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Pacific Gold Corp. - Project Update
TORONTO, November 23, 2010 - Pacific Gold Corp. (Pink Sheets: PCFG) announced today a corporate update on the status of its four operating subsidiaries and their mining projects, including development plans for 2011. Additionally the Company commented on its corporate website and production plans for 2011 to 2014.
Operating Subsidiaries and Projects
Nevada Rae Gold, Inc. - Summary
Nevada Rae Gold, Inc. ("NRG") owns and operates the Black Rock Canyon Mine. The information on this page is partly excerpted and summarized from a 43-101 technical report prepared in June 2010, and historical property reports, prepared for previous property owners, by Bharti Engineering ("Bharti") and Robertson Research ("Robertson"). The Bharti and Robertson reports are not 43-101 compliant. NRG has mining rights to a portion of the property covered in the Bharti and Robertson reports. The Company has identified a resource, in the lower Black Rock Canyon, and not including other areas under claim, of almost 1.2 million yards of gravels with an estimated gold grade of 0.5 grams per yard (grade based on a limited sample location). This resource is permitted and bonded and NRG plans to process up to 480,000 yards per year, for the first three years of operations, producing 6,000 to 12,000 ounces of gold per year. Following the first full year of normal operations NRG plans to expand the permitted area to cover more of its claims and plans to double the size of the screening plant in order to increase production into the 12,000 to 24,000 ounce range. The resource size indicated above is strictly limited to the area of Black Rock Canyon that NRG has studied sufficiently to identify in its 43-101. Future gold grade testing and seismic work will establish the size of the remaining resources at Black Rock Canyon, Tubs Srpings, Mud Springs and other areas under NRG control.
The Company is currently investigating mining contractors and heavy equipment suppliers and plans to begin gold production at Black Rock Canyon in 2011.
Fernley Gold, Inc.
Fernley Gold Inc., entered into a lease agreement in 2004 for the right to mine 36 claims covering 640 acres of the Lower Olinghouse Placers. The claims are known as Butcher Boy and Teddy, and are located approximately 34 miles east of Reno, Nevada just off Interstate 80.
The Butcher Boy and Teddy Claims contain an estimated 445,000 ounces of gold contained in approximately 30,000,000 cubic yards of alluvial gravels. The average grade is 0.4 grams per cubic yard. In 2009 Fernley Gold filed its initial mining plan of operations with the BLM which began the permitting process.
The Company had an initial scoping meeting with the NDEP and BLM in late 2010 and plans to continue the permitting process in 2011.
Pilot Mountain Resources, Inc.
The claims cover a tungsten deposit with known mineral resources previously established per a pre-feasibility study prepared by Kaiser Engineers in the early 1980's. Resource estimates are over 9,000,000 tons and approximately 35,000 tons WO3, grading 0.386% WO3. Additionally there is the potential for significant copper, zinc and silver credits. The next step in development of Project W is completion of a 43-101 report based on historical information, and once complete then upgrading the feasibility study to current date.
The Company plans to engage a consulting firm to prepare the historical 43-101 report in 2011.
Pacific Metals Corp.
Pacific Metal mining claims include the historic Graysill Mine, a past producer of vanadium and uranium ore. The Graysill Mine is known to have produced vanadium and by-product uranium during a period of approximately twenty years after World War II. Before the mine ceased production, approximately 32,000 tons of ore were mined with a reported grade of 2.41% vanadium pentoxide and 0.09% uranium oxide. In 1989, representatives of the United States Department of the Interior, Bureau of Mines Division, examined a number of abandoned mines in the San Juan National Forest, one of which was the Graysill Mine. Subsequently, in 1992, the Bureau of Mines produced a Mineral Land Assessment Open File Report titled "Mineral Appraisal of San Juan National Forest, Colorado". Most of the information relating to the Graysill Mine and the geology and mineralization of the general area was obtained from this Open File Report. Based on analyses of the results of the drilling completed by Vanadium Corporation of America a third party calculated a geological resource of 400,000 tons averaging 2.5% vanadium pentoxide and uranium resources with an expected grade of 0.08% for an estimated 20 million pounds of vanadium pentoxide and 640,000 pounds of uranium oxide.
