Pacific North West Capital Announces 1.3 gt (0.04 opt), 3E* over 65m (213.3 feet) at the River Valley Platinum Group Metals (PGM) Project, Sudbury, Ontario
VANCOUVER, May 17 /CNW/ --
-- 0.03 opt,( 1.1 gt), 3E* over 164 feet ( 50m) in hole 2011-DN001
o including 0.05 opt,( 1.55 gt), 3E over 36.1 feet( 10 m)
o including 0.04 opt, ( 1.26 gt), 3E over 39.4 feet( 12 m)
o including 0.03 opt, ( 1.16 gt), 3E over 45.9 feet( 14 m)
-- 0.04 opt,( 1.3) gt, 3E over 213.3 feet ( 65 m) in hole
2011-DN002
o including 0.05 opt, ( 1.82 gt), 3E over 39.4 feet( 12 m)
o including 0.09 opt, ( 3.2 gt), 3E over 19.7 feet( 6 m)
-- One of North America's newest and largest stand alone Platinum
Group Metals (PGM) Projects
-- Exploration program planned in multi phases, $5 M, including a
15,500 metre drill program
o Phase IA Program includes 3D IP and 3600 metres drilling, nears
completion
o Infill drilling to convert inferred resources to the Measured and
Indicated categories
-- 50 Line Km of 3D Induced Polarization (geophysics) completed,
an additional 10 Line Km are in progress.
-- All samples from the first four holes were sent to SGS
Laboratories for Platinum, Palladium, Rhodium, Gold, Nickel and
Copper assays, awaiting for the results.
*3E=Pt Pd Au
VANCOUVER, May 17 /CNW/ - Pacific North West Capital Corp. ('PFN') (TSX: PFN) (OTCQX: PAWEF) (FSE:
P7J) is pleased to report initial assays from the first two holes completed
during the 2011 Phase I drill program currently underway in the Dana
North area of the Company's 100% owned River Valley Platinum Group
Metals (PGM) Project near Sudbury, Ontario. The current drill program
involves one drill rig systematically drilling off sections spaced at
approximately 25m intervals through the 900m long, north-south
trending Dana Lake deposit.
Current drilling has confirmed the presence of significant PGM,
associated with disseminated sulphide mineralization at the Dana North
Area.
The target at Section 10350 was tested with one fence of four holes.
Company has received assay for the first two holes and it is pleased to
announce that both holes intersected significant mineralization. Holes
2011-DN001 and 2011-DN002 of this fence showed extensive mineralization
assaying 1.1 gt over 50 metres (0.03 opt over 164 feet) and 1.3 gt 3E
over 65 metres (0.04 opt over 213.3 feet) respectively. Table 1-
Illustrates significant drill intervals in the first two holes.
A total of 14 holes, 3320m, are completed to date in the Dana Lake area
and core logging, sampling and assaying is in progress. PGM and gold
assays from mineralized core intersections are reported below. Copper,
nickel and rhodium values will be reported at a later date.
Mineralization at the South Zone is open to the north and south.
Mineralization in this zone is intersected at vertical depths from 33m
to 200m and remains open to depth. Mineralization can also be traced in
surface outcroppings. Additional drilling is in progress to determine
the geometry of the mineralization.
The first Phase of the Company's 2011 exploration program included the
collection of approximately 60 line-km of 3D Induced Polarization
ground geophysical data. These surveys are being conducted to generate
additional drill targets and enhance the targeting along a portion of
the 9 kilometre prospective horizon located at the contact of the River
Valley Intrusion.
Table 1- Significant Drill Intervals of the first two holes (Composite
Results)
______________________________________________________________________________________
| | | | Length | Length | | | | | | | | | | |
| Hole No. |From|To | of the | of the | Pt | Pt | Pd | Pd | Au | 3E | 3E |Rh|Ni|Cu|
| |(m) |(m)|Intersect|Intersect|(gt)|(opt)|(gt)|(opt)|(gt)|(gt)|(opt)| | | |
| | | | (m) | (feet) | | | | | | | | | | |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|__|__|__|
|2011-DN001|123 |173| 50 | 164.0 |0.26|0.008|0.77|0.022|0.05|1.1 | 0.03| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____| |
|Including |123 |134| 11 | 36.1 |0.37|0.011|1.11|0.033|0.07|1.55| 0.05| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____| |
|Including |141 |153| 12 | 39.4 |0.31|0.009|0.90|0.026|0.05|1.26| 0.04| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|Results |
|Including |159 |173| 14 | 45.9 |0.28|0.008|0.82|0.024|0.06|1.16| 0.03|Pending |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____| |
|2011-DN002|114 |179| 65 | 213.3 |0.32|0.009|0.95|0.028|0.06|1.3 | 0.04| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____| |
|Including |146 |158| 12 | 39.4 |0.43|0.013|1.30|0.038|0.08|1.82| 0.05| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____| |
|Including |173 |179| 6 | 19.7 |0.74|0.022|2.34|0.068|0.12|3.20| 0.09| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|________|
SJ Geophysics Ltd. was contracted to design and carry out the surveys
utilizing their state-of-the-art IP systems and proprietary full
waveform digital receiver systems. Once the data are acquired, the
entire grid can be processed (inverted) at once to produce a 3
dimensional model of the subsurface resistivity and chargeability.
