3.5 gpt (0.10 opt), 3E* over 53m (173.8 ft) including 8.00 gpt (0.23opt), 3E over 11m (36 ft), in DN011, The Highest Grade 3E Intersection To Date, On River Valley Platinum Group Metals Project, Sudbury, Ont.
Pacific North West Capital Corp.
For Immediate Release NEWS RELEASE TSX: PFN OTCQX: PAWEF FSE: P7J Toll Free 1.800.667.1870 www.pfncapital.com 3.5 gpt (0.10 opt), 3E* over 53m (173.8 ft) including 8.00 gpt (0.23opt), 3E over 11m (36 ft), in DN011, The Highest Grade 3E Intersection To Date, On River Valley Platinum Group Metals Project, Sudbury, Ont.
- Highest grade 3E to date intersected hole DN011
- The mineralization shows excellent continuity along strike and to depth.
- The River Valley Project is one of North America’s newest and largest Advance Stage Exploration and
Development PGM Projects
- Results of drill hole DN010 and DN011:
3.50 gpt, (0.10opt), 3E over 53 metres (173.8 ft) in hole DN011
- including 3.89 gpt, (0.11 opt), 3E over 13m (42.6ft)
- including 8.00 gpt, (0.23 opt), 3E over 11m (36.1ft)
And 2.38 gpt, (0.07 opt), 3E over 14 meters (45.9ft)
- including 4.09 gpt, (0.12opt), 3E over 4m (13.1ft)
1.59 gpt, (0.05 opt), 3E over 18 meters (59.0 ft) in hole DN010
- including 2.16 gpt, (0.06opt), 3E over 5m (16.4ft)
- Additional drill holes have now been planned to follow up the extension of the high grade zone
intersected in DN011
- 2nd Phase of $5 Million Exploration Program is in progress
*3E=Pt+Pd+Au
July 6th 2011 Vancouver, Canada Pacific North West Capital Corp. (“PFN”) (TSX: PFN; OTCQX: PAWEF; FSE: P7J) is pleased to report drill hole DN011, collared in the Dana North Area of the Company’s 100% owned River Valley Platinum Group Metals (PGM) Project near Sudbury, Ontario, intersected 8.00
g/t (0.23 opt) Pd+Pt+Au over 11 metres, (36 ft), the highest grade intersection to date.
This mineralized zone in the contact breccia unit is bracketed by above average grade mineralization and shows consistently high values. The total mineralized intersection was 53 metres (173.8 ft) at 3.50 g/t (0.10 opt) Pt+Pd+Au.
Drill Holes DN009 to DN012 were collared at section 10200 and were completed to test the shallower portions of the Breccia Zone on the north section of Dana North (figures 1 and 2).
Drill Hole DN009 (‐54°) was collared at the same setup as DN010 (‐45°), and drilled to the east to test the deeper extension of the mineralized zone. Drill Holes DN011 and DN012 were targeting the shallower sections of the Breccia Zone on the same section (figure 1).
Drill Holes DN009 to DN011 continue to confirm the presence of higher‐grade sulphide‐associated PGM (Pt+Pd+Au) values that occur within a broad lower‐grade mineralization envelope.
Table 1 Illustrates significant assay intervals in holes DN009 and DN011.
Assay results of hole DN012 will be announced shortly after final QA/QC have been received.
Four drill holes have been planned to extend the extensive mineralization that intersected in Drill Hole DN011 (figure 2).
Furthermore, 3D‐IP grids were extended to the north to extend the known mineralized breccia zone in the northern extension
Figure‐1 Cross Section of DN009 to DN012 in Dana North Area
of Dana Area (approximately 100‐150 meters north of DN011).
Based on preliminary geophysical results new drilling targets have been generated. Final geophysical results will be announced shortly after completion.
Project Objectives:
- Management objective for River Valley is to prove sufficient reserves to establish a Multi Million tonne open pit PGM bulk mineable project.
- Conclude a series of exploration programs including ground geophysics to generate new drill targets.
- Complete multiple drill campaigns to test new targets and update the NI 43‐ 101 compliant resource estimate; within 12 months (Spring 2012).
- Preliminary Economic Assessment (PEA): Within 18 months
- Commence Pre ‐Feasibility within 36 months.
