PC Gold Starts Drilling at Historic Pickle Crow Gold Mine

PC Gold Starts Drilling at Historic Pickle Crow Gold Mine

Thursday, August 14th 2008

PC Gold Inc. report that the first of three drills has begun drilling at the Pickle Crow Gold Mine Property in northwestern Ontario, Canada. This first drill is a shallow rig capable of drilling to 300 metres vertically from surface. A second drill rated to 1,200 metres, and a third drill rated to 2,200 metres, will be added incrementally in the weeks ahead. Drilling will be continuous over the next year, and encompass up to 45,000 metres of diamond coring. Major Drilling Group International Inc. is the drill contractor.

The Company is excited about the targets to be drilled. Initially, the shallow rig will focus on testing the near surface expressions of the three principal known zones of iron formation (“IF”) hosted gold (respectively, the No. 1 IF, Central IF, and No. 5 IF) lying within the historic workings in the vicinity of the No. 1 Shaft. Preliminary 3D modeling of historical drilling data for the No. 1 Shaft area suggests the presence of a significant volume of near surface mineralization which may potentially be amenable to open pit extraction. The Pickle Crow Gold Mine was historically an underground, high grade vein mining operation and any renewed mining activity on the site would probably also be predominantly underground. The possible addition of zones of potentially open pitable material to the existing underground potential, could be strongly positive.

Initial assay results from this shallow drilling are expected in September. To provide a balanced picture of results as they unfold, assays will be released in batches of several holes at a time.

Ultimately, when all three rigs are working, the program objectives of this first phase of drilling will be to:

1) Outline, from surface to the bottom of the historic mine and into the unexplored areas beneath, the three zones of iron formation hosted gold proximal to the No. 1 Shaft. All three of these zones are open for expansion both laterally within the workings, and to depth.

2) Drilling will also test for lateral and depth extensions of the high grade veins (31 year life of mine average grade of 16.14 g/t (0.47 oz/T) that were the primary source of historic production, all of which are known to remain open to depth below the old workings, and in some cases laterally.

The Company’s ultimate vision with the Pickle Crow exploration drilling program is to define a sufficient tonnage of mineralization within a cylinder of rock measuring approximately 1 km in diameter by 2 km in depth and centred on the historic No. 1 shaft, to support modern high capacity extraction and milling. Readers are invited to research Goldcorp’s 4,000 tpd, approximately 225,000 oz per year Musselwhite mine, some 150 km north of Pickle Crow, as an example of modern production possibilities from an iron formation hosted gold system.

Accomplishing this vision will require systematically following, with drilling, the known zones of gold mineralization from surface through the historic workings, and into the unexplored ground beneath.

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