VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/11 -- Pacific Coast Nickel Corp. (TSX VENTURE: NKL)(PINK SHEETS: PNIKF)(FRANKFURT: P94) ("PCNC" or the "Company") reports that as a result of a review by the British Columbia Securities Commission (BCSC), is issuing the following news release to clarify, retract, restate and update certain of its previously issued news releases and disclosures on its website www.pacificcoastnickel.com.
The Company's website, presentations and certain news releases and management's discussion and analysis for the six months ended January 31, 2011 (the "MD&A") contained the following information:
-- a historic, non-NI43-101 compliant, resource estimate for the Las
Aguilas property.
-- a historic, non-NI43-101 compliant, resource estimate for the Wellgreen
property.
-- the grade and tonnage of potential exploration targets for the Wellgreen
property.
-- tables and information containing total resource numbers which did not
report each category of mineral resources and mineral reserves
separately respecting the Lynn Lake property in a January 18, 2011 news
release of the Company.
While the Company dedicated significant internal resources to verify the information contained above, the disclosure to the public through the Company's website, presentations, certain news releases and MD&A was not in compliance with National Instrument 43-101 ("NI 43-101").
The Company wishes to clarify this information as follows:
-- Contents of the MD&A and the website failed to indicate that the
disclosure was approved by a Qualified Person as defined by NI43-101.
Going forward, all website content and materials distributed to the
public will provide disclosure on the Qualified Person responsible for
such content.
-- The global resource statements regarding the Lynn Lake Property as found
in the January 18, 2011 news release are grouped resources and non-NI-
43-101 compliant. The Company retracts its disclosure of the global
resource numbers for the Lynn Lake property and clarifies that the NI
43-101 compliant resource on the Lynn Lake property is as per the table
below, as documented in a report by Todd McCracken, P.Geo and Lyndsey
MacBride, P.Geo., of Wardrop Engineering Inc., a TetraTech company,
dated March 25, 2011 entitled Technical Report on the Lynn Lake Nickel
Project Northern Manitoba, Canada:
Table 1. Lynn Lake NI 43-101 Resource Calculation Summary
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Zone Category NiEq Cutoff Tons Nickel% Copper% NiEq%
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N Measured greater than = 461,496 0.84 0.41 1.05
0.4
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O Measured greater than = 556,062 0.70 0.32 0.87
0.4
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Total Measured greater than = 1,017,558 0.76 0.36 0.95
0.4
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N Indicated greater than = 12,680,895 0.56 0.31 0.71
0.4
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O Indicated greater than = 9,203,226 0.57 0.28 0.71
0.4
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Total Indicated greater than = 21,884,121 0.56 0.30 0.71
0.4
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Totals Measured+Indicated greater than = 22,901,679 0.57 0.30 0.72
0.4
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-- A qualified person has not completed sufficient work in order to
classify the historical resource estimates for the Las Aguilas or
Wellgreen properties as current mineral resources or reserves and the
Company is not treating these historical estimates as current mineral
resources or reserves but as historical estimates for informational
purposes only that should not be relied upon.
-- The non-NI 43-101 compliant historic resource estimate at the Wellgreen,
reported at 55.1 million tons grading 0.36% nickel, 0.35% copper and
0.78 g/t Total precious group metals (PGM's), is documented by Watts,
Griffith and McOuat Limited, in their April 21, 1989 report titled
"Preliminary Feasibility Study of the Wellgreen Project for All-North
Resources Ltd."
-- The potential grade and tonnage of potential exploration targets for the
Wellgreen property is conceptual in nature, and there has been
insufficient exploration to define a mineral resource on the Wellgreen
Property. It is uncertain if further exploration will result in all or
any portion of the Wellgreen property being delineated as a mineral
resource. The basis on which the disclosed potential grade and tonnage
of potential exploration targets for the Wellgreen property has been
determined is based on the presence of mineralized drill holes, known
mineralized zones open along strike and/or laterally or at depth for
exploration, known trends that are favourable for mineralization not
fully explored, lowering the cut-off grades for known mineralization,
geochemically and/or geophysically anomalous areas indicating potential
mineralization not previously drill tested, size of favourable land
holdings, and potential acquisitions immediately adjoining the Company's
properties.