Figure‐2 DN001‐2011 to DN012‐2011 location Map
Drill Hole DN011 showed significant mineralization assaying 8gpt 3E over 11 metres (0.23 opt over 36.1 feet), Highest 3E value to date.
Table 1‐ Significant assay Intervals of DN009 and DN011 (Composite Results)
| Hole No. | From (m) | To (m) | Length of the Intersect (m) | Length of the Intersect (feet) | True Thickness (m) | Pt (gt) | Pt (opt) | Pd (gt) | Pd (opt) | Au (gt) | 3E (gt) | 3E (opt) | Ni (%) | Cu (%) | Rh |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DN009 | 91 | 94 | 3 | 9.8 | 1.7 | 0.40 | 0.01 | 0.99 | 0.03 | 0.01 | 1.40 | 0.04 | 0.01 | 0.01 | Results Pending |
| DN010 | 223 | 241 | 18 | 59.0 | 15.3 | 0.35 | 0.01 | 1.18 | 0.03 | 0.06 | 1.59 | 0.05 | 0.03 | 0.10 | |
| Including | 223 | 228 | 5 | 16.4 | 4.25 | 0.49 | 0.01 | 1.61 | 0.05 | 0.06 | 2.16 | 0.06 | 0.04 | 0.12 | |
| And | 233 | 239 | 6 | 19.7 | 5.11 | 0.40 | 0.01 | 1.40 | 0.04 | 0.07 | 1.87 | 0.05 | 0.04 | 0.10 | |
| Including | 233 | 235 | 2 | 6.6 | 1.70 | 0.64 | 0.02 | 2.38 | 0.07 | 0.12 | 3.14 | 0.09 | 0.04 | 0.15 | |
| DN011 | 52 | 56 | 4 | 13.1 | 3.40 | 0.75 | 0.02 | 0.83 | 0.02 | 0.01 | 1.59 | 0.05 | 0.00 | 0.01 | |
| And | 72 | 86 | 14 | 45.9 | 11.91 | 0.55 | 0.02 | 1.70 | 0.05 | 0.12 | 2.38 | 0.07 | 0.02 | 0.13 | |
| Including | 72 | 76 | 4 | 13.1 | 3.40 | 0.97 | 0.03 | 2.93 | 0.09 | 0.18 | 4.09 | 0.12 | 0.02 | 0.12 | |
| And | 134 | 187 | 53 | 173.8 | 45.10 | 0.83 | 0.02 | 2.52 | 0.07 | 0.15 | 3.50 | 0.10 | 0.03 | 0.18 | |
| Including | 143 | 156 | 13 | 42.6 | 11.06 | 0.90 | 0.03 | 2.83 | 0.08 | 0.16 | 3.89 | 0.11 | 0.03 | 0.17 | |
| Including | 171 | 182 | 11 | 36.1 | 9.36 | 1.82 | 0.05 | 5.83 | 0.17 | 0.35 | 8.00 | 0.23 | 0.07 | 0.38 | |
| And | 223 | 231 | 8 | 26.2 | 6.81 | 0.39 | 0.01 | 1.26 | 0.04 | 0.07 | 1.72 | 0.05 | 0.04 | 0.12 | |
| Including | 223 | 226 | 3 | 9.8 | 2.55 | 0.65 | 0.02 | 2.15 | 0.06 | 0.11 | 2.91 | 0.08 | 0.06 | 0.19 |
During Phase IA‐2011, Pacific North West Capital completed 15 holes totalling 3750 metres of drilling from April through May in Dana North Area.
The first thirteen holes were drilled over a strike length of 220 metres and to maximum depth of 283 metres. Two holes, were drilled approximately 650 metres south of Dana North to confirm known mineralization in the Area.
The results from this program indicate that the mineralization has excellent continuity along strike and to depth.
Results to date are defining a mineralized zone that is between 55 and 5 metres in true thickness and extends to at least 250 metres in depth and contains higher grades over significant widths.
Several more high‐grade intercepts have been intersected in the current exploration drilling program including: 35 metres at 2.76 g/t, 24 meters at 2.15 and Pt/Pd/Au (3E) in DN004 and DN006 respectively.
Table 2 summarizes the significant intervals of first eight holes drilled during 2011‐Phase IA Exploration Program.
