January 10, 2011 / 7:07 PM / 7 years ago

UPDATE 1-PC Gold finds more gold in Ontario, shares jump

* To spend 2/3rd of exploration expense on new find - CEO

* Says discovery several hundred metres wide

* Shares climb 18 pct (Recasts; adds CEO comments)

Aftab Ahmed

BANGALORE, Jan 10 (Reuters) - Junior explorer PC Gold Inc PKL.TO found more gold deposits at its sole property in Ontario and said two-thirds of its first-quarter exploration expense will be spent in this new area.

Shares of the company climbed 18 percent to 91 Canadian cents before paring some gains and were up 13 percent at 87 Canadian cents in afternoon trade on Monday on the Toronto Stock Exchange.

The find at Pickle Crow has been named Central Pat East and “would be the priority this winter for exploration drilling,” Chief Executive Kevin Keough told Reuters.

Keough said the company will invest about C$750,000 to ($756,500) C$1 million a month in the January-March quarter on Central Pat, about 2 kilometres from its core gold mine.

The new type of arsenic-gold deposits — different from the high-grade narrow veins normally found here — have potential for both underground and open pit mining methods, the Canadian company said in a statement.

The deposit “is several hundred metres wide at least,” the top executive said.

This is the first major find that the company announced after it discovered gold at the core region in the Pickle Crow property last year. [ID:nSGE62M0K0]

The latest find is much bigger than the 2010 discovery, the CEO said.

Shares of PC Gold have gained about a third in the last one year since it announced the gold discovery. ($1=.9913 Canadian Dollar) (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters)

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