PC Gold Inc.
TSX : PKL

PC Gold Inc.

September 01, 2011 07:30 ET

PC Gold Releases Latest Central Pat East Drilling, Summarizes Results to Date and Plans All-Weather Road to Discovery Site

OTTAWA, ONTARIO--(Marketwire - Sept. 1, 2011) - PC Gold Inc. (TSX:PKL) is pleased to report additional drill results from the new near-surface Central Pat East ("CPE") discovery (Table 4, below) and to summarize:

  • Table 1: higher grade (>4 g/t Au), potential underground intercepts achieved to date at CPE
  • Table 2: moderate grade, potential bulk underground (2-4 g/t Au) intercepts achieved to date at CPE
  • Table 3: lower grade, potential open pittable (0.5-2 g/t Au) intercepts achieved to date at CPE

Holes drilled into the core area of the CPE discovery, particularly those drilled from a 230 azimuth (akin to the drill direction favoured at CPE's namesake past producing Central Patricia Mine 6 kms to the southwest) commonly encounter higher grade shoots within broad lower grade envelopes. The overall grade of the core area is expected to increase as drilling achieves a density sufficient to define these shoots, and discover new ones. A general increase in the tenor of the mineralization with depth has also been observed at CPE. This suggests that significant potential exists for further discoveries below shallow mineralization within and outside the core area.

Evaluation of the swamp-covered CPE has to date been restricted to winter and/or helicopter based drilling. With the merits of the CPE now apparent, drilling has been suspended to allow for construction of an all-season road to facilitate lower cost access to the site.

In the meantime, the Company sees excellent potential to expand resources in the core mine trend, and is ramping up a major fall drilling initiative now underway at the Pickle Crow mine site, primarily targeting the near surface expression of a 1.1 km long package of banded iron formation which cuts through the historical workings. The potential of this banded iron formation is highlighted by the fact that limited, largely historical drilling has already outlined 3,628,000 tonnes at 1.1 g/t gold for 126,000 ounces in two small pits (see details of the 1.26 million ounce NI 43-101 resource* estimate contained in the company's April 18, 2011 news release). Details of this shallow drill program, which when fully scaled up will see some 22,000 metres of drilling completed by the end of November utilizing 4 drills, will be forthcoming in the near future.

Kevin Keough, President & CEO states: "CPE has given us the best-looking, most cohesive intercepts we've ever drilled on this property outside the core mine trend. Our primary focus right now is securing permits to dewater and get underground to better define and upgrade our recently delivered 1.26 million ounce* NI 43-101 compliant inferred gold resource in the Pickle Crow mine proper. However, we believe the CPE discovery has the potential with further work to add considerably to our compliant resources, possibly with both underground and open pit components. We plan to return to the site this winter following completion of the road."

Table 1: CPE Highlights, Higher Grade, Potential Underground-Intercepts >4 g/t Au: 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. Experience has shown that the optimal drill direction for picking up the higher grade shoots is 230 azimuth. True widths for holes 108, 119, 150, and 151 are estimated at approximately 75% of reported widths, true widths for holes 131, 139, 141 and 145 at approximately 37%, and true width for hole 150 at approximately 44%. 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 cited in Table 1 are uncut.

Hole ID From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Comments
PC-10-108 040 azimuth, minus 50 dip, tested CPE core area
Shoot 232.80 250.15 17.35 4.01
Including 241.13 250.15 9.02 6.10
Including 242.00 243.50 1.50 31.03
PC-10-119 140 azimuth, minus 70 dip, tested CPE core area
Shoot 273.20 274.20 1.00 6.21
PC-11-131 230 azimuth, minus 75 dip, tested CPE core area
Shoot 455.30 459.55 4.25 4.02
PC-11-139 230 azimuth, minus 75 dip, tested CPE core area
Shoot 1 101.60 106.20 4.60 6.03
Including 103.80 104.80 1.00 15.86
Shoot 2 172.45 178.70 6.25 4.22
Shoot 3 398.00 409.00 11.00 4.28
Including 403.00 409.00 6.00 6.35
Including 404.00 406.00 2.00 10.39
PC-11-141 320 azimuth, minus 50 dip, tested CPE core area
Shoot 108.00 114.00 6.00 6.05
Including 108.00 111.00 3.00 8.17
PC-11-145 230 azimuth, minus 75 dip, tested CPE core area
Shoot 232.00 238.00 6.00 7.67
Including 233.00 237.00 4.00 9.95
Including 233.00 235.00 2.00 13.60
PC-11-150 230 azimuth, minus 75 dip, tested CPE core area
Shoot 100.00 103.00 3.00 6.20
PC-11-151 140 azimuth, minus 50 dip, tested CPE core area
Shoot 197.10 201.10 4.00 4.05

Table 2: CPE Highlights, Moderate Grade, Potential Bulk Underground Intercepts 2-4 g/t Au: 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 108, 119, 125, and 151 are estimated at approximately 75% of reported widths and holes 131, 139, 141 and 145 are estimated at approximately 37%. 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 cited in Table 2 are uncut.

