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5/25/2004 6:40:00 PM ET
Pacific Gold Corp. - Acquisition of Defiance Mine and Operating Permits
TORONTO, May 25, 2004 /PRNewswire-FirstCall via COMTEX/ --
Pacific Gold Corp. (OTCBB: PCFG) announced today that the Company's new wholly-owned Oregon subsidiary, Grants Pass Gold, Inc., has completed its purchase of the Defiance Mine, a fully permitted, operational mine located in south-western Oregon. In addition to the mining claims and permits, Grants Pass Gold also purchased earth moving equipment and a fully operational mill. The Company expects to begin production at Defiance during the month of June 2004.
The Defiance Mine is located in Josephine County, Oregon; approximately 20 miles from the town of Grants Pass. The Mine is adjacent to the Company's Bear Bench project.
This purchase will allow Grants Pass Gold to begin mining operations immediately. The Company expects it will require approximately two weeks for completion of upgrades to equipment at the Defiance Mine. The anticipated production start date is June 15, 2004.
Grants Pass Gold purchased the mill site and equipment for $100,000, which will be paid in 20 installments of $5,000 each. The Defiance Mine, complete with an approved plan of operations and water rights, was purchased for $150,000, and has been paid in full. In addition, Grants Pass Gold will pay a net smelter royalty of 5%, capped at $200,000. Unconditional ownership of the permits and claims will transfer upon reaching the net smelter cap payments.
The Defiance Mine was the subject of a sampling program completed by the Company in July 2003. At that time, Oregon Gold, another PCFG subsidiary, conducted a five-week bulk sample program on the site to verify the gravel and gold quantity.
'This is a major milestone in our Company's history', stated Mitch Geisler, President of Pacific Gold Corp. 'The Defiance Mine will elevate the Company to production status. This project will allow us to generate revenue within the next 60 days, and provide a good base to complete the testing and permitting of the Bear Bench project. We are hopeful that the Defiance Mine will be a solid launching pad onto the Bear Bench which we plan to operate for many years to come.'
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. Grants Pass Gold, Inc., a wholly-owned subsidiary, owns the Defiance Mine, located in Josephine County, Oregon.
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.
Additional information is available at the Company's website at www.pacificgoldcorp.com, or by calling 416-214-1483. (PCFG)
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