Peak Gold Announces Amapari Resource and Exploration Update



    VANCOUVER, Oct. 19 /CNW/ - Peak Gold Ltd. (PIK:TSX-V) ("Peak Gold") is
pleased to announce a resource and exploration update for its Mineracao Pedra
Branca do Amapari gold mine (the "Amapari Mine") in Brazil.

    Mineral Resource Update
    -----------------------
    Peak Gold is pleased to announce an updated mineral resource estimate for
the Amapari Mine as of September 30, 2007. The updated estimate was completed
in connection with the preparation of a National Instrument 43-101 ("NI
43-101") compliant technical report for the Amapari Mine, expected to be filed
with the Canadian securities regulatory authorities and be available on SEDAR
at www.sedar.com shortly.
    The Measured and Indicated Mineral Resources estimated as of
September 30, 2007 were 1.047 million contained ounces of gold compared to
1.156 million contained ounces of gold estimated as of December 31, 2006. In
addition, Inferred Mineral Resources have increased to 1.351 million contained
ounces of gold estimated as of September 30, 2007 compared to 0.152 million
contained ounces of gold estimated as of December 31, 2006. The increase of
approximately 1.2 million contained ounces of gold in the Inferred Mineral
Resource category is largely attributable to the Urucum and Tapereba AB
deposits. The following table sets forth the estimated mineral resources for
the Amapari Mine as of September 30, 2007:

    
    Measured, Indicated and Inferred Mineral Resources as of
    September 30, 2007(1)(2)(3)(4)

    -------------------------------------------------------------------------
    Mineral Deposit   Resource Category       Tonnes    Grade     Contained
                                                        Au g/t   Gold Ounces
    -------------------------------------------------------------------------
    Tapereba AB      Measured & Indicated   3,955,023     2.32       295,112
    -------------------------------------------------------------------------
                     Inferred               2,984,737     3.27       313,753
    -------------------------------------------------------------------------
    Tapereba C       Measured & Indicated   1,210,221     1.99        77,321
    -------------------------------------------------------------------------
                     Inferred                 578,359     3.45        64,087
    -------------------------------------------------------------------------
    Tapereba D       Measured & Indicated     500,482     2.03        32,624
    -------------------------------------------------------------------------
                     Inferred                 373,887     2.26        27,150
    -------------------------------------------------------------------------
    Urucum           Measured & Indicated   7,699,992     2.49       617,515
    -------------------------------------------------------------------------
                     Inferred               9,102,499     3.23       946,010
    -------------------------------------------------------------------------
    Stockpile        Measured & Indicated     871,694     0.88        24,663
    -------------------------------------------------------------------------
    Total            Measured & Indicated  14,237,412     2.29     1,047,235
    -------------------------------------------------------------------------
                     Inferred              13,039,482     3.22     1,351,000
    -------------------------------------------------------------------------

    --------------------
    (1) The mineral resources are classified as measured, indicated and
        inferred, and are based on the current (2004) version of the
        Australasian Code for Reporting of Mineral Resources and Ore
        Reserves (the "JORC Code"). The JORC Code has been accepted for
        current disclosure rules in Canada under NI 43-101.
    (2) Based on a gold price of US$600 per ounce.
    (3) Based on a cut-off grade of 0.5 grams per tonne for the open pit and
        2.1 grams per tonne for the underground.
    (4) Mineral resources that are not mineral reserves do not have
        demonstrated economic viability.
    

    The Resource statement includes all drilling results in the immediate
mining areas up to March 31, 2007. A total of 38 drill holes were completed
since the previous estimate of December 31, 2006. The method of estimation
used was ordinary kriging. Resource depletion from production at the Amapari
Mine from January 1, 2007 to September 30, 2007 was 1.915 million tonnes at
2.00 grams of gold per tonne for a total of 123,997 ounces of gold.
    The geological model was prepared under the supervision of Mr. Jones,
MAIG at Amapari Mine. The updated mineral resource estimate was prepared under
the supervision of Mr. Henry, CP AusIMM from AMEC International (Chile) S.A.,
who is an independent qualified person as defined by NI 43-101. Mr. Henry has
reviewed and approved the contents of the above resource statement.

    Exploration Update
    ------------------
    Peak Gold has been focusing its exploration efforts at the Amapari Mine
around existing open pits and the Vila do Meio deposit near the mine. A total
of 2,700 metres of diamond drilling was completed in 18 holes in the Vila do
Meio deposit to infill and extend the high grade zone that was discovered in
2006. Infill holes have been drilled at approximately 20 metre spacing along
100 metres of strike length. The Vila do Meio deposit represents a good open
pit opportunity for the mine. The information below highlights some of the
significant results of the new drill holes and major target areas (all true
width):

    
    -----------------------------------------------
    Hole ID      Grams per      Width      Depth
               tonne of gold   (metres)   (metres)
    -----------------------------------------------
    FDVM-061        93.1         23.1       80.9
    -----------------------------------------------
    FDVM-008        8.91         9.90       90.5
    -----------------------------------------------
    FDVM-010        5.11         9.85        103
    -----------------------------------------------
    FDVM-013        9.22         2.00        107
    -----------------------------------------------
    FDVM-014        6.48         5.85       80.9
    -----------------------------------------------
    FDVM-017         100         5.85        130
    -----------------------------------------------
    

    Peak Gold is continuing efforts in its cost reduction program at the
Amapari Mine which is expected to improve the overall financial performance of
the mine. "There is tremendous growth opportunity at Amapari and management is
confident that we will deliver on key strategies to reduce cash cost, extend
the mine life, and create greater shareholder value," said President and Chief
Executive Officer of Peak Gold, Julio Carvalho.
    Peak Gold is a new intermediate gold producer with a strong foundation
for growth. With a solid approach to acquisition and a commitment to value,
Peak Gold's goal is to significantly increase production by 2008. To learn
more about us, please visit our website at www.peakgold.com.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    This News Release contains "forward looking statements", within the
meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. Generally, these
forward looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects", or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Peak Gold to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: risks related to the integration of acquisitions; risks
related to international operations; actual results of current exploration
activities; actual results of current reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of gold and copper; possible variations in ore
reserves, grade or recovery rates; failure of plant; equipment or processes to
operate as anticipated; accidents; labor disputes and other risks of the
mining industry; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities, as well as those
factors discussed in the section entitled "Risk Factors" in Peak Gold's Filing
Statement dated April 2, 2007, available at www.sedar.com. Although Peak Gold
has attempted to identify important factors that would cause actual results to
differ materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated, estimated,
or intended. There can be no assurance that such statements will prove to be
accurate. As actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking that are incorporated by reference herein,
except in accordance with applicable securities laws.





For further information:

For further information: Mélanie Hennessey, Vice President, Investor
Relations, Peak Gold Ltd., 3110-666 Burrard Street, Vancouver, British
Columbia, V6C 2X8, Telephone: (604) 696-4100, Fax: (604) 696-4110, e-mail:
info@peakgold.com, website: www.peakgold.com; Vanguard Shareholder Solutions:
1205-1095 West Pender Street, Vancouver, British Columbia, V6E 2M6, Telephone:
(604) 608-0824, Toll Free: (866) 398-1088, ir@vanguardsolutions.ca

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