News on Union bay...
Pacific North West Capital Corp. - Lonmin Approves US $1.2 Million Exploration Program for Union Bay Platinum Project, Alaska / Exploration
6/1/04
VANCOUVER, Jun 01, 2004 (Canada NewsWire via COMTEX) --
Lonmin Plc has elected to proceed with the 2004 exploration program based on results from the 2003 program which suggest Union Bay has potential to host significant accumulations of platinum group metal mineralization. The 2004 exploration budget is set at US $1.2 million and will be 100% funded by Lonmin Plc, the world's third largest primary producer of platinum.
Harry Barr, President of Pacific North West Capital stated 'This additional $1.2 million exploration budget from Lonmin reinforces the potential importance of the Union Bay platinum discovery. The results from last year were encouraging and this year's program is aimed at following up on last year's discoveries and delineating new areas for additional exploration'.
Exploration will commence immediately with a detailed geological mapping and sampling program and an airborne magnetic and electromagnetic survey. A 9,000 ft (2,800m) drill program will commence in mid June. The drill rig is currently on site.
---------------------------------------- Exploration - 2004 - US $1.2 Million - Airborne Geophysical Surveys - Ground Follow Up - Drilling - Data Review ----------------------------------------
The initial drill program will target the Continental and Chevelle zones where rock sampling in 2003 returned values ranging from 1 to 14 g/t Platinum (Pt). (see news release January 20th, 2004). The mineralization is hosted by similar rock types to the previously reported occurrences at the North and Jaguar Zones, which lie 5 km to the east. In addition, a separate zone of Copper (Cu) + Platinum (Pt) + (Palladium (Pd) bearing sulphides was discovered at Cannery Creek. Cannery Creek is situated on the western side of the Union Bay project, close to the margin of the complex. The zone remains open to the north and east.
Should the results of the data review prove to be sufficiently positive, Lonmin may elect to incur further expenditures before the end of the 2004 field season.
Union Bay
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In May 2003 Lonmin Plc entered into a joint venture agreement with Pacific North West Capital and Freegold Ventures Limited for further exploration and development on the project. Under the agreement Lonmin funded an initial US$815,000 exploration program in 2003. The funding was subsequently increased to US $935,000 after a favourable preliminary review of field data. Lonmin has the further option to continue to fund the Union Bay project by expending a minimum of US$1 million per year in 2004, 2005 and 2006 and US $750,000 for each year thereafter.
Pacific North West Capital is the Operator of the project during the exploration phase. Lonmin may earn up to 70% interest in the project by delivering a full feasibility study. Upon the decision by the joint venture management committee to proceed to place the project into commercial production, Lonmin will arrange 100% of the required financing. Following commencement of commercial production, Pacific North West and Freegold Ventures Limited will each repay their share of the financing costs on agreed upon commercial terms and contribute pro rata to operating costs |
