Dr. William Stone reports
PACIFIC NORTH WEST CAPITAL ANNOUNCES 2.5 MILLION OUNCES PGM+GOLD MEASURED AND INDICATED RESOURCES FOR ITS 100% OWNED RIVER VALLEY PROJECT, SUDBURY, ONTARIO
Pacific North West Capital Corp.'s (PFN) estimated National Instrument 43-101-compliant measured and indicated mineral resources for its River Valley project, at a cut-off grade of 0.8 gram per tonne palladium equivalent, have increased by
over 400 per cent from the previous National Instrument 43-101-compliant mineral resource estimate
(May, 2006) to 91,339,500 tonnes grading 0.84 g/t palladium plus platinum plus gold, 0.06 per cent
copper and 0.02 per cent nickel. The compliant inferred mineral resources have increased by greater than 1,000 per cent to 35,911,000 million tonnes grading
0.53 g/t palladium plus platinum plus gold, 0.06 per cent copper and 0.03 per cent nickel. The River Valley PGM
(platinum group metals) project is located 100 kilometres from the world-renowned Sudbury nickel-copper-PGM
mining camp, has excellent infrastructure support and is 100 per cent owned by
PFN.
Highlights
- River Valley measured and indicated resources -- 91 million tonnes at 0.58 g/t palladium, 0.22 g/t platinum and 0.04 g/t gold at a cut-off grade of 0.8 g/t palladium equivalent for 2,463,000 ounces of PGM plus gold;
- River Valley inferred resources -- 36 million tonnes at 0.36 g/t palladium, 0.14 g/t platinum and 0.03 g/t gold at a cut-off grade of 0.8 g/t palladium equivalent for 614,000 ounces of PGM plus gold;
- On a palladium-equivalent basis, the measured and indicated resources contain 3,944,000 ounces of palladium equivalent and the inferred resources contain 1,201,000 ounces of palladium equivalent;
- River Valley PGM-copper-nickel sulphide mineralized zones remain open to expansion with continued exploration.
Detailed results
The detailed results of the new mineral resources estimate for the River
Valley PGM project are presented in the accompanying table. This National Instrument 43-101-compliant
mineral resource estimate was completed by Tetra Tech, Sudbury. The
new estimate incorporates the 13,140 metres in 46 holes drilled in the
Dana North and Dana South zones since the May, 2006, estimate. All 462
holes were drilled at a sectional spacing of 25 metres to 100 metres on
eight separate mineralized zones.
Dr. William Stone, president and chief operating officer, commented: "The large increase in the estimated mineral resources confirms that
River Valley is one of the largest undeveloped primary PGM projects in
North America. The strategy of including all the mineralized zones and
the full value of the metal suite in the mineral resource estimation
produced a very positive result. It greatly increases PFN's confidence
in River Valley as the project is advanced toward a preliminary
economic assessment study. The company plans to further expand the PGM
resources and to discover new resources with more drilling at the River
Valley project and its adjacent properties."
The mineral resources were estimated using Datamine Studio3 software and are reported at a cut-off grade of 0.8 g/t palladium equivalent.
This cut-off was used pending future assessment of the
economics and development potential of River Valley as an open pit
mining project. The company considers this cut-off value to be
appropriate because: (i) the palladium equivalent grade is 1.38 g/t for measured and
indicated and 1.07 g/t for inferred resources; and (ii) rhodium and
silver are not included in the palladium equivalent calculation. The mineral resources
are listed at a range of palladium equivalent cut-off values in the accompanying table.
Comparisons are made above with the previous National Instrument 43-101-compliant River
Valley mineral resource estimate of May, 2006 (technical report by
GeoSIMS available on PFN's SEDAR profile and on the company's website). The large increase in the mineral
resources reported herein is explained by the combined effects of:
- Incorporation of the 2011 resource drilling results;
- Inclusion of
three mineralized zones that were previously overlooked;
- Use of palladium equivalent rather than palladium-plus-platinum cut-off grades;
- Use of a
length-weighted average specific gravity value of 2.94 measured for
River Valley rather than the previous value of 2.89.
Harry Barr, chairman and chief executive officer, stated: "In only one year since regaining 100-per-cent ownership of the River Valley PGM
project, I want to congratulate our team for completion of a major
milestone by delivering a very positive resource statement. Our
aggressive exploration and development strategy aims to unlock the true
potential of River Valley. Going forward, our plans are to continue
exploration to expand the resource, drill test new targets and
complete a preliminary economic assessment in the next two years."
NATIONAL INSTRUMENT 43-101-COMPLIANT MINERAL RESOURCES FOR THE RIVER VALLEY PGM
PROJECT, SUDBURY, ONT.
Contained metal
Zone PdEq cut-off Tonnes Pd Pt Rh Au Ag Cu Ni Co PdEq PGM+Au PdEq
(g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%) (g/t) (oz) (oz)
Measured
Azen 0.80 - - - - - - - - - - - -
Banshee 0.80 - - - - - - - - - - - -
Dana North 0.80 9,622,180 0.66 0.24 0.023 0.05 0.70 0.07 0.02 0.003 1.56 295,747 468,612
Dana South 0.80 5,980,550 0.79 0.26 0.027 0.05 0.56 0.06 0.01 0.003 1.68 210,735 313,237
Lismer 0.80 9,982,120 0.50 0.20 0.018 0.04 0.40 0.05 0.02 0.003 1.24 235,646 386,598
Lismer extension 0.80 - - - - - - - - - - - -
Razor 0.80 - - - - - - - - - - - -
Varley 0.80 - - - - - - - - - - - -
Total measured 25,584,850 0.63 0.23 0.022 0.04 0.55 0.06 0.02 0.003 1.46 742,127 1,168,447
Indicated
Azen 0.80 - - - - - - - - - - - -
Banshee 0.80 - - - - - - - - - - - -
Dana North 0.80 14,076,300 0.60 0.22 0.021 0.04 0.52 0.07 0.02 0.003 1.45 392,562 635,796
Dana South 0.80 8,040,000 0.70 0.24 0.024 0.04 0.59 0.05 0.01 0.003 1.49 252,029 373,248
Lismer 0.80 16,300,300 0.48 0.19 0.018 0.04 0.05 0.06 0.02 0.003 1.25 371,212 638,230
Lismer extension 0.80 13,690,300 0.57 0.23 0.021 0.04 0.12 0.06 0.02 0.002 1.37 365,153 586,774
Razor 0.80 - - - - - - - - - - - -
Varley 0.80 13,647,800 0.53 0.21 0.019 0.03 0.17 0.05 0.01 0.002 1.27 339,978 540,424
Total indicated 65,754,700 0.56 0.21 0.020 0.04 0.26 0.06 0.02 0.002 1.35 1,720,935 2,774,470
Measured plus
indicated
Azen 0.80 - - - - - - - - - - - -
Banshee 0.80 - - - - - - - - - - - -
Dana North 0.80 23,698,480 0.63 0.23 0.022 0.04 0.59 0.07 0.02 0.003 1.49 688,309 1,104,408
Dana South 0.80 14,020,550 0.74 0.25 0.025 0.04 0.58 0.05 0.01 0.003 1.57 462,764 686,484
Lismer 0.80 26,282,420 0.49 0.19 0.018 0.04 0.18 0.06 0.02 0.003 1.25 606,858 1,024,827
Lismer extension 0.80 13,690,300 0.57 0.23 0.021 0.04 0.12 0.06 0.02 0.002 1.37 365,153 586,774
Razor 0.80 - 0.00 0.00 - 0.00 0.00 0.00 0.00 - 0.00 - -
Varley 0.80 13,647,800 0.53 0.21 0.019 0.03 0.17 0.05 0.01 0.002 1.27 339,978 540,424
Total measured
plus indicated 91,339,550 0.58 0.22 0.021 0.04 0.34 0.06 0.02 0.002 1.38 2,463,062 3,942,917
Inferred
Azen 0.80 16,095,000 0.37 0.15 0.014 0.03 0.08 0.05 0.03 0.001 1.11 285,081 559,956
Banshee 0.80 3,320,000 0.35 0.19 0.015 0.03 - 0.05 0.01 - 1.00 61,659 103,387
Dana North 0.80 - - - - - - - - - - - -
Dana South 0.80 - - - - - - - - - - - -
Lismer 0.80 303,000 0.31 0.13 0.012 0.03 - 0.06 0.02 0.002 0.92 4,584 8,747
Lismer extension 0.80 - - - - - - - - - - - -
Razor 0.80 16,163,000 0.36 0.12 0.013 0.02 0.16 0.06 0.03 0.003 1.05 262,468 528,164
Varley 0.80 30,000 0.30 0.15 0.012 0.03 - 0.07 0.01 0.002 0.94 459 882
Total inferred 35,911,000 0.36 0.14 0.014 0.03 0.11 0.06 0.03 0.002 1.07 614,252 1,201,137
Notes:
Due to rounding, some totals may not appear to total properly.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other
relevant issues.
Notes to mineral resources in the table
- The mineral resource estimates in this press release use the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) standards on
mineral resources and reserves, definitions and guidelines, prepared by
the CIM standing committee on reserve definitions and adopted by the CIM
council on Nov. 27, 2010. The mineral resource estimates provided
in this report are classified as measured, indicated or inferred
as defined by CIM. According to the CIM definitions, a mineral resource
must be potentially economic in that it must be "in such form and
quantity and of such grade or quality that it has reasonable prospects
for economic extraction."
- For the River Valley project, a palladium equivalent cut-off
grade was assigned based on economic assumptions from comparisons with
other projects, and was used in the resource estimations. Resources
reported in this press release use a cut-off of 0.8 g/t palladium equivalent. Grades
have assumed 100-per-cent recoveries. The parameters used to generate the palladium equivalent
value are:
- Gold price of $1,271 (U.S.) per ounce;
- Platinum price of $1,885 (U.S.) per ounce;
- Palladium price of $896 (U.S.) per ounce;
-
Nickel price of $9.74 (U.S.) per pound;
-
Copper price of $3 (U.S.) per pound;
-
Cobalt price of $15.90 (U.S.) per pound.
-
The mineral resources were estimated using a block model with parent
blocks of 10 metres by 10 metres by five metres and using ordinary kriging (OK) methods for
grade estimation. Eight individual mineralized domains were
identified. The determination technique of the mineral resource is
based on the combination of geological modelling, geostatistics and
conventional block modelling using the OK method of grade
interpolation. The block model resource estimate prepared by the Tetra
Tech was based on more than 96,980 metres of diamond drilling in 462
diamond drill holes. The assay data were reviewed and a composite
interval of two metres was used. Statistical and variogram analyses
were performed to determine the nugget effect.
-
Rhodium grades were not estimated by the OK methodology. Rhodium values
were determined using a regression formula based on the platinum and
palladium grades. Rhodium values are not incorporated into the palladium equivalent
value. The palladium equivalent value also does not include silver.
-
The quality assurance/quality control protocols and corresponding sample preparation and shipment
procedures for the River Valley project have been reviewed and approved
by Tetra Tech.
-
A National Instrument 43-101-compliant technical report will be filed on SEDAR within 45
days.
RIVER VALLEY RESOURCE TONNAGE AT SELECTED PDEQ CUT-OFF GRADES
PdEq cut-off Tonnes Pd Pt Rh Au Ag Cu Ni Co PdEq
(g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%) (g/t)
Measured
0.30 52,189,120 0.40 0.16 0.015 0.03 0.47 0.04 0.01 0.003 0.99
0.50 40,576,180 0.48 0.18 0.017 0.03 0.49 0.05 0.01 0.003 1.16
0.80 25,584,850 0.63 0.23 0.022 0.04 0.55 0.06 0.02 0.003 1.46
1.00 18,785,450 0.74 0.26 0.026 0.05 0.58 0.07 0.02 0.003 1.67
1.20 13,791,240 0.85 0.30 0.029 0.05 0.62 0.07 0.02 0.003 1.87
1.40 10,202,730 0.96 0.33 0.032 0.06 0.65 0.08 0.02 0.003 2.08
1.60 7,614,580 1.07 0.36 0.036 0.07 0.68 0.08 0.02 0.003 2.28
1.80 5,569,280 1.19 0.39 0.039 0.07 0.71 0.09 0.02 0.003 2.49
2.00 4,145,280 1.31 0.42 0.043 0.08 0.73 0.09 0.02 0.003 2.69
Indicated
0.30 141,557,300 0.36 0.15 0.014 0.03 0.20 0.04 0.01 0.002 0.93
0.50 114,501,900 0.42 0.16 0.016 0.03 0.22 0.05 0.01 0.002 1.05
0.80 65,754,600 0.56 0.21 0.020 0.04 0.26 0.06 0.02 0.002 1.35
1.00 43,959,900 0.68 0.25 0.024 0.04 0.29 0.07 0.02 0.002 1.58
1.20 30,943,200 0.78 0.29 0.027 0.05 0.32 0.07 0.02 0.002 1.78
1.40 21,704,500 0.89 0.32 0.031 0.06 0.35 0.08 0.02 0.002 1.99
1.60 15,202,500 1.01 0.36 0.034 0.06 0.38 0.08 0.02 0.002 2.20
1.80 10,991,500 1.11 0.39 0.038 0.07 0.41 0.09 0.02 0.002 2.40
2.00 7,811,200 1.22 0.43 0.041 0.07 0.43 0.09 0.02 0.002 2.60
Inferred
0.30 130,872,000 0.22 0.09 0.009 0.02 0.08 0.04 0.02 0.002 0.70
0.50 96,299,000 0.26 0.11 0.010 0.02 0.08 0.04 0.02 0.002 0.80
0.80 35,910,000 0.36 0.14 0.014 0.03 0.11 0.06 0.03 0.002 1.07
1.00 17,803,000 0.44 0.17 0.016 0.03 0.13 0.06 0.03 0.002 1.26
1.20 8,021,000 0.53 0.20 0.019 0.04 0.10 0.07 0.04 0.002 1.46
1.40 3,703,000 0.63 0.22 0.022 0.04 0.10 0.08 0.04 0.001 1.67
1.60 1,889,000 0.72 0.23 0.024 0.05 0.09 0.09 0.05 0.001 1.83
1.80 895,000 0.78 0.26 0.027 0.06 0.08 0.10 0.05 0.000 1.99
2.00 322,000 0.85 0.30 0.029 0.06 0.02 0.10 0.05 0.000 2.16
Notes:
Due to rounding, some totals may not appear to total properly.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, socio-political,
marketing or other relevant issues.
Qualified persons statement
The mineral resource estimate was prepared by Tetra Tech of Sudbury,
Ont., under the supervision of Todd McCracken, principal geologist.
Mr. McCracken is an independent qualified person as defined by
National Instrument 43-101. The effective date of the resource is May 1, 2012.
The quality control, technical information and all aspects of the 2011
exploration program were supervised by Ali Hassanalizadeh, vice-president, exploration, of PFN, a qualified person under National Instrument 43-101.
The information in this release was prepared under the direction of Dr.
William Stone, president and COO of PFN, a qualified person as defined
by National Instrument 43-101.
About the River Valley project
In January, 2011, PFN successfully
negotiated the 100-per-cent acquisition of the River Valley PGM project from
Anglo Platinum Ltd. The River Valley project is one of North America's most advanced
primary PGM deposits. The project has excellent infrastructure support
and is located 100 kilometres from the city of Sudbury, Ont., Canada's
largest nickel-copper-PGM mining and metal recovery centre.
We seek Safe Harbor.
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