Pacific North River Valley sample results; financing
Pacific North West Capital Corp PFN
Shares issued 8,492,000 Feb 8 close $0.79
Tue 8 Feb 2000 News Release
Mr. Harry Barr reports
Pacific North West Capital has released a summary of 1999 sampling programs
and details of a $1-million platinum group metals exploration program
commencing mid-February on properties in the Sudbury mining division, Ont.
The programs are financed by Anglo American Platinum Corporation Ltd.
(Amplats), the world's largest platinum producer.
Approximately $800,000 of the current budget will be spent on the
4,350-hectare (10,750-acre) River Valley property, 70 kilometres east of
Sudbury, where stripping and sampling programs conducted in 1999
successfully identified significant PGM values (PGM = palladium + platinum
+ gold + rhodium) in the Dana Lake area. Mineralization occurs in the River
Valley Intrusion within 100 metres of its contact with older Archean
gneisses. An initial 2000-metre (6,500-foot) drilling program will commence
on River Valley in late February.
In the Dana Lake area, detailed surface sampling was conducted in five
zones on 2.5-metre by 2.5-metre grids using a cutoff saw to collect the
samples. Samples were collected at each interval regardless of rock
appearance. Assay values reported are PGM comprising palladium, platinum
and gold; PGM values will be revised to include rhodium assays when these
are available. Initial results indicate rhodium averages 0.05 gram per
tonne, with individual assays ranging up to 0.3 g/t. Rhodium is currently
traded at $2,275 (U.S.) per ounce. Previously reported results (Stockwatch
Dec. 8, 1999) are shown with new results in the table below. The zones
described below are irregular in shape, and the dimensions are
approximations. The assay values quoted are averages of all the samples
within each zone.
Dimen-
sions No. of PGM Cu + Ni
Zone (m) samples g/t %
Road A* 57x31 201 1.6 0.16
Road B 18x16 47 0.5 0.08
Road C 10x23 31 1.0 0.07
North 2 18x10 18 2.6 0.24
North 3 16x19 54 1.1 0.15
Central A 16x19 40 1.5 0.10
Central B 10x19 29 1.7 0.14
Central C 18x07 17 3.6 0.24
Central D 12x30 59 1.0 0.11
Trench 20x25 60 1.7 0.15
South A** 20x55 153 1.9 0.16
South B 15x12 28 3.0 0.18
South C 30x10 51 2.9 0.21
*Incorporates values previously reported as Road zone. **Incorporates
values previously reported as South A zone.
PFN regards these results as highly encouraging particularly in view of the
geological environment from which they were taken. In considering the
contact-type PGE deposit, it is important to approach the valuation as one
would in terms of a copper-gold rich porphyry deposit. With regard to
prospective targets at the River Valley property, it is pertinent to refer
to the proven and probable reserves, calculated on a 0.92 g/t palladium
equivalent cutoff grade and using a palladium price of $350 (U.S.) to $320
(U.S.) per ounce, of 74.2 million tonnes averaging 1.64 g/t palladium, 0.18
g/t platinum, 0.14 g/t gold, 0.066% copper and 0.055% nickel, reported by
North American Palladium Ltd.'s Lac des Iles mine operation near Thunder
Bay, Ont. The Lac des Iles mine, Canada's only primary producer of
palladium and platinum, is currently seeking to expand operations from
2,400 tonnes a day to 15,000 tonnes a day. Platinum group metals have
experienced dramatic price increases recently: platinum $613 (U.S.);
palladium $536 (U.S.); and rhodium $2,276 (U.S.).
Induced polarization (IP) surveys carried out over known mineralization in
the Dana Lake area indicate a strong associated chargeability response and
significant depth component (>75 metres). Further IP surveys will begin
shortly to complete coverage at Dana Lake and begin coverage of the entire
prospective contact area, which extends southeast within the River Valley
property for a minimum of six kilometres to the Azen Creek area (samples up
to 4.2 g/t PGM and 0.84 per cent Cu+Ni).
A phase 1 diamond drilling program, scheduled for late February, will test
the depth extent of exposed PGM mineralization and specific IP targets.
Phase two drilling will be undertaken after the initial results are
tabulated and interpreted. A minimum 5,000 metres (16,500 feet) of drilling
is planned for the River Valley project in 2000. In addition, substantial
stripping, prospecting and sampling programs will evaluate additional areas
of known PGM mineralization along the eight kilometres of prospective
contact within PFN's River Valley property.
Preliminary mineralogical and metallurgical studies will be in progress
over the next six months on a two-tonne sample taken from various
mineralized exposures at the Dana Lake area.
The year 2000 program is financed by Amplats, which can earn a 50-per-cent
interest in various PFN properties by paying $300,000 for the option
(payment made) and spending $4-million on exploration; a 60-per-cent
interest by completing a feasibility study; and 65 per cent by financing
the property through to production. In addition to financing, Amplats is
providing PFN with considerable technical expertise in its search for PGM
deposits. PFN remains operator of the projects.
In addition to the Amplats financing, PFN has a minimum year 2000
commitment of $150,000 from another earn-in joint venture partner on
several other PGM properties in the area, $2-million cash in its treasury
and no debt.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
Mr. Barr also reports
The company has closed the non-brokered private placement, announced in
Stockwatch Nov. 9, 1999, for total proceeds of $398,000, of which $100,000
is accredited as flow-through.
Proceeds will be used for general working capital, acquisitions, and to
explore the company's copper, nickel, platinum group metal projects in
Canada.
The company would like to thank all those who participated in the
placement.
In conjunction with a brokered, flow-through private placement closed by
announcement Jan. 31, 2000, the company has raised total financing of
$1,380,600, has total cash of approximately $2-million, no debt, and a
financing agreement with Anglo American Platinum Corp., which will provide
an additional $1-million in exploration financing in 2000.
Announcements summarizing recently completed work and new programs to be
undertaken on the company's projects will be released shortly.
(c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com
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