Pacific Minerals cuts high-grade PGMs in China

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

Ongoing infill drilling is designed to confirm the grade and geometry of mineralization, as well as provide geotechnical information for development of an underground mine.

Along the margins of the deposit, crews have collared select holes in order to define the boundaries of economic mineralization.

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

Highlights include the following:

— Hole YB12 cut three mineralized zones. One interval returned 2.9 metres averaging 1.53 grams platinum, 2.11 grams palladium and 0.17 gram gold per tonne, plus 0.19% copper, 0.24% nickel and 0.01% cobalt. This included a 1-metre interval of 3.01 grams platinum, 4.24 grams palladium, 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, which included a 3.2-metre section of 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 being 9.1 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 3.2 metres of 5.59 grams platinum, 7.38 grams palladium, 0.87 gram gold, 0.51% copper, 0.5% nickel and 0.02% cobalt.

— Hole YB-21 cut six mineralized intervals, the best being 1 metre of 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 of 1.13 grams platinum, 1.6 grams palladium, 0.14 gram gold, 0.23% copper, 0.24% nickel and 0.02% cobalt. Included within this interval were 4.5 metres of 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 six mineralized intervals. The best was 5.74 metres averaging 1.48 grams platinum, 1.84 grams palladium, 0.21 gram gold, 0.24% copper, 0.3% nickel and 0.02% cobalt. This was followed by 7.84 metres of 1.05 grams platinum, 1.26 grams palladium, 0.11 gram gold, 0.15% copper, 0.25% nickel and 0.02% cobalt. Included were 1.9 metres of 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, with the best cutting 9.1 metres of 0.75 gram platinum, 1.21 grams palladium, 0.11 gram gold, 0.11% copper, 0.19% nickel and 0.02% cobalt.

— Hole YB-93 cut two mineralized zones, the most impressive result being 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 of 0.74 gram platinum, 1.35 grams palladium, 0.13 gram gold, 0.1% copper, 0.17% nickel and 0.02% cobalt.

Road-accessible

The JBS property is 200 km west of the city of Kunming (population 2 million) and serviced by regular flights to all major cities in China, including Hong Kong and Singapore. The site is accessible via a 45-km gravel road, which connects to a provincial paved highway.

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

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

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

Pacific Minerals had an independent technical audit performed on the Chinese resource estimates. Results indicated 20.8 million tonnes grading 0.61 gram platinum, 0.94 gram palladium, 0.1 gram gold, 0.155% copper, 0.27% nickel and 0.017% cobalt.

Inferred resource

The Chinese also estimated an inferred resource of 9.4 million tonnes grading 0.9 gram platinum, 1.77 grams palladium, 0.2% copper, 0.21% nickel and 0.017% cobalt. This resource is entirely within the North Ore zone.

Pacific Minerals is exploring for precious and base metal deposits in China and is earning a 96.5% interest in the 217 Gold project, plus 70% in the JBS platinum-palladium project and 90% in the Dandong gold project. Also, at the Yunnan Copper project, two separate 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. 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 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.