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5/19/2004 3:40:00 PM ET
Pacific Gold Corp. Announces Acquisition of Fernley Gold, Inc. and the Lower Olinghouse Placers with an Estimated 445,000 Ounces of Gold
TORONTO, May 19, 2004 /PRNewswire-FirstCall via COMTEX/ --
Pacific Gold Corp. (OTCBB: PCFG) announced today that the Company has incorporated a new 100% wholly-owned Nevada subsidiary known as Fernley Gold, Inc. In addition, Fernley Gold has entered into a lease agreement for the right to mine 680 acres of the Butcher Boy property located in an area known as the Lower Olinghouse Placers.
The lease agreement entered into by Fernley Gold is for a property located 34 miles east of Reno, Nevada, just off highway I-80. The area, known for Placer Gold, is commonly referred to as the Olinghouse Placers, and has rich mining history.
By way of lease, Fernley Gold acquired 680 acres including 36 claims, and the exclusive right to mine for Placer, Lode and other minerals and metals. The initial agreement is for a period of five years, with Fernley Gold having the exclusive right to renew the lease on the existing terms. Fernley Gold has made a one-time payment of $10,000 to acquire the lease. In addition, the Company will pay the Lessor $500 each quarter for the next two quarters, and thereafter Fernley will pay $1,000/month. The monthly payments will be applied towards the royalty fees due by the Company to the Lessor. According to the royalty fee structure, the Company will pay 6% of the gross value of the recovered ore, less smeltering expenses, when the price of spot gold is below $400/ounce on the world market. When gold is above $400, the Company will pay a 10% royalty. Fernley Gold is anticipating additional testing on the site later this year, with the intent of submitting a plan of operations and beginning production in the 4th Quarter-2005.
The leased property is located in a rich mining area with historical data available that includes extensive testing and mining operations. The most up- to-date review of the data indicates the lease on the Butcher Boy property contains an estimated 58,000 ounces of proven reserves, 87,000 ounces of indicated reserves, and up to 300,000 ounces of potential reserves for a total of 445,000 ounces throughout a minimum of 20 million cubic yards grading 0.4g/yd(3).
'Today marks anther progressive step for the Company in executing its plan', stated Mitch Geisler, president. 'Our Company's mission statement is to acquire a minimum 5,000,000 ounces of gold under reserve over the next five years. With the addition of the Butcher Boy property, the Company now estimates total reserves at up to 1,085,000 ounces.'
About the Company
The Company's business plan includes the acquisition and development of production-ready, or in-production mining operations, concentrating on gold recovery. The Company is interested in alluvial, or placer, operations located in North America. Nevada Rae Gold, a subsidiary of Pacific Gold Corp., has acquired a gold project known as Crescent Valley, located in north-central Nevada, which contains a large alluvial deposit. Oregon Gold, a subsidiary of Pacific Gold Corp., owns a group of claims known as the Bear Bench, located in south-western Oregon. Fernley Gold, Inc., a wholly-owned subsidiary, has a lease agreement on a group of claims known as the Butcher Boy and Teddy Claims, located in western Nevada.
Additional information is available at the Company's website at www.pacificgoldcorp.com, or by calling 416-214-1483.
This news release includes forward-looking statements that reflect Pacific Gold Corp.'s current expectations about its future results, performance, prospects and opportunities. Pacific Gold Corp. has tried to identify these forward-looking statements by using words and phrases such as 'may', 'will', 'expects', 'anticipates', 'believes', 'intends', 'estimates', 'should', 'typical', 'we are confident'or similar expressions. These forward- looking statements are based on information currently available to Pacific Gold Corp. and are subject to a number of risks, uncertainties and other factors that could cause the Company's actual results, performance, prospects of opportunities in the remainder of 2004 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.
SOURCE Pacific Gold Corp.
www.pacificgoldcorp.com, (416) 214-1483 (PCFG)
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