VANCOUVER, BRITISH COLUMBIA, Jan 17, 2005 -- Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) is pleased to announce that the Magistral Gold Mine, located in Sinaloa State, Mexico has entered commercial production effective January 1, 2005. With the commencement of commercial production, all gold sales will be recognized as revenue and all operating costs will be expensed. Prior to the commencement of commercial production, receipts from gold sales were recorded as a reduction in operating costs and the net amount was deferred. The Company is forecasting gold output for fiscal 2005, ending June 30, 2005, of 30,000 ounces at a cash cost of $US250. Silver production continues to be stockpiled.
Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns the operating Magistral Gold Mine in Mexico along with exploration rights to 400 square kilometers surrounding the mine. In addition Nevada Pacific owns an exploration property portfolio covering approximately 75 square miles of mineral rights including portions of two significant gold producing belts in the State of Nevada. The Company`s BMX, Keystone and Limousine Butte projects are optioned to Placer Dome. A description of these projects, including maps and photographs can be viewed on the Company`s website at: www.nevadapacificgold.com.
ON BEHALF OF NEVADA PACIFIC GOLD LTD.
Richard J. Barclay, CEO and Director
Forward Looking Statements
This news release contains forward-looking statements which address future events and conditions which are subject to various risks and uncertainties. The Company`s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company`s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities; geological interpretations; receipt and security of mineral property titles; fluctuations in metal prices; currency fluctuations; changes in production costs; differences in ore grades, recovery rates and tonnes mined from those expected; changes in mining or heap leaching rates from currently planned rates; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company`s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statement.
Nevada Pacific Gold Ltd.
David Hottman
(604) 646-0188
(604) 646-0189 (FAX)
Website: www.nevadapacificgold.com
