Pacific North West cuts PGM’s at Varley zone

Vancouver — Pacific North West Capital (PFN-T) reports that it has intersected a significant new zone of mineralization at its River Valley property near Sudbury Ontario.

The mineralization is centred on the Varley Zone located 3 km south of the Lismer’s Ridge area. Pacific North West Capital is in the midst of a phase 5, $5.3 million, drill program. Two drill rigs are currently spinning and will continue through until the end of November.

The River Valley project is a 50-50 joint venture with Anglo American Platinum (AAPTY-O). To date, Amplats has spent $12 million on the project; it stands to earn a 60% interest by completing a feasibility study, and an additional 5% by funding the project through to production.

The program is aimed at expanding the current resources on the property as well as testing 6 km of prospective intrusive contact. The junior also reports that a new mineral resource estimate is in progress.

At last report, Derry, Michener, Booth and Wahl Consultants estimate that the combined in situ measured and indicated resource at the Dana and Lismer’s Ridge prospects is 18 million tonnes grading 0.34 gram platinum, 1.02 grams palladium and 0.06 gram gold per tonne, plus 0.02% nickel and 0.1% 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.

There is an additional inferred resource of 5.38 million tonnes averaging 0.29 gram platinum, 0.819 gram palladium and 0.05 gram gold plus 0.02% nickel and 0.08% copper, for a contained resource of 50,200 oz. platinum, 141,800 oz. platinum and 8,600 oz. gold. The resource was calculated using a cutoff grade of 0.7 gram combined platinum and palladium per tonne.

Highlights of the recent drill results are as follows;

• Hole VA-01 cut 73 metres averaging 0.068 gram gold, 0.419 gram platinum and 1.03 grams palladium starting 109 metres down-hole. This included a two metre interval that averaged 0.183 gram gold, 2.037 grams platinum and 5.725 grams palladium starting 123 metres down-hole.
• Hole VA-02 cut 5 metres averaging 0.07 gram gold, 0.528 gram platinum and 1.25 grams palladium, starting 29 metres down-hole. This was followed by a 1-metre interval that averaged 0.08 gram gold, 0.447 gram platinum and 1.42 grams palladium, starting 51 metres down-hole.
• Hole VA-03 cut 18 metres averaging 0.041 gram gold, 0.237 gram platinum and 0.695 gram palladium, starting 82 metres down-hole. This included a 1-metre section that cut 0.123 gram gold, 0.868 gram platinum and 3.414 grams palladium, starting 90 metres down-hole.
• VA-04 cut 23 metres averaging 0.037 gram gold, 0.193 gram platinum and 0.599 gram palladium, starting 129.0 metres down-hole. This included a 1-metre section that averaged 0.183 gram gold, 0.447 gram platinum and 4.64 grams palladium, starting 129 metres down-hole.

The company has known for sometime that platinum and palladium values in excess of 10 grams PGM’s per tonne combined outcrop in gabbroic breccias in the Varley Zone. This has been the first chance the company has had to drill test the target due to the extensive strike length of the mineralized breccia on the property. Mineralization along the Dana Lake trend has a strike length over 1 km. At Lismer’s Ridge mineralization has been tested over a strike length of 2 km. Pacific North West Capital feels that there is the substantial opportunity for the discovery of additional sizeable mineralized zones at Varley as well as along the prospective breccia contact which extends another 4 km southeast of Varley.