Pacific Minerals confirms grades (July 26, 2002)

Vancouver — The first 9 holes of a planned 2,500 metres underground drill program on the JBS platinum-palladium-nickel-copper deposit in southwestern China has returned high-grade values for operator Pacific Minerals (PMZ-V).

The holes were drilled in a fan from two sites located 100 metres apart. Highlights from the initial results include:

Hole 80-1 cut 2.2 grams platinum, 3.1 grams palladium, 0.3 gram gold per tonne, plus 0.2% copper, 0.28% nickel and 0.43% chromite over 10 metres.

Hole 80-4 cut 2.3 grams platinum, 3.5 grams palladium, 0.31 gram gold, plus 0.28% copper, 0.31% nickel and 0.43% chromite over 19.5 metres. Included in this interval was a higher-grade section running 4 grams platinum, 5.8 grams palladium, 0.53 gram gold, plus 0.47% copper, 0.44% nickel and 0.39% chromite over 9.4 metres.

Based on Chinese government resource calculations, the JBS deposit marks the largest platinum group metals resource known in the southwestern part of the country. The property hosts two mineralized zones with a combined strike length of 3.4-km and width varying from 200-to-600 metres. Previous drilling by the Chinese Government has defined a drill-indicated resource of 33 million tonnes grading 1.10 grams palladium, 0.42 grams platinum, 0.15% nickel and 0.14% copper. Included in this resource is a higher-grade portion of 9.4 million tonnes averaging 1.77 grams palladium, 0.90 grams platinum, 0.21% nickel and 0.21% copper.

The initial results have Pacific Minerals believing that the resource estimate is understated.

Earlier this year, Ivanhoe Mines (IVN-T) took a stake in Pacific Minerals by investing US$3 million into the junior. As part of the financing deal, Ivanhoe can earn half of Pacific Minerals’ 70% interest in JBS by completing a full feasibility study. The company can then earn another 15%, bringing its total to 50%, by arranging project financing.