On behalf of the Board of Directors, I am pleased to
update you on the business plan for the company and
progress of Pacific North West Capital Corp. ("PFN,
the "Company") for 2011 thus far as well as our
goals and objectives for the balance of this year
and beyond.
PFN is a mineral exploration company focused on the
exploration and development of platinum group metals
(PGM), precious and base metals. Management's
corporate philosophy is to be a project generator,
explorer and operator with the objective to option
or joint venture our mineral projects with major
mining companies through to the development stage
and onto production or sale of the asset.
Harry Barr
Chairman & CEO
PFN's corporate strategy for 2011 has been to focus on advancing its
flagship project, the River Valley PGM project, one of North
America's newest and largest undeveloped PGM deposits (the project
also has additional metal credits of gold, rhodium, copper and
nickel) as well as maintain our aggressive search for new assets and
exploration programs. Negotiations to acquire Anglo Platinum's 50%
share of the River Valley took over two and half years to complete
and closed in April 2011, making the world's largest PGM producer,
Anglo Platinum, one of our largest shareholders. Now with 100%
ownership of River Valley, PFN is poised to advance the project
through to feasibility. Please review the River Valley section of
this report for a more detailed overview of this project.
In special situations PFN is prepared to become a majority
shareholder of a new public company (NPC) in order to continue the
development of specific core or non-core assets or new acquisitions.
The dilution necessary to fund certain projects through their
various stages of development is a key issue and concern to both our
shareholders and management of PFN. Utilizing a NPC that is
dedicated to a specific project and commodity and has the structure
to allow a series of financings to take place is a proven and
effective method to continue the development of select projects. PFN
will continue to participate in the upside of any project vended to
a NPC through its ownership of shares.
PFN's management has evaluated the possibility of vending its 60%
interest in the Destiny Gold Project in Val d'Or, Quebec, into the
newest International Metals Group (IMG) company, Next Gen Metals Inc
(TSX.V:N). In order to continue to advance the Destiny project,
significant manpower and capital would have to be diverted from
management's PGM objectives.
Under the proposed agreement, PFN will hold a majority interest in
Next Gen Metals which will raise the capital needed to advance the
project, mostly through advanced stage exploration and if warranted,
scoping and feasibility studies. The ownership of shares will allow
PFN shareholders to participate in the upside of Next Gen as they
continue to advance the Destiny Gold Project.
PFN is well-funded, has an experienced management team, and has the
ability to take advantage of the tremendous acquisition
opportunities presented by current market conditions. The Company's
focus is to continue to build its portfolio of PGM and base metals
projects in North America with a specific emphasis on Canadian and
Alaskan projects. The Company has plans to add additional technical
personnel with experience in platinum group and base metals to
accomplish its objectives.
2010/2011
ACCOMPLISHMENTS
In April 2011, after 2.6 years
of negotiations, PFN finalized 100% acquisition of the River
Valley PGM Project, one of North America's newest and largest
standalone PGM projects with excellent upside exploration
potential.
Anglo Platinum, the world's
largest platinum producer becomes a 12% shareholder of PFN as of
January 2011 as a result of the sale of their 50% of the River
Valley project and related equipment and a 100% property.
$5M, 15,500 metre River Valley
drill program in progress
New NI 43-101 completed for
Destiny Gold Project, Québec
See press release dated
January 24, 2011
The DAC mineral resources
were developed on five parallel gold bearing zones at a gold
cut-off grade of 0.5 g/t Au, and the five zones contain an
Indicated Resource of about 10.8 million tonnes with an
average grade of 1.05 g/t gold. The Inferred Resource totals
8.3 million tonnes with an average grade 0.92 g/t gold[1]
Indicated Resource of
364,000 ounces gold
Inferred Resource of
247,000 ounces gold
Plan to vend PFN's 60%
option on Destiny to Next Gen Metals Inc (TSX.V:N) to allow
for method to continue funding and have PFN shareholders
control a majority interest in Next Gen
New NI 43-101 completed for Rock
& Roll Polymetallic Project, British Columbia
Indicated Resource
containing:
2,155,679 tonnes grading
0.68 g/t gold (47,040 contained oz of Au), and 82.7 g/t
silver (5,734,445 contained oz of Ag) at a cut‐off grade
of 0.5 g/t AuEq5,734,445 ounces silver.
Including 10,500,833 lbs
copper, 10,399,960 lbs lead and 44,522,995 lbs Zinc[2]
Management currently
finalizing fundraising and development plans
Fire River Gold Corp's (TSX.V:FAU,
OTCQX:FVGCF, FSE:FWR) Nixon Fork Gold Mine
PFN holds 5,152,500 common
shares and