- Significant increases in
contained ounces for the DAC Deposit, with approximately
364,000 ounces gold "indicated" and approximately 247,000
ounces of gold "inferred"
- All holes from 2010 drilling
campaign intersect anomalous gold mineralization
- Four kilometres of strike
potential identified by drilling
- Report recommends a $4M
expansion drilling program
March 7, 2011, Vancouver, Canada
-- Pacific North West Capital Corp. ("PFN") (TSX: PFN; OTCQX:
PAWEF; FSE: P7J) and Alto Ventures Ltd. ("ATV") (TSX-V: ATV)
(together "the Companies") are pleased to announce the
filing on Sedar of an NI43-101 Technical Report (the Report),
including a new Mineral Resource Estimate for the DAC Gold
Deposit, on the Destiny Project located near Val d'Or, Québec.
The Companies have also received final assay data for the 3-hole
exploratory drill program conducted in late 2010 and provide an
update on future plans to expand the mineral resource at the
Destiny Gold Project.
NI43-101 Mineral Resource Estimate Report
The Mineral Resource Estimate was initially reported in news
releases from the Companies on January 24, 2011. The Report was
prepared by Wardrop, a Tetra Tech Company (Wardrop) and
incorporates over 7,600 m of additional drilling that was
completed on the deposit subsequent to an earlier NI43-101
compliant resource estimate calculated by W. A. Hubacheck
Consultants Ltd and filed on SEDAR in 2007. The Wardrop
report indicates that the additional drilling has expanded the
DAC Deposit and significantly increased the contained ounces of
gold over that which was reported in 2007.
At a cut-off grade of 0.5 g/t gold and using the Inverse
Distance Squared (ID2) estimation method, the five gold zones
that make up the DAC Deposit contain an Indicated Resource of
approximately 10.8 million tonnes with an average grade of 1.05
g/t gold (364,000 contained ounces). In addition, the Inferred
Resource totals approximately 8.3 million tonnes with an average
grade of 0.92 g/t gold (247,000 contained ounces). The resources
block considers the mineralization to start at approximately 15
metres below surface down to a depth of 400 metres for the
deepest zone (see Figure 1). The mineralization remains open
below 400 metres. For details regarding the resource estimate
methods and calculation parameters used in preparation of the
Report please see the news releases issued from the Companies on
January 24, 2011.
Mineral Resources are not Mineral Reserves and by definition do
not demonstrate economic viability.
Figure 1 DAC Deposit 3D Model of
mineralized zones 1 to 5, oblique view looking west
2010 Drilling Results
Results from the three-hole diamond drilling program completed
on the Destiny property in December were received. Each of the
three drill holes (DES10-139, 140 and DES08-113X) had a specific
objective with respect to defining controls on the
mineralization at the Destiny Gold Project. These are summarized
as (1) to test selected Borehole Electromagnetic (BHEM)
conductors and assess the association of areas of sulphide
mineralization with gold mineralization, and (2) to test for
shallow gold mineralization to the south of the DAC deposit
where the recently completed high resolution magnetic survey
identified magnetic signatures similar to DAC (see news release
dated December 16, 2010).
Previous drilling revealed massive sulphide mineralized lenses
locally adjacent to the gold mineralization (see NR dated April
12, 2010). The Companies interpreted these sulphide lenses as
important to the gold mineralizing system and completed BHEM
surveys in certain drill holes to trace the extent of the
massive sulphide mineralization and to help guide drilling at
Drill hole DES10-139 tested an off-hole conductor near the west
end of the DAC Deposit. The hole was also drilled deeper to
fully intersect the five DAC gold zones. Three lenses of massive
sulphides were intersected from 360 m to 374 m downhole. The
lenses vary in width from one metre to 3.2 m and are made up of
mainly pyrrhotite and pyrite and carry anomalous amounts of base
metals confirming that the BHEM method is effective at targeting
the massive sulphide mineralization. The hole also intersected
anomalous amounts of gold at the western end of the DAC gold
zones. These results confirm that the wide envelope of anomalous
gold mineralization at the DAC deposit persists (Table 1).
DES10-140 tested the geology south of the DAC Deposit. This hole
cut several areas of shearing, alteration and weakly anomalous
gold mineralization. The hole returned one assay of 3.45 g/t
across 0.3 m (see Table 1) indicating the prospectively for more
gold mineralization at shallow depths across strike, making for
a potentially thicker deposit.
At the Zone 20 target area, more than 3 km east of the DAC
deposit, drill hole DES08-113X was deepened from 200 m to 550 m
to test an off-hole BHEM conductor and test Zone 20 at greater
depths. The conductor is explained by narrow veins of pyrrhotite
and pyrite mineralization. Anomalous gold coincident with Zone
20 was intersected from 468.7 m to 488 m (see Table 2). The
results from this hole confirm that the gold system associated
with the Despinassy Shear is extensive along strike extending
from the west of the DAC Deposit for four kilometres to Zone 20.
