Partners prove up River Valley

Vancouver — Intent on confirming 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 their exploration budget.

The property, situated near Sudbury, Ont., will be subjected to 40,000 metres of drilling as part of a $5.3-million program in 2003. Drill crews will focus on a 6-km-long section of the favourable intrusive contact zone south of Lismer’s Ridge. It will be the sixth round of drilling on the property.

In 2002, the size of the resource was doubled as a result of a $2.3-million drilling program.

To date, 232 holes totalling 47,000 metres have been sunk, chiefly in the Dana Lake and Lismer Ridge areas. Measured and indicated resources now total more than 18 million tonnes averaging 1.02 grams palladium, 0.34 gram platinum and 0.06 gram gold per tonne, plus 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 Ridge now stand at 10.8 million tonnes running 0.79 gram palladium and 0.3 gram platinum, plus minor 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, results from 11 recently drilled 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 values.

All the mineralized zones are near the surface, close to where the host intrusion 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, Anglo American has provided more than $4 million in exploration funding.