PFN cuts more PGM’s at River Valley (June 17, 2003)

Vancouver Harry Barr-led Pacific North West Capital (PFN-T) released more encouraging values from its Phase six drill program at the River Valley project, near Sudbury, Ontario.

Three rigs are currently turning on the property, one is testing the Dana Lake area, the second is working the Lismer’s Ridge area, about three km to the southeast and the third is drilling showings and other untested targets. The $5.3 million drilling campaign, is designed increase the size and confidence of the PGM mineralization. An updated resource estimate is expected in October.

The River Valley project is a 50-50 Joint Venture between Anglo American Platinum (AAPTY-O) and Pacific North West Capital. Anglo Platinum may earn a 60% interest in the property by completing a feasibility study and 65% by putting the project into commercial production. When this year’s budget is included, Anglo Platinum has committed over $12 million to the project so far.

Highlights from the recent batch of drill results include;

• Hole DL-124 cut 77.0 metres averaging 0.06 gram gold, 0.36 gram platinum and 1.07 grams palladium starting 213.5 metres down-hole. This included a number of higher grade intervals; 9.0 metres averaging 0.11 gram gold, 0.75 gram platinum and 2.54 grams palladium, starting 247.0 metres down hole and 8.0 metres averaging 0.17 gram gold, 0.96 gram platinum and 3.06 grams palladium, starting 355.5 metres down-hole.
• Hole DL-126 cut 13.0 metres averaging 0.11 gram gold, 0.63 gram platinum and 1.93 grams palladium, starting 311 metres down-hole. This was followed by a 57.5 metre interval averaging 0.08 gram gold, 0.42 gram platinum and 1.22 grams palladium, starting 368 metres down-hole. Included within this second interval was a 6-metre section that averaged 0.19 gram gold, 1.23 grams platinum and 3.49 grams palladium.
• Hole DL-130 cut 26.5 metres averaging 0.11 gram gold, 0.67 gram platinum and 1.96 grams palladium, starting 150.5 metres down-hole. This included a 4.5-metre interval that averaged 0.20 gram gold, 1.08 grams platinum and 3.24 grams palladium as well as a 2.5 meter section that averaged 0.13 gram gold, 0.84 gram platinum and 2.59 grams palladium.
• Hole LR-98 cut 25.5 metres averaging 0.08 gram gold, 0.47 gram platinum and 1.23 grams palladium, starting 313.5 metres down-hole. This included a 6.5-metre section that averaged 0.16 gram gold, 0.93 gram platinum and 2.47 grams palladium and a 1.0 metre interval that cut 0.31 gram gold, 1.5 grams platinum and 4.74 grams palladium.
• Hole LR-105 cut 10 metres averaging 0.04 gram gold, 0.33 gram platinum and 0.80 gram palladium, starting 28.5 metres down-hole. This included a 2-metre section that averaged 0.06 gram gold, 0.63 gram platinum and 1.81 grams palladium and a 0.5-metre interval that averaged 0.13 gram gold, 1.04 grams platinum and 3.75 grams palladium.

Mineralization is hosted in a steeply dipping gabbro-breccia unit that occurs nearly continuously over a strike length of several km and is tested to a depth of over 400 metres vertically.

A resource estimate, completed last October, by Derry, Michener, Booth and Wahl Consultants, states that the combined in-situ measured and indicated resource hosted in the Dana and Lismer’s Ridge prospects tallies to 18 million tonnes grading 0.34 gram platinum, 1.02 grams palladium, 0.06 gram gold per tonne plus 0.02% nickel and 0.10% copper. This translates into a contained resource of 199,900 oz. platinum, 589,600 oz. palladium and 36,500 oz. gold for a grand total of 825,900 oz. combined platinum, palladium and gold. An additional inferred resource adds 5.38 million tonnes averaging 0.29 gram platinum, 0.819 gram palladium, 0.05 gram gold plus 0.02% nickel and 0.08% copper, or a contained resource of 50,200 oz. platinum, 141,800 oz. platinum and 8,600 oz. gold. The resource was calculated using a 0.7 gram per tonne combined platinum and palladium cut-off grade.