PFN cuts more PGMs at River Valley

Vancouver — Pacific North West Capital (PFN-T) has released encouraging values from its sixth-phase drill program at the River Valley project, near Sudbury, Ont.

One of two rigs is testing the Dana Lake area; a second is focused on the Lismer’s Ridge area, 3 km to the southeast; and a third is drilling untested targets. The $5.3-million program is designed increase the size and confidence of the PGM mineralization. An updated resource estimate is expected in October.

The River Valley project is owned equally by Anglo American Platinum (AAPTY-O) and Pacific North West Capital (PNWC). Anglo Platinum can earn a 60% interest in the property by completing a feasibility study, and 65% by advancing it to production. Anglo Platinum has spent more than $12 million on the project (including this year’s budget).

Highlights from recent drilling include the following:

— Hole 124 cut 77 metres averaging 0.06 gram gold, 0.36 gram platinum and 1.07 grams palladium per tonne starting at a down-hole depth of 213.5 metres.

— Hole 126 cut 13 metres of 0.11 gram gold, 0.63 gram platinum and 1.93 grams palladium starting at 311 metres down-hole. This was followed by a 57.5-metre interval of 0.08 gram gold, 0.42 gram platinum and 1.22 grams palladium starting at 368 metres down-hole. Included in this second interval was a 6-metre section that averaged 0.19 gram gold, 1.23 grams platinum and 3.49 grams palladium.

Mineralization is hosted in a steeply dipping gabbro-breccia unit that occurs nearly continuously over a strike length of several kilometres. This unit has been tested to a depth exceeding 400 metres vertically.

Derry, Michener, Booth and Wahl Consultants estimates that the combined in situ measured and indicated resource at the Dana and Lismer’s Ridge prospects is 18 million tonnes grading 0.34 gram platinum, 1.02 grams palladium and 0.06 gram gold per tonne, plus 0.02% nickel and 0.1% 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.

There is an additional inferred resource of 5.38 million tonnes averaging 0.29 gram platinum, 0.819 gram palladium and 0.05 gram gold plus 0.02% nickel and 0.08% copper, for a contained resource of 50,200 oz. platinum, 141,800 oz. platinum and 8,600 oz. gold. The resource was calculated using a cutoff grade of 0.7 gram combined platinum and palladium per tonne.

Since the two principal zones of mineralization, Dana Lake and Lismer’s Ridge, each boast a strike length in excess of 1 km, PNWC has decided to continue drilling in both areas for at least another month.

The rigs will then be moved to the southeast to evaluate PGM showings that occur along an additional 5 km of the prospective intrusive contact. This will include the Varley showing, which returned surface values of up to 10 grams combined platinum and palladium per tonne.