Pacific Gold Corp fka PCFG

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PCFG- Pacific Gold Corp

PCFG - 0.021 - Pacific Gold Corp. engages in the identification, acquisition, exploration, and mining of mineral properties, primarily gold and tungsten, in the United States.
PCFG-Pacific Gold Corp

Pacific Gold Corp has roughly about 945,000 ounces of gold in it's control in the state of Nevada at this time and 35,000 tons of tungsten. Gold is about 1350/oz now and tungsten is worth $32/kg or $28,000/ton. Total gross market value is currently about $2.1B so they have hit their aquisiton plans, and now onward toward production plans PCFG was lucky to aquire this land/leases in the 90s when gold was $200-400/oz making it basically not profitable at the time, but now it is in bonanza form which is why they are now coming online piece by piece.

What does it cost PCFG to mine gold in Nevada at Black Rock Cayon where they expect to be mining EOY or Q1 2011? An estimated $500/oz total. It is cheap because this is a "placer mine," or commerical sized panning mine, where you filter gravel and sand using industrial sized screens, water pumps, and traps. PCFG was wise enough (or lucky) to aquire these mines in the 90's. For strip mining and crushing rock production costs alone are typically $550/oz, which PCFG is not doing.

PCFG production costs/oz= $250/oz (Link Below from COO on production costs)

PCFG G&A+Exploration+Development+Financing = $250/oz (Industry standard)

PCFG stated they will be producing 10,000 ounces of gold in the first year but speculation is that it will be more than this due to current upgrading and testing being done at Black Rock Caynon. Assume a resonable 20,000 ounces. At current, that would be $825/oz x 20,000= $16.5M gross profit/year in 2011. Net is $12M after tax. I'd like to use a 30 PE because PCFG states they will ramp up production quickly when their cash flow increases, so we are looking at a market cap of $360M or PPS OF .49 currently with O/S 743M.

Please Note: PCFG had a $40M market cap in the Spring of 2006 as they were originally starting gold production when gold was $550/oz, or profit of about 50-100/oz, we are now 8x that, the Due Diligence is accurate in terms of market cap from what i've calculated. PCFG hit .75 cents with an OS of 53 Mil then which was the $40M cap.

PCFG seems to be one of the few quality Pennystocks out there with tremendous potential.

Source:http://www.pennystockgeeks.net