NEWS RELEASE DECEMBER 8, 1999
PFN REPORTS PRELIMINARY RESULTS
RIVER VALLEY PLATINUM GROUP METAL PROPERTY, SUDBURY ONTARIO
Management of Pacific North West Capital Corp (CDNX:"PFN") is pleased to announce preliminary results from detailed outcrop sampling programs recently completed at the Dana Lake Area of the River Valley Project, one of a number of PFN Platinum Group Metal (PGM = Pd + Pt + Au) projects currently under option to and funded by the world's largest platinum producer, Anglo American Platinum Corporation Limited (Amplats). The road-accessible property is situated 60 km northeast of Sudbury, Ontario, and Dana Lake is one of two areas at River Valley in which significant PGM values (up to 12.6 g/t total PGM) were discovered in 1998.
During the period August to November 1999 five zones within the Dana Lake Area were stripped and sampled. The five zones extend north-south over a distance of approximately 780m. Stripped outcrop from each of the five zones was sampled at regular intervals on a 2.5m by 2.5m grid. Most samples were taken with a cut-off saw and each has approximate dimensions 20cm by 5cm by 5cm. The remaining samples were large grab samples. Areas between the zones have yet to be stripped and sampled. The open-ended nature of the mineralization discovered to date suggests that a bulk tonnage target is a realistic exploration model for the Dana Lake Area.
The average assay value of the 376 samples which constitute the mineral zones reported below is 2.4 g/t PGM, 0.16 % Cu, and 0.04 % Ni. The current sampling has demonstrated that anomalous to high (0.25 - 16.0 g/t PGM) values occur over substantial widths close to, and at the contact of the River Valley Intrusion with older rocks. The extent of the mineralized showings on the property indicates that bulk tonnage, contact-type PGM deposits are important targets on this property.
PFN Management is very pleased with the results of the 1999 exploration program and believes the potential for commercially viable grades and tonnages of PGM mineralization on the River Valley property is excellent. A minimum of 6,000m (approx. 20,000ft) of drilling will be undertaken on River Valley and Nipissing Diabase targets in 2000.
The following reported PGM and copper-nickel values are from four of the five zones in the Dana Lake Area; values from the Central Zone and rhodium values from all zones will be reported as they become available.
Zone Location Dimensions Samples Average Grade Remarks
Road Northern End 75mX23m 133 1.7g/t PGM, 0.13% Cu, 0.04% Ni Open
North 150m south 18mX5-10m 18 2.6g/t PGM, 0.19% Cu, 0.05% Ni Open
Central NOT YET
REPORTED
Trench 450m south 20mX25m 60 1.7g/t PGM, 0.11% Cu, 0.04% Ni Open
South(a) 675m south 5-25mX52m 86 2.5g/t PGM, 0.15% Cu, 0.04% Ni Open
South(b) 15mX12m 28 3.0g/t PGM, 0.15% Cu, 0.03% Ni
South(c) 30mX10m 51 2.9g/t PGM, 0.17% Cu, 0.04% Ni Open
Very few of the total samples collected reported zero grades. In addition, mineralization of average grade or better generally extends to the margins of the currently stripped areas.
Summary of 1999 Exploration
The results above describe Platinum Group Metal and copper-nickel sulphide mineralization occurring within the River Valley Intrusion at, or within 100m of its contact with older (Archean-age) rocks. Stripping and sampling to date has yet to determine the boundaries of the mineralization or the relationship between the mineralization in the different zones. In addition, orientation induced polarization surveys recently completed over the Dana Lake Area show high chargeability values that correlate well with the exposed mineralization and whose extent indicates the need for substantial additional stripping. Results indicate that the intrusive contact, which extends several kilometers within the River Valley property, is highly prospective for bulk tonnage PGM mineralization.
New Discoveries
The Ontario Geological Survey (O.G.S.) has recently published an Open-File report on its 1999 mapping program in the River Valley area. This includes descriptions of three new mineral discoveries on the River Valley property. The most significant discovery is located 5 km south of the Dana Lake Area where the O.G.S. reported one grab sample assay of 3.58 g/t Pd + Pt + Au within an area of sulphide-bearing rocks at least 300m in length and 50m wide. PFN has briefly examined this area and taken grab samples that assay as high as 10 g/t PGM.
In addition PFN has located other PGM occurrences on the property which are apparently not contact related. This mineralization may relate to one or more stratigraphic horizons (reefs) within the intrusion and these will be important additional targets in 2000.
Year 2000 Exploration Programs
A $1,000,000 exploration program, funded by Amplats, will be conducted on River Valley and Nipissing Diabase targets in the year 2000. Most of this funding will be used to expand geophysical surveys, stripping directed at establishing continuity in the zones reported above, prospecting for other discoveries, and to provide for a minimum of 6,000m (approx. 20,000ft) of diamond drilling. The 2000 exploration program will commence in January when additional induced polarization surveys will be carried out over the known mineralization at the Dana Lake Area, and expanded to cover the intrusive contact that extends south for several kilometers.
For maps of the River Valley Project and the Dana Lake Area, please contact PFN at 1-800-667-1870, fax 604-685-8045, email ir@pfncapital.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Harry Barr, President |
