PC Gold Inc.
TSX : PKL

PC Gold Inc.

June 01, 2009 07:30 ET

PC Gold to Start Phase II Drilling at Pickle Crow

OTTAWA, ONTARIO--(Marketwire - June 1, 2009) - PC Gold Inc. (TSX:PKL) ("PC Gold" or "the Company") is pleased to report that Phase II drilling at the Company's past producing Pickle Crow Gold Mine Property in northwestern Ontario, Canada, is expected to get underway on or about June 15. Major Drilling Group International Inc. has been contracted to do the work.

The initial priority will be to follow up on near-surface, high-grade gold intercepts in the Albany Shaft area from the Fall 2008 Phase I program, in particular a new discovery made in hole PC-08-027 (news release, February 10, 2009). PC-08-027, the last hole completed during the Phase I program, intersected a considerable core length of altered, heavily sulphidized banded iron formation hosting multiple narrow high grade gold zones within larger envelopes of lower grade material. The intensity and widths of the alteration encountered in PC-08-027 are strongly encouraging, as is its location in historically untested ground close to the confluence of several important gold-bearing structures. Follow up drilling will attempt to trace the mineralization encountered in PC-08-027 down plunge to the north.

The mineralization in PC-08-027 may be related to the mineralized structures observed in near surface hole PC-08-020 (news release, January 22, 2009), which cut three separate gold zones carrying moderate to high grades and will also be followed up during Phase II.

In addition to the numerous gold zones and targets already known to be hosted by the Pickle Crow Property, the Company was also recently apprised of the potential for the Property to host a new type of deposit, disseminated-replacement-style gold mineralization similar to that of the Madsen Mine located in the Red Lake greenstone belt. The Madsen Mine produced 2.4 million ounces of gold at an average grade of 0.283 opt (9.7g/t) from highly altered "tuff" units at the sheared unconformable contact between the Balmer and Confederation assemblages. The Pickle Crow Property covers 4.5 kilometres of the interpreted unconformable contact between the Pickle Crow assemblage (comparable in age to the Balmer assemblage) and the Confederation assemblage. The interpreted contact runs immediately to the south of the mine in an area largely covered by glacial till and swamp, and for that reason historically largely unexplored.

A program of mapping, geochemistry, geophysics, trenching and drilling to prove or disprove this hypothesis is presently being prepared for incorporation into the Company's Phase II exploration program. At present, 3D modeling of the Pickle Crow and Confederation assemblages suggests the contact lies in close proximity to the old mine workings, and may, depending on its dip, actually extend beneath the workings.

The Company estimates that it is now approximately 70% of the way through the process of digitizing and modeling historical data sets for the Pickle Crow Gold Mine Property, an enormous undertaking which to date has entailed among other tasks the digitization of geology, surveys and assays for approximately 3,800 historical drill holes; the digitization of level plans, stopes, chip assay data and historical resource blocks; and the scanning and digitization of some 1,850 maps and reports. The data resulting from these activities, modeled in 3D using Gemcon, is being used to guide exploration efforts and advance the Property toward a planned NI 43-101 compliant resource calculation.

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 www.pcgold.ca.

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.

About PC Gold

PC Gold is a focused gold junior owning 100% of the past-producing Pickle Crow Gold Mine Property in northwestern Ontario, Canada. The Property lies within the prolific Uchi geological subprovince which also hosts the rich gold mines of Red Lake. Pickle Crow was a long life (31 years, 1935-1966), high-grade (16.14 g/t / 0.47 oz/T (tons milled)), profitable operation (28 years). During its lifetime, it produced a total of 1.45 million Troy ounces of gold, predominantly from quartz-carbonate veins. The mine closed in 1966 due to increasing costs as operations extended to deeper levels and revenues declined in real dollar terms in a fixed gold price environment ($35/oz). Pickle Crow closed with all productive high-grade veins open at depth and largely untouched zones of gold in iron formation within or in close proximity to the workings. Additionally, since the mine shut down, historical exploration programs have produced several non NI 43-101 compliant resource estimates for the Property, detailed in Chapter 5.4 of the Pickle Crow Property NI 43-101 Technical Report. Consequently, there is believed to be strong potential for expanding known gold zones, and making new discoveries. The Pickle Crow Gold Mine Property has excellent access and exploration infrastructure, including a new 225 tonne per day mill.

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

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