PC Gold Inc.
TSX : PKL

PC Gold Inc.

July 25, 2011 07:30 ET

PC Gold Drills 254 Metres of 0.78 g/t Gold at Central Pat East, Including 106 Metres of 1.0 g/t Gold and 6 Metres of 7.67 g/t Gold

OTTAWA, ONTARIO--(Marketwire - July 25, 2011) - PC Gold Inc. (TSX:PKL) is pleased to report that drilling in the core area of the newly discovered shallow gold system at Central Pat East ("CPE") continues to deliver (see hole PC-11-141 and 145 results, below) a well-established pattern of very broad low grade intercepts encompassing higher grade shoots. Moreover, step out drilling also continues to expand the known strike extent of the CPE gold-arsenic system. Holes PC-11-140 and 143, drilled 300 and 200 metres respectively to the southwest of the core discovery area, both cut significant mineralized widths.

The latest results underscore yet again the potential for CPE to host a combined open-pittable and underground resource as add-on potential to the recently released high quality 1.26 million ounce NI 43-101 inferred gold resource* (10,150,000 tonnes averaging 3.9 g/t gold, cut and diluted) located in the Pickle Crow gold mine 2 kms to the southeast. This includes a higher grade underground component comprising 1.1 million ounces averaging 5.4 g/t gold, including a high grade vein component of 600,000 ounces averaging 9.3 g/t gold, which the Company is focused on developing, and for which it intends to deliver a completed preliminary economic assessment by the end of the summer.

Highlights:

Hole PC-11-145

  • 0.78 g/t gold over 254 metres (198 gram-metres) from 216.00 to 470.00 metres
    • Including 0.88 g/t gold over 214.00 metres from 232.00 to 446.00 metres
    • Including 1.00 g/t gold over 106.00 metres from 232.00 to 338.00 metres
    • High grade shoot:
      • 7.67 g/t gold over 6.00 metres from 232.00 to 238.00 metres
      • Including 8.94 g/t gold over 5.00 metres from 233.00 to 238.00 metres
      • Including 9.95 g/t gold over 4.00 metres from 233.00 to 237.00 metres
      • Including 13.60 g/t gold over 2.00 metres from 233.00 to 235.00 metres
    • And 1.05 g/t gold over 76.00 metres from 370.00 to 446.00 metres

Hole PC-11-141

  • 0.52 g/t gold over 115.00 metres from 66.00 to 181.00 metres
    • Including 1.03 g/t gold over 51.00 metres from 75.00 to 126.00 metres
    • Higher grade shoot:
      • 6.05 g/t gold over 6.00 metres from 108.00 to 114.00 metres
      • Including 8.17 g/t gold over 3.00 metres from 108.00 to 111.00 metres

"The work we're doing at CPE is giving us the strongest results of any target we've ever drilled outside the core mine trend," said Kevin Keough, President and CEO. "The mineralization is beautiful, and bears all the hallmarks of its namesake Central Patricia mine 6 kilometres to the southwest. We believe the CPE core area has similar potential to host a significant resource, comprised of open pit and high grade underground components. We also believe there could be more focal points for this type of mineralization lurking elsewhere in the same system."

The core area of the CPE where the bulk of the Company's drilling has to date been focused, is emerging as a roughly columnar-shaped, near vertical body, with dimensions in plan view measuring approximately 100 X 100 metres. This body, which is interpreted to be a complexly folded package of banded iron formation (BIF), tuffs and argillites cut by lamprophyre dykes, has now been drilled to more than 580 metres in the vertical dimension, and remains open to depth.

Work to date has shown that the CPE-style of mineralization (disseminated to semi-massive arsenopyrite with associated quartz veining and flooding) is present well outside the core area of the discovery, encompassing a broad swath of the property now spanning some 4 kilometres in a southwest-northeasterly direction. As this large area is almost entirely covered by swamp and muskeg and is mostly unexplored, it is believed to offer excellent potential to host additional CPE-like bodies, particularly where it contains abundant iron formation.

Significant assays for 6 holes (PC-11-140, 141, 143, 144, 145 and 146) are presented in Table 1, below. 3 of the 6 holes were drilled into the core area of the CPE discovery, while holes PC-11-140 and 143 tested the projected southwest strike extent of the system, and wildcat PC-11-146 targeted an EM high 3.5 kms to the northeast. Hole PC-11-142 was abandoned in deep overburden overlying the CPE core area.

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%2C_Sections_99.html.

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.

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 for holes PC-11-140, 141, 143, 144 and 146 are estimated at roughly 60-70% of reported widths. True width for hole PC-11-145 is estimated at approximately 37% 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 ID From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Comments
PC-11-140 Tested a strong mag high 300 metres southwest of core area
Au-As Zone 122.00 170.00 48.00 0.16
Including 130.00 136.00 6.00 0.51
Including 133.00 134.00 1.00 1.02
Zone 225.00 226.50 1.50 1.25
PC-11-141 - - - - Tested north fringes of CPE core area
Au-As Zone 66.00 181.00 115.00 0.52 Broad low grade envelope
Including 75.00 126.00 51.00 1.03
Including 96.00 114.00 18.00 2.33
Including 108.00 114.00 6.00 6.05 Higher grade shoot
Including 108.00 111.00 3.00 8.17
PC-11-142 - - - - Abandoned due to overburden
PC-11-143 Tested a fold hinge 200 metres southwest of core area
Au-As Zone 167.00 250.00 83.00 0.27 Broad low grade envelope
Including 215.00 249.00 34.00 0.57
Including 217.00 224.00 7.00 0.84
And 243.00 249.00 6.00 1.41
Including 243.00 244.00 1.00 4.32
PC-11-144 Tested CPE core area – infill between holes 128 & 130
Au-As Zone 48.00 164.50 116.50 0.42 Broad low grade envelope
Including 94.00 160.25 66.25 0.64
Including 118.00 160.25 42.25 0.89
Including 125.00 133.70 8.70 1.39
Including 126.00 127.00 1.00 6.50
And 147.00 160.25 13.25 1.10
Including 156.00 160.25 4.25 2.34
Including 159.00 160.25 1.25 4.16
PC-11-145 Tested CPE core area – infill between holes 131 & 139
Au-As Zone 216.00 470.00 254.00 0.78 Broad low grade envelope
Including 232.00 446.00 214.00 0.88
Including 232.00 338.00 106.00 1.00
Including 232.00 279.00 47.00 1.71
Including 232.00 238.00 6.00 7.67 Higher grade shoot
Including 233.00 238.00 5.00 8.94
Including 233.00 237.00 4.00 9.95
Including 233.00 235.00 2.00 13.60
And 264.45 267.10 2.65 3.35
Including 264.45 265.25 0.80 5.26
And 370.00 446.00 76.00 1.05
Including 411.00 425.00 14.00 1.87
And 420.00 425.00 5.00 3.01
Including 420.00 422.00 2.00 4.82
And 441.70 446.00 4.30 3.30
Including 444.00 445.00 1.00 4.98
PC-11-146 Tested an EM anomaly 3.5 kms northeast of core area
Zone 187.12 188.13 1.01 0.45

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.

* Entirely 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.

A copy of the NI 43-101 compliant technical report dated June 2, 2011 containing full details of the resource estimation and entitled: "A Mineral Resource Estimate for the Pickle Crow Property, Patricia Mining Division, Northwestern Ontario, Canada" can be obtained from the Company's website at: http://www.pcgold.ca/en/Technical_Reports_52.html.

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

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