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Press release from Marketwire

PC Gold Releases Fall Drilling Results on the Shallow BIF Target in the Core Mine Trend

Tuesday, January 03, 2012

PC Gold Releases Fall Drilling Results on the Shallow BIF Target in the Core Mine Trend16:48 EST Tuesday, January 03, 2012TORONTO, ONTARIO--(Marketwire - Jan. 3, 2012) -PC Gold Inc. (TSX:PKL) is pleased to report drill results from its fall shallow drilling program located in the Core Mine Trend, select results of which are shown in Table 1, below. The bulk of fall drill program targeted the near surface (0-150 m) areas of the Core Mine Trend BIF (Banded Iron Formation) which is cross-cut by historical workings. A total of 75 holes totaling 16,544 m were completed on the BIF, approximately 80% of which results have now been received. The program was designed to expand existing open pit resources (currently 3,628,000 tonnes at 1.1 g/t Au for 126,000 ounces) in the core mine trend as well as to expand relatively shallow (150-500 meters depth) underground resources. See details of the 1.26 million ounce NI 43-101 inferred resource* estimate contained in the company's April 18, 2011 news release.The fall drill program successfully defined additional mineralization proximal to current No. 1 and No. 5 BIF pits as well as the up dip extension of the Field Zone BIF and the Central BIF Zone. Additional deeper drilling was also successful at tracing the Field zone BIF to a depth of 500 m. Highlights include:No. 5 BIF Open Pit target:Hole PC-11-159, 28.5 m of 2.33 g/t Au from 106.00-134.50 m, Including3.0 m of 8.96 g/t AuHole PC-11-163, 43.41 m of 0.95 g/t Au from 94.96-138.37 m, Including1.5 m of 13.05 g/t AuField Zone BIF Bulk Underground target:Hole PC-11-173, 10.00 m of 2.54 g/t Au from 220.00-230.00 m, Including2.0 m of 5.72 g/t AuHole PC-11-196, 3.00 m of 4.25 g/t Au from 338.00-341.00 m, Including1.0 m of 7.04 g/t Au(True widths are approximately 35%.)Metallurgical work was also carried out this fall on the Core Mine Trend BIF. SGS Lakefield analyzed two metallurgical samples taken from stockpiled BIF mineralization from Canterra's (the previous property owner) 2002 operations. The two samples, grading 3.74 g/t and 9.29 g/t, returned between 93.4% and 97.7% recovery using a combination of gravity and cyanidation, while returning between 43.4% and 59.0% on gravity alone. These results are similar to bulk sampling done by Canterra in 2000 on the high-grade No. 5 and No. 1 Veins which returned recoveries between 98.2 and 99.4%. While targeting the BIF, the No. 20 vein lying in the hanging wall to the BIF (see press release, February 11, 2010) was further delineated. It now appears that the No. 20 vein represents the western extension of the No. 5 Vein structure, and bears many similarities to the No. 5 Vein western extension which was drifted on the 2900 foot level. The No. 20 Vein is hosted within a strong structure zone but pinches and swells often consisting of 2 separate narrow veins with visible gold being frequently observed.JP Chauvin, the President and CEO states: "The Core Mine Trend BIF has been and remains a key target area in defining additional ounces at Pickle Crow. Once we have dewatered the workings this geological feature, specifically the No. 5 BIF zone offers the greatest potential for expanding bulk underground resources at Pickle Crow. Our primary focus right now remains getting underground to better define, upgrade, and expand our inferred gold resource. We continue to add underground mining and engineering expertise to our Management and Technical Committee as the Company executes on its underground exploration and development push." (90% of the existing resources are currently in the underground category.)The Pickle Crow gold mine hosts a high quality 1.26 million ounce NI 43-101 inferred gold resource* (10,150,000 tonnes averaging 3.9 g/t gold, cut, diluted and constrained). This includes