These two physical properties are known to be anomalous and
representative of mineralization at River Valley. The inversion 'code'
or software was developed at the University of British Columbia over a
number years through a consortium of mining companies and researchers
and together with SJ Geophysics, new acquisition and computer systems
needed to be developed to collect the data in a 3 dimensional format
and process the data with the 3D modelling software.
During the initial discovery of the mineralization at River Valley
between 1999 and 2001, PFN carried out conventional 2D IP surveys with
considerable success. The mineralization was found to produce significant chargeability
anomalies when targets were followed-up with drilling. The limited depth of investigation and the broad responses, however,
made it difficult to map the mineralization in detail both close to
surface and at deeper depths. There are a number of advantages to 3D IP
surveys over the older 2D techniques including faster data acquisition,
more detailed results and overall lower costs. Most importantly, drilling costs are reduced as the target anomalies are
more accurately defined by the 3D technique.
Project Goals: Project is located 60km northeast of Sudbury and it is road accessible,
the principal economic target on the River Valley property is a
multi-million tonne, bulk tonnage platinum group metal deposit of size
and grade comparable to North American Palladium Ltd.'s Lac des Iles
mine near Thunder Bay Ontario. The Lac des Iles mine is the only
primary PGM producer in Canada.
Sudbury has been one of the world's major copper, nickel producing areas
for more than a century. The current mines, in addition to copper and
nickel, produce more than 700,000 ounces of Platinum Group Metal
annually. The Sudbury District has excellent infrastructure including
roads, power, and an experienced work force and is the site of two
major smelters owned Vale Inco and Xstrata Nickel.
____________________________________________________________________
|PFN's River Valley Project has extensive exploration upside over a 9|
| km prospective strike length. Phase I drilling began April 7 2011. |
| The Company plans to drill test the entire 9 km horizon. |
|____________________________________________________________________|
Project Milestones:
-- Conduct series of exploration programs and Generate new
targets.
-- Series of drill campaigns to update the NI 43-101 compliant
resource estimate; within 12 months.
-- Preliminary Economic Assessment (PEA): Within 18 months.
-- Commence Pre -Feasibility within 36 months.
Table 2- Project Long Term Objectives
2011- 2011- 2011- 2011- 2012- 2012- 2012- 2012-
Objectives Q1 Q2 Q3 Q4 Q1 Q4 2013 2014
Q2 Q3
Conduct
series of
exploration
programs
Generate new
targets.
Series of
drill
campaigns to
update the
NI 43-101
compliant
resource
estimate
Preliminary
Economic
Assessment
(PEA)
Commence Pre
-Feasibility
About the 2011 Exploration Program
2011 drilling program began on April 7th and consists of a 3,500 metre,
20-hole drill program. Work to date at River Valley suggests that the
best potential for economic accumulations of PGM-Cu-Ni sulphide
mineralization is within the Breccia Zone. This Zone includes the main
mineralized breccia or Main Zone. The Main Zone occurs within about 20
m of the intrusive contact with Archean gneisses.
This contact zone extends for over 9 km of prospective strike length,
holds the current defined resource and is the main target of the
Company's renewed exploration efforts.
During the Phase IA drilling campaign, the Company is focusing on three
objectives:
1. Step-out drilling to expand the overall mineralized footprint at
Dana North
2. Infill drilling to convert inferred resources to the measured and
indicated categories
3. Drill testing of new targets generated from the 3D IP survey
$1,000,000 Phase I A exploration program is targeting the Dana Lake Area and will include the following:
-- 3D Induced Polarization (IP) surveys over the Dana Lake Area to
trace known mineralization to greater depths and highlight new
targets in close proximity to the higher grade resources
-- 3500 Metre Drill Program to drill previously defined targets,
drill extensions of known mineralization and drill new 3D IP
targets
-- Develop a 3D Common Earth Model to aid interpretations and
prioritize additional targets along the 9 kilometre mineralized
horizon*
*Note: Common Earth Modelling is a method that employs 3D and 4D (time)
computer modelling techniques to integrate all available geological
information into a single, 3D environment that can be viewed and
quarried on a computer
The Phase IB program will include:
-- Airborne Gravity Survey; Falcon Airborne Gravity Gradiometry
survey by Fugro
-- Airborne ZTEM Survey; Z Axis Tipper Electromagnetic survey by
Geotech Ltd.
