Pacific Minerals cuts high-grade PGM’s at JBS

Vancouver — Pacific Minerals (PMZ-V) has intersected high-grade platinum, palladium and gold mineralization while drilling the JBS project in the Yunnan province of China.

The ongoing infill-drilling campaign was designed to confirm the grade and geometry of mineralization in the deposit as well as provide geotechnical information to support the development of a detailed underground mine plan. Pacific Minerals reports that in addition to the infill program, select holes have been collared along the margins of the deposit in order to better define the boundaries of economic mineralization.

"These results further confirm the high-grade potential and excellent continuity of this deposit," said Daniel Kunz, President of Pacific Minerals. "The new drilling was conducted as infill holes between previous drilling by Chinese partners to upgrade our confidence level in the deposit."

Highlights of the new results include:

• Hole YB12 cut a three mineralized zones. The best intercepts are as follows; 2.90 metres averaging 1.53 grams platinum, 2.11 grams palladium, 0.17 gram gold, 0.19% copper, 0.24% nickel and 0.01% cobalt. This included a 1.0 metre interval that averaged 3.01 grams, platinum, 4.24 grams palladium and 0.36 gram gold, 0.36% copper, 0.36% nickel and 0.02% cobalt. Another interval cut 6.04 metres averaging 1.29 grams platinum, 2.47 grams palladium, 0.19 gram gold, 0.21% copper, 0.24% nickel and 0.02% cobalt. This included a 3.2-metre section that averaged 1.83 grams platinum, 3.65 grams palladium, 0.29 gram gold, 0.33% copper, 0.31% nickel and 0.02% cobalt.
• Hole YB-15 also cut three mineralized intervals. The best intercepts are as follows; 9.10 metres averaging 2.82 grams platinum, 3.74 grams palladium, 0.41 gram gold, 0.26% copper, 0.33% nickel and 0.02% cobalt. This included at 3.2-metre interval that averaged 5.59 grams platinum, 7.38 grams palladium, 0.87 gram gold, 0.51% copper, 0.50% nickel and 0.02% cobalt.
• Hole YB-21 cut six mineralized intervals, the best of which include; 1.0 metre averaging 1.96 grams platinum, 2.98 grams palladium, 0.26 gram gold, 0.23% copper, 0.27% nickel and 0.02% cobalt. This was followed by a 23.64-metre section that averaged 1.13 grams platinum, 1.60 grams palladium, 0.14 gram gold, 0.23% copper, 0.24% nickel and 0.02% cobalt. Included within this interval was a 4.50-metre section that averaged 2.29 grams platinum, 2.48 grams palladium, 0.19 gram gold, 0.51% copper, 0.37% nickel and 0.02% cobalt.
• Hole YB-25 cut five mineralized intervals. The best include; 5.74 metres averaging 1.48 grams platinum, 1.84 grams palladium, 0.21 gram gold, 0.24% copper, 0.30% nickel and 0.02% cobalt. This was followed by a 7.84-metres interval that averaged 1.05 grams platinum, 1.26 grams palladium, 0.11 gram gold, 0.15% copper, 0.25% nickel and 0.02% cobalt. This included a 1.90-metre section that averaged 2.24 grams platinum, 2.68 grams palladium, 0.25 gram gold, 0.33% copper, 0.38% nickel and 0.02% cobalt.
• Hole YB-89 cut three intervals of mineralization. The best interval cut 9.10 metres averaging 0.75 gram platinum, 1.21 gram palladium, 0.11 gram gold, 0.11% copper, 0.19% nickel and 0.02% cobalt.
• Hole YB-93 cut two mineralized zones; 12.23 metres averaging 0.72 gram platinum, 1.09 grams palladium, 0.08 gram gold, 0.07% copper, 0.19% nickel and 0.01% cobalt This was followed by a 4.23-metre interval that averaged 0.74 gram platinum, 1.35 grams palladium, 0.13 gram gold, 0.10% copper, 0.17% nickel and 0.02% cobalt.

The JBS property is situated approximately 200 km west of the city of Kunming which has a population of about 2 million and is serviced by regular flights to all of the major cities in China including Hong Kong and Singapore. Access to the property is via a 45 km gravel road that links to a provincial paved highway.

The deposit is comprised of northern and southern mineralized sections with a combined strike length of 3.4 km and a width that varies between 200-to-600 metres. Mineralization is related to disseminated magmatic sulphides in transitional layers of the ultramafic sill. The northern section is comprised of the K1 and K2 mineralized intervals that form a series of sub-horizontal layers.

The underground drilling program is designed to assess the continuity and grade of the K1 and K2 mineralized intervals. Pacific Minerals also intends to extend the current tunnels further north for an additional 1,000 metres.

Based on 65,000 metres of diamond drilling the Chinese government estimated an underground resource of 33 million tonnes grading 0.42 gram platinum per tonne, 1.1 grams palladium, 0.14% copper, 0.15% nickel, 0.013% cobalt, based on a 0.5 gram combined platinum and palladium cut-off grade.

Pacific Minerals had an independent technical audit performed on the Chinese resource estimates. Results indicated an estimate of 20.8 million tonnes grading 0.61 grams platinum, 0.94 gram palladium, 0.10 gram gold, 0.155% copper, 0.27% nickel and 0.017% cobalt.

The Chinese also estimated an inferred resource that weighs in at 9.4 million tonnes grading 0.90 gram platinum, 1.77 grams palladium, 0.20% copper, 0.21% nickel, 0.017% cobalt. This resource is situated entirely within the North Ore zone.

Pacific Minerals is exploring for precious and base metal deposits in China and is currently earning a 96.5% interest in the 217 Gold project, 70% in the JBS platinum-palladium project, and 90% in the Dandong gold project. Also, at the Yunnan Copper project, two separate co-operative joint-venture companies have been formed; Pacific Minerals is earning a 75% interest in one, and 70% in the other.

Ivanhoe Mines (IVN-T) holds a right of first refusal to acquire up to 80% of Pacific Minerals’ interest in any new project picked up by the latter anywhere in China (excluding Anhui province).

To date, Ivanhoe has exercised this right on the Yunnan Copper properties, and the Dandong property. The agreement stipulates that initially Ivanhoe can earn a half-stake in the joint-venture company created for each project by equally sharing the first US$1 million in expenses. Ivanhoe can acquire an additional 10% of Pacific Minerals’ interest by completing a feasibility study. On successful completion of the feasibility study, Ivanhoe can acquire a further 20% of Pacific Minerals’ interest by arranging the funding necessary to take the project to production.

At the JBS project, as soon as US$1 million has been spent on the property, Ivanhoe will have an option to acquire half of Pacific Minerals’ 70% interest by completing a feasibility study. Ivanhoe can increase its interest to 50% by financing the property into production. Once the second option is exercised, Pacific Minerals’ stake will be reduced to a 20% carried interest.