TSX: PFN      OTCQX: PAWEF      FRANKFURT: P7J.F

President's Message

   

On behalf of the Board of Directors, I am pleased to update you on the accomplishments of Pacific North West Capital Corp (PFN or the Company) to date in 2013 and for the foreseeable future.

PFN's activities and plans for the calendar year 2013 focus on advancement of its 100% owned flagship River Valley platinum group metal (PGM) Project, located 60 km to the east of Sudbury, Ontario. In the first part of 2013, PFN completed its Phase 1 Metallurgical Study with SGS Canada Inc, which demonstrates potential for a sulphide concentrator to effectively process PGM mineralized material from the River Valley deposit. The Company also reassessed its large geoscience database for new exploration opportunities to add value to the River Valley Project. The main activities planned for the remainder 2013 are a follow-up Phase 2 Metallurgical Study and a drill program to conduct a first-pass test of high priority exploration targets.



Dr. William Stone, President & COO
 


The Phase 1 metallurgical study of River Valley was completed in April 2013 (see Press Release dated April 10, 2013). Highlights of the study are: 1) production of a concentrate grading 16% Cu, 2% Ni and 189 g/t PGM (close to the concentrate grades for the 2001-2005 open pit mine at North American Palladium's Lac des Iles PGM operation); 2) confirmation of the presence of pentlandite as the primary nickel sulphide mineral; 3) possible expansion of the payable metal package to include rhodium, cobalt and silver, in addition to platinum, palladium, gold, copper and nickel; and 4) apparent lack of deleterious elements, such as magnesium, arsenic, bismuth, antimony and selenium. These results represent a strong start but more work is required, particularly to improve recoveries of nickel and PGM.

PFN's Technical Team seized the opportunity afforded by the slowdown in exploration to reassess the potential exploration upside of the River Valley PGM Project. Compilation and integration of high quality geophysical and drilling datasets produced numerous drill-ready targets along strike, down-dip and in the immediate footwall to the main PGM mineralized zones. The targets have been ranked and prioritized for drill testing. A formal application for an exploration program, including drilling and geophysics, has won approval from the provincial government with input for local communities and Aboriginal Peoples, as mandated under the new mining laws of Ontario.

Plans for the foreseeable future include Phase 2 Metallurgical Studies and execution of the exploration drill program. A detailed plan is in preparation with SGS Canada Inc. for Phase 2 Metallurgical Studies. The testwork will involve an expanded range of samples, grades, rock types and depths for the River Valley deposit. The exploration drill program will consist of up to twenty drill holes, carefully designed to test the best two or three drill targets. Some of the holes will be selected for down-hole induced polarization surveys in order to detect and model the location of off-hole mineralization for subsequent drilling. All of our development and exploration plans are subject to outcomes and funding in the market and (or) by an Option-Joint Venture Partner.

In the meantime, PFN has sufficient cash and equivalents for the foreseeable future, as the Company has markedly reduced its monthly cash requirement.

On behalf of the Board of Directors, and the Company's management, I wish to thank you for your continued interest and support.

Yours sincerely,



William (Bill) E. Stone, Ph. D., M. Sc., B. Sc.
President and COO

 
 
 

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