Nevada Pacific Gold Ltd.

Nevada Pacific Gold Ltd.

September 06, 2005 13:23 ET

Placer Dome Continues Exploration at Nevada Pacific's Keystone Project on Cortez Trend Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2005) - Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) is pleased to announce that Placer Dome U.S. Inc. ("Placer Dome"), a wholly owned subsidiary of Placer Dome Inc. continues to explore the Company's Keystone project in Nevada. The Keystone claim group, 11 square miles in size is 100-percent owned by Nevada Pacific Gold Ltd. and is located on the Battle Mountain/Cortez Trend.

The Keystone project exhibits potential for both base and precious metal mineralization related to the Keystone intrusive. Mineralization occurs in both upper and lower plate rock adjacent to and surrounding the intrusive. The presence of these receptive lower plate host rocks and an intrusive to focus the system provides a classic setting for the potential development of Carlin-style disseminated gold deposits.

Geologic mapping and rock chip sampling continues over the property position. To date, 120 rock chip samples have been collected in the NW corridor of the property. Seven samples have gold concentrations greater then 100 ppb, with the highest sample having 667 ppb gold (317 ppm arsenic and 466 ppm antimony). Ten samples have arsenic concentrations greater than 300 ppm, with the highest sample having 2860 ppm.

Placer Dome has completed several geophysical surveys, including airborne magnetics over the entire property, gravity across the range front, and a 7.0 line mile Controlled-Source Audio-Frequency Magneto-Telluric (CSAMT) survey. Placer Dome has also completed a soil geochemical survey over the entire property on a 400-foot by 400-foot grid.

The next phase of work on the property will be drill testing.

Placer Dome has the right to earn a 60% interest in the Company's Keystone Gold Project by spending US$5 million on exploration over a five-year period, including US$350,000 in year one (see NPG PR #04-29 September 8, 2004). Placer Dome can earn a 15% additional interest (75% total) by completing a feasibility study. Nevada Pacific retains 100% of the base metal and silver rights subject to and subordinate to Placer Dome's rights to develop a gold resource at Keystone.

"We are very pleased with both the speed and quality of exploration being conducted by Placer Dome on our Keystone property. Placer Dome's experience during the discovery and outlining of the Cortez Hills and Pediment deposits a short distance to the north is of great benefit to the exploration process," stated Mr. David Hottman, Chairman.

Curt Everson, P.Geo., M.Sc., is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company in Nevada.

Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns the Magistral Gold Mine in Mexico and an exploration property portfolio covering approximately 75 square miles of mineral rights including portions of two significant gold producing belts in the State of Nevada. The Company's BMX, Keystone and Limousine Butte projects are under joint venture agreement to Placer Dome U.S., Inc. A description of these projects, including maps and photographs can be viewed on the Company's website at


David Hottman, Chairman

Cautionary Statement on Forward-Looking Information

Certain information set forth in this report contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties including: the results of current operation and exploration activities; market reaction to future operation and exploration activities; significant changes in metal prices; currency fluctuations; increases in production costs; differences in ore grades; recovery rates; and tonnes mined from those expected; changes in mining, or heap leaching rates from currently planned rates; the timing and content of work programs; geological interpretations; receipt and security of mineral property titles; general market and industry conditions; and other factors detailed in the Company's public filings.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise an, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements, and accordingly, no assurance can be given that the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of accuracy of this release.

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