PFN cuts River Valley mineralization

The first three holes of a 13-hole drill program on the River Valley property, 70 km east of Sudbury, Ont., have intersected strong platinum-palladium mineralization near the surface for Pacific North West Capital (PFN-V).

Collared in the northern portion of the property at Dana Lake, the holes tested 100 metres of a 550-metre-long chargeability anomaly outlined in 1999. The anomaly is one of two that coincide with showings from which up to 16 grams combined platinum-palladium-gold per tonne, plus 0.45% copper and 0.05% nickel, have been obtained in grab or chip samples.

Hole 1, collared 50 metres north of the northern-most area stripped (but still in the anomaly), cut 61.9 metres (between 22 and 60 vertical metres) grading 1.8 grams combined platinum-palladium-gold per tonne, plus 0.12% copper and 0.02% nickel. Included in this interval were three higher-grade sections running up to 5.56 grams platinum-palladium-gold, 0.38% copper and 0.05% nickel over as much as 7.75 metres.

Collared 50 metres to the south, hole 2 intersected 48.3 metres (66-90 vertical metres) grading 2.04 grams platinum-palladium-gold, 0.14% copper and 0.02% nickel. Two higher-grade sections ran 6.78 grams platinum-palladium-gold, 0.38% copper and 0.04% nickel over 3.6 metres and 5.32 grams platinum-palladium-gold, 0.25% copper and 0.03% nickel over 4.7 metres.

“The second hole passed through massive gabbro-anorthosite and then breccia,” says Project Geologist Scott Jobin-Bevans, “and it passed through that massive layer right where we thought it would.”

Hole 3, stepped out another 50 metres to the south, cut 22.85 metres (66-90 vertical metres) grading 2.31 grams platinum-palladium-gold, 0.16% copper and 0.03% nickel. Before the hole’s termination, 5.1 metres (155.6-160.7 metres) averaged 2.51 platinum-palladium-gold, 0.02% copper and 0.02% nickel. The hole will be deepened in the next drill program; it is scheduled to start in May and will entail 3,000 metres in all.

Results from the remaining holes are pending.

River Valley covers 43.5 sq. km of the 30-by-15-km, layered mafic intrusion after which it is named. Mineralization in the intrusion is found near the basal contact with country rock; at Dana Lake, it is hosted by massive gabbro-anorthosite and underlying hetrolithic breccia.

Holes 1 through 10 of the 2,000-metre drill program targeted the northern anomaly, whereas the remainder tested the smaller, 150-metre-long anomaly that begins 300 metres to the south. (A small lake and pond sit in the gap. However, samples from outcrops between the two anomalies have returned some of the highest surface values so far, suggesting that they are connected.) All the holes were drilled at minus 45 and do not represent true thickness.

At surface, eight areas have been stripped so far, ranging from 25-by-25 metres to 225-by-75 metres. Combined (and taking into account the chargeability anomaly), they show the contact zone spread over a length exceeding 900 metres and an average width of 60 metres. Mineralization is irregular and remains open updip, downdip and along strike. The induced-polarization survey penetrated only 75 metres below surface and continues to the south.

Pacific North West reports that palladium and platinum represent most of the values, with palladium being generally 2-3 times higher than platinum, and gold ringing in at less than 0.5 gram. The company is assaying the drill intervals for rhodium; surface samples have so far revealed from nil to 3.6 grams of the metal and indicate a strong correlation with higher values of platinum-palladium.

Thin sections from surface samples show that the platinum-palladium-gold mineralization is mainly tied to sulphides, which occur predominantly in the form of chalcopyrite, pyrite and pyrrhotite. The sulphides are disseminated and thus are responsible for the strong chargeability response. Also, their relationship with platinum-palladium suggests relatively simple metallurgical characteristics.

South African-based Anglo American Platinum is funding exploration as part of its requirements to earn a half-interest in River Valley and other properties owned by, or under option to, Pacific North West Capital. To earn its interest, the major is required to pay $300,000 (which it has done) and spend $4 million on exploration over five years, of which $1 million must be spent this year. Anglo-American is the world’s largest producer of platinum.

Meanwhile, Acquiline Resources (AQI-V) has tied up the second largest chunk of the River Valley intrusion by optioning another 36 claims. To earn its interest in those claims, the company is required to pay $50,000 ($10,000 of which has already been paid) and issue 150,000 shares to Anaconda Uranium (ANU-V). Another 150,000 shares are due upon completion of a prefeasibility study.

Acquiline now holds various options to 47.2 sq. km of the intrusion. To keep exploration continuing, the junior has arranged for the private placement of 750,000 units at 70 apiece to raise $525,000 in gross proceeds. Each unit consists of a share and a purchase warrant, with each warrant entitling the holder to buy an additional share at 75 until May 31, 2001. First Delta Securities is underwriting the offer, which is expected to close in the coming weeks.

Also exploring the River Valley intrusion is Mustang Minerals (MMIN-C), which holds 607 claims, 96 of which are being optioned to Acquiline and 511 to South African-based Impala Platinum Holdings, the world’s second-largest producer of platinum.

To earn a 70% stake, Acquiline must pay $90,000 in cash, issue 100,000 shares and spend $500,000 on exploration over three years. Impala must pay $255,000 and spend $6 million over five years to earn a 60% interest in its chosen claims.