More precious metals in Varley zone (May 31, 2004)

Pacific North West Capital (PFN-T) has intersected significant platinum-palladium mineralization in the Varley zone on its River Valley project, 65 km northeast of Sudbury, Ont.

The Varley zone is at the brecciated northern contact of the River Valley mafic intrusive.

Since March, when the program began, five holes have been drilled. Highlights include the following:

— 17 metres grading 0.932 gram platinum, 2.84 grams palladium, and 0.144 gram gold per tonne, which together total 3.91 grams combined gold-platinum-palladium per tonne; included in this is a 10-metre section grading 1.36 grams platinum, 4.24 grams palladium and 0.213 gram gold;

— 21 metres grading 0.612 gram platinum per tonne, 1.7 grams palladium per tonne and 0.143 gram gold per tonne; included in this is a 15-metre section grading 0.663 gram platinum, 1.78 grams palladium and 0.162 gram gold, as well as a 3-metre intercept of 0.918 gram platinum, 2.82 grams palladium and 0.176 gram gold.

Three other holes intersected 3-27 metres ranging in grade from 1 to 2.83 combined platinum-palladium-gold.

The drill holes were either spaced as 50-to-100-metre stepouts or located to undercut existing holes by 50 metres. Mineralization is associated with disseminated sulphides.

Varley is 4 km southeast of a measured resource on the same property at Dana and Lismer’s Ridge. In October 2001, the Dana Lake deposit was estimated to contain a measured, indicated and inferred resource of 7.74 million tonnes grading 1.6 grams combined platinum-palladium-gold per tonne, whereas Lismer’s Ridge was found to contain 4.97 million tonnes grading 1.24 grams platinum-palladium-gold.

The River Valley project is a joint venture with Anglo American Platinum (AAPTY-O), which has an option to earn up to 65% of the property by funding exploration through to production. Drilling is ongoing.