PC Gold Inc.

PC Gold Inc.

June 04, 2012 07:55 ET

PC Gold Intersects 10.73 g/t Over 4.30 m Including 39.12 g/t over 1.00 m in the New No. 23 Vein Zone

TORONTO, ONTARIO--(Marketwire - June 4, 2012) - PC Gold Inc. ("PC" or the "Company") (TSX:PKL)(FRANKFURT:AJ2) is pleased to report further results from the 2012 drill program, targeting the newly identified No. 22 Vein area (444.38 g/t over 1.50 m, see news release January 11th, 2012) located in the Shaft 3 area at Pickle Crow. Additional drilling has identified a new vein system within the No. 22 Vein area, now named the No. 23 Vein zone, which consists of 3 distinct parallel veins. Previous intercepts within the No. 23 vein system include 3.24 g/t over 10.15 m (See Press Release January 23rd 2012) and 23.80 g/t over 0.75 m (see Press Release April 18th, 2012).

No. 23 Vein Zone Highlights:

  • 10.73 g/t gold over 4.30 m from 168.00 to 172.40 m including 39.12 g/t over 1.00 m in hole PC-12-276
  • The No. 23 Vein Zone has been intersected in 9 holes, 6 of which have returned visible gold
  • Three distinct gold bearing veins within the No. 23 Vein Zone

No. 22 Vein Zone Highlights:

  • 1.27 g/t gold over 10.60 m from 101.00 to 111.60 m including 8.96 g/t over 0.50 m in hole PC-12-273
  • Multiple thick zones of quartz veining intersected.

Commenting on the results, JP Chauvin, President and CEO said: "The No. 22 and now No. 23 vein zones continue to return impressive results. The lack of exploration this close to the historic mine workings is a real opportunity for us to add high-grade ounces as we continue to explore this new section of the core mine trend."

PC drilled a total of 4,579 m in 28 holes during this drill program which concluded on May 15th. The drill program intersected veining in 25 of 28 holes, twelve of which encountered visible gold, and one of which (PC-12-253) returned 137.19 g/t over 1.00 m with abundant fine-grained visible gold (see Press Release March 5th, 2012). Results for holes PC-12-270 through PC-12-274 including partial results for PC-12-276 are tabulated in Table 1 below. Results for the remaining five holes, PC-12-275 through PC-12-280, are pending and will be released once the assays have been received.

The No. 22, 23 and other high-grade veins located south of Shaft 3 area are likely, with further drilling, to contribute additional resources to the Pickle Crow Mine which currently hosts a 1.26 million ounce NI 43-101 inferred gold resource* (10,150,000 tonnes averaging 3.9 g/t gold, cut, diluted and constrained). 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 proving up.

The No. 22 and 23 Vein Zones are hosted within volcanic and gabbroic rocks of the Confederation Assemblage, which traditionally were not thought to host Pickle Crow type veins, and therefore have experienced little exploration. The lack of historic exploration and drilling on this part of the core mine trend is likely due to the swampy surface projection of these veins.

The No. 23 Vein Zone is located approximately 400 m south of Shaft 3 and consists of upper, middle and lower veins possessing a south-southwest strike and plunging to the northeast. The stacked veining of the No. 23 Vein zone is reminiscent of the en-echelon vein system which comprises the historic, No. 2, 6, and 7 vein zones, the richest of the Shaft 3 veins, which produced ~500,000 oz of gold. At present the middle vein, referred to as the No. 23 Vein proper, is the most consistent with respect to grade and width. The upper vein is narrower and higher grade with 6 of 9 intercepts returning visible gold while the lower vein displays good widths but lower grades.

The east-west striking No. 22 Vein may represent the up dip projection of the high-grade No. 8 vein structure (mined from the 2850 to 2350 foot level). The No. 23 Vein does not correlate with any historical vein system and may represent a new focal point for multiple Shaft 3 type high-grade veins.

Maps and photographs of the vein intercepts discussed in this news release can be viewed on the Company's website at: http://www.pcgold.ca/pr4jun2012/.

Table 1: Shaft 3 Area Drilling Results
Hole ID Zone From
PC-12-270 Shear (No. 22 Vein structure) 126.09 126.74 0.65 0.23
PC-12-271 Shear (No. 22 Vein structure) 88.50 89.50 1.00 0.10
PC-12-272 Vein 8.40 10.52 2.12 0.13
PC-12-273 No. 22 Vein 91.60 131.50 39.90 0.54
Including 101.00 117.50 16.50 0.92
Including 101.00 111.60 10.60 1.27
Including 111.10 111.60 0.50 8.96
And 128.00 130.80 2.80 1.00
PC-12-274 Vein 118.50 119.00 0.50 3.75
Upper Vein 161.50 164.50 3.00 2.16
Including 161.50 162.00 0.50 11.26 X
No. 23 Vein 202.90 204.90 2.00 2.24
Including 203.90 204.90 1.00 3.91
Vein 249.90 250.40 0.50 1.49
Lower Vein 263.10 263.60 0.50 2.62
PC-12-276 No. 23 Vein 168.00 172.40 4.30 10.73 X
Including 170.00 171.00 1.00 39.12

Note: Reported widths are drilled core lengths; true widths are unknown at this time. All assays are performed by Accurassay Laboratories of Thunder Bay, Ontario. All assays reported are uncut. Reported widths are drilled core lengths, true widths are unknown at this time.

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.

Website: www.pcgold.ca

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* 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

This news release may contain forward looking statements concerning future operations of PC Gold Inc. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.

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

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