Resource estimate under way at River Valley (July 13, 2001)

Having sunk another 16,000 metres, Pacific Northwest Capital (PFN-T) is proceeding with an independent resource estimate of the Dana Lake zone at the River Valley project in northern Ontario.

The calculation, by independent consultants Derry Michener Booth and Wahl Consultants, will take several weeks to complete. It will incorporate results from more than 130 drill holes, including those sunk at the less-advanced Lismers Ridge area, 2 km southeast of Dana Lake.

At Dana Lake, results for the latest nine holes vary from anomalous to 6.94 grams platinum-palladium per tonne. The highest grade came from a 1.5-metre section of hole DL-18 (from 99-100.5 metres). Hole DL-25 returned the anomalous values.

Results from 11 holes recently sunk at Lismers Ridge are encouraging. The holes were spaced over 500 metres of the mafic intrusion’s contact and doubled the length of known mineralization there.

Hole LR-17 yielded the best grades of 3.3 grams palladium and 1.23 grams platinum over 4 metres (111-115 metres). The interval was part of a 35-metre halo that averaged 1.52 grams palladium and 0.51 gram platinum.

Results from the remaining holes varied. The widest interval (90 metres), in hole LR-19, averaged 0.53 gram palladium and 0.21 gram platinum. This one is similar to several other intervals, in that it includes higher-grade sub-intervals.

In all, more than 90 holes were drilled in the recent program. Results are pending for just over half of them.

Dana Lake and Lismers Ridge are the only two areas at River Valley that have been drill-tested. However, several showings are known to occur to the south, near the layered intrusion’s favourable contact with surrounding country rock.

In addition to platinum and palladium, mineralization at River Valley includes various quantities of gold, nickel and copper.

Funding is being provided by South African-based Anglo American Platinum, which has the right to earn a 65% interest by seeing the project through to commercial production.

Meanwhile, partners Mustang Minerals (YMU-V) and Impala Platinum Holdings of South Africa have begun a $1.5-million exploration program elsewhere in the River Valley intrusion. The program is following up on reconnaissance drilling along two areas.

The best value from 49 holes, collared along 4.7 km of the northern contact area, rang in at 0.44 gram palladium-platinum-gold over 34 metres in hole MR-34. Results are pending for several other holes drilled in this portion of the property.

Along the southern margin, holes MRS-1 to MRS-17 covered 2.6 km of the contact area. Values were sporadic in the first 13 holes. The highest value was 2.78 grams palladium-platinum-gold over 1.5 metres.

Results are pending for holes MRS-14 to MRS-17.

Impala can earn a 60% interest in Mustang’s River Valley claims by spending $6 million on exploration over five years. The major should have no problem covering this, considering it is the world’s second largest platinum producer, after Anglo Platinum.