-- Approximately 12,000 m drilling
-- Initialization of environmental baseline studies
-- Preliminary economic studies
The Phase IB drilling program will consist of approximately 12,000
metres focusing on two main objectives:
1) Testing deeper targets that were generated to follow the footwall
mineralization down dip
2) Testing near surface mineralized zones not yet fully evaluated
The Phase IB drilling campaign will continue to build on the results
from Phase I A and will include the addition of newly available
airborne geophysical survey technology. Phase IB is scheduled to begin
in fall-winter 2011. The mineralized footprint at River Valley remains
unconstrained in all directions; therefore, the program will also
include on-going condemnation drilling to test the limits of the known
mineralization.
Quality Assurance and Quality Control (QA/QC)
QA/QC: All diamond drill core samples were submitted to SGS
Laboratories, Toronto, Ontario and assayed for Pt, Pd, Au, Cu and Ni
and a 33 element ICP suite. Concentrations of Pt-Pd-Au were determined
using standard lead fire assay, followed by dissolution with
acqua-regia, and measurement with an ICP (inductively coupled plasma)
finish. Lower limited of detection (30 gram sample) are 1 ppb for Au
and Pd and 10 ppb for Pt; upper limits are 10,000 ppb by ICP.
Concentrations of Cu-Ni were determined by ICP methods with detection
limit of 0.5 ppm for Cu and 1 ppm for Ni; upper limit for both Cu and
Ni is 1 %.
One standard and one Blank were inserted every 40 samples. Duplicates
were inserted each 20th sample into the sample stream. This practice
continued throughout 2011 Phase I (A) drilling and included the
preparation and insertion of new and necessary standards at the cut-off
grade and at the mean grade of the deposits. All sample preparation has
been conducted and directed on site by contract geologists and samplers
hired by PFN.
Qualified Person Statement
This news release has been reviewed and approved for technical content
by John Londry M.Sc, P.Geo, a director of the Company and a qualified
person under the provisions of national instrument 43-101.
About the River Valley PGM Project
The River Valley PGM project is located in the Dana and Pardo townships
of Northern Ontario, approximately 60 km east of Sudbury, Ontario. The
project is road accessible in Canada's premier Ni-Cu-PGM mining and
smelting district which boasts perfect infrastructure and community
support for mining activities.
The River Valley project mineral claims were optioned by PFN in 1998
following the discovery of highly anomalous PGM values in grab samples.
The property was subsequently optioned by PFN to Anglo Platinum in
1999. Initial exploration was guided by geochemical and induced
polarization surveys with subsequent drilling proving up significant
mineralization at Dana Lake and Lismer's Ridge. A mineral resource
estimate in accordance with the guidelines set out by NI43-101 was
published in 2006.
Measured and Indicated Resources using a 1 g/t cut off (Pt/Pd) 19.3
million tonnes containing 733,000 ounces palladium (1.18 g/t), 245,100
ounces of platinum (0.39 g/t) and 43,600 ounces of gold (0.07 g/t) with
an additional 881,000 tonnes containing 38,400 ounces of palladium
(1.36 g/t), 13,100 ounces of platinum (0.46 g/t) and 2,100 ounces of
gold (0.07 g/t) of Inferred Resources using a 1.0 g/t cut off (Pt/Pd).
VANCOUVER, May 17 /CNW/ --
At a 1 g/t cut off
-- Measured Resource: 7.99 million tonnes containing 342,000
ounces of palladium (1.33 g/t), 112,400 ounces of platinum
(0.44 g/t) and 19,600 ounces of gold (0.08 g/t)
-- Indicated Resources: 11.309 million tonnes containing 391,100
ounces of palladium (1.08 g/t), 132,600 ounces of platinum
(0.36g/t) and 24,000 ounces of gold (0.07 g/t) with an
additional inferred resource of 0.88 million tones containing
38,400 ounces of palladium (1.36g/t), 13,100 ounces of platinum
(0.46g/t) and 2,100 ounces of gold (0.07 g/t) using a 1 g/t cut
off (pt/pd)
Anglo Platinum continued to fund exploration under the terms of the
option and joint venture agreement and invested over $22 million in the
exploration of the property for a 50% stake in the joint venture. As a
result of capital expenditure reductions during the global financial
crises, Anglo Platinum Limited decided that no new funds would be
allocated to the project, above and beyond the minimal holding costs.
