The market week wrapped up with reassuring words from President Bush and Fed Chief Bernanke regarding the looming mortgage and credit crisis. The words from the two officials, while on the surface reassuring, belied the deeper crisis that has gripped world markets. This news, coupled with a gold find in Papau New Guinea sent gold prices surging past $680 per ounce. Additional support for gold prices came from the inflation reading, which saw inflation rising .1%, in line with expectations. Geopolitical events are also ever present near the surface of the market. The recent comments by the President Sarkozy of France in regards to a possible planned attack on Iran, could work to unsettle the market and possibly drive gold prices higher.
The surging gold prices serve as a possible boon to Pacific Gold. With multiple properties spread across the western United States, the company is positioned to benefit from the high price of gold. Properties in the company’s possession include mines in Oregon and Nevada. Estimates of the properties suggest the presence on over one million ounces of gold total across all of the properties. In mid July the company completed modernization efforts at its Nevada Rae property. With company revenues expected ito increase in Q3 and Q4 2007, the company should be able to increase its production capacity to allow for greater benefit of the current gold price environment.
About Pacific Gold Corp.
Pacific Gold Corp. (OTCBB: PCFG) is in the business of identifying, acquiring, exploring and developing proven, undeveloped mineral deposits in the western United States. Pacific Gold (referred to as “the Company” in this report) explores for gold as well as base metals such as tungsten and uranium. The Company was incorporated in Nevada in 1996 and operates through five subsidiaries that cover several thousands acres of mineral rights in Nevada, Oregon and Colorado. These subsidiaries include Nevada Rae Gold, Inc., Oregon Gold, Inc., Pilot Mountain Resources Inc., Pacific Metals Corp. and Fernley Gold, Inc.
