If companies were judged by the number of their news releases, then Pacific Gold would be very popular. The company has done a lot in the past year; it has set itself up with placer gold properties, and soon the physical work and production should begin.
Pacific Gold began its foray into alluvial gold exploration under the name Blue Fish Entertainment. In August 2003, Blue Fish bought Oregon Gold, which was in the process of acquiring properties.
In September, Blue Fish made an initial payment to the owner of the Defiance mine site, in Josephine Cty., 20 miles from the town of Grants Pass in southwestern Oregon. During the summer, Oregon Gold completed a couple of trenches on the property, processed gravel on site, and recovered a bit less than 9 oz. of gold. Due diligence on the property resulted in ownership issues that required amendments to the purchase agreement.
Blue Fish Entertainment changed its name to Pacific Gold in September 2003. In a few months, the company had four subsidiaries, Oregon Gold, Nevada Rae Gold, Fernley Gold and, most recently, Grants Pass Gold, all of which were set up to work on different land packages.
In November, Oregon Gold staked claims in Josephine Cty., bringing the number of claims to 14. A test sample was performed on the Bear Bench. Two pits, about 25 ft. deep, were dug, and channel samples were taken through old adits close to bedrock. Samples were concentrated on-site and then sent to an analytical firm in Reno, Nev.
Highlights from 15 samples include: 1.55 oz. gold per cubic yard, 0.032 oz. gold per cubic yard, 0.019 oz. gold per cubic yard and 0.009 oz. gold per cubic yard.
Oregon Gold has bought a drill, capable of drilling up to 300 ft., and has a permit that will allow drilling on the Bear Bench up until the end of May.
In October, Nevada Rae Gold, the subsidiary formed to work on the Crescent Valley project in Lander Cty., northern Nevada, staked 29 placer claims and leased adjacent land. The property is about 53 miles west of Elko.
The project covers about 40% of a gold resource that has been estimated to contain a proven 1.98 million cubic yards of gravel grading 0.034 oz. gold per yard, as well as a probable 6.3 million cubic yards grading 0.031 oz. gold per yard.
In March, a plan of operations was submitted to the Nevada State Division of Environmental Protection and the Bureau of Land Management. Environmental firm and permitting consultant Chemrox Technologies performed tests and prepared the data to be incorporated into the plan. An application for a water pollution and control permit for Crescent Valley was submitted in May. The government has six months in which to decide on the outcome.
Expansion
This March, Nevada Rae bought water-producing wells and land adjacent to their property, and 2 miles from the known resource, to ensure a dependable water supply for the project. In addition, the land package was increased by 12 placer mining claims.
In April, Pacific Gold received US$450,000 in debt financing. It has been acquiring properties ever since.
The Butcher Boy has an estimated proven resource of 58,000 oz. gold, another 87,000 indicated ounces, and a potential resource of 300,000 oz. in a total resource of about 20 million cubic yards grading 0.4 gram gold per cubic yard.
In late-May, newly formed Grants Pass Gold completed the purchase of the Defiance mine and associated operating permits, a purchase cancelled by Pacific Gold in November. The mine is adjacent to Oregon Gold’s Bear Bench property. Oregon Gold performed a sampling program on the property last summer. The sale includes earth-moving equipment and a mill. The mine cost US$150,000; the equipment and mill, another US$100,000. A capped 5% net smelter royalty is payable to the former owners.
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