More precious metals in Varley zone (May 25, 2004)

Pacific North West Capital (PFN-T) has intersected significant platinum-palladium in the Varley zone, on its River Valley project, 65 km northeast of Sudbury.

The Varley zone is at the brecciated northern contact of the River Valley mafic intrusive.

The company began the latest drill program in March. Five holes were drilled, highlights of which include:

• 17 metres grading 0.932 gram platinum per tonne, 2.84 grams palladium per tonne and 0.144 gram gold per tonne, that together total 3.91 grams per tonne combined gold, platinum and palladium; included in this is a 10-metre intersection grading 1.36 grams platinum per tonne, 4.24 grams palladium per tonne and 0.213 gram gold per tonne;
• 21-metres grading 0.612 gram platinum per tonne, 1.7 grams palladium per tonne and 0.143 gram gold per tonne; included in this is a 15-metre intersection grading 0.663 gram platinum per tonne, 1.78 grams palladium per tonne and 0.162 gram gold per tonne and a 3-metre intercept grading 0.918 gram platinum per tonne, 2.82 grams palladium per tonne and 0.176 gram gold per tonne.

Three other holes intersected 3 to 27 metres ranging in grade from 1.0 to 2.83 combined platinum/palladium/gold.

The drillholes were spaced as either 50- to 100-metre stepouts, or located to undercut existing holes by 50 metres. Mineralisation is associated with disseminated sulphide.

Varley lies 4 km to the southeast of a measured resource on the same property at Dana and Lismer’s ridge. As of Oct., 2001, the Dana Lake deposit contained an estimated measured, indicated and inferred resource of 7.74 million tonnes grading 1.60 grams combined palladium, platinum and gold (Pt+Pd+Au) per tonne. At the same time, the nearby Lismer’s Ridge was estimated to contain 4.97 million tonnes grading a combined 1.24 grams Pt+Pd+Au per tonne.

The River Valley project is a joint venture with Anglo American Platinum (AAPTY-O) who have an option to earn up to 65% of the property by funding exploration through to production. Drilling is ongoing.