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Vancouver-based
Pacific Northwest Capital (PFN) is a Canadian junior
mining company with a portfolio of diverse North
American projects including the River Valley PGM Project
near Sudbury, Ontario and the Rock and Roll polymetallic
project in northwest British Columbia. In addition, the
company has recently begun significantly expanding its
PGM project portfolio in Canada and the U.S. (Alaska)
and will be releasing updates when these acquisitions
have been completed. 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, exploration and development of resource
properties. IMG’s staff includes CEOs, geologists,
engineers, 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 is able to obtain a significant advantage
in terms of resources, costs and expertise when compared
to individual public 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 69 Km east of the mining center of
Sudbury. The company has been actively involved in
developing the River Valley Project for over a decade
and was recently able to acquire full control over the
property.
River Valley
consists of 410 mining claims in 38 claim units that
cover 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, then finally terminate further work at River
Valley.
PFN and Anglo
Platinum then 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 119,924 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 reported are 30.5
million tonnes grading 1.4 g/t 3E (platinum, palladium
and gold) at a cut-off grade of 0.7 g/t 3E. The most
current Measured resource figures are 7.894 million
tonnes containing 342,000 ounces of palladium at an
average grade of 1.331 grams per tonne (g/t); 112,400
ounces of platinum at an average grade of 0.437 g/t; and
20,400 ounces of gold at an average grade of 0.076 g/t.
Indicated resource figures include 11.309 million tonnes
containing 391,100 ounces of palladium at an average
grade of 1.076 g/t; 132,600 ounces of platinum at an
average grade of 0.365 g/t; and 24,000 ounces of gold at
an average grade of 0.066 g/t.
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. Toward this end they conducted exploration
programs during 2011 which included a $5 million, 15,500
meter drill program which was completed late in 2011;
expanded and updated the 2006 mineral resource models
and conducted an extensive geophysical program.
A large portion of
the drill program was focused on the Dana Area and assay
returns showed significant PGM values including Hole
DN-011-2011 which intersected 53 meters grading 3.50 g/t
3E g/t. (combined Pl, Pd and Au g/t). Hole DN032 was
designed to test the deeper extension of the mineralized
zone and intersected 33 meters grading 2.1 g/t 3E from
325 meters down hole including 7 meters of 5.2 g/t 3E
from 332 meters depth. The continuity of mineralization
in this area was confirmed in Hole DN033 which
intersected 54 meters of 2.08 g/t 3E from 256 meters
down hole, including 112 meters of 3.4 g/t 3E from 267
meters.
PFN's goals at
River Valley for 2012 include carrying out data
compilation and generation of new drill targets;
complete exploration drill programs; and publish a new
NI 43-101 Resource Estimate in the First Quarter of
2012.
Infrastructure
near River Valley is excellent with reliable road
accessibility combined with reliable electric power and
water availability while the City of Sudbury offers a
wide variety of mining equipment, services and personnel
as well as nearby smelter facilities.
ROCK AND ROLL
The company’s Rock
And Roll Project is a polymetallic deposit located in
the general vicinity of the world-famous Eskay Creek
area. The property consists of 11 mining claims
covering 4,244 hectares and the claims are mostly owned
by a consortium comprised of Misty Creek Ventures Ltd.,
First Fiscal Enterprises Ltd., and Pamicon Developments
Ltd. (the 'Vendors')
Previous
exploration work including over 14,000 meters of core
drilling from 1991-97 has identified Rock And Roll as a
property which hosts precious metals rich, volcanogenic
massive sulphide (VMS) mineralization in a
volcano-sedimentary host rock package of Triassic Age.
The mineralization at Rock And Roll shows similarities
to the gold and silver rich mineralization of Barrick
Gold’s past producing Eskay Creek Mine where reserves in
1999 were estimated at 1.355,965 tonnes grading 57.7 g/t
Au and 2,492.57 g/t Ag according to Government of BC
MINEFILE No. 104B 008.
An NI 43-101
compliant Resource Estimate for the Black Dog Deposit at
Rock and Roll showed Indicated Resources at a 0.5g/t
cut-off grade of 2.1 million tonnes grading 0.68 g/t Au,
82.7 g/t Ag, 0.94% Zn, 0.22% Cu and 0.22% Pb containing
47,040 ounces Au and 5.73 million ounces Ag.
PFN can earn a
100% interest at Rock And Roll by completing $2,000,000
exploration expenditures over a four-year period; paying
the Vendors $130,000; and providing the Vendors with
600,000 PFN shares. PFN is currently in the third year
of the earn-in agreement and the company is currently
considering technical and financial plans to advance the
project.
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.
As of early January 2012, the company was well funded
with approximately $5.4 million in working capital and
securities and had no debt.
Additional
information is available at the company website,
www.pfncapital.com or by
contacting Investor Relations at
info@pfncapital.com.
NOTE: This report
will be updated as significant new information is
provided.
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