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The Stockpage: Gold at $539 per Ounce! 1/9/2006
Jan 09, 2006 (M2 PRESSWIRE via COMTEX) -- The Stockpage is watching Pacific Gold Corp. (OTCBB: PCFG), Newmont Mining Corp., (NYSE: NEM), Barrick Gold Corp., (NYSE: ABX), Bema Gold Corp., (AMEX: BGO), Placer Dome Inc., (NYSE: PDG), and Goldcorp Inc., (NYSE: GG).
Pacific Gold Corp.'s (OTCBB: PCFG) Black Rock Canyon gold mine is currently under construction and is scheduled to begin gold production in the first quarter of 2006. The mine is owned and operated by a 100% owned subsidiary company, Nevada Rae Gold, Inc.
With the recent increases in the price of gold, PCFG revenues for 2006, at Black Rock Canyon, could be as high as $5.3 million with EBITDA of up to $2.5 million. With almost 33,000,000 shares outstanding, EBITDA per share for 2006 could be as high as $0.08 per share, and the P/E ratio could favor PCFG very well in 2006 and 2007, especially at the stock's current closing price of only $0.30 per share.
The Black Rock Canyon mine is located in Lander County, Nevada in the proximity of the Cortez Gold Mine, owned by Placer Dome and Rio Tinto PLC (RTP). Geologist reports have placed the estimated resources for the Black Rock Canyon mine at up to 500,000 ounces of gold which would give a mine life of over 20 years.
In December PCFG closed a $1.5 million debt issue. In the second quarter of 2005, PCFG completed $4.6 million in equity and debt financing. The company has purchased most of its mining equipment and has begun mine construction. Construction is expected to be completed in January 2006.
With the recent increases in the price of gold, the Company is well positioned for potential growth at the Black Rock Canyon mine and at its 2 other gold projects, Fernley Gold and Oregon Gold.
In August of 2005 Pacific Gold Corp. (OTCBB: PCFG) issued a press release announcing that Pilot Mountain Resources Inc., a 100% subsidiary of the Company, has acquired Project W from Platoro West Inc.
The acquisition is big news for the Company, as the ore deposit is valued at up to an estimated $700 million of in ground resources, based on a feasibility study prepared by Kaiser Engineers and Union Carbide. Project W is primarily a tungsten (chemical symbol W) project located in Mineral County, Nevada, USA. Elevated tungsten values occur throughout the area, and there are known mineral resources within the claim area.
Pacific Gold Corp. is committed to acquiring and developing proven, undeveloped mineral deposits in North America. Project W, the Company's most recent acquisition, presents a unique opportunity for the Company and its shareholders due to recent economic developments in the tungsten market. The Company's mission statement is to acquire up to $2 billion of mineral deposits by 2009. With the acquisition of Project W, the Company estimates that it has achieved approximately 55% of its goal.
The Stockpage believes PCFG is undervalued as its acquisitions and projects are gaining momentum.
On Friday, PCFG closed at $0.30.
The Company is focused on gold and base metals operations and currently 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. Fernley Gold, Inc. ("Fernley Gold") has acquired the exclusive lease rights to mine the Lower Olinghouse Placers in north-western Nevada. Oregon Gold, Inc. ("Oregon Gold") owns the Bear Bench claims and Defiance mine, located in south-western Oregon.
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sorry, I posted on the wrong board, should be over at .10 and above...I appologize, can a mod move it!
Posts: 262 | Registered: Jun 2005
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