River Valley shows continuity

Vancouver —Pacific North West Capital (PFN-V) has tabled the first batch of assays from a 40,000 metre, $5.3 million drilling campaign at the River Valley platinum-group metal (PGM) property, near Sudbury, Ontario.

Two drill rigs are currently spinning on the site in order to expand the known resources and to test new targets. The first drill is aimed the Dana North and Dana South deposits while the second rig has targeted the Lismer’s Ridge South deposit.

Pacific North West Capital and Anglo Platinum each hold a half interest in the River Valley project. Anglo Platinum stands to earn 60% by completing a feasibility study, and 65% by funding the project through to production. So far the major has spent over $6.7 million on exploration and when the current $5.3 million budget is included it increases to $12 million.

Highlights of recent assay results are as follows;

• Hole DL-92 cut a 1.5-metre intercept averaging 0.06 gram gold, 3.06 grams platinum and 7.34 grams palladium, starting 59.5 metres down-hole. This was followed by 41 metres averaging 0.07 gram gold, 0.35 gram platinum and 1.04 grams palladium, starting 107 metres down-hole.
• Hole DL-94 cut a 1-metre intercept that averaged 0.15 gram gold, 2.57 grams platinum and 7.11 grams palladium, starting 153.5 metres down-hole. This was followed by a 11.5 metre section averaging 0.06 gram gold, 0.53 gram platinum and 1.2 grams palladium, starting 193 metres down-hole.
• Hole DL-95 cut 7.5 metres averaging 0.08 gram gold, 0.53 gram platinum and 1.68 grams palladium, starting 231 metres down-hole.
• Hole DL-97 cut 13 metres averaging 0.09 gram gold, 0.63 gram platinum and 1.7 grams palladium, starting 36 metres down-hole. This included a 4-metre interval that averaged 0.17 gram gold, 1.55 grams platinum and 4.24 grams palladium.
• Hole DL-98 cut 23.5 metres averaging 0.05 gram gold, 0.31 gram platinum and 0.92 gram palladium, starting 106 metres down-hole.
• Hole DL-99 cut 10.5 metres averaging 0.07 gram gold, 0.36 gram platinum and 0.98 gram palladium, starting 122.5 metres down-hole. This included a 2-metre interval that averaged 0.13 gram gold, 0.83 gram platinum and 2.59 grams palladium.
• Hole DL-100 cut 22.5 metres averaging 0.06 gram gold, 0.32 gram platinum and 0.9 gram palladium, starting 113 metres down-hole.
• Hole DL-101 cut 39.5 metres averaging 0.09 gram gold, 0.44 gram platinum and 1.3 grams palladium, starting 131.5 metres down-hole. This included a 3-metre section that averaged 0.17 gram gold, 1.07 grams platinum and 3.41 grams palladium.

As the drill program progresses, Pacific North West Capital will test new targets along the 6 km-long intrusive contact zone that extends southeast from Lismer’s Ridge.

To date, about 54,000 metres, of diamond drilling (280 drill holes) has been completed on the property. Most of these holes delineated the Dana Lake and Lismer’s Ridge deposits. The current resources lie within the northern half of the property and cover less than 30% of the prospective target area. The remaining 70% of the prospective intrusive contact will be drill tested as part of the current 2003 drilling program.

Meanwhile at the company’s Agnew Lake property, situated in the Shakespeare, Dunlop, Shibananing and Gough Townships, about 60km west of Sudbury, this year’s exploration program is scheduled to commence in the next two weeks. The initial phase will include detailed, multi-parameter geophysical logging of the two deep drill holes, drilled late last year, that tested the upper two thirds of the Agnew Lake intrusion. Anglo Platinum will supply technical and interpretive support for the geophysical surveys.

Anglo Platinum stands to earn a 49.5% interest in the project by spending $6 million on exploration by the end of December 2004. It can increase its interest to 57% by completing a feasibility study and to 60% by funding the project through to commercial production. Agnew Lake is currently under option to Pacific North West Capital from Platinum Group Metals (PTM-V).

Results from the 2002 phase-2 drilling campaign at Agnew Lake are expected by the end of March.