River Valley yields more PGEs (August 28, 2001)

A reconnaissance exploration program has led to the discovery of more platinum-group-metal mineralization at the River Valley mafic intrusion in the Sudbury region of northern Ontario.

Pacific North West Capital (PFN-T), the most active of three companies exploring the layered intrusion, reports the recovery of up to 3.94 grams combined palladium and platinum per tonne from the Banshee Lake and Jackson’s Flats areas. The former is 800 km south of the Dana Lake South zone, whereas Jackson’s Flats is 8 km southeast of that zone.

The company notes that both areas sit near the contact with surrounding country rock and are therefore geologically comparable to Dana Lake. Accordingly, more exploration is planned.

Meanwhile, results are available for another 10 holes drilled in the southern portion of the Dana Lake zone. All were part of a fourth phase of drilling completed a few weeks back.

The best results came from hole DL-28, which yielded 2.17 grams palladium, 0.63 gram platinum, 0.12% copper, 0.02% nickel and elevated gold over 47.4 metres (starting at 242 metres down-hole). The intersection was part of a wider zone and included higher-grading sub-intervals, typical of the intrusion.

Mineralization at Dana Lake is divided in two zones, both of which remain open. The Dana Lake South zone has been traced for 300 metres along strike and to a depth of 290 metres, whereas the Dana Lake North zone has been traced for 500 metres along strike and to a depth of 200 metres.

An independent resource estimate is underway at each zone, incorporating results from all holes drilled to date. This includes the above infill holes, which were collared on 25-metre spacings.

About 2 km to the southeast, at the Lismer’s Ridge area, drilling continues to yield encouraging results. Holes LR-28 to LR-37 all intersected mineralization, with hole 36 cutting the longest section of 59.5 metres (starting at 72 metres down-hole) averaging 0.79 gram palladium and 0.29 gram platinum. As at Dana Lake, higher-grading sub-intervals were common, as were copper, nickel and gold credits.

Exploration at River Valley is being funded by Anglo American Platinum (AAPTY-O) as part of its requirements to earn a 65% interest in the project. The requirements include the arranging of development financing.