THE FAGAN REPORT- INTERIM MARKET REPORT #39
March 23, 2000
faganreport.com
SUBJECT: REVIEW - PACIFIC NORTH WEST CAPITAL CORP.
(PFN-CDNX) pfncapital.com
FIRST DRILL RESULTS FROM RIVER VALLEY PROPERTY
EXPECTED NEXT WEEK.
Pacific North West Capital Corp. (PFN) has announced the
completion of the Phase One, thirteen-hole, 2000-metre drill
program on the Dana Lake area of the River Valley property,
situated 60km northeast of Sudbury, Ontario. That news release
is reproduced in full following this summary and comment. The
results from the first three holes are expected next week. The
stock is up sharply on this news, trading in the $1.70 / $1.80
range. PFN was recommended at $0.37 on July 17, 1999, in
Fagan Fax Flash Alert #24
What speculators who are long the stock do now, is entirely
dependent on each one's financial objectives.
I view River Valley as having the potential of developing into a
major PGM deposit. If this happens, the stock will of course go
much, much higher. You can judge this potential for yourself by
reading several comprehensive reports on the property at
pfncapital.com (click Articles & Reports). One full
color report I particularly like can be accessed at
<http://www.pfncapital.com/i/pdf/haywood-12091999.pdf
There are multiple zones of mineralization at River Valley; several
have now been drilled. The plan is to release drill results in sets
for each zone. Initial success will lead to speculation that more of
the same will follow. That would be great. On the other hand,
there is no way of telling if the first zone is the best target.
Although the stock will retrench if the initial news is negative, it will
not be the end of the game. In addition, a phase-two drill program
is planned to begin in late April.
With this timing in mind you can plan your market action. I expect
to take my seed money off the table before the drill results are
released. It just seems like a prudent habit to follow. The rest of
the position will be bet on the home run potential of River Valley. If
the drill results are very positive, the stock will probably be a buy
even at higher prices. A major PGM discovery in Canada will
change the entire perception on the junior mining sector.
There are three other companies I know of with landholdings in
River Valley. All three are up today, and I would expect them to
trade higher if the PFN results are positive.
Anaconda Resources Corp. (ANU-CDNX) website not found
Aquiline Resources Ltd. (AQI-CDNX)
aquilineresources.com
***********************************************************
22 March 00
Pacific North West Capital Corp. ("PFN") announces completion of
the Phase One thirteen-hole 2000-metre drill program on the
Dana Lake area of the River Valley property, situated 60km
northeast of Sudbury, Ontario.
The drill program was designed to explore the bulk tonnage
potential for Platinum Group Metals ("PGM"s, defined as
platinum+palladium+gold) and copper-nickel mineralization
identified by PFN through detailed surface sampling in 1999.
Surface sampling conducted by PFN on 2.5m x 2.5m intervals in
five zones in the Dana Lake area returned a substantial number of
significant PGM-copper-nickel assay values: 201 samples
averaging 1.6 g/t PGM plus 0.16% Cu-Ni (Road Zone); 17
samples averaging 3.6 g/t PGM plus 0.24% Cu-Ni (Central C
Zone); 153 samples averaging 1.9 g/t PGM plus 0.16% Cu-Ni
(South A Zone); 51 samples averaging 2.9 g/t PGM plus 0.21%
Cu-Ni. In addition, rhodium values averaged 0.05 g/t. For full
details of the surface sampling programs, please refer to PFN
press releases dated December 8, 1999 and February 8, 2000.
Assay results from the Phase One drill program will be reported
over the next three weeks. PFN anticipates that results from the
initial holes should be available within a week.
A Phase Two drill program on River Valley will commence at the
end of April. This will allow sufficient time for the results from the
initial program to be plotted and thoroughly interpreted.
River Valley exploration is funded through an agreement with
Anglo American Platinum Corporation Limited ("Amplats"), the
world's largest platinum producer, which can earn a 50% interest
in various PFN properties by paying $300,000 for the option
(payment made) and spending $4 million on exploration; a 60%
interest by completing a feasibility study; and 65% by financing
the property through to production. In addition to funding, Amplats
is providing PFN with considerable technical expertise in its
search for PGM deposits. PFN remains operator of the projects.
With approximately $2 Million in cash, a $1 Million exploration
commitment from Amplats, no debt, and interests in more than 70
square km in the Sudbury Mining District, PFN is mounting
aggressive year 2000 exploration, development, and acquisition
programs with the objective of becoming Canada's premier
palladium/platinum exploration and development company.
Announcements of further acquisitions will be made as
>agreements are reached.
>
Current prices for Platinum Group Metals are platinum
US$498.00, palladium US$638.50, and rhodium US$1750.00
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