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The target at Section 10350 was tested with one fence of four
holes. Company has received assay for the first two holes and it
is pleased to announce that both holes intersected significant
mineralization. Holes 2011-DN001 and 2011-DN002 of this fence showed
extensive mineralization assaying 1.1 gt
over 50 metres (0.03 opt over 164 feet)
and 1.3 gt 3E over 65 metres (0.04 opt over 213.3 feet)
respectively. Table 1- Illustrates significant drill intervals in
the first two holes.
A total of 14 holes, 3320m, are completed to date in the Dana
Lake area and core logging, sampling and assaying is in progress.
PGM and gold assays from mineralized core intersections are
reported below. Copper, nickel and rhodium values will be
reported at a later date.
Mineralization at the South Zone is open to the north and south.
Mineralization in this zone is intersected at vertical depths
from 33m to 200m and remains open to depth. Mineralization can
also be traced in surface outcroppings. Additional drilling is in
progress to determine the geometry of the mineralization.
The first Phase of the Company's 2011 exploration program
included the collection of approximately 60 line-km of 3D Induced
Polarization ground geophysical data. These surveys are being
conducted to generate additional drill targets and enhance the
targeting along a portion of the 9 kilometre
prospective horizon located at the contact of the River Valley
Intrusion.
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Table 1- Significant Drill Intervals of the first two holes
(Composite Results)
SJ
Geophysics Ltd. was contracted to design and carry out the surveys
utilizing their state-of-the-art IP systems and proprietary full
waveform digital receiver systems. Once the data are acquired, the
entire grid can be processed (inverted) at once to produce a 3
dimensional model of the subsurface resistivity and chargeability.
These two physical properties are known to be anomalous and
representative of mineralization at River Valley. The inversion
'code' or software was developed at the University of British
Columbia over a number years through a consortium of mining companies
and researchers and together with SJ Geophysics, new acquisition and
computer systems needed to be developed to collect the data in a 3
dimensional format and process the data with the 3D modelling software.
During the initial discovery of the mineralization at River Valley between
1999 and 2001, PFN carried out conventional 2D IP surveys with
considerable success. The mineralization was found to produce
significant chargeability anomalies when targets were followed-up
with drilling. The limited depth of investigation and the broad
responses, however, made it difficult to map the mineralization in
detail both close to surface and at deeper depths. There are a number
of advantages to 3D IP surveys over the older 2D techniques including
faster data acquisition, more detailed results and overall lower
costs. Most importantly, drilling costs are reduced as the target
anomalies are more accurately defined by the 3D technique.
Project Goals: Project is located 60km northeast of Sudbury
and it is road accessible, the principal economic target on the River
Valley property is a multi-million tonne,
bulk tonnage platinum group metal deposit of size and grade
comparable to North American Palladium Ltd.'s
Lac des Iles mine near Thunder Bay Ontario. The Lac des Iles mine is
the only primary PGM producer in Canada.
Sudbury has been one of the world's major copper, nickel producing
areas for more than a century. The current mines, in addition to
copper and nickel, produce more than 700,000 ounces of Platinum Group
Metal annually. The Sudbury District has excellent infrastructure
including roads, power, and an experienced work force and is the site
of two major smelters owned Vale Inco and Xstrata Nickel.
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PFN's River Valley Project has extensive
exploration upside over a 9 km prospective strike length. Phase I
drilling began April 7 2011. The Company plans to drill test the
entire 9 km horizon.
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Project Milestones:
- Conduct series of exploration programs and Generate new
targets.
- Series of drill campaigns to update the NI 43-101
compliant resource estimate; within 12 months.
- Preliminary Economic Assessment (PEA): Within 18 months.
- Commence Pre -Feasibility within 36 months.
Table 2- Project Long Term Objectives
About
the 2011 Exploration Program
2011 drilling program began on April 7th and consists of a 3,500 metre, 20-hole drill program. 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 m 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.
During the Phase IA drilling campaign, the Company is focusing on
three objectives:
- Step-out drilling to expand the overall mineralized
footprint at Dana North
- Infill drilling to convert inferred resources to the
measured and indicated categories
- Drill testing of new targets generated from the 3D IP
survey
$1,000,000
Phase I A exploration program is targeting the Dana Lake Area and
will include the following:
- 3D Induced Polarization (IP) surveys over the Dana Lake
Area to trace known mineralization to
greater depths and highlight new targets in close proximity to
the higher grade resources
- 3500 Metre Drill Program to drill previously defined targets, drill extensions of
known mineralization and drill new 3D IP targets
- Develop a 3D Common Earth Model to aid interpretations and prioritize additional targets
along the 9 kilometre mineralized
horizon*
*Note:
Common Earth Modelling is a method that
employs 3D and 4D (time) computer modelling
techniques to integrate all available geological information into a
single, 3D environment that can be viewed and quarried on a computer
The Phase
IB program will include:
- Airborne Gravity Survey; Falcon Airborne Gravity Gradiometry survey by Fugro
- Airborne ZTEM Survey; Z Axis Tipper Electromagnetic
survey by Geotech Ltd.
