Drilling extends River Valley mineralization (April 10, 2003)

A stepout hole, collared north of the Dana North deposit, has yielded the best results yet encountered at the River Vally palladium-platinum property near Sudbury, Ont., reports partners Pacific North West Capital (PFN-T) and Anglo American Platinum (AAPTY-O).

Earlier this year, the pair launched a 40,000-metre drill program aimed at proving up and expanding known resources. One rig is turning in the Dana North area and another in the Lismer’s Ridge area.

To date, 56 holes have been sunk, bringing to 288 the total number drilled since the companies teamed up in mid-1999.

Hole DL-106 cut four separate mineralized intervals, of which the widest was 17.5 metres (starting at 178.5 metres) and averaged 4.89 grams combined palladium and platinum per tonne. The interval included two smaller sections of 2.5 metres, averaging 7.9 grams, and 3.5 metres, averaging 7.3 grams. The hole was collared about 45 metres north of the deposit.

Pacific North West says the interval is the widest high-grade mineralization ever intersected at the property and bodes well for augmenting Dana North’s resource. The deposit hosts 5.1 million tonnes grading 1.4 grams in the measured and indicated category, and 956,000 tonnes grading 1.3 grams in the inferred category.

The other mineralized sections pulled from the hole were: 9.5 metres (at 2.5 metres) grading 1.16 grams; 3 metres (at 30 metres) grading 2.29 grams; and 0.5 metres (at 104.5 metres), grading 4.72 grams.

Meanwhile, two holes sunk in the deposit itself have returned encouraging results. Hole DL-103 ran up to 4.81 grams palladium-platinum over 1 metre of a 29.5-metre section of mineralization that averaged 1.41 grams, while hole DL-108 ran up to 5.3 grams over 1.5 metres of a 66.5-metre section that averaged 1.13 grams.

Also at Dana North, holes DL-102 and DL-105 each intersected pyrite-bearing metasedimentary rocks to define the western limit of the intrusion. The holes were collared 100 metres apart, and their results explain an induced polarization anomaly outlined earlier on.

Also, holes DL-104 and 107 returned unmineralized layered units of the intrusion. Both terminated in faulted, footwall metasedimentary rocks.

At the Lismer’s Ridge deposit, hole LR-86 returned three narrow intervals of mineralization. Starting at 163 metres down-hole, 1 metre carried 3.2 grams; at 175.5 metres, 0.5 metre carried 3.3 grams; and at 205.5 metres, 1 metre carried 3 grams.

At last report, measured and indicated resources stood at 7.68 million tonnes grading 1.11 grams palladium-platinum. Another 3.1 million tonnes at 1.06 grams are classified as inferred.

A third deposit, dubbed Dana South, hosts 6.62 million tonnes averaging 1.54 grams in all three resource categories. Like the others, the zone carries gold, copper and nickel credits.

Dana South sits immediately south of Dana North.

All three zones are near the surface, close to where the host intrusion contacts the surrounding country rock. The highest grades have come from a breccia unit.

Mineralization occurs mainly in the form of disseminated and blebby sulphides (chalcopyrite), with palladium and platinum being tied to tellurides and arsenides, such as sperrylite and merenskyite. Palladium accounts for about 70% of the contained precious metals; platinum, for 20%.

Metallurgical studies are still preliminary, but 77% of the palladium and 73% of the platinum were recovered from 13 composite samples tested in South Africa. Each weighed 4 kg, and all were ground so that 60% passed through a screen having 74-micrometre openings.

Pacific North West and Amplats each own a half-interest in the River Valley project, though the major can increase its stake to 60% by financing the project to production. Amplats has provided $6.7 million in exploration funding and will have provided $12 million by year-end.