PNWC tests Dana Lake South

Flush with $2.3 million from partner South African-based Anglo American Platinum (Amplats), Pacific North West Capital (PFN-T) has received results from the first nine holes of a planned 20,000-metre, fifth phase of drilling at the River Valley platinum-palladium project near Sudbury, Ont.

The nine holes, part of a batch of ten drilled before the holidays, focussed on the Dana Lake South zone. The holes aimed at expanding Dana Lake’s current measured and indicated resources, which stand at 7.74 million tonnes running 0.37 gram platinum, 1.16 grams palladium and 0.07 gram gold per tonne. Results include:

• Hole DL-55, which included 13.5 metres (from 199 metres below surface) grading 1.15 gram platinum, 4.12 grams palladium and 0.19 gram gold per tonne;
• Hole DL-57 – 12 metres (from 181 m) running 0.78 gram platinum, 2.70 grams palladium and 0.16 gram gold per tonne, including 7 metres (from 183.5 m) of 1.01 grams platinum, 3.48 grams palladium and 0.20 gram gold;
• Hole DL-58, which included 14.2 metres (from 146.3 m) 1.05 grams platinum, 3.5 grams palladium and 0.17 gram gold;
• Hole DL-62, which included 22 metres (from 216.5 m) averaging 0.71 grams platinum, 2.3 grams palladium and 0.11 gram gold.

The holes, which returned similar results to previous drilling, also returned copper and nickel credits. Hole DL-63 returned only anomalous platinum group metal (PGM) values. All of the holes were drilled at minus 45.

PFN recently completed an induced-polarization survey in the Banshee Lake area, about 800 metres to the south. The survey outlined an extensive high chargeability anomaly measuring 600 metres in length and up to 200 metres in width. The anomaly correlates well with anomalous PGM values found in outcrop within a faulted offset block of the main mineralized breccia unit. IP surveying will be expanded in the area. Previous grab sampling returned up to 1 gram PGM from outcrop. PFN plans to drill test the anomaly as the drill rig moves south.

Drilling with two rigs at River Valley resumed in mid-January. A second drill rig is completing earlier drilled sections and new sections associated with known mineralization at Lismers Ridge North, about 1.5 km to the south.

Combined, in situ resources at the Dana Lake and Lismers Ridge zones stand at 12.7 million tonnes averaging 1.04 grams palladium, 0.35 gram platinum and 0.07 gram gold, plus unspecified copper and nickel values. Both zones remain open.

At Dana Lake, mineralization is divided among two targets. The South zone has been traced for 300 metres and to a depth of 290 metres, whereas the North has been traced for 500 metres along strike and to a depth of 200 metres. Mineralization at Lismers Ridge is similar to that found at Dana Lake but lower in grade. The zone sits 2 km to the southeast and has been traced over a strike length of 500 metres.

Amplats can boost its current half-stake to 60% by funding all exploration leading to the completion of a feasibility study. Another 5% can be tacked on in return for financing the project to production.