a higher grade underground component comprising 1.1 million ounces averaging 5.4 g/t gold, including a high grade vein component of 600,000 ounces averaging 9.3 g/t gold, which the Company is focused on developing. The company has been completing the required work to obtain the environment permits to dewater the old workings. The application to change the name to PC Gold from Canterra on the property's industrial sewage certificate of authorization for dewatering has been approved. The company's consultant continues to work on designing the dewatering program.Table 1: Select Core Mine Trend BIF Drilling ResultsHole IDZoneFrom (metres)To (metres)Width (metres)Au (g/t)True Width %PC-11-156No. 5 BIF Zone153.35168.5015.150.8650Including158.00167.009.001.18Including159.50162.503.002.40PC-11-159No. 5 BIF Zone106.00134.5028.502.3335Including112.00130.7518.753.17Including112.00115.003.008.96PC-11-163No. 5 BIF Zone22.65138.37115.720.5735Including38.4541.453.003.58And94.96138.3743.410.95Including99.46123.7124.251.51Including104.50106.001.5013.05PC-11-164No. 1 Vein14.3214.800.4817.3535PC-11-165No. 5 BIF Zone140.50159.1818.680.74Including145.00157.0012.001.04Including154.00157.003.002.24PC-11-167No. 20 Vein Zone, & BIF31.9048.5016.601.1235Including (No. 20 Vein)31.9033.001.108.56PC-11-173Field Zone BIF190.00236.0046.000.84Including220.00236.0016.001.74Including220.00230.0010.002.54Including228.00230.002.005.72PC-11-196Field Zone BIF321.00409.0088.000.5435Including335.50359.0023.501.58Including338.00341.003.004.25And357.00358.001.007.04PC-11-198No. 1 BIF Zone133.00157.1024.100.6050Including134.00135.101.108.46PC-11-220Field Zone BIF240.50253.2012.701.4720Including242.50245.703.202.16Including245.20245.700.504.67PC-11-221Field Zone BIF238.00295.0057.000.5050Including247.00248.001.008.25A complete set of results for holes PC-11-153 through PC-11-223 along with associated figures are available on our website www.pcgold.ca . All assays performed by Accurassay Laboratories of Thunder Bay, Ontario with check assays carried out by Activation Laboratories Ltd. of Ancaster, Ontario. Assay values cited in Table 1 are uncut.An animated video and rotating 3D model of the Pickle Crow gold mine, including underground development, stopes, principal veins and BIF hosted gold zones, and resources, can be viewed on YouTube at: http://www.youtube.com/watch?v=YRtBY26PXy8QA/QC ProceduresPC Gold has implemented a rigorous quality assurance / quality control (QA/QC) program to ensure best practices in sampling and analysis of drill core, the details of which can be viewed on the Company's website at http://www.pcgold.ca/en/QAQC_Procedures_46.html.Neil Pettigrew, M.Sc., P.Geo., Vice President, Exploration for PC Gold and the Company's Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this press release.* Entirely NI 43-101 Inferred category. The NI 43-101 resource estimate was prepared by Fladgate Exploration Consulting Corporation, and audited and approved by Micon International Limited under the direction of Mr. B. Terrence Hennessey, P.Geo., MAusIMM, Vice President of Micon, an independent Qualified Person as defined by NI 43-101. Mr. Neil Pettigrew, Vice President, Exploration for PC Gold and the Company's Qualified Person, is also a partner in Fladgate. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured resource category. A copy of the NI 43-101 compliant technical report dated June 2, 2011 containing full details of the resource estimation and entitled: "A Mineral Resource Estimate for the Pickle Crow Property, Patricia Mining Division, Northwestern Ontario, Canada" can be obtained from the Company's website at: http://www.pcgold.ca/en/Technical_Reports_52.html.This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.FOR FURTHER INFORMATION PLEASE CONTACT: JP Chauvin, P. Eng.PC Gold Inc.President and Chief Executive Officer(416) 867-8567jpchauvin@pcgold.cawww.pcgold.caNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.