- Approximately 12,000 m drilling
- Initialization of environmental baseline
studies
- Preliminary economic
studies
The Phase
IB drilling program will consist of approximately 12,000 metres focusing on two main objectives:
- Testing deeper targets that were generated to follow the
footwall mineralization down dip
- Testing near surface mineralized zones not yet fully
evaluated
The Phase
IB drilling campaign will continue to build on the results from Phase
I A and will include the addition of newly available airborne
geophysical survey technology. Phase IB is scheduled to begin in
fall-winter 2011. The mineralized footprint at River Valley remains
unconstrained in all directions; therefore, the program will also
include on-going condemnation drilling to test the limits of the
known mineralization.
Quality Assurance and Quality Control (QA/QC)
QA/QC: All diamond drill core samples were submitted to SGS
Laboratories, Toronto, Ontario and assayed for Pt, Pd, Au, Cu and Ni
and a 33 element ICP suite. Concentrations of Pt-Pd-Au were
determined using standard lead fire assay, followed by dissolution
with acqua-regia, and measurement with an
ICP (inductively coupled plasma) finish. Lower limited of detection
(30 gram sample) are 1 ppb for Au and Pd and 10 ppb for Pt; upper
limits are 10,000 ppb by ICP. Concentrations of Cu-Ni were determined
by ICP methods with detection limit of 0.5 ppm
for Cu and 1 ppm for Ni; upper limit for
both Cu and Ni is 1 %.
One standard and one Blank were inserted every 40 samples. Duplicates
were inserted each 20th sample into the sample stream. This practice
continued throughout 2011 Phase I (A) drilling and included the
preparation and insertion of new and necessary standards at the
cut-off grade and at the mean grade of the deposits. All sample
preparation has been conducted and directed on site by contract
geologists and samplers hired by PFN.
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. The project is road
accessible in Canada's premier Ni-Cu-PGM mining and smelting district
which boasts perfect 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. A mineral resource estimate in accordance with the guidelines
set out by NI43-101 was published in 2006.
Measured and Indicated Resources using a 1 g/t cut off (Pt/Pd)
19.3 million tonnes containing 733,000
ounces palladium (1.18 g/t), 245,100 ounces of platinum (0.39 g/t)
and 43,600 ounces of gold (0.07 g/t) with an additional 881,000 tonnes containing 38,400 ounces of palladium
(1.36 g/t), 13,100 ounces of platinum (0.46 g/t) and 2,100 ounces of
gold (0.07 g/t) of Inferred Resources using a 1.0 g/t cut off
(Pt/Pd).
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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)
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Anglo
Platinum continued to fund exploration under the terms of the option
and joint venture agreement and invested over $22 million in the
exploration of the property for a 50% stake in the joint venture. As
a result of capital expenditure reductions during the global
financial crises, Anglo Platinum Limited decided that no new funds
would be allocated to the project, above and beyond the minimal
holding costs.
In April 2011, PFN and Anglo Platinum closed the 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 PFN's 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.
In 2000 the first forty drill holes were completed on the River
Valley property; 37 at the Dana Lake Area and 3 at Lismer's Ridge, located about 1.3 km southeast of
the Dana Lake Area. The results to date demonstrate predictable
grade to depth with significant high grade components over broad
intersections. Samples were taken from split drill core and sent
to XRAL Laboratories in Rouyn-Noranda,
Quebec for Pt-Pd-Au-Rh-Cu-Ni assay. The
following table illustrates the extent of mineralization during the
discovery stages of the project.
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 12% of
the Company (see news release dated January 31, 2011). In special
situations, like our 100% owned River Valley PGM Project, the Company
is prepared to fund the project through to feasibility and up to
production. The River Valley PGM project is one of North America's
newest and largest primary platinum group metals (PGM) deposits. The
project is located in the Sudbury region of Ontario.
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 12% of the Company (see news release
dated January 31, 2011).
On January 24, 2011, PFN announced a new NI43-101 mineral resource
estimate on the Destiny Gold Project which is situated 75 km near
Val-d'Or, Qu�bec (see news release dated January 24, 2011). The
Destiny Project is under option from Alto Ventures Ltd.
("Alto"). Under the terms of the option agreement, PFN can
earn a 60% interest in the property over a four-year period by
completing $3.5 million in exploration expenditures, paying $200,000
and providing a total of 250,000 PFN shares to Alto. The Company also
has PGM, gold and base metal projects in BC, Qu�bec, Ontario,
Saskatchewan and Alaska and continues to aggressively look for new
acquisition of additional platinum group metals, precious metals on
an international scale.
On April 7, 2011, PFN announced the closing of the River Valley
acquisition from Anglo Platinum (see news release dated April 7 2011).
On April 20, 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 and results are
expected in May 2011. 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.
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 $8 million in working capital and
securities and no debt.
Pacific
North West Capital Corp. is an International Metals Group Company
(www.internationalmetalsgroup.com).
On behalf of the Board of Directors
"Harry Barr"
Harry Barr, President & CEO
For further
information, please contact our Investor Relations Department at Toll
Free 1-800-667-1870
The Toronto
Stock Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
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.
Not to be construed as an offer to buy or sell securities of this
company.
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