The Company is currently evaluating the available information on the Graysill Mine and is in the process of developing its plans for Pacific Metals Corp. for 2011. The Company expects to announce those plans in the first quarter of 2011.
The Company would like to announce that it has completed an update of the corporate website and information about the Company and its projects is available at www.pacificgoldcorp.com
Currently the Company has 743,732,651 shares outstanding.
In the fourth quarter the Company engaged a new public auditing firm to prepare the Company audits for 2008 and 2009. The Company is working diligently to prepare and file the annual and quarterly reports for these periods as soon as possible.
The Company would politely ask its shareholders to refrain, where possible, from attempting to directly contact Company suppliers, this practice has the potential to cause damage to the Companies relationship with suppliers, causing increased expenses for the Company, and could expose the shareholders to material non-public information which would preclude the shareholder from legally trading the Company stock.
The Company also advises shareholders that all shareholder communication should be through firstname.lastname@example.org or 416-214-1483. Inquiries to other email addresses or phone numbers will not receive a response.
The Company plans to begin gold production at Black Rock Canyon in 2011 in a range of 6,000 to 12,000 ounces per year in 2011. In 2012 the Company plans to increase production at Black Rock Canyon to between 12,000-24,000 ounces per year. In 2013 the Company plans to begin mining at Fernley Gold at a rate of approximately 10,000 ounces a year and increasing to 20,000 ounces per year in 2014. Total company wide gold production is planned to be approximately in the range of 32,000 to 44,000 ounces per year by the end of 2014. There can be no assurance as to production rates or profitability from these estimates.
Based on recent prices from www.mineralprices.com , Pilot Mountain claims have a current in-ground resource value of up to $900 million subject to a number of factors; confirming the deposit grades of copper, zinc and silver credits; mining extraction and processing costs; and metal recovery efficiencies; all of which could lower the amount recovered significantly. Once the pre-feasibility study is updated a more accurate expectation of mine finance and potential operating numbers should become available.
Based on recent prices from www.mineralprices.com , Pacific Metals claims in-ground resource values could be as high as $160 million not accounting for extraction costs, which could be considerable, however the Company has not yet undertaken the necessary steps to confirm the size and scope of the deposit as indicated in the historical writings and reports.
Pacific Gold Corp. continues to seek the necessary capital to complete its plans for 2011 and beyond. Without additional capital there is no assurance that the Company will meet all of its goals and develop its business plans as outlined above. In the event that less capital is raised than necessary to meet all the goals above priority will be placed on bringing the Black Rock Canyon mine into production.
In the fourth quarter of 2010, the Company raised $150,000 in the form of loans from a related party controlled by an officer of the Company.
To find out more about Pacific Gold Corp. (Pink Sheets: PCFG), visit the Company's website at www.pacificgoldcorp.com. Or contact the Company directly at 416-214-1483.
About the Company
Pacific Gold Corp.'s business plan provides for the acquisition and development of production-ready and in-production mining operations. The company is focused on alluvial gold and base metals operations located in western North America. Pacific Gold Corp. owns four operating subsidiaries: Nevada Rae Gold, Inc. ("Nevada Rae") owns and operates the Black Rock Canyon gold mine, located in north-central Nevada; Pilot Mountain Resources Inc. ("Pilot Mountain") owns Project W, a large tungsten based deposit in Nevada; Fernley Gold, Inc. ("Fernley Gold") acquired exclusive lease rights to mine the Lower Olinghouse Placers in north-western Nevada; and Pacific Metals Corp. ("Pacific Metals") owns claims in San Juan and Delores Counties, Colorado, encompassing the historic Graysill Mine.
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 2010 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.
Pacific Gold Corp.