Company Reports > Pacific North West Capital Corp.

 
 

Report Date :  

 January 2013

Telephone :  604.685.1870

Symbol :  

 PFN.TSX

Facsimile : 

 604.685.8045

Contact :  

 Investor Relations

  

 

URL :  

 www.pfncapital.com

eMail :  

 info@pfncapital.com

 

 

Vancouver-based Pacific North West Capital (PFN) is a Canadian junior mining company focused on advancing its 100% owned River Valley Platinum Group Metals (PGM) Project near Sudbury, Ontario.  In addition, the company has several other PGM projects located in Canada and Alaska.  PFN also holds significant investment position in other International Metals Group (IMG) companies.   

 

PFN is an integral member of IMG, an ‘umbrella’ organization under which several companies operate with the chief benefits coming from a sharing of expertise relating to project acquisition plus exploration and development of resource properties.  IMG’s staff includes CEOs, geologists,  corporate finance and investor relations experts, corporate managers, public company administrators, as well as regulatory and government affairs specialists.  By being able to share these resources, PFN can obtain a significant advantage in terms of resources, costs and expertise when compared to individual public companies.

 

The company’s guiding philosophy is to be a PGM project generator, explorer and project operator in safe, stable, mining-friendly jurisdictions like North America.  As of early 2013, this factor could be of particular importance, given the questionable outlook regarding future platinum and palladium production from the world’s largest current producing nation, South Africa.

 

Pacific North West’s strategy is to finance its PGM projects through to production via option-joint venture agreements with major mining companies.

 

 

RIVER VALLEY PGM PROJECT

 

While the company has several properties, by far the most important one at present is the River Valley PGM Project located approximately 100 Km east of the mining center of Sudbury where a significant milestone was achieved with the release of an updated NI 43-101 qualified Resource Estimate filed on the SEDAR information site during June, 2012.  The new estimate showed significant increases over previous NI 43-101 qualified estimates.   

 

River Valley consists of two mining leases in and covers approximately 6,600 hectares, or about 14,500 acres.  Pacific Northwest Capital originally optioned the mineral claims following initial discovery of highly anomalous platinum group metals (PGM) in grab samples.  PFN then optioned the property in 1999 to Anglo Platinum and a series of extensive exploration development projects ensued, lasting until 2008 when the financial crisis ongoing at that time forced Anglo to first reduce and then finally terminate further work at River Valley.

 

PFN and Anglo Platinum subsequently engaged in a period of negotiations relating to Anglo’s 50% interest in River Valley and finally, in January, 2011 a binding agreement was signed which granted PFN a 100% interest at River Valley.

 

During the years of Anglo’s intensive efforts, a total of approximately 110,000 meters of drilling in 550 holes was accomplished; approximately 6,000 grab bag samples were taken; 4,157 samples were taken from detailed grid sampling; 879 channel samples were taken and numerous grid cuts and geophysical surveys were conducted, leading to the discovery of areas of mineralization along a 9 Km prospective horizon.

 

Based on this work history, several NI 43-101 compliant resource calculations were made, focusing on the Dana North, Dana South, Lismer Extension, Lismer’s Ridge and Varley zones.  The most recent numbers reflected in the 2012 Resource Estimate include Measured & Indicated resources of 91 million tonnes @ 0.58 grams per tonne (gpt) Palladium (Pd), 0.22 gpt Platinum (Pt) and 0.04 gpt gold (Au) at a cut-off grade of 0.8 gpt Pd Equivalent (PdEq) for 2,463,000 ounces Platinum Group Metals (PGM) and Inferred resources of 36 million tonnes @ 0.36 gpt Pd, 0.14 gpt Pt, 0.03 gpt Au at a cut-off grade of 0.8 gpt Pd Eq for 614,000 ounces PGM, plus gold.  Expressed on a PdEq basis, the Measured and Indicated resources contain 3,944,000 ounces PdEq and the Inferred resources contain 1,201,000 ounces PdEq.   

 

Since regaining control of River Valley, PFN has established an exploration goal of at least doubling the size of the resource in order to establish a more robust open pit project. After expanding and updating the 2006 mineral resource models and conducting an extensive geophysical program the company conducted exploration programs during 2011-12 which included a $5 million, 17,200 meter drill program, completed early in 2012, and an exploration drilling program on new and untested targets during winter 2012. 

 

One area of specific interest regarding the Phase 1, 2012 drill program has been the Spade Zone where assays from three drill holes designed to test an olivine-bearing gabbronorite unit for PGM mineralization intersected wide intervals of gabbronorite hosted PGM-Cu-Ni sulphide mineralization.  Dill Hole SL008 intersected two sequences of olivine gabbronorite hosting 3-5% sulphides from 34 meters to 166 meters down hole and from 180 meters to 261 meters down hole.  Drill Hole SL009 intersected a sequence of olivine gabbronorites from 77 to 99 meters down hole and gabbronorite from 173 to 308 meters down hole.  Drill Hole SL010 was located 50 meters east of SL008 and was collared in a sequence of gabbronorite-olivine gabbronorites that continued to 253 meters downhole.            

 

Infrastructure near River Valley is excellent with paved road accessibility directly into the project area, reliable electric power and water availability and the City of Sudbury offers a wide variety of mining equipment, services and personnel as well as nearby smelter facilities.  

 

The company’s goal going forward is to take advantage of the considerable exploration potential at River Valley, currently one of the largest underdeveloped primary PGM projects in North America.  Ultimately, PFN aims to develop a long-lived, open pit mining operation starting in the Dana North and Dana South mineralized zones.  Future plans include publication of a metallurgical study in the First Quarter 2013; carrying out a concentrate market study during the Second Quarter; conducting more exploration studies outside the known mineralization zone together with infill drilling and, ultimately updating and optimizing the Mineral Resource Estimate by year-end 2013 leading to a Preliminary Economic Assessment in 2014 and the completion of a Pre-Feasibility Study in 2015.   

 

It is also worth noting that River Valley is primarily a Palladium (Pd) project and current international supply/demand factors would appear to be favourable for positive Pd price performance from two points of view.  First, industry experts forecast that auto production, the primary demand source for both Pt and Pd, will be enjoying a banner year during 2013 while Pd production forecasts from of South Africa show several ore bodies becoming unprofitable and subject to near-term closure.  In addition, labor disputes in South Africa which resulted in dozens of miner deaths last year have not been totally resolved as of early 2013.

 

PFN’s management team is headed by Chairman and CEO Harry Barr; President and COO Bill Stone, Sr. VP Corporate & Business Development Jay Oness and VP Exploration Ali Alizadeh. 

 

Additional information is available at the company website, www.pfncapital.com or by contacting Investor Relations at info@pfncapital.com.

 

 
Pacific North West Capital Corp.

650-555 West 12th Avenue,

City Square, West Tower
Vancouver, BC, Canada, V5Z 3X7

Telephone :

  604.685.1870

Facsimile :

  604.685.8045
 
 

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