Pacific North West Capital Corp. - 100% PFN owned River Valley Platinum Group Metal Project, Ontario yields 2.76 gt (0.08 opt), 3E* over 35m (114.8 feet) in DN004-2011 and 1.71 gt, (0.05 opt), 3E* over 65 metres (213.3 ft) in hole DN003-2011
VANCOUVER, May 31, 2011 /CNW/ --
-- 2.8 gt,( 0.08 opt), 3E over 34 metres ( 111.5 ft) in hole
DN004-2011
o including 4.71 gt,(0.14 opt), 3E over 11 m ( 36.1 ft)
o including 2.86 gt ( 0.08 opt), 3E over 4m ( 13.1 ft)
-- 1.71 gt,( 0.05 opt), 3E* over 65 metres ( 213.3 ft) in hole
DN003-2011
o including 4.25 gt,(0.12 opt), 3E over 9 m ( 29.5 ft)
o including 2.47 gt, (0.07 opt ), 3E over 12m ( 39.4 ft)
-- Completed more than 60 line km 3D IP and 3724 metres drilling
in May 2011.
o Part of 2011 multi phases, $5M, Exploration program including
15,500 metre drill program
-- In Early June company will commence Phase IB exploration
program; including additional 3D IP and 12500m drilling
-- 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.
*3E=Pt Pd Au
VANCOUVER, May 31, 2011 /CNW/ - Pacific North West Capital Corp. ('PFN') (TSX: PFN; OTCQX: PAWEF; FSE:
P7J) is pleased to report initial assay results from two holes completed
during the 2011 Phase IA drill program in the Dana North area of the
Company's 100% owned River Valley Platinum Group Metals (PGM) Project
near Sudbury, Ontario. The 2011 drill program is utilizing one drill
rig which is systematically drilling off sections spaced at
approximately 25m intervals through the 900m long, north-south
trending Dana Lake deposit.
Phase IA 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.
Assay results for the first two holes were received and were announced
on May 17th, 2011
To view associated maps and photos visit: http://www.pfncapital.com/s/NewsReleases.asp?ReportID=459831
Both holes in this release are located on the same section as Holes
DN001-2011 and DN002-2011 and have intersected significant
mineralization zones.
Holes DN003-2011 and DN004-2011 of this fence showed extensive
mineralization assaying 1.8 gt over 65 metres (0.05 opt over 213.3
feet) and 2.8 gt 3E over 34 metres (0.08 opt over 111.5 feet)
respectively. Table 1- below Illustrates significant drill intervals in
the first four holes.
A total of 15 holes, 3724m, were completed in the Dana Lake area and all
samples have been received by SGS Laboratories. Assays results from
mineralized core intersections are reported below. Rhodium values will
be reported at a later date.
Mineralization at the South Zone was intersected at vertical depths from
33m to 200m and remains open extending to depth. Mineralization can
also be traced in surface outcroppings.
On Going Geophysical Studies:
Phase IA of the Company's 2011 exploration program included the
collection of approximately 60 line-km of 3D Induced Polarization
ground geophysical data. These surveys have being conducted to generate
additional drill targets and to 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 four holes (Composite
Results)
_______________________________________________________________________________________________
| | | |Length of|Length of| | | | | | | | | | |
| Hole No. |From|To | the | the |Pt | Pt |Pd | Pd | Au |3E | 3E |Ni |Cu | Rh |
| |(m) |(m)|Intersect|Intersect|(gt)|(opt)|(gt)|(opt)|(gt)|(gt)|(opt)|(%) |(%) | |
| | | | (m) | (feet) | | | | | | | | | | |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____|_______|
|DN001-2011|123 |173| 50 | 164.0 |0.26|0.008|0.77|0.022|0.05|1.1 |0.03 |0.02|0.09| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including |123 |134| 11 | 36.1 |0.37|0.011|1.11|0.033|0.07|1.55|0.05 |0.02|0.09| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including |141 |153| 12 | 39.4 |0.31|0.009|0.90|0.026|0.05|1.26|0.04 |0.02|0.11| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including |159 |173| 13 | 42.7 |0.28|0.008|0.83|0.024|0.06|1.18|0.03 |0.03|0.12| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|DN002-2011|114 |179| 65 | 213.3 |0.32|0.009|0.95|0.028|0.06|1.3 |0.04 |0.02|0.10| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including |146 |158| 12 | 39.4 |0.43|0.013|1.30|0.038|0.08|1.82|0.05 |0.03|0.14| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____|Results|
|Including |173 |179| 6 | 19.7 |0.74|0.022|2.34|0.068|0.12|3.20|0.09 |0.02|0.12|Pending|
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|DN003-2011| 50 |115| 65 | 213.3 |0.42|0.010|1.29|0.038|0.08|1.8 |0.05 |0.03|0.13| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including | 50 |59 | 9 | 29.5 |0.98|0.029|3.09|0.090|0.18|4.25|0.12 |0.03|0.22| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including | 72 |84 | 12 | 39.4 |0.59|0.017|1.76|0.052|0.11|2.47|0.07 |0.04|0.16| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|DN004-2011| 29 |63 | 34 | 111.5 |0.66|0.020|2.00|0.060|0.12|2.8 |0.08 |0.03|0.16| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including | 29 |40 | 11 | 36.1 |1.12|0.033|3.40|0.099|0.18|4.71|0.14 |0.04|0.24| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____| |
|Including | 43 |47 | 4 | 13.1 |0.69|0.020|2.06|0.060|0.11|2.86|0.08 |0.03|0.16| |
|__________|____|___|_________|_________|____|_____|____|_____|____|____|_____|____|____|_______|
In the coming 12 months the company plans to expand the geophysical
survey coverage and complete these surveys in four different phases to
cover the prospective zones over the entire 9 Km strike length.
About 3D IP Survey:
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.
SJ Geophysics Ltd. was contracted to design and carry out the current
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) immediately 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.
Project Goals: The River Valley PGM 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, mineable 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 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:
-- Conclude a series of exploration programs including ground
geophysics to Generate new drill targets.
-- Complete series of drill campaigns to test new targets and
update the NI 43-101 compliant resource estimate; within 12
months.( Spring 2012)
-- Preliminary Economic Assessment (PEA): Within 18 months.
-- Commence Pre -Feasibility within 36 months.
Table 2- Project Long Term Objectives
______________________________________________________________________
| Objectives |2011-|2011-|2011-|2011-|2012-|2012-|2012-|2012-|2013|2014|
| | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | | |
|____________|_____|_____|_____|_____|_____|_____|_____|_____|____|____|
|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
The 2011 drilling program began on April 7th and was completed in late
May. During this phase 3724 meters of drilling and more than 60 line-Km
of 3D IP geophysics was completed.
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.
The Phase IB exploration program will include:
-- More than 80 line Km of 3D IP
-- Approximately 12,500 m drilling
-- Initialization of environmental baseline studies
Drilling program will consist of approximately 12,500 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
3) Testing new drilling targets found outside of the contact by the
geophysics survey (3D IP)
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 June 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 into the
sample stream. Duplicates were taken each 20th. 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).
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 a 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 (as of January, 2011). In special situations, like our 100% owned River
Valley PGM Project, the Company is prepared to fund the project through
to feasibility and on 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.
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 acquire new acquisition of additional platinum
group metals, precious metals and base metals projects 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 $6.8 million in working capital and
securities and no debt.
Pacific North West Capital Corp. is an International Metals Group
Company.
On behalf of the Board of Directors
(signed)
Harry Barr
President and CEO
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/May2011/31/c8974.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