The gold mineralization also persists at depth both at the DAC
Deposit to below 600m and Zone 20 to below 400m.
Table 1 Gold Mineralized Intervals from the 2010 - 3 hole
exploratory drill program*
*Based on core angles and previous
drilling, true widths are estimated at approximately 80 to 90%
of the downhole lengths reported. Mineralized zones generally
start at 0.1 g/t gold and assay averages may include minimal
intervals of waste material. No top cuts of assays were used.
Summary and Future Plans
The NI 43-101 resource estimate
indicates that the gold zones start near surface and are
considered by the Companies to be amenable to an open pit mining
scenario. The DAC Deposit remains open along strike and to depth
and is one of several significant gold occurrences along a four
kilometre segment of the Despinassy Shear Zone. The gold
mineralization at the other occurrences also starts near
surface, and with additional drilling these other occurrences
may add significantly to the contained ounces on the property
either as satellite zones to the DAC or as new deposits (see
Results reported to date from the Destiny Project are very
positive. The recent drill program has confirmed anomalous gold
values across strike and give rise to the possibility that
additional shallow mineralization may be added to the currently
defined resource through continued exploration. The Companies
believe that there is excellent potential to significantly
increase the contained ounces on the property.
A $4 million exploration and expansion program was recommended
in the report by Wardrop. Major exploration programs for later
this year are in the planning stages. The programs will consist
of surface geochemical surveys over the Despinassy Shear, to
help locate specific drill targets, followed by diamond
drilling. The drilling is intended to target additional shallow
gold mineralization to increase the viability of an open pit
mining scenario for the project.
Todd McCracken, P.Geo, is a Qualified Person ("QP") for purposes
of NI 43-101 Report. He is responsible for preparing the Report
and the Resource Estimate disclosed in the Report. Mr. McCracken
is an employee of Wardrop, and independent from the Companies as
described in section 1.4 of NI 43-101. He has read and approved
the technical disclosure in this press release pertaining to the
Mike Koziol, P. Geo., P.Eng. is the Qualified Person who has
reviewed and approved the other technical content in this news
About the Destiny Property
The Destiny Project is under option from Alto Ventures Ltd.
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. The property
consists of 177 claims totalling 7,421 ha and is located
approximately 100 km by road north of the city of Val-d'Or. The
property is accessible by provincial highway 397 which passes
through the property. Pacific North West Capital has fulfilled
its obligations for the first two years of the option term as
outlined in the agreement.
About Alto Ventures Ltd.
Alto Ventures Ltd. is an exploration and development company
with a portfolio of highly prospective Canadian gold properties.
The Company is active in Quebec in the Abitibi greenstone belt
where it has a number of projects including the Alcudia and
Destiny gold properties. In Ontario, the Company is exploring in
the Beardmore-Geraldton gold belt and the Coldstream project in
the Shebandowan gold district. In the Chilcotin Plateau of
British Columbia, the Company is exploring the Chilko project
nearby the Newton gold deposit. For more details regarding the
Company's projects, please visit our website at
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. The River
Valley PGM project is one of North America's newest and largest
primary platinum group metals (PGM) deposits. The project
located in the Sudbury region of Ontario.
On March 1, 2011 Pacific North West Capital Corp. announced a
$5 million exploration program for 2011 that will include a
15,500 metre drill program on its 100% owned River Valley PGM
Project. 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 m 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 Company's renewed exploration efforts.
Drilling and geophysical surveys are planned to commence in the
spring 2011. (see press release March 1 2011)
In January 2011 the Company 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 (see news release
dated January 31, 2011).
On January 24, 2011, PFN announced a new NI43-101 mineral
resource estimate on the Destiny Gold Project which is situated
75 km near Val-d'Or, Québec (see news release dated January 24,
2011). The Destiny Project is under option from Alto Ventures
Ltd. 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.
The Company is currently completing a NI43-101 compliant
resource estimate on the Rock and Roll Polymetallic Project.
The project is located in the Iskut River region of British
Columbia (see press release dated October 27, 2010). The Rock
and Roll project hosts volcanogenic massive sulphide
mineralization, rich in precious metals, in a
volcano-sedimentary host rock package. The mineralization shows
similarities to the gold and silver rich mineralization of
Barrick Gold's past producing Eskay Creek mine. The Company also
has PGM, gold and base metal projects in Québec, Ontario,
Saskatchewan and Alaska and continues to aggressively look for
new acquisition of additional platinum group metals, precious
metals on an international scale.
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.
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 $6.6 million
in working capital and securities. PFN has approximately $6.6
million in working capital and securities.
Pacific North West Capital is a member of the International
Metals Group of Companies.