Table 2‐ Significant assay Intervals of DN001 and DN008 (Composite Results)
| Hole No. | From (m) | To (m) | Length of the Intersect (m) | Length of the Intersect (feet) | True Thickness (m) | Pt (gt) | Pt (opt) | Pd (gt) | Pd (opt) | Au (gt) | 3E (gt) | 3E (opt) | Ni (%) | Cu (%) | Rh | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DN001 | 123 | 173 | 50 | 164 | 27.9 | 0.26 | 0.01 | 0.77 | 0.02 | 0.05 | 1.1 | 0.03 | 0.02 | 0.09 | Results Pending | |||||||||||||||
| Including | 123 | 134 | 11 | 36.1 | 6.1 | 0.37 | 0.01 | 1.11 | 0.03 | 0.07 | 1.55 | 0.05 | 0.02 | 0.09 | ||||||||||||||||
| Including | 141 | 153 | 12 | 39.4 | 6.7 | 0.31 | 0.01 | 0.9 | 0.03 | 0.05 | 1.26 | 0.04 | 0.02 | 0.11 | ||||||||||||||||
| Including | 159 | 173 | 13 | 42.7 | 7.3 | 0.28 | 0.01 | 0.83 | 0.02 | 0.06 | 1.18 | 0.03 | 0.03 | 0.12 | ||||||||||||||||
| DN002 | 114 | 179 | 65 | 213.3 | 55.3 | 0.32 | 0.01 | 0.95 | 0.03 | 0.06 | 1.3 | 0.04 | 0.02 | 0.1 | ||||||||||||||||
| Including | 146 | 158 | 12 | 39.4 | 10.2 | 0.43 | 0.01 | 1.3 | 0.04 | 0.08 | 1.82 | 0.05 | 0.03 | 0.14 | ||||||||||||||||
| Including | 173 | 179 | 6 | 19.7 | 5.1 | 0.74 | 0.02 | 2.34 | 0.07 | 0.12 | 3.2 | 0.09 | 0.02 | 0.12 | ||||||||||||||||
| DN003 | 50 | 115 | 65 | 213.3 | 55.3 | 0.42 | 0.01 | 1.29 | 0.04 | 0.08 | 1.8 | 0.05 | 0.03 | 0.13 | ||||||||||||||||
| Including | 50 | 59 | 9 | 29.5 | 7.7 | 0.98 | 0.03 | 3.09 | 0.09 | 0.18 | 4.25 | 0.12 | 0.03 | 0.22 | ||||||||||||||||
| Including | 72 | 84 | 12 | 39.4 | 10.2 | 0.59 | 0.02 | 1.76 | 0.05 | 0.11 | 2.47 | 0.07 | 0.04 | 0.16 | ||||||||||||||||
| DN004 | 29 | 63 | 34 | 111.5 | 28.9 | 0.66 | 0.02 | 2 | 0.06 | 0.12 | 2.8 | 0.08 | 0.03 | 0.16 | ||||||||||||||||
| Including | 29 | 40 | 11 | 36.1 | 9.4 | 1.12 | 0.03 | 3.4 | 0.10 | 0.18 | 4.71 | 0.14 | 0.04 | 0.24 | ||||||||||||||||
| Including | 43 | 47 | 4 | 13.1 | 3.4 | 0.69 | 0.02 | 2.06 | 0.06 | 0.11 | 2.86 | 0.08 | 0.03 | 0.16 | ||||||||||||||||
| DN005 | 201 | 209 | 8 | 26.2 | 6.8 | 0.44 | 0.01 | 1.04 | 0.03 | 0.07 | 1.55 | 0.05 | 0.02 | 0.12 | ||||||||||||||||
| And | 250 | 256 | 6 | 19.7 | 5.1 | 0.41 | 0.01 | 1.11 | 0.03 | 0.07 | 1.6 | 0.05 | 0.03 | 0.14 | ||||||||||||||||
| Including | 253 | 255 | 2 | 6.6 | 1.7 | 0.6 | 0.02 | 1.62 | 0.05 | 0.09 | 2.31 | 0.07 | 0.04 | 0.18 | ||||||||||||||||
| DN006 | 131 | 155 | 24 | 78.7 | 13.4 | 0.58 | 0.02 | 1.44 | 0.04 | 0.13 | 2.15 | 0.06 | 0.02 | 0.14 | ||||||||||||||||
| Including | 131 | 137 | 6 | 19.7 | 3.3 | 0.92 | 0.03 | 2.3 | 0.07 | 0.19 | 3.41 | 0.10 | 0.02 | 0.13 | ||||||||||||||||
| Including | 145 | 155 | 10 | 32.8 | 5.58 | 0.6 | 0.02 | 1.5 | 0.04 | 0.12 | 2.22 | 0.06 | 0.03 | 0.17 | ||||||||||||||||
| DN007 | 33 | 79 | 46 | 150.9 | 39.1 | 0.46 | 0.01 | 1.1 | 0.03 | 0.08 | 1.65 | 0.05 | 0.02 | 0.11 | ||||||||||||||||
| Including | 33 | 56 | 23 | 75.4 | 19.6 | 0.58 | 0.02 | 1.29 | 0.04 | 0.08 | 1.95 | 0.06 | 0.02 | 0.08 | ||||||||||||||||
| Including | 60 | 62 | 2 | 6.6 | 1.7 | 0.65 | 0.02 | 1.53 | 0.04 | 0.18 | 2.36 | 0.07 | 0.03 | 0.28 | ||||||||||||||||
| Including | 76 | 79 | 3 | 9.8 | 2.5 | 0.46 | 0.01 | 1.41 | 0.04 | 0.1 | 1.97 | 0.06 | 0.03 | 0.18 | ||||||||||||||||
| DN008 | 6 | 14 | 8 | 26.2 | 6.8 | 0.76 | 0.02 | 2.38 | 0.07 | 0.13 | 3.28 | 0.10 | 0.02 | 0.15 | ||||||||||||||||
| Including | 9 | 14 | 5 | 16.4 | 4.2 | 1.03 | 0.03 | 3.24 | 0.09 | 0.18 | 4.45 | 0.13 | 0.03 | 0.18 |
Assay results of the remaining Drill holes will be announced shortly after receiving the results and conducting final QA/QC studies