-- A NI 43-101 technical report on the Wellgreen property dated March 25,
2011 and entitled "Technical Report on the Wellgreen Ni-Cu-Pt-Pd Project
Yukon, Canada" was authored by Todd McCracken, P.Geo, of Wardrop
Engineering Inc., a TetraTech company, and is available on the Company's
SEDAR profile.
-- The non-NI 43-101 compliant historic resource estimate reported in the
Company's MD&A an website at the Las Aguilas property, of 2.2 million
tons grading 0.52% nickel, 0.51% copper, and 0.04% cobalt, was completed
by Marafil Mines Ltd. as an internal document in 2000.
-- On May 11, 2011, the Company released an updated NI 43-101 compliant
Indicated and Inferred resources for the Las Aguilas property, which are
summarized categorically in the table below, as documented in report by
Todd McCracken, P.Geo, of Wardrop Engineering Inc., a TetraTech company,
dated April 29, 2011 entitled NI 43-101 Technical Report and Resource
Estimate of the Las Aguilas Project, San Luis Province, Argentina:
Table 2. Las Aguilas NI 43-101 Resource Calculation Summary
Nic- Cop- Cob-
NiEq kel per alt Au Ag Pt Pd NiEq
Zone Category Cutoff Tonnes % % % (ppm)(ppm)(ppm)(ppm) %
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East Indicated greater 1,036,800 0.52 0.35 0.03 0.09 0.53 0.19 0.19 0.77
than = 0.4
West Indicated greater 2,227,000 0.36 0.45 0.03 0.03 0.29 0.15 0.19 0.62
than = 0.4
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Total Indicated greater 3,263,800 0.41 0.42 0.03 0.05 0.37 0.16 0.19 0.67
than = 0.4
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East Inferred greater 650,000 0.48 0.33 0.03 0.03 0.31 0.05 0.04 0.65
than = 0.4
West Inferred greater 689,000 0.35 0.43 0.03 0.01 0.01 0.01 0.01 0.53
than = 0.4
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Total Inferred greater 1,339,000 0.41 0.38 0.03 0.02 0.16 0.03 0.03 0.59
than = 0.4
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Notes: Nickel price = US$9.02/lb and copper = US$2.66/lb, platinum =
US$1842/oz, palladium = US$681/oz, gold = US$1058/oz, silver = US$16.57/oz.
The following formulas were used in Datamine to calculate Nickel
Equivalence: NiEQ=((Ni grade x $Ni)+(Cu grade x $Cu)+(Co grade x $Co)) x
20+((Au grade x $Au)+(Ag grade X $Ag)+(Pt grade x $Pt)+(Pd grade x $Pd) x
0.0291667))/($Nix20). A total of 79 drillholes comprising 1,815 assays were
used for resource model validation. Specific gravities of 3.5 were used in
this resource calculation. Block sizes of 8x8x4 meters for mineralized lodes
with two minor lodes on eastern zone given 1x1x1 meter block. The
interpolation of the East and West zones was completed using the estimation
methods: nearest neighbour (NN), inverse distance squared (ID2) and ordinary
kriging (OK). Validation was carried out by visual comparison of colour-
coded block model grades with composite grades on section and plan,
comparison of the global mean block grades for OK, ID2, NN and composites,
and Swath Plots comparing NN estimates and OK estimates.
In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
Danniel Oosterman, P. Geo., a consultant of the Company, is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.
About PCNC
Pacific Coast Nickel Corp is a Canadian based Nickel PGM exploration company with projects in Canada, Argentina and Uruguay. PCNC's Burwash property is located adjacent to Prophecy's Wellgreen project in Yukon Territory, Canada. On April 4, 2011, PCNC agreed to buy Wellgreen and Lynn Lake projects from Prophecy Resource Corp by issuing 450 million Pacific Coast Nickel shares to Prophecy (see NR dated April 4, 2011).
ON BEHALF OF THE BOARD OF DIRECTORS of Pacific Coast Nickel Corp.
John Lee, Chairman
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.
Neither 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.
Contacts:
Pacific Coast Nickel Corp.
John Lee
Chairman
1.800.851.1528
info@pacificcoastnickel.com
www.pacificcoastnickel.com
