PC Gold Inc.

PC Gold Inc.

February 07, 2012 08:44 ET

PC Gold Releases Final Fall Drilling Results

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2012) - PC Gold Inc. (TSX:PKL)(FRANKFURT:AJ2) is pleased to report that all drill results from its fall drilling program have now been received. Included in this release are 15 holes located in the Core Mine Trend and 4 holes drilled on regional targets, select results of which are shown in Table 1, below.

Two of the regional holes targeted the historic BIF (Banded Iron Formation) hosted Sawmill Vein Zone located 700 m northwest of the No. 1 Shaft, which returned up to 7.90 meters of 10.49 g/t Au, including 0.70 meters of 78.75 g/t Au in channel samples from trenching done in 2010. Hole PC-11-229 drilled this past fall under this trench returned 0.4 meters of 11.16 g/t Au from 30.60 to 31.00 meters.

The bulk of fall drill program targeted the near surface (0-150 m) areas of the Core Mine Trend BIF. (See news release January 3rd 2012).The program was designed to expand existing open pit resources (currently 3,628,000 tonnes at 1.1 g/t Au for 126,000 ounces) in the core mine trend as well as to expand relatively shallow (150-500 meters depth) underground resources. See details of the 1.26 million ounce NI 43-101 inferred resource* estimate contained in the company's April 18, 2011 news release.

The fall drill program successfully defined additional mineralization adjacent to known zones as well as identifying new high grade mineralization in the No. 22 vein which returned 1.5 m of 444.38 g/t Au (See news releases January 11th and 23rd 2012).

Highlights include:

Sawmill Vein Zone:

  • 7.90 m of 10.49 g/t Au, including 0.70 m of 78.75 g/t Au, in channel sample PC-10-TD-C007

  • 3.20 m of 10.08 g/t Au including 0.50 m of 57.30 g/t Au, in channel sample PC-10-TD-C010

  • 5.90 m of 5.73 g/t Au, including 0.80 m of 18.89 g/t Au, in channel sample PC-10-TD-C008

  • Hole PC-11-229, 4.00 m of 2.15 g/t Au from 28.00-32.00 m, Including 0.40 m of 11.16 g/t Au

No. 5 BIF Open Pit target:

  • Hole PC-11-241, 40.50 m of 0.98 g/t Au from 152.50-193.00 m, Including 0.75 m of 12.83 g/t Au

JP Chauvin, the President and CEO states: "The results of the fall drill program highlight the potential of the Pickle Crow property. We are currently planning another drill program starting mid-February to follow up these new high grade intercepts in the No. 22 vein."

The Sawmill Vein Zone was originally discovered in the 1930's but only limited surface sampling and 3 very shallow diamond drill holes were conducted on the zone. The zone appears to be rod shaped and is hosted by altered BIF with abundant strongly deformed quartz veining adjacent to a strong, steeply dipping west-southwest-east-northeast trending shear. The shear may also control the mineralization at the nearby BIF hosted Northeast Powderhouse zone to the west and the No. 21 Vein zone to the east. Notably the majority of the veining within the Sawmill BIF actually dips moderately to the northeast rather than parallel to the shear suggesting that the zone also plunges to the northeast.

The Pickle Crow gold mine hosts a high quality 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 developing.

Table 1: Select Remaining Fall Drilling Results

Hole ID Area Zone From
Width %
PC-11-179 Core Mine
Trend BIF
Vein No. 20 41.50 46.80 5.30 0.80 50 VG
Including 43.60 44.10 0.50 6.43
Zone, BIF 103.50 107.50 4.00 1.67
PC-11-191 Core Mine
Trend BIF
Vein No. 20 47.80 48.25 0.45 3.57 60 VG
Zone, BIF 104.50 106.00 1.50 1.55
PC-11-225 Core Mine
Trend BIF
No. 5 BIF
northern arm
37.00 38.20 1.20 3.64 70
PC-11-226 Core Mine
Trend BIF
Vein No. 20 170.34 170.84 0.50 0.42 60 VG
Field Zone BIF 265.00 273.00 8.00 1.21
Including 270.00 272.00 2.00 2.11
Field Zone BIF 299.00 301.00 2.00 4.40
Including 300.00 301.00 1.00 8.06
PC-11-229 Shaft 1 Zone, BIF and
Sawmill Vein
28.00 32.00 4.00 2.15 unknown
Including 29.60 31.00 1.40 4.95
Including 30.60 31.00 0.40 11.16
PC-11-231 Shaft 1 Zone, BIF and
Sawmill Vein
43.35 49.65 6.30 0.59 unknown
Including 48.15 49.65 1.50 1.44 VG
PC-11-235 Core Mine
Trend BIF
No. 5 BIF Zone 188.50 233.00 44.50 0.53 50
Including 198.00 207.00 9.00 1.28
Including 204.00 207.00 3.00 2.60
PC-11-236 Core Mine
Trend BIF
Field Zone BIF 17.50 42.50 25.00 0.41 70
Including 17.50 19.00 1.50 1.81
PC-11-238 Shaft 3 Zone, BIF 26.00 37.00 11.00 0.68 unknown
Including 32.00 37.00 5.00 1.18
PC-11-239 Core Mine
Trend BIF
Field Zone BIF 31.00 35.00 4.00 1.53 70
Including 32.50 34.00 1.50 2.83
PC-11-241 Core Mine
Trend BIF
No. 5 BIF Zone 152.50 193.00 40.50 0.98 60
Including 155.20 162.50 7.30 2.37
Including 156.20 156.95 0.75 12.83
A complete set of results for the entire fall drill program (PC-11-153 through PC-11-252) along with associated figures are available on our website www.pcgold.ca All assays are performed by Accurassay Laboratories of Thunder Bay, Ontario. Assay values cited in Table 1 are uncut.

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

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.

Upcoming Events

PC Gold is attending the PDAC 2012 Conference in Toronto, Canada from March 4 to 7 (booth #2500 in the Investors Exchange). The Company's management team will be available to meet with investors at the booth.

* 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 Kilo Goldmines Ltd. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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