River Valley exploration heats up

Vancouver Intent on proving up the economic potential of the River Valley platinum-palladium property, partners Pacific North West Capital (PFN-T) and Anglo American Platinum (AAPTY-O) have doubled the size of the 2003 exploration budget for the promising project near Sudbury, Ontario.

Some 40,000 metres of drilling are planned for the New Year as part of a $5.3 million program. The partners will focus on a 6-km long section of the favourable intrusive contact zone located south of Lismer’s Ridge. The approved program marks the sixth round of drilling over the property and represents more than a 100% increase over the $2.3 million spent this year.

The latest bout of drilling successfully doubled the size of the River Valley resource. So far, 232 holes totaling 47,000 metres have been drilled primarily in the Dana Lake and Lismer’s Ridge areas of the property. Combined measured and indicated resources now stand at more than 18 million tonnes averaging 1.02 grams palladium and 0.34 gram platinum per tonne, plus 0.06 gram gold, 0.02% nickel and 0.1% copper. An additional 5.4 million tonnes grading 0.82 gram palladium, 0.29 gram platinum, 0.05 gram gold, 0.02% nickel and 0.09% copper are classified as inferred.

Looking to boost the resources, sampling and geophysical surveys have identified prospective targets south of Lismer Ridge. Total resources at Lismer’s Ridge now stand at 10.8 million tonnes running 0.79 gram palladium and 0.3 gram platinum, plus gold, nickel and copper. The zone, which strikes for 1.45 km and extends to 260 metres below surface, sits about 2 km southeast of the Dana Lake area.

At Dana Lake North, the assay results from 11 recently completed drill holes are expected before year end. This zone strikes for 450 metres, along which it has been intersected to a depth of 275 metres.Combined, the two zones host 12.6 million tonnes averaging 1.11 grams palladium and 0.36 gram platinum, plus gold, nickel and copper.

All of the deposits sit near the surface, close to where the host intrusion (after which the property is named) contacts the surrounding country rock. The highest grades have come from the breccia unit.

Mineralization occurs mainly in the form of disseminated and blebby sulphides (chalcopyrite), with palladium and platinum being tied to tellurides and arsenides, such as sperrylite and merenskyite. Palladium accounts for about 70% of the contained precious metals; platinum, for 20%.Metallurgical studies are still preliminary, but 77% of the palladium and 73% of the platinum were recovered from 13 composite samples tested in South Africa. Each weighed 4 kg, and all were ground so that 60% passed through a screen having 74-micrometre openings.

Pacific North West and Anglo American each own a half-interest in the River Valley project, though the major can increase its stake to 60% by financing the project to production. Since mid-1999, the major has provided more than $4 million in exploration funding.