In April 2011, PFN and Anglo Platinum closed the transaction allowing
PFN to acquire Anglo Platinum's 50% stake in the River Valley JV giving
PFN 100% of the River Valley PGM project. The transaction issued 12% of
PFN's outstanding shares, (as of January 2011) to Anglo Platinum.
Through its share ownership in PFN, Anglo Platinum can benefit on any
future success of the River Valley Project.
In 2000 the first forty drill holes were completed on the River Valley
property; 37 at the Dana Lake Area and 3 at Lismer's Ridge, located about 1.3 km
southeast of the Dana Lake Area. The results to date demonstrate predictable grade to depth with significant high grade components over
broad intersections. Samples were taken from split drill core and sent to XRAL Laboratories
in Rouyn-Noranda, Quebec for Pt-Pd-Au-Rh-Cu-Ni assay.
About Pacific North West Capital Corp
Pacific North West Capital Corp. is a mineral exploration company whose
corporate philosophy is to be a project generator, explorer and project
operator with the objective of option / joint venturing its projects
through to production. In January 2011, Pacific North West Capital
successfully negotiated the 100% acquisition of the River Valley PGM
Project from Anglo Platinum Limited, making Anglo Platinum the largest shareholder of PFN holding
approximately 12% of the Company (see news release dated January 31, 2011). In special situations, like
our 100% owned River Valley PGM Project, the Company is prepared to
fund the project through to feasibility and up to production. The River Valley PGM project is one of North America's newest and
largest primary platinum group metals (PGM) deposits. The project is
located in the Sudbury region of Ontario.
In January 2011, Pacific North West Capital successfully negotiated the
100% acquisition of the River Valley PGM Project from Anglo Platinum
Limited, making Anglo Platinum the largest shareholder of PFN holding
approximately 12% of the Company (see news release dated January 31, 2011).
On January 24, 2011, PFN announced a new NI43-101 mineral resource
estimate on the Destiny Gold Project which is situated 75 km near
Val-d'Or, Québec (see news release dated January 24, 2011). The Destiny
Project is under option from Alto Ventures Ltd. ('Alto'). Under the
terms of the option agreement, PFN can earn a 60% interest in the
property over a four-year period by completing $3.5 million in
exploration expenditures, paying $200,000 and providing a total of
250,000 PFN shares to Alto. The Company also has PGM, gold and base
metal projects in BC, Québec, Ontario, Saskatchewan and Alaska and continues to aggressively look for new acquisition of additional
platinum group metals, precious metals on an international scale.
On April 7, 2011, PFN announced the closing of the River Valley
acquisition from Anglo Platinum (see news release dated April 7 2011).
On April 20, 2011, PFN announced that it has commenced the Phase I of
the $5 million, 15,500 metre drill program for its 100% owned River
Valley PGM Project and results are expected in May 2011. Work to date at River Valley suggests that the best potential for
economic accumulations of PGM-Cu-Ni sulphide mineralization is within
the Breccia Zone. This Zone includes the main mineralized breccia or
Main Zone. The Main Zone occurs within about 20 metres of the intrusive
contact with Archean gneisses. This contact zone extends for over 9 km of prospective strike length,
holds the current defined resource and is the main target of the
Company's renewed exploration efforts.
In addition, PFN is a significant shareholder of Fire River Gold Corp (FAU:TSX.V) which company is developing the Nixon Fork Gold Mine in Alaska, which is slated for production in summer of 2011. (click here to view Fire River Gold's 2011 President's Message)
Pacific North West Capital Corp. is well funded with an experienced
management team and the ability to take advantage of its growing asset
base in Platinum Group Metals, gold and base metals. To that end, the Company is in the process of adding key technical and
financial people to our management, advisory team and our board of
directors. PFN has approximately $8 million in working capital and
securities and no debt.
Pacific North West Capital Corp. is an International Metals Group
Company.
(www.internationalmetalsgroup.com)
VANCOUVER, May 17 /CNW/ --
On behalf of the Board of Directors
'signed'
Harry Barr
President and CEO
To view maps and tables associated with this news release please visit: http://www.pfncapital.com/s/NewsReleases.asp?ReportID=457547
Disclaimer: This news release may contain certain 'Forward-Looking
Statements' within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein are forward-looking
statements that involve various risks and uncertainties. There can be
no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with The
Toronto Stock Exchange, British Columbia Securities Commission and the
United States Securities & Exchange Commission.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/17/c5091.html
Tel: 1.604.685.1870 Fax: 1.604.685.8045
Email: info@pfncapital.com, or visit www.pfncapital.com
2303 West 41st Avenue, Vancouver, B.C., Canada, V6M 2A3