PC Gold Inc.

PC Gold Inc.

June 22, 2011 07:30 ET

PC Gold Drills 373 Metres of 0.58 g/t Gold at Central Pat East, Including 97.85 m of 1.03 g/t and 11.00 m of 4.28 g/t

OTTAWA, ONTARIO--(Marketwire - June 22, 2011) - PC Gold Inc. (TSX:PKL) is pleased to report that ongoing drilling at the newly discovered shallow gold system at Central Pat East ("CPE") has cut another long intercept in hole PC-11-139, consisting of a broad low grade envelope encompassing several higher grade shoots.

The latest results once again underscore 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 kilometres to the southeast. This includes a high 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.


Hole PC-11-139

  • Near surface:
    • 0.58 g/t gold over 372.80 metres (216 gram-metres) from 91.20 to 464.00 metres
      • Including 1.03 g/t gold over 97.85 metres from 172.45 to 270.30 metres
  • Higher grade shoots:
    • 6.03 g/t goldover 4.60 metres from 101.60 to 106.20 metres
      • Including 15.86 g/t gold over 1.00 metre from 103.80 to 104.80 metres
    • 4.22 g/t goldover 6.25 metres from 172.45 to 178.70 metres
    • 4.28 g/t gold over 11.00 metres from 398.00 to 409.00 metres
      • Including: 6.35 g/t gold over 6.00 metres from 403.00 to 409.00 metres
      • Including: 10.39 g/t gold over 2.00 metres from 404.00 to 406.00 metres

"Hole 139 has given us our best intercept yet drilled at CPE," said Kevin Keough, President & CEO, "and hole 134, our deepest, bottomed in mineralization at more than 580 metres vertically. The CPE discovery is shaping up as the first of what may be several focal points for gold mineralization within a large-scale gold-arsenic system. We knew from our first holes that this discovery has the potential for both open pit, and higher grade underground. Finding the higher grade shoots requires getting our drill density up, which we're now doing. In the near future we also intend to drill several newly-identified 'CPE-like' targets located elsewhere in the system."

The core area of the Central Pat East discovery 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 more than 2.2 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. The Company has recently completed a program of heli-borne geophysics (mag and EM) over this area, and has identified new targets bearing a similar geophysical signature to those presently being drilled. Several of these new targets will be drilled in the near future.

Significant assays for 4 holes (PC-11-132, 134, 138 and 139) are presented in Table 1, below. 3 of the 4 holes were drilled into the core area of the CPE discovery, while hole PC-11-138 tested a mag high on the southern fringe of the core area. Four additional holes were abandoned in deep overburden and/or faulted ground overlying the target 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.

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-11-132, 134 and 139 are estimated at roughly 37% of reported widths. True widths for hole PC-11-138 are not known at this time. 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
PC-11-132Tested CPE core area
Au-As Zone51.00363.20312.200.13
PC-11-133----Abandoned due to overburden
PC-11-134Tested CPE core area and bottomed in mineralization
Au-As Zone332.67600.00267.330.26Broad low grade envelope
Including334.20339.004.803.11Higher grade shoot
PC-11-135----Abandoned due to fault
PC-11-136----Abandoned due to overburden
PC-11-137----Abandoned due to overburden
Au-As Zone101.00131.0030.000.06Tested fringe of CPE core area
PC-11-139Tested CPE core area
Au-As Zone91.20464.00372.800.58Broad low grade envelope
Including101.60106.204.606.03Higher grade shoot
Including172.45178.706.254.22Higher grade shoot
And398.00409.0011.004.28Higher grade shoot

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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