Hole ID From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Comments
PC-10-108 040 azimuth, minus 50 dip, tested CPE core area
Zone 214.50 250.15 35.65 2.24
PC-10-119 140 azimuth, minus 77 dip, tested CPE core area
Zone 261.90 277.50 15.60 2.49
Including 267.40 274.20 6.80 3.39
PC-11-125 140 azimuth, minus 70 dip, tested CPE core area
Zone 122.25 133.17 10.92 2.24
PC-11-131 230 azimuth, minus 75 dip, tested CPE core area
Zone 1 225.00 230.20 5.20 3.04
Zone 2 377.00 387.25 10.25 2.65
Zone 3 399.00 408.30 9.30 2.31
Zone 4 420.00 435.65 15.65 2.09
Zone 5 454.30 466.45 12.15 2.64
PC-11-139 230 azimuth, minus 75 dip, tested CPE core area
Zone 99.90 108.70 8.80 3.78
PC-11-141 320 azimuth, minus 50 dip, tested CPE core area
Zone 96.00 114.00 18.00 2.33
PC-11-145 230 azimuth, minus 75 dip, tested CPE core area
Zone 420.00 425.00 5.00 3.01
PC-11-151 140 azimuth, minus 50 dip, tested CPE core area
Zone 119.50 128.50 9.00 2.07

Table 3: CPE Highlights, Lower Grade, Potential Open Pittable Intercepts 0.5-2 g/t Au: 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 108, 119, 125, 143, 144 and 151 are estimated at approximately 75% of reported widths, true widths for holes 131, 134, 139, 145, and 150 at approximately 37%, and true width for hole 141 at approximately 44%. 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 cited in Table 3 are uncut.

Hole ID From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Comments
PC-10-108 040 azimuth, minus 50 dip, tested CPE core area
Zone 114.00 251.50 137.50 0.75
Including 114.00 132.00 18.00 0.93
PC-10-119 140 azimuth, minus 77 dip, tested CPE core area
Zone 1 32.30 101.00 68.70 0.53
Zone 2 259.90 313.00 53.10 0.85
PC-11-125 140 azimuth, minus 70 dip, tested CPE core area
Zone 86.10 133.17 47.07 0.70
Including 113.00 133.17 20.17 1.55
PC-11-131 230 azimuth, minus 75 dip, tested CPE core area
Zone 222.00 489.00 267.00 0.79
Including 224.00 475.05 251.05 0.83
And 256.00 282.00 26.00 1.31
And 377.00 466.45 89.45 1.50
PC-11-134 230 azimuth, minus 75 dip, tested CPE core area
Zone 332.67 351.00 18.33 1.18
PC-11-139 230 azimuth, minus 75 dip, tested CPE core area
Zone 91.20 464.00 372.80 0.58
Including 172.45 270.30 97.85 1.03
PC-11-141 320 azimuth, minus 50 dip, tested CPE core area
Zone 66.00 181.00 115.00 0.52
Including 75.00 126.00 51.00 1.03
PC-11-143 140 azimuth, minus 55 dip, tested fold hinge 200 m SW of CPE core area
Zone 215.00 249.00 34.00 0.57
PC-11-144 140 azimuth, minus 50 dip, tested CPE core area
Zone 94.00 160.25 66.25 0.64
Including 118.00 160.25 42.25 0.89
PC-11-145 230 azimuth, minus 75 dip, tested CPE core area
Zone 216.00 470.00 254.00 0.78
Including 232.00 338.00 106.00 1.00
Including 232.00 279.00 47.00 1.71
And 370.00 446.00 76.00 1.05
Including 411.00 425.00 14.00 1.87
PC-11-150 230 azimuth, minus 75 dip, tested CPE core area
Zone 100.00 121.00 21.00 1.07
PC-11-151 140 azimuth, minus 50 dip, tested CPE core area
Zone 61.00 167.50 106.50 0.59
Including 119.50 137.50 18.00 1.23

Table 4: New CPE Significant Assay Results From Latest Drilling: Note: The Company's policy is to batch drill results, where practical. Widths reported in Table 3 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 151 and 152 are estimated at approximately 75% and for hole 150 at approximately 37% of reported widths. True widths for holes 147, 148 and 149 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 cited in Table 4 are uncut.

Hole ID From
(metres)
To
(metres)
Width
(metres)
Au
(g/t)
Comments
PC-11-147 - - - - 320 azimuth, minus 50 dip, tested a strong EM-IP anomaly northeast of core area
Zone, Vein 123 123.62 0.62 2.04
Zone, BIF 191 193.00 2.00 1.82
PC-11-148 - - - - 320 azimuth, minus 50 dip, tested a strong EM-IP anomaly northeast of core area
Zone, Vein 74.94 75.68 0.74 4.32
PC-11-149 - - - - Abandoned due to overburden
PC-11-150 - - - - 230 azimuth, minus 75 dip, tested CPE core area - south step-out from hole 139
Zone 100.00 121.00 21.00 1.07
Including 100.00 103.00 3.00 6.20
PC-11-151 - - - - 140 azimuth, minus 50 dip, tested CPE core area – step-up between holes 128 and 119
Zone 1 61.00 167.50 106.50 0.59
Including 62.50 137.50 75.00 0.67
Including 119.50 137.50 18.00 1.23
Including 119.50 128.50 9.00 2.07
Zone 2 197.10 201.10 4.00 4.03
Including 197.10 198.60 1.50 6.33
PC-11-152 - - - - 140 azimuth, minus 50 dip, tested fold hinge 200 m southwest of CPE core area – step-up on hole 143
Zone 114.00 178.11 64.11 0.35
Including 121.00 161.00 40.00 0.46
Including 133.00 139.00 6.00 1.27
Including 138.00 139.00 1.00 3.08

Plan view and section maps for all 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.

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.

* 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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