Quality Assurance and Quality Control (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 into the sample stream. Duplicates were taken each 20th. This practice continues throughout 2011 Phase I (A) and Phase II drilling and includes 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 (figure‐3). The project is road accessible in Canada’s premier Ni‐Cu‐PGM mining and smelting district which boasts excellent mining 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.
Anglo Platinum continued to fund exploration under the terms of the option and joint venture agreement and invested over $22 million in the exploration including 500 drill holes of the property for a 50% stake in the joint venture.
Additional discoveries were made over a 9 km strike length but due to lower commodity prices and the financial crises in 2008 and 2009 the project’s true potential had not yet been realized.
The third mineral resource estimate in accordance with the guidelines set out by NI43‐101 was published in 2006 and the results are as follows:
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)
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 (as of January, 2011). In special situations, like our 100% owned River Valley PGM Project, the Company is prepared to fund the project through to feasibility and on to production. The River Valley PGM project is one of North Americaʹs
newest and largest primary platinum group metals (PGM) deposits. The project has an excellent infrastructure and is located 60 miles from Sudbury, Ontario, one of Canada’s largest mining centres with 2 large mineral processing facilities that have extra capacity.
On January 24, 2011, PFN announced a new NI43‐101 mineral resource estimate on the Destiny Gold Project which is situated 75 km Val‐dʹOr, Québec (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.
Figure‐3 River Valley location Map 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 June 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 Companyʹs 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) Figure‐4 River Valley Claim Map
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 $6.5 million in working capital and securities and no debt.
Aggressive Ongoing Acquisition Program
The Company has PGM, gold and base metal projects in BC, Québec, Ontario, Saskatchewan and Alaska and continues to aggressively acquire new acquisition of additional platinum group metals projects, precious metals and base metals projects on an international scale.
The Company has recently begun significantly expanding its PGM project portfolio in Canada and the U.S. (Alaska) and will be releasing updates as soon as these acquisitions have been completed.
Pacific North West Capital Corp. is an International Metals Group Company.
(www.Pfncapital.com)
On behalf of the Board of Directors Further Information: Tel: +1.604.685.1870 Fax: +1.604.685.8045
Email: [email protected], or visit www.pfncapital.com 2303 West 41st Avenue, Vancouver, B.C., Canada, V6M 2A3
Harry Barr President and CEO
.
Disclaimer: This news release may contain certain ʺForward‐Looking Statementsʺ 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 Companyʹs expectations are disclosed in the Companyʹs documents filed from time to time with The Toronto Stock Exchange, British Columbia Securities Commission and the United States Securities & Exchange Commission