PNWC raises grade at River Valley

Vancouver — Early results from an ongoing 11,000-metre drill program by Pacific North West Capital (PFN-V) have boosted the economical prospects of the River Valley platinum- palladium project in Ontario.

In addition to the primary, lower-grade, bulk-tonnage target, early assays from the fourth round of drilling indicate potential for a higher-grade resource that could be selectively mined underground.

Situated 60 km northeast of Sudbury, the property overlies the northern part of the River Valley layered mafic intrusion. During 1999 and 2000, exploration work funded by Anglo Platinum indicated potential for a platinum group metals (PGM) deposit in mafic magmatic breccias adjacent to the intrusive contact. The deposit could potentially be mined by open-pit methods.

Current drilling is aimed at identifying discrete near-surface zones of mineralization along the intrusive contact. The regional program will extend southeast along the intrusive contact and test targets around the Varley showing, as well as the Azen Creek and Jackson’s Flats showings.

Two rigs are operating at present. One is systematically drilling off 25-metre sections across the 900-metre-long, north-south-trending Dana Lake prospect. The second is testing widely spaced targets associated with the contact of the River Valley intrusion, which extends about 6 km southeast of the Dana Lake area.

The first three holes of the latest program are centred on the South zone in the Dana Lake area. Highlights are as follows:

– Hole DL-1 cut 39 metres grading 0.5 gram platinum, 1.8 grams palladium and 0.11 gram gold per tonne from a down-hole depth of 140 metres. Included in this interval were two higher-grade sections, including 6.9 metres averaging 1.7 grams platinum, 6.1 grams palladium and 0.32 gram gold.

– Moving 25 metres to the north, hole DL-2 returned 97.7 metres averaging 1.25 grams combined platinum-palladium-gold from 47.4 metres down-hole. A 57.1-metre section ran 0.43 gram platinum, 1.4 grams palladium and 0.06 gram gold, while a 12.8-metre portion ran 0.7 gram platinum, 2.4 grams palladium and 0.08 gram gold.

– Some 35 metres to the west, hole DL-3 cut 42.6 metres averaging 0.57 gram platinum, 1.5 grams palladium and 0.06 gram gold from 153.9 metres down-hole. Included was an impressive 3.5 grams platinum, 8.4 grams palladium and 0.3 gram gold over 4.4 metres. Mineralization at the zone remains open to the north, south and at depth.

Surface outcrops

The second rig is 1.3 km southeast at the Lismer Ridge area. Here, mineralization is open to the northwest and southeast and has been intersected between vertical depths of 5 metres and 127 metres. The mineralization remains open at depth and can be traced to surface outcroppings. Highlights are outlined below:

– Hole LR-1 hit 30 metres grading 1.1 grams combined platinum-palladium-gold. Included was a 10-metre section running 0.5 gram platinum, 1.7 grams palladium and 0.08 gram gold from 8 metres down-hole.

– Some 60 metres to the southeast, hole LR-2 returned an encouraging 18 metres grading 1.4 grams platinum, 3.2 grams palladium and 0.1 gram gold from 100.5 metres down-hole.

– Another 40 metres to the southeast, hole LR-4 cut 4.2 metres grading 0.4 gram platinum, 1.3 grams palladium and 0.08 gram gold from 157.4 metres down-hole.

– Hole LR-3 was collared northwest of hole 1 and cut only anomalous mineralization.

As part of a $2-million exploration program approved by the junior’s joint-venture partner, Anglo Platinum (Amplats), geophysical surveys are also being carried out, as are stripping and sampling.

To date, assay results have been received from 41 holes representing four drill programs in the Dana Lake area. Mineralized mafic breccias have been outlined over a 900-metre strike length, over widths of more than 40 metres and to a vertical depth of 200 metres. The Lismer Ridge area has been tested by seven holes to vertical depths of 127 metres.

Drilling is expected to continue until late March; the program will then be temporarily suspended so that results can be plotted and interpreted. The current program is expected to be completed by June, at which time about 100 holes totalling 18,000 metres will have been drilled on the property.

Anglo Platinum, a traded subsidiary of South Africa’s Anglo-American, can earn a 65% stake in the property by funding it through to production. During the past two years, Anglo Platinum has spent $2 million on Pacific North West Capital’s properties, including the current drill program.