Pacific North West Capital acquires Goodnews Bay

Vancouver A newly inked deal with an Alaskan native corporation gives Pacific North West Capital (PFN-T, PAWEF-Q) rights to acquire a 100% interest in the Goodnews Bay platinum project on the west coast of Alaska.

The mining lease with Calista Corporation covers about 212 square kilometers of ground south of Kuskowim Bay on the Bering Sea, near the village of Platinum, which has a public airstrip, and near tidewater that is ice-free year-round.

Streams draining the project area have produced an estimated 600,000 oz. platinum from previous placer-mining operations. Pacific North West Capital intends to look for economic lode deposits of platinum mineralization within an ultramafic intrusive complex that is believed to the source of the placer deposits.

Previous operators have carried out several methods of airborne and ground geophysics, along with mapping, and rock and soil sampling. This work led to the discovery of numerous exploration targets that are yet to be drill-tested. The list of priority targets includes Susie Mountain, where several zones of anomalous platinum (with grades up to 1.3 gram per tonne) were delineated by soil sampling. The zones are coincident with magnetic highs and resistivity lows detected by geophysical surveys. Another target is Red Mountain, where geophysical surveys delineated electromagnetic anomalies.

The agreement with Calista calls for Pacific North West Capital to make cash payments of US$300,000 and spend at least US$1.95 million on exploration over five years. After a two-year grace period, the company is required to spend at least US$700,000 per year until a feasibility study is completed. Once the feasibility study is done, the company must pay US$250,000 per year until the start of commercial production.

Calista will hold a 1.5% net smelter return royalty at commercial production for five years, or until capital costs are paid back, after which the royalty will be tied to the price of platinum. The native corporation also has the right to elect to acquire up to a 15% interest in the project under certain conditions.

Pacific North West Capital plans to acquire other properties prospective for platinum group elements or base metals this year. The company has about $3.5 million in working capital and no debt.