PNWC finds more PGMs at Varley zone

Vancouver — Pacific North West Capital (PFN-T) has intersected a significant zone of mineralization at its River Valley property, near Sudbury, Ont.

The mineralization is centred on the Varley zone, 3 km south of the Lismer’s Ridge area. PNWC is in the midst of a fifth phase of drilling, the cost of which is pegged at $5.3 million. Two rigs are in place and will continue to spin until the end of November.

The River Valley project is a 50-50 joint venture with Anglo American Platinum (AAPTY-O). To date, Amplats has spent $12 million on the project; it stands to earn a 60% interest by completing a feasibility study, and an additional 5% by funding the project through to production.

The program is aimed at expanding the current resource, as well as testing 6 km of prospective intrusive contact. Also, a new mineral resource estimate is in progress.

At last report, the combined in situ measured and indicated resource at the Dana and Lismer’s Ridge prospects was estimated to be 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.

Highlights of the recent drill results are as follows:

— Hole 1 intersected 73 metres averaging 0.068 gram gold, 0.419 gram platinum and 103 gram palladium starting at a down-hole depth of 109 metres. This included a 2-metre interval that averaged 0.183 gram gold, 2.037 grams platinum and 5.725 grams palladium starting at 123 metres down-hole.

— Hole 2 cut 5 metres of 0.07 gram gold, 0.528 gram platinum and 1.25 grams palladium starting at 29 metres down-hole. This was followed by a 1-metre interval of 0.08 gram gold, 0.447 gram platinum and 1.42 grams palladium starting at 51 metres down-hole.

— Hole 3 cut 18 metres of 0.041 gram gold, 0.237 gram platinum and 0.695 gram palladium starting at 82 metres down-hole. This included a 1-metre section that cut 0.123 gram gold, 0.868 gram platinum and 3.414 grams palladium starting at 90 metres down-hole.

— Hole 4 cut 23 metres of 0.037 gram gold, 0.193 gram platinum and 0.599 gram palladium starting at 129 metres down-hole. This included a 1-metre section of 0.183 gram gold, 0.447 gram platinum and 4.64 grams palladium starting at 129 metres down-hole.

This has been the first chance the company has had to drill-test the target, owing to the extensive strike length of the mineralized breccia. Mineralization along the Dana Lake trend has a strike length in excess of 1 km. At Lismer’s Ridge, mineralization has been tested over a strike length of 2 km. PNWC believes there is substantial opportunity for the discovery of additional sizable mineralized zones at Varley, as well as along the prospective breccia contact, which extends another 4 km southeast of Varley.