- PFN acquires 100% of the River Valley Platinum Group Metals
(PGM) Project by purchasing Anglo Platinum's 50% interest
- Anglo Platinum obtains a 12% interest in PFN
- The River Valley Project is one of Canada's largest primary Platinum Group Metal
deposits with significant exploration upside
- NI43-101 Compliant Resource
- Over 110,000 metres in 550 holes drilled to date
- Platinum Group Metal prices are moving to record highs
TSX: PFN OTCBB: PAWEF Frankfurt: P7J
VANCOUVER,
Jan. 31 /PRNewswire-FirstCall/ -
Pacific North West Capital Corp. ("PFN" or "the Company")
TSX: PFN; OTCBB: PAWEF; Frankfurt: P7J) is pleased to
announce that an agreement to purchase the 50% ownership in the
River Valley PGM project, currently owned and held in a joint
venture with Anglo Platinum Limited ("Anglo Platinum"), has been
completed. The transaction, subject to the approval of the TSX,
will provide PFN with an undivided 100% interest in the joint
venture project.
Under the terms of the agreement, Anglo Platinum
will exchange its 50% interest in the unincorporated Joint Venture,
for a 12% interest in PFN, based on the issued and outstanding
common shares of PFN as of November 30,
2010 (67,643.008). The aggregate purchase price for the 50%
interest in the River Valley PGM project is:
(a) |
8,117,161 fully paid and non-assessable Common Shares; and |
(b) |
Three year warrants exercisable to purchase 3,000,000 Common
Shares at a price of Cdn$0.30 per share |
PFN will issue the shares in the Company to
Kaymin Resources Ltd. ("Kaymin"), a wholly owned subsidiary of
Anglo Platinum Limited, in exchange for Kaymin's 50% interest in
the joint venture. The all-share transaction is expected to close
upon the acceptance by the Toronto
Stock Exchange.
Harry Barr,
President and CEO of PFN commented, "The shares issued to Kaymin
will make Anglo Platinum a strategic investor in PFN. Anglo
Platinum will have the opportunity to participate in the upside of
the project through the future success of the Company and at the
same time, PFN will be able to seek new sources of funding to
advance the River Valley PGM project."
The River Valley PGM project was acquired in
1998 by PFN through a number of transactions. PFN discovered
significant PGM occurrences on the property and entered into a
joint venture agreement with Anglo Platinum in 1999. PFN remained
operator of the joint venture and defined a NI43-101 compliant
reportable resource of 8.53 million tonnes containing 353,200
ounces of palladium (1.29 g/t), 116,800 ounces of platinum (0.43
g/t) and 20,400 ounces of gold (0.07 g/t) in the "measured"
category and an additional 22.02 million tonnes containing 600,700
ounces of palladium (0.85 g/t), 212,800 ounces of platinum (0.30
g/t) and 39,000 ounces of gold (0.06 g/t) in the "indicated"
category and "inferred" resources of 2.39 million tonnes containing
67,000 ounces of palladium (0.87g/t), 23,800 ounces of platinum
(0.31g/t) and 4,000 ounces of gold (0.05 g/t) using a 0.7 g/t cut
off (pt/pd) (PFN press release March 27, 2006).
"Stand alone PGM projects are rare in
North America. The PFN/Anglo
Platinum agreement is the second major acquisition of its kind in
recent months. It was just over 4 months ago, in October 2010, when Stillwater Mining acquired the
platinum assets of the Canadian mining junior Marathon PGM in a
cash and shares deal that was valued at $118
million." Spiros Cacos,
Manager Investor Relations.
The Company will now focus on advancing the
project further through renewed exploration activities. Prior work
had left several target areas where mineralization was open to
depth and along the nine kilometre strike length.
Similarly, new target areas were discovered that
returned anomalous values of PGM's but due to the financial crisis
of 2008, were not followed up. Induced polarization (IP) surveys
were instrumental in locating and identifying mineralized zones on
the property. The Company now intends to enhance the earlier work
with more recent 3D technology whereby the mineralization can in
principle be traced to deeper depths and contemporaneously mapped
close to surface in new target areas. The Company will provide an
update of the exploration strategy in the near future.
"The timing of this agreement could not be
better. We expect that the enthusiasm for global PGM exploration
will escalate in the coming months. The River Valley Project has
many advantages over other PGM exploration and development
projects, mainly a defined resource located only sixty kilometres
from the nickel-copper-PGM smelting and refining activities in
Sudbury, Ontario."
Anthony Kovacs, VP Exploration.
Qualified Person Statement
This news release has been reviewed and approved
for technical content by John
Londry, 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 60km 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 NI 43-101 was published in 2006. Anglo Platinum continued to
fund exploration under the terms of the option and joint venture
agreement and invested over $22M in
the exploration of the property for a 50% stake in the joint
venture. In order for Anglo Platinum to retain their interest in
the Joint Venture, they were required to fund all exploration to
completion of a feasibility study, but as a result of capital
expenditure reductions during the global financial crises, no new
funds were allocated to the project, above and beyond the minimal
holding costs.
PFN and Anglo Platinum were able to come to
terms whereby PFN could acquire Anglo Platinum's 50% stake in the
River Valley JV giving PFN 100% of the River Valley PGM project by
offering 12% of its current outstanding shares to Anglo Platinum.
This would enable PFN to seek external funding for the project
while Anglo Platinum could benefit from any future success of the
project through its share ownership in PFN.
There are no other encumbrances on the River
Valley PGM project associated with the terms of the sale to Anglo
Platinum after an 18 month early disposition period lapses. There
are currently no back-in rights or off-take agreements between the
two parties. The property is still subject to a 3% NSR that is
payable to the underlying vendors.
- Table 1. Measured and Indicated Resources Using a 1.0 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).
- Table 2. Measured and Indicated Resources using a 0.7 g/t
cut off (Pt/Pd) of 30.5 million tonnes containing 953,900
ounces of palladium (0.97 g/t), 329,500 ounces of platinum (0.34
g/t) and 59,500 ounces of gold (0.061g/t) with an additional 2.3
million tonnes containing 67,000 ounces of palladium (0.87g/t),
23,800 ounces of platinum (0.31g/t) and 4,000 ounces of gold (0.05
g/t) of Inferred Resources using a 0.7 g/t cut off (Pt/Pd).
Table 1: 2006 River
Valley PGM Resource Estimate
(cut-off grade 1.0 g/t Pt+Pd) |
Measured
Resource |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces (000s) |
|
000s |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
3E |
Dana North |
2,523 |
0.082 |
0.435 |
1.354 |
0.12 |
0.02 |
1.790 |
1.871 |
6.6 |
35.3 |
109.8 |
151.8 |
Dana South |
1,495 |
0.100 |
0.626 |
2.122 |
0.16 |
0.03 |
2.748 |
2.848 |
4.8 |
30.1 |
102.0 |
136.9 |
Lismer's Ridge |
3,976 |
0.064 |
0.368 |
1.018 |
0.10 |
0.02 |
1.385 |
1.449 |
8.2 |
47.0 |
130.1 |
185.3 |
Lismer North |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Varley |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Total |
7,994 |
0.076 |
0.437 |
1.331 |
0.12 |
0.02 |
1.768 |
1.844 |
19.6 |
112.4 |
342.0 |
474.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated
Resource |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces (000s) |
000s |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
3E |
Dana North |
3,067 |
0.061 |
0.320 |
0.920 |
0.09 |
0.02 |
1.240 |
1.301 |
6.0 |
31.5 |
90.7 |
128.3 |
Dana South |
3,304 |
0.072 |
0.389 |
1.266 |
0.11 |
0.02 |
1.655 |
1.727 |
7.6 |
41.3 |
134.5 |
183.4 |
Lismer's Ridge |
2,140 |
0.054 |
0.302 |
0.824 |
0.09 |
0.02 |
1.127 |
1.180 |
3.7 |
20.8 |
56.7 |
81.2 |
Lismer North |
716 |
0.071 |
0.394 |
1.183 |
0.13 |
0.03 |
1.577 |
1.648 |
1.6 |
9.1 |
27.2 |
37.9 |
Varley |
2,082 |
0.075 |
0.448 |
1.224 |
0.09 |
0.02 |
1.671 |
1.747 |
5.1 |
30.0 |
81.9 |
117.0 |
Total |
11,309 |
0.066 |
0.365 |
1.076 |
0.10 |
0.02 |
1.441 |
1.506 |
24.0 |
132.6 |
391.1 |
547.7 |
Measured +
Indicated |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces (000s) |
000s |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
3E |
Dana North |
5,590 |
0.070 |
0.372 |
1.116 |
0.11 |
0.02 |
1.488 |
1.558 |
12.6 |
66.8 |
200.6 |
280.0 |
Dana South |
4,800 |
0.080 |
0.463 |
1.533 |
0.13 |
0.02 |
1.995 |
2.076 |
12.4 |
71.4 |
236.5 |
320.3 |
Lismer's Ridge |
6,116 |
0.060 |
0.345 |
0.950 |
0.10 |
0.02 |
1.295 |
1.356 |
11.9 |
67.8 |
186.8 |
266.6 |
Lismer North |
716 |
0.071 |
0.394 |
1.183 |
0.13 |
0.03 |
1.577 |
1.648 |
1.6 |
9.1 |
27.2 |
37.9 |
Varley |
2,082 |
0.076 |
0.448 |
1.224 |
0.08 |
0.02 |
1.672 |
1.747 |
5.1 |
30.0 |
81.9 |
117.0 |
Total |
19,303 |
0.070 |
0.395 |
1.181 |
0.11 |
0.02 |
1.576 |
1.646 |
43.6 |
2451 |
733.0 |
1021.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces (000s) |
000s |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
3E |
Dana North |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Dana South |
104 |
0.053 |
0.276 |
0.819 |
0.09 |
0.02 |
1.094 |
1.147 |
0.2 |
0.9 |
2.7 |
3.8 |
Lismer's Ridge |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Lismer North |
345 |
0.091 |
0.524 |
1.586 |
0.14 |
0.03 |
2.110 |
2.201 |
1.0 |
5.8 |
17.6 |
24.4 |
Varley |
432 |
0.063 |
0.464 |
1.301 |
0.07 |
0.01 |
1.765 |
1.828 |
0.9 |
6.4 |
18.1 |
25.4 |
Total |
881 |
0.073 |
0.465 |
1.356 |
0.10 |
0.02 |
1.821 |
1.894 |
2.1 |
13.1 |
38.4 |
53.6 |
Table 2: River
Valley PGM Resource Estimate (cut-off grade 0.70 g/t
Pt+Pd) |
Measured
Resource |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces
(000's) |
000s |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
Pt+Pd |
3E |
Dana North |
2,623 |
0.080 |
0.428 |
1.327 |
0.12 |
0.02 |
1.755 |
1.835 |
6.8 |
36.1 |
111.9 |
148.0 |
154.8 |
Dana South |
1,496 |
0.100 |
0.625 |
2.122 |
0.16 |
0.03 |
2.747 |
2.847 |
4.8 |
30.1 |
102.0 |
132.1 |
136.9 |
Lismer's Ridge |
4,411 |
0.062 |
0.357 |
0.982 |
0.10 |
0.02 |
1.339 |
1.401 |
8.8 |
50.6 |
139.2 |
189.8 |
198.6 |
Lismer North |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
- |
Varley |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
- |
Total |
8,530 |
0.074 |
0.426 |
1.288 |
0.12 |
0.02 |
1.714 |
1.788 |
20.4 |
116.8 |
353.2 |
470.0 |
490.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated
Resource |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces
(000's) |
000's |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
Pt+Pd |
3E |
Dana North |
5,881 |
0.054 |
0.278 |
0.777 |
0.09 |
0.02 |
1.055 |
1.109 |
10.2 |
52.6 |
146.9 |
199.5 |
209.6 |
Dana South |
3,516 |
0.071 |
0.380 |
1.229 |
0.11 |
0.02 |
1.609 |
1.680 |
8.0 |
42.9 |
138.9 |
181.9 |
189.9 |
Lismer's Ridge |
7,439 |
0.046 |
0.255 |
0.667 |
0.08 |
0.02 |
0.922 |
0.968 |
11.1 |
61.0 |
159.4 |
220.5 |
231.5 |
Lismer North |
1,333 |
0.058 |
0.316 |
0.911 |
0.11 |
0.03 |
1.227 |
1.285 |
2.5 |
13.5 |
39.0 |
52.6 |
55.0 |
Varley |
3,855 |
0.059 |
0.345 |
0.939 |
0.07 |
0.02 |
1.283 |
1.342 |
7.3 |
42.7 |
116.3 |
159.1 |
166.3 |
Total |
22,024 |
0.055 |
0.300 |
0.848 |
0.09 |
0.02 |
1.149 |
1.204 |
39.0 |
212.8 |
600.7 |
813.4 |
852.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured +
Indicated |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces
(000's) |
000's |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
Pt+Pd |
3E |
Dana North |
8,504 |
0.062 |
0.324 |
0.947 |
0.10 |
0.02 |
1.271 |
1.333 |
17.0 |
88.6 |
258.9 |
347.4 |
364.4 |
Dana South |
5,012 |
0.079 |
0.453 |
1.496 |
0.13 |
0.02 |
1.949 |
2.028 |
12.8 |
73.0 |
241.1 |
314.1 |
326.8 |
Lismer's Ridge |
11,850 |
0.052 |
0.293 |
0.784 |
0.09 |
0.02 |
1.077 |
1.129 |
19.9 |
111.7 |
298.6 |
410.3 |
430.2 |
Lismer North |
1,333 |
0.058 |
0.316 |
0.911 |
0.11 |
0.03 |
1.227 |
1.285 |
2.5 |
13.5 |
39.0 |
52.6 |
55.0 |
Varley |
3,855 |
0.059 |
0.345 |
0.939 |
0.07 |
0.02 |
1.283 |
1.342 |
7.3 |
42.7 |
116.3 |
159.1 |
166.3 |
Total |
30,554 |
0.061 |
0.335 |
0.971 |
0.10 |
0.02 |
1.306 |
1.367 |
59.5 |
329.5 |
953.9 |
1283.3 |
1342.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred |
DEPOSIT |
Tonnes |
Au |
Pt |
Pd |
Cu |
Ni |
Pt+Pd |
3E |
Contained Ounces
(000's) |
000's |
g/t |
g/t |
g/t |
% |
% |
g/t |
g/t |
Au |
Pt |
Pd |
Pt+Pd |
3E |
Dana North |
41 |
0.035 |
0.209 |
0.559 |
0.07 |
0.02 |
0.769 |
0.803 |
0.0 |
0.3 |
0.7 |
1.0 |
1.1 |
Dana South |
552 |
0.047 |
0.229 |
0.648 |
0.08 |
0.02 |
0.876 |
0.923 |
0.8 |
4.1 |
11.5 |
15.5 |
16.4 |
Lismer's Ridge |
330 |
0.039 |
0.219 |
0.529 |
0.08 |
0.02 |
0.748 |
0.788 |
0.4 |
2.1 |
5.1 |
7.2 |
7.7 |
Lismer North |
546 |
0.073 |
0.419 |
1.224 |
0.12 |
0.03 |
1.644 |
1.717 |
1.3 |
7.4 |
21.5 |
28.9 |
30.2 |
Varley |
948 |
0.050 |
0.326 |
0.925 |
0.07 |
0.02 |
1.251 |
1.301 |
1.5 |
9.9 |
28.2 |
38.1 |
39.6 |
Total |
2,389 |
0.053 |
0.309 |
0.873 |
0.09 |
0.02 |
1.182 |
1.235 |
4.0 |
23.8 |
67.0 |
90.8 |
94.9 |
About Pacific North West Capital
Corp:
Pacific North West Capital Corp. (TSX: PFN;
OTCQX: PAWEF; Frankfurt: P7J.F) is a mineral exploration
company focused on the exploration and development of one of
Canada's largest primary Platinum
Group Metals (PGM) deposits, the River Valley PGM Project located
in the Sudbury region of
Ontario. In addition, the Company
has an active gold exploration program near Val d'Or, Québec, one of the world's most
famous gold and base metal producing regions. The Company is also
advancing a polymetallic project in the Iskut River region of
British Columbia. Pacific North
West Capital Corp. is also a significant shareholder of Fire River
Gold Corp (FAU:TSX.V) who is developing the Nixon Fork Gold Mine in
Alaska.
Pacific North West Capital Corp. is well funded
and plans to use management's technical, financing and negotiating
skills to acquire additional platinum group metals, base metals and
precious metals projects on an international scale.
Management's corporate philosophy is to be a
project generator, explorer and project operator with the objective
of option/joint venturing projects with major and junior mining
companies through to production. Pacific North West Capital
Corp. is a member of the International Metals Group of
Companies (www.internationalmetalsgroup.com).
On behalf of the Board of Directors
(signed)
Harry
Barr
President & C.E.O.
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 Securities
Commission and the United States Securities & Exchange
Commission.
SOURCE Pacific North West Capital Corp.
Copyright . 31 PR Newswire