River Valley PGM deposit shows continuity

Pacific North West Capital (PFN-V) has tabled the first batch of assays from a 40,000-metre, $5.3-million drilling campaign at the River Valley platinum group metal (PGM) property, near Sudbury, Ont.

Two rigs are trying to expand the known resources and test new targets. The first rig is drilling the Dana North and Dana South deposits, while the second is testing the target known as Lismer’s Ridge South.

Ownership of the project is shared equally by Pacific North West Capital and Anglo American Platinum (AAPTY-O), though the latter can boost its stake to 60% by completing a feasibility study, and to 65% by funding the project through to production. So far, the major has spent more than $6.7 million on exploration, and when the current, $5.3-million budget is included, the total increases to $12 million.

Highlights of recent assay results are as follows:

q Hole 92 cut a 1.5-metre intercept averaging 0.06 gram gold, 3.06 grams platinum and 7.34 grams palladium per tonne starting at a down-hole depth of 59.5 metres. This was followed by 41 metres of 0.07 gram gold, 0.35 gram platinum and 1.04 grams palladium starting at 107 metres down-hole.

q Hole 94 cut a 1-metre intercept grading 0.15 gram gold, 2.57 grams platinum and 7.11 grams palladium starting at 153.5 metres down-hole. This was followed by 11.5 metres of 0.06 gram gold, 0.53 gram platinum and 1.2 grams palladium starting at 193 metres down-hole.

q Hole 95 cut 7.5 metres averaging 0.08 gram gold, 0.53 gram platinum and 1.68 grams palladium starting at 231 metres down-hole.

q Hole 97 cut 13 metres grading 0.09 gram gold, 0.63 gram platinum and 1.7 grams palladium starting at 36 metres down-hole. This included 4 metres of 0.17 gram gold, 1.55 grams platinum and 4.24 grams palladium.

q Hole 98 cut 23.5 metres of 0.05 gram gold, 0.31 gram platinum and 0.92 gram palladium starting at 106 metres down-hole.

q Hole 99 cut 10.5 metres grading 0.07 gram gold, 0.36 gram platinum and 0.98 gram palladium starting at 122.5 metres down-hole. This included 2 metres of 0.13 gram gold, 0.83 gram platinum and 2.59 grams palladium.

As drilling progresses, Pacific North West Capital will test new targets along the 6-km-long intrusive contact zone that extends southeast from Lismer’s Ridge. To date, 54,000 metres of diamond drilling have been completed, with most of the 280 holes delineating the Dana Lake and Lismer’s Ridge deposits. The resource is in the northern half of the property and covers less than 30% of the prospective area; the remaining 70% of the prospective intrusive contact will be drill-tested soon.

At the company’s Agnew Lake property, about 60 km west of Sudbury, crews are preparing to carry out geophysical logging of two deep holes that tested the upper two-thirds of the Agnew Lake intrusion.

Anglo Platinum, which will assist in the surveys, stands to earn a 49.5% interest in the project by spending $6 million on exploration by the end of 2004. It can increase its interest to 57% by completing a feasibility study and to 60% by funding the project through to commercial production. The Agnew Lake project is currently under option to Pacific North West Capital from Platinum Group Metals (PTM-V).

Results from the last year’s phase-2 drilling campaign at Agnew Lake are expected soon.

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