FSC / Press Release
Pacific Coast Nickel Corp. Options Yukon Property
Vancouver, British Columbia CANADA, May 20, 2008 /FSC/ - Pacific Coast Nickel Corp. (NKL - TSX Venture), is pleased to announce it has entered into an agreement, subject to TSX-V approval to option a property from Strategic Metals Ltd.
Michael Sweatman, Pacific Coast Nickel President stated that, "This represents a diversification as to location but remains with our philosophy of seeking prospective nickel prospects. We continue to seek other key properties to enhance our portfolio of properties."
The 120 claim (2500 hectare) Burwash property is 100% owned by Strategic Metals Ltd. It is located in the Kluane Ranges of southwest Yukon, 8 km by all weather road from the Alaska Highway. All areas of exploration interest on the property are served by a network of four-wheel-drive roads.
The exploration target is nickel-copper-platinum group element (PGE) mineralization related to intrusions of the Late Triassic Kluane Mafic-Ultramafic Suite that were emplaced during a period of uplift and extension related to widespread basaltic volcanism. The Burwash property overlies the east half of the Quill Creek Mafic-Ultramafic Complex, a 20 km long multiphase sill-like intrusion that attains a maximum thickness of over 1 km. The Complex hosts a number of nickel-copper-PGE occurrences. The most significant and well explored of these is the Wellgreen Mine which adjoins the Burwash property to the west.
The Wellgreen deposit was discovered in 1952. Exploration and development during the 1950s and 1960s culminated in limited underground production from isolated massive sulphide lenses in 1972 and 1973. Exploration was renewed in the late 1980s with an aggressive program of surface and underground diamond drilling that was directed toward developing a bulk tonnage, open pittable resource. A 1989 pre-feasibility study outlined a combined proven and probable reserve of 50 million tonnes grading 0.36% nickel, 0.35% copper, 0.54 g/t platinum and 0.34 g/t palladium (note: this calculation pre-dates the implementation of NI 43-101 and should not be relied upon).
The agreement which is subject to TSX V approval contains the following basic terms:
The First Option by:
(i) making the following cash payments to the Optionor:
(1) $25,000 upon the execution of this Agreement by both parties;
(2) an additional $40,000 on or before March 31, 2009; and
(3) an additional $60,000 on or before March 31, 2010;
(ii) allotting and issuing the following common shares in its capital stock to the Optionor:
(1) 100,000 shares within three (3) business days of the Effective Date;
(2) an additional 100,000 shares on or before March 31, 2009;
(3) an additional 150,000 shares on or before March 31, 2010 (collectively with the shares in (1) and (2) above, the "Shares"); and
(iii) incurring the following Expenditures on the Property by December 1, 2010 (the "First Option Deadline"):
(1) $400,000 on or before December 1, 2008;
(2) an additional $1,300,000 on or before December 1, 2009;
(3) an additional $1,300,000 on or before December 1, 2010;
After exercise of the first option the Company will have earned a 50% interest in the property.
(b) the Second Option, provided it has exercised the First Option, by providing the Optionor with a positive bankable feasibility study in respect of the Property on or before March 31, 2013 (the "Second Option Deadline");
After exercise of the second option the Company will have earned a 60% interest in the property.
c) the Third Option, provided it has exercised both the First Option and the Second Option, by providing all of the funding required to put the Property into commercial production on or before March 31, 2016 (the "Third Option Deadline");
After exercise of the third option the Company will have earned 75% interest in the property.
About Pacific Coast Nickel Corp.
Pacific Coast Nickel Corp is actively exploring properties which are prospective for nickel and copper. The Company's other major property is the Big Nic property located approximately 20 kilometres north-west of Hope BC, immediately west of the former Giant Mascot Mines, a former nickel and copper producer. Targets include both high-grade massive sulphide styles and bulk tonnage basal and margin styles.
Murray McClaren, P. Geo is the qualified person under National Instrument 43-101 who has reviewed and approved the contents of this New Release.
For further information please contact Michael Sweatman President, 604-684-4312 or Jevin Werbes at Longview Capital Partners, 604-681-5755.
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.
For further information, please contact:
Pacific Coast Nickel Corp.
Longview Capital Partners
Pacific Coast Nickel Corp.
Suite 605 475 Howe Street
Tel: (604) 684-4312
Fax: (604) 608-3294
Source: Pacific Coast Nickel Corp. (NKL-TSX-V)
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