PFN cuts more PGM’s at River Valley (May 27, 2003)

Vancouver — Pacific North West Capital (PFN-T) has cut more high-grade platinum group metal (PGM) values in the Phase 6 drill program on the River Valley project, near Sudbury, Ontario.

Two rigs are currently turning on the property, one is testing the Dana Lake area and the other, situated about 3 km to the southeast, on the Lismer’s Ridge area. The $5.3 million drilling campaign, is designed increase the size and confidence of the PGM mineralization. An updated resource estimate is expected in October.

The River Valley project is a 50-50 Joint Venture between Anglo American Platinum (AAPTY-O) and Pacific North West Capital. Anglo Platinum may earn a 60% interest in the property by completing a feasibility study and 65% by putting the project into commercial production. When this year’s budget is included, Anglo Platinum has committed over $12 million to the project so far.

Highlights from the recent batch of drill results include;

• Hole DL-116 cut 101 metres averaging 0.05 gram gold, 0.26 gram platinum and 0.73 gram palladium starting 269.5 metres down-hole. This included a number of higher grade intervals such as; 1 metre averaging 0.21 gram gold, 1.13 grams platinum and 3.97 grams palladium; 24.5 metres averaging 0.08 gram gold, 0.41 gram platinum and 1.21 grams palladium; 1 metre averaging 0.2 gram gold, 1.31 grams platinum and 3.73 grams palladium.
• Hole DL-118 cut 61.5 metres averaging 0.10 gram gold, 0.57 gram platinum and 1.2 grams palladium, starting 229 metres down-hole. This included numerous short, higher grade intervals such as; 0.5 metre averaging 0.31 gram gold, 1.8 grams platinum, 5.4 grams palladium; 0.5 metre averaging 0.24 gram gold, 3.4 grams platinum and 9.6 grams palladium.
• Hole DL-120 cut 11 metres averaging 0.09 gram gold, 0.5 gram platinum and 1.44 grams palladium, starting 224.2 metres down-hole.
• Hole LR-93 cut 18.5 metres averaging 0.13 gram gold, 0.64 gram platinum and 1.93 grams palladium, starting 266 metres down-hole. This included numerous shorter intervals such as; 4.5 metres averaging 0.25 gram gold, 1.29 grams platinum and 4.46 grams palladium; 1.5 metres averaging 0.29 gram gold, 1.35 grams platinum and 5.62 grams palladium; 0.5 metres averaging 0.32 gram gold, 2.14 grams platinum and 6.22 grams palladium.
• Hole LR-95 cut 28 metres averaging 0.07 gram gold, 0.42 gram platinum and 1.10 grams palladium, starting 233 metres down-hole. This included numerous shorter intervals such as; 1.5 metres averaging 0.16 gram gold, 1.16 grams platinum and 3.87 grams palladium and 0.5 metre averaging 0.24 gram gold, 1.88 grams platinum and 6.62 grams palladium.
• Hole LR-96 cut 24 metres averaging 0.09 gram gold, 0.58 gram platinum and 1.54 grams palladium, starting 259 metres down-hole. This included numerous higher grade intervals such as; 1 metre averaging 0.19 gram gold, 1.37 grams platinum and 4.47 grams palladium and 1 metre averaging 0.2 gram gold, 1.70 grams platinum and 3.15 grams palladium.

Mineralization is hosted in a steeply dipping gabbro-breccia unit that occurs nearly continuously over a strike length of several km and is tested to a depth of over 400 metres vertically.

A resource estimate, completed last October, by Derry, Michener, Booth and Wahl Consultants, states that the combined in-situ measured and indicated resource hosted in the Dana and Lismer’s Ridge prospects tallies to 18 million tonnes grading 0.34 gram platinum, 1.02 grams palladium, 0.06 gram gold per tonne plus 0.02% nickel and 0.10% copper. This translates into a contained resource of 199,900 oz. platinum, 589,600 oz. palladium and 36,500 oz. gold for a grand total of 825,900 oz. combined platinum, palladium and gold. An additional inferred resource adds 5.38 million tonnes averaging 0.29 gram platinum, 0.819 gram palladium, 0.05 gram gold plus 0.02% nickel and 0.08% copper, or a contained resource of 50,200 oz. platinum, 141,800 oz. platinum and 8,600 oz. gold. The resource was calculated using a 0.7 gram per tonne combined platinum and palladium cut-off grade.

Since the two principal mineralized zones, Dana Lake and Lismer’s Ridge, each boast a strike length in excess of 1 km, Pacific North West Capital states that delineation drilling will continue in both areas for at least another month. Once completed, the drill rigs will be moved to the southeast in order to evaluate a number PGM showings that occur along an additional 5 km of the prospective intrusive contact. This will include the Varley showing that returned surface values of up to 10 grams per tonne combined platinum and palladium.