PC Gold Inc TSX:PKL announced drill results from the Core Mine Trend of its Pickle Crow property in northwestern Ontario. Highlights include
2.33 g/t gold over 28.5 metres (including 8.96 g/t over 3 metres)
0.95 g/t over 43.4 metres (including 13.05 g/t over 1.5 metres)
2.54 g/t over 10 metres (including 5.72 g/t over 2 metres)
4.25 g/t over 3 metres (including 7.04 g/t over 1 metre)
President/CEO JP Chauvin tells ResourceClips.com, “The Pickle Crow mine ran from the early 1930s to 1966 and produced 1.5 million ounces, so it’s a property with significant underground development that’s occurred over the years. PC Gold picked up the property in 2007 and has done a fair bit of exploration. It currently has an inferred resource of 1.26 million ounces, of which 1.14 million is underground, so 90% of the resource right now is potentially underground mineable. Our current plan is to try to raise the funds necessary to be able to go underground and move the resource up to a proven and probable category in order to complete a feasibility study. But it requires a fair bit of work because we need a shaft rehabilitated, a new headframe, a new hoist room and then to dewater to get to where we need to be to drill it underground.
Our market cap right now is at about $18 million. That means that the property is valued at less than $15 an ounce, which is kind of ludicrous—JP Chauvin
“A lot of the purpose of [the current] drill program was to expand the open-pit resources. So it’s all shallow drilling. Some of the grades that you’re seeing there potentially will enlarge the open-pittable resource. I wouldn’t call the results stellar. [The program] was done this way mostly because it was super flow-through money (which is only eligible for greenfields exploration) from the last financing, so it had to be spent from surface. So it was decided to focus near surface and see if we could expand the resources around the open pits.”
Regarding the company’s plans for 2012, Chauvin says, “The first thing we intend to do is to find a way of financing the project: financing the next phase of exploration. There’s a significant capital requirement because of the infrastructure that’s required—headframe, hoist room, etc. We’ll embark on this fairly quickly, and we are in the process of making sure we get all the permits in place and that type of thing.
“There are four shafts on the property,” he continues. “Two are from surface, and there’s an underground shaft that goes from 2,000 metres to 3,800 metres. Our intention is not to do all three but just to refurbish the No. 1 shaft, which is a very small shaft—we’re looking at 3-tonne skips—and go down to 3,000 and drill the inferred resource to a better category.
“I don’t see a [resource update] happening much before we get up into the proven and probable [category]. We’re looking at coming up with a means to do a feasibility study, and we’re hoping to have the whole Phase 1 project completed in about 2 years time, which includes a period of time for financing.
“Right now our focus is to advance the property as best we can. I look at it from the perspective that our job as management is to get maximum shareholder value. Right now, the best way to do that is to upgrade the resource to a better category, then the ounces will be given a higher value than what they are now. Our market cap right now is at about $18 million. That means that the property is valued at less than $15 an ounce, which is kind of ludicrous. But the whole gold sector—even the majors—is being hit pretty badly right now.
“Prior to taking the role of interim President and CEO, I was the Chairman of the technical committee, and I intend to see this [project] through. We’re looking at two years and then after the feasibility study we’re looking at another year and a half to two years again in order to bring it into production. I look at it from the perspective that I can set the course for the company and help select a new CEO and work very closely with them as the Chairman of the technical committee. That’s the game plan, and I’ve got support from the board in exactly that.
“I like the property,” Chauvin concludes. “We’ve got 1.2 million ounces in a good jurisdiction, Ontario. From the point of view of accessibility you can’t do much better. There’s a highway that goes right by the property. We’ve got good access and good location, so I’m excited about the project.”
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by Ted Niles