TSX :PFN OTCQX: PAWEF Frankfurt: P7J
VANCOUVER, Aug. 16, 2011 /PRNewswire/ - Pacific North West Capital Corp. (TSX :PFN ) (OTCQX: PAWEF) (Frankfurt: P7J) is pleased to announce mineralization intersections from four drill holes (DN0012 to DN015) of the 15 holes completed during 2011 Phase IA drill program in the Dana Area of the Company's 100% owned River Valley Platinum Group Metals (PGM) Project near Sudbury, Ontario.
Drill holes DN011 and DN012 were both collared on section 10200 N (figure 1); DN011 and DN012 were targeting the Breccia Zone at shallow depths in north parts of Dana North. DN012 intercepted 2.16 gpt, (0.06 opt), 3E over 27 metres (88.6 ft) including 5.04 gpt (0.15 opt) 3E over 7 metres (23.0 ft). Significant mineralization in DN012 correlates with mineralization in DN011 and illustrates excellent mineralization continuity on the section (figure 2). DN011 intersected 8.00 g/t (0.23 opt) 3E over 11 metres, (36 ft), the highest grade intersection to date (Please see Press Release on July 6th 2011). Drill holes DN014 and DN015 were collared in the Dana South Area, approximately one kilometre south of DN011. Drill Hole DN014 (-60°) was collared at the same setup as the historical 2003 drill hole DL154 (-45°), which Intersected 5.02 gpt Pd+Pt over 47 metres, (154 ft). DN014 intersected significant mineralization grading 2.60 gpt,( 0.08 opt), 3E over 30 metres ( 98.4 ft), Including 6.44 gpt (0.19 opt) 3E over 2 metres (6.6 ft).
These results expand the known mineralization that was intersected in DL154 and confirms the mineralized breccia zone in this lower elevation (figure 3).
Drill hole DN015 was collared twenty five meters east of the historical drill hole DL154 to test the extension of mineralization at a shallower depth. Hole DN015 intersected 3.39 gpt, (0.10 opt), 3E over 7 metres (23.0 ft) demonstrating the continuity of the 3E mineralization on this cross section (Figure 4).
Drill hole DN013 was drilled approximately 45 metres north of drill holes DN009 and 010 (Figure 2) to test the known mineralized intersections returned in hole DN010. Hole DN013 intersected 2.05 gpt (0.06 opt), Rhodium over 2 metres (6.60 ft).
Additional drilling has been planned and Phase IC is slated to commence in early August. Phase IC drilling program is designed to determine the extension and the geometry of the mineralization.
Table 1 illustrates the results from holes DN012 thru DN015.
During Phase IA and IB 2011, Pacific North West Capital completed 32 holes totalling 7438 metres of drilling from April through June in Dana North Area.
The results from the Phase IA and IB drill programs have demonstrated that the sulfide and 3E mineralization has excellent continuity along strike and to depth within the Breccia Contact Zone
Table 1: Significant assay intervals of DN012 to DN015 (Composite Results)
|Hole #||From (m)||To (m)||Length of the Intersect (m)||Length of the Intersect (feet)||True Thickness (m)||Pt (gt)||Pt (opt)||Pd (gt)||Pd (opt)||Au (gt)||Rh (gpt)||3E (gt)||3E (opt)||Ni (%)||Cu (%)|
Phase IB Assay results will be announced shortly after receiving the results and conducting final QA/QC studies.
The company has now completed approximately 130 line-km 3D IP, data covering approximately 6.5 kilometres of strike length along the Breccia Contact as well as the internal portions of the Dana Lake Intrusive. Based on preliminary evaluation the IP results new drilling targets have been indicated for testing. The final IP results will be released after the completion of the final interpretation of the IP data.
Qualified Person Statement
This news release has been reviewed and approved for technical content by John Londry M.Sc, P.Geo, a director of the Company and a qualified person under the provisions of National Instrument 43-101.
About the River Valley PGM Project
The River Valley PGM project is located in the Dana and Pardo townships of Northern Ontario, approximately 60 km east of Sudbury, Ontario (figure-3). The project is road accessible in Canada's premier Ni-Cu-PGM mining and smelting district which boasts excellent mining infrastructure and community support for mining activities.
The River Valley project mineral claims were optioned by PFN in 1998 following the discovery of highly anomalous PGM values in grab samples. The property was subsequently optioned by PFN to Anglo Platinum in 1999. Initial exploration was guided by geochemical and induced polarization surveys with subsequent drilling proving up significant mineralization at Dana Lake and Lismer's Ridge.
At a 1 g/t cut off
- Measured Resource: 7.99 million tonnes containing 342,000 ounces of palladium (1.33 g/t), 112,400 ounces of platinum (0.44 g/t) and 19,600 ounces of gold (0.08 g/t)
- Indicated Resources: 11.309 million tonnes containing 391,100 ounces of palladium (1.08 g/t), 132,600 ounces of platinum (0.36g/t) and 24,000 ounces of gold (0.07 g/t) with an additional inferred resource of 0.88 million tones containing 38,400 ounces of palladium (1.36g/t), 13,100 ounces of platinum (0.46g/t) and 2,100 ounces of gold (0.07 g/t) using a 1 g/t cut off (pt/pd)
Anglo Platinum continued to fund exploration under the terms of the option and joint venture agreement and invested over $22 million in the exploration including 500 drill holes of the property for a 50% stake in the joint venture.
Additional discoveries were made over a 9 km strike length but due to lower commodity prices and the financial crises in 2008 and 2009 the project's true potential had not yet been realized.
The third mineral resource estimate in accordance with the guidelines set out by NI43-101 was published in 2006.
In April 2011, PFN and Anglo Platinum closed a transaction allowing PFN to acquire Anglo Platinum's 50% stake in the River Valley JV giving PFN 100% of the River Valley PGM project. The transaction issued 12% of PFNʹs outstanding shares, (as of January 2011) to Anglo Platinum. Through its share ownership in PFN, Anglo Platinum can benefit on any future success of the River Valley Project. Immediately after acquiring 100% of the project PFN commenced a $5,000,000 exploration program on its 100%- owned River Valley project, (Please see Press release April 20th, 2011).
Phase IA and IB drilling is completed and significant intervals of Platinum, Palladium and Rhodium mineralization has been intersected in the drill holes.
Phase IC is slated to commence on expanded and new targets in August 2011.
About Pacific North West Capital Corp
Pacific North West Capital Corp. is a mineral exploration company whose corporate philosophy is to be a project generator, explorer and project operator with the objective of option / joint venturing its projects through to production. In January 2011, Pacific North West Capital successfully negotiated the 100% acquisition of the River Valley PGM Project from Anglo Platinum Limited, making Anglo Platinum the largest shareholder of PFN holding approximately 9% of the Company (as of July, 2011). In special situations, like our 100% owned River Valley PGM Project, the Company is prepared to fund the project through to feasibility and on to production. The River Valley PGM project is one of North America's newest and largest primary platinum group metals (PGM) deposits. The project has an excellent infrastructure and is located 60 miles from Sudbury, Ontario, one of Canada's largest mining centres with 2 large mineral processing facilities that have extra capacity.
On April 20th, 2011, PFN announced that it has commenced the Phase I of the $5 million, 15,500 metre drill program for its 100% owned River Valley PGM Project. As of July 2011, PFN has completed more than 7800 metres of drilling and more than 140 line km of 3D IP geophysics survey. Work to date at River Valley suggests that the best potential for economic accumulations of PGM-Cu-Ni sulphide mineralization is within the Breccia Zone. This Zone includes the main mineralized breccia or Main Zone. The Main Zone occurs within about 20 metres of the intrusive contact with Archean gneisses. This contact zone extends for over 9 km of prospective strike length, holds the current defined resource and is the main target of the Company's renewed exploration efforts.
On January 24th, 2011, PFN announced a new NI43-101 mineral resource estimate on the Destiny Gold Project which is situated 75 km. Val-d'Or, Québec (see news release dated January 24, 2011).
On August 8th, 2011 Pacific North West Capital announced that subject to regulatory and shareholder approvals, it has entered into a letter agreement with Next Gen Metals Inc. ("Next Gen") (TSX.V:N) whereby Next Gen has been granted an to acquire the Company's 60% earn‐in option interest in the Destiny Gold Project ( Please see news release dated August 8th 2011)
On April 27th, 2011, PFN announces a new NI43-101 mineral resource estimate on the Rock & Roll Gold-Silver-Polymetallic Project, located in Northern BC. (see news release dated April 27th, 2011). New mineral; resource estimate significantly increases historic resource, indicated resources includes: 2,155,679 tonnes grading 0.68 g/t gold (47,040 contained oz of Au), and 82.7 g/t silver (5,734,445 contained oz of Ag) at a cut‐off grade of 0.5 g/t AuEq and including 0.22% Copper (10,500,833 lbs Cu), 0.22% Lead (10,399,960 lbs
Pb), and 0.94% Zinc (44,522,995 lbs Zn). The Rock and Roll Polymetallic Project is under option from Equity Exploration Consultants Ltd., First Fiscal Enterprises Ltd. and Pamicon Developments Ltd.
In addition, PFN is a significant shareholder of Fire River Gold Corp (FAU: TSX.V) which company is developing the Nixon Fork Gold Mine in Alaska, which is slated for production in summer of 2011. (Click here to view Fire River Gold's 2011 President's Message)
Pacific North West Capital Corp. is well funded with an experienced management team and the ability to take advantage of its growing asset base in Platinum Group Metals, gold and base metals. To that end, the Company is in the process of adding key technical and financial people to our management, advisory team and our board of directors. PFN has approximately $6.5 million in working capital and securities and no debt.
Aggressive Ongoing Acquisition Program
The Company has PGM, gold and base metal projects in BC, Québec, Ontario, Saskatchewan and Alaska and continues to aggressively acquire new acquisition of additional platinum group metals projects, precious metals and base metals projects on an international scale.
The Company has recently begun significantly expanding its PGM project portfolio in Canada and the U.S. (Alaska) and will be releasing updates as soon as these acquisitions have been completed.
Pacific North West Capital Corp. is an International Metals Group Company.
On behalf of the Board of Directors
President and CEO
Disclaimer: This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with The Toronto Stock Exchange, British Columbia Securities Commission and the United States Securities & Exchange Commission
SOURCE Pacific North West Capital Corp.