Resource estimate under way at River Valley (July 23, 2001)

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

Derry Michener Booth & Wahl Consultants report that the calculation 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.

Results for the latest nine holes at Dana Lake vary from anomalous to 6.94 grams palladium-platinum per tonne. The highest grades came from a 1.5-metre section of hole DL-18 (from 99 to 100.5 metres), whereas the anomalous values came from Hole DL-25. Results include:

hole DL-19, which returned 30.70 metres (from 63 to 93.7 metres) averaging 1.16 grams palladium and 0.36 gram platinum, including 6.5 metres grading 2.33 grams palladium and 0.68 gram platinum;

hole DL-20, which returned 2.5 metres (174.5-177 metres) grading 1.54 grams palladium and 0.45 gram platinum, plus 7.5 metres (185.5-193 metres) grading 1.94 grams palladium and 0.54 gram platinum;

hole DL-24, which averaged 1.31 grams palladium and 0.34 gram platinum over 34 metres (20-54 metres), including two higher-grading sub-intervals; and

hole DL-26, which averaged 0.39 gram palladium and 0.18 gram platinum over 44.5 metres (33.5-78 metres), including two higher-grading sub-intervals.

Holes DL-18 to DL-26 were collared in the southern portion of the Dana Lake zone, where mineralization trends southeasterly for at least 300 metres. The deepest trace of mineralization occurs more than 200 metres below surface.

Also encouraging is a series of 11 holes recently sunk at Lismers Ridge. The holes were spaced over 500 metres of the mafic intrusion’s contact, doubling the length of known mineralization there.

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

Results from the remaining holes varied, with the widest interval of 90 metres, in hole LR-19, averaging 0.53 gram palladium and 0.21 gram platinum. Similar to several other intervals, this one includes higher-grading sub-intervals.

In all, more than 90 holes were drilled in the recent program. Results have been reported for more than 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; all are 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 rhodium, gold, nickel and copper.

Project funding is being provided by South African-based Anglo Platinum, which has the right to earn a 65% interest by seeing the project through to commerical production. Anglo Platinum is a subsidiary of Anglo American (AAUK-Q).

In related news, 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 reconnaissance drilling in two areas.

The best value from 49 holes collared along 4.7 km of the northern contact (southeast of Pacific North West) rang in at 0.44 gram palladium-platinum-gold over 34 metres, in hole MR-34. Results are still pending for several others drilled in the vicinity.

Holes MRS-1 to MRS-17 covered 2.6 km of the intrusion’s southern margin. Values were sporadic in the first 13 holes, with the highest being 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.

Meanwhile, just west of Pacific North West, Aquiline Resources (AQI-V) has sunk eight holes into induced-polarization anomalies. Only holes JV-6 and 7, spaced 600 metres apart, returned any values of significance, up to 0.93 gram combined palladium, platinum and gold over 1.5 metres.

Mineralization appears to be hosted by the same northwesterly striking, fine-grained gabbroic unit. Geophysical work suggests it may continue for 1.2 km.

Additional drilling and surface exploration are planned.

On the ground drilled, Aquiline can earn a 70% interest from Mustang by spending $500,000 on exploration over three years. The company also owns, or has options to, three other claim groups spaced along the intrusion’s northern margin, plus a fourth in the east-central portion, between the properties held by Mustang and Pacific North West.

Aquiline has closed a non-brokered private placement of 1 million units priced at 25 apiece. A unit consists of a share and a warrant that can be exercised at 25 in the first year and at 30 in the second year of the deal’s acceptance by the Canadian Venture Exchange.

Proceeds are earmarked for the River Valley properties.