March 31, 2005 In the three months prior, no gold was produced. The attributable share of Au production from the Castle Mountain Venture was 1,002 oz.
March 5, 2004 Nevada Pacific Gold has elected not to proceed with the acquisition of Viceroy
Gold Corporation as announced December 30, 2003 after completion of its due diligence. Viceroy Gold owns the majority interest of the Castle Mountain Mine in California.
December 30, 2003 Nevada Pacific Gold has agreed to purchase 100% of the shares of Viceroy Gold, a wholly owned subsidiary of Quest Capital that holds a 75% interest in the Castle Mountain Mine, located in San Bernardino County, California. The property consists of approximately 573 claims covering some 18 square miles.
After producing some 1.1 million ounces of gold from 36 million tons of ore with an average grade of approximately 0.04 oz/ton gold, mining was curtailed in May of 2001 when gold was at USD275/oz. The operation of the leach pad continues with some 72,000 ounces of gold subsequently recovered during 2002 and 2003. Capacity remains on the existing leach pad for a further 2 million tons of ore and the leach pad can be extended within the presently permitted area to accommodate a further 5 million tons of ore. The Letter Agreement is between Nevada Pacific and Quest for the purchase of 100% of Viceroy, which owns a 75% interest in the Castle Mountain joint venture. MK Gold Company owns the remaining 25%. The agreement with Quest calls for payment of USD2 million and issuance of 3 million common shares of the company at closing, anticipated to occur at the end of February 2004. A further USD2 million is to be paid six months after closing.
