Nov. 8, 2010 (TheNewswire.ca) --
PACIFIC COAST ANNOUNCES LAS AGUILAS OPTION AGREEMENT
November 8th, 2010 - Pacific Coast Nickel Corp. (OOTC:PNIKF) (TSXV:NKL) (the "Company") is pleased to announce that it has entered into a letter agreement with Marifil Mines Limited (OOTC:MFMLF) (TSXV:MFM) ("Marifil") with an option to acquire a 70% interest in the Las Aguilas Nickel-Copper-PGM property located in San Luis Province, Argentina.
Jim Walchuck, President of Pacific Coast said, "The Company has been seeking a property which would increase share holder value for many months. The mandate was to seek out a property which not only had resources but also had the potential to be expanded. The Las Aguilas property is a perfect fit and we believe that increased share holder value will be demonstrated in the short term and long term with the development of this asset. This is an exciting prospect for the Company."
The Las Aguilas Property is located in San Luis Province, Central Argentina, approximately 730 km WNW of Buenos Aires, and 30 km NE of San Luis, the province capital. The approximate coordinates of the centre of the property are 330 07' S, and 660 08' W.
Marifil has reported that the Las Aguilas deposit contains a historical resource of 2.2 million tonnes grading about 0.52% nickel, 0.50% copper, 0.04% cobalt and significant amounts of platinum group elements. (this is not a National Instrument 43-101 compliant resource estimate). This resource was calculated from 10,000 meters of diamond drilling between 1970 and 1984.
The resources are categorized as "historical estimates" and have not been reviewed or verified under National Instrument 43-101. However, the Company believes that the property has the potential to add significant additional nickel mineralization. The historical exploration data was developed by the Argentine government agency Fabricaciones Militares which conducted an exploration program in the area.
Additional drilling was conducted by a former partner of the property in 2007 and 2008, which is anticipated to expand the historical resource estimate significantly.
The agreement with Marifil provides for payments and work commitments as follows:
To earn a 49% interest in the property.
Cash and Shares
- 1)$25,000 upon signing and 250,000 shares on approval of the TSX Venture Exchange; and
- 2)$75,000 and 250,000 shares on or before April 1, 2012;
- 3)$100,000 and 250,000 shares on or before April 1, 2013
Work Commitments
- 1)On or before April 1, 2012 complete a resource estimate based on work completed to date,
- 2)On or before April 1, 2013 incur $500,000 in exploration expenditures,
- 3)On or before April 1, 2014 incur $500,000 in exploration expenditures,
The agreement also provides for Pacific Coast to earn an additional 11% (bringing the interest to 60%) for preparation of a pre feasibility study and issue of 1,000,000 shares and payment of $100,000 on or before April 1 2015 and a further 10% (bringing the total interest to 70%) for completion of a feasibility study before April 15, 2016.
The agreement also provides for granting of a 3% NSR to Marifil of which 0.5% can be purchased for $1,000,000 and Pacific Coast retains the option of buying Marifil's 30% for $5,000,000.
Murray McClaren, P.Geo., is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.
We Seek Safe Harbour
On behalf of the board of directors of Pacific Coast Nickel Corp.,
"James Walchuck"
James Walchuck, President, CEO and Director
For more information, please contact:
Pacific Coast Nickel Corp.Jim WalchuckPresident, CEO and Director(604) 688-8913 E: jwalchuck@pacificcoastnickel.com W: www.pacificcoastnickel.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
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