Mine asset two kilometres to the southeast, where a preliminary economic assessment will commence shortly."

Plan view and section maps for the holes in this news release can be viewed on the Company's website at: http://www.pcgold.ca/en/Drilling_2011_-_Maps,_Sections_99.html

Table 1 – CPE Significant Assay Results: Note: The Company's policy is to batch drill results, where practical. Widths reported in Table 1 are drilled core lengths. Drilling at CPE has to date occurred from several azimuths in an effort to understand its complex geology. True widths on drill hole section 124-108-121 (see images posted to website – link, above) are roughly estimated at 70%-90% of reported widths. On drill hole section 132-131-134, roughly 45% of reported widths. On drill hole section 119-105-62, approximately 70% of reported widths. All assays are performed by Accurassay Laboratories of Thunder Bay, Ontario with check assays carried out by Activation Laboratories Ltd. of Ancaster, Ontario. Assay values are uncut.

Hole IDFrom
(metres
)To
(metres
)Width
(metres
)Au
(g/t
)Comments
PC-10-107
Au-As Zone155.60160.605.001.05Tested periphery of
Including159.10160.601.503.26CPE system
PC-10-119
Au-As Zone32.30142.50110.200.39Tested CPE core area
Including32.30101.0068.700.53
Including35.0038.603.600.97
And41.6043.101.501.25
And58.7061.402.701.10
And73.7088.1014.401.02
Including73.7075.201.504.80
Including74.9075.200.308.51
Au-As Zone259.90313.0053.100.85
Including261.90277.5015.602.49
Including267.40274.206.803.39
Including273.20274.201.006.24
PC-11-121
Au-As Zone76.00223.64147.640.19Tested CPE core area
Including84.10114.1330.030.49
Including84.1091.006.901.45
And179.00179.900.901.69
And199.80201.001.201.11
And221.00223.642.641.51
PC-11-123----Abandoned due to overburden
PC-11-124
Au-As Zone161.44327.62166.180.11Tested CPE core area
Including161.44179.5018.060.43
Including161.44167.355.911.22
Including165.70167.351.652.07
And292.64293.841.205.77
Including292.64293.340.708.87
PC-11-125
Au-As Zone38.00232.00194.000.27Tested CPE core area
Including38.00133.1795.170.35
Including38.0040.392.393.90
Including39.2540.391.147.19
Including39.6840.390.718.74
And86.10133.1747.070.70
Including113.00133.1720.171.55
Including113.96115.001.044.01
And122.25133.1710.922.24
Including122.25124.001.753.99
Including129.00133.174.173.45
Including131.00132.861.865.97
PC-11-126
Au-As Zone139.44150.7011.260.15Tested fringes of
Au-As Zone222.46225.503.040.59CPE core area
PC-11-127
Au-As Zone80.9081.700.800.43Tested periphery of
Zone245.00254.009.000.12CPE system
PC-11-128
Au-As Zone157.00327.90170.900.18Tested CPE core area
Including161.00175.3014.300.58
Including161.00162.001.001.46
And172.50174.902.400.99
And204.50219.0514.550.72
Including205.00212.907.900.85
Including205.00209.454.451.06
Including206.35206.920.573.01
And260.00261.101.101.50
And319.70327.908.200.63
Including320.20320.900.704.51
PC-11-129----
Au-As Zone469.40501.0031.600.12550 metre southwest
Including469.40472.503.100.79stepout
Including469.40470.401.001.92
And500.00501.001.000.80
PC-11-130No significant assaysTested fringes of CPE core area
PC-11-131
Au-As Zone222.00489.00267.000.77Tested CPE core area
Including224.00475.05251.050.82
Including225.00230.205.203.04
And256.00282.0026.001.22
Including276.00278.002.003.38
And377.00466.4589.451.46
Including377.00387.2510.252.50
Including380.10381.000.906.92
And399.00408.309.302.06
Including403.00406.003.003.07
And420.00435.6515.652.17
Including434.40435.651.256.95
And454.30466.4512.152.64
Including455.30459.554.254.02

QA/QC Procedures

PC Gold has implemented a rigorous quality assurance / quality control (QA/QC) program to ensure best practices in sampling and analysis of drill core, the details of which can be viewed on the Company's website at http://www.pcgold.ca/en/QAQC_Procedures_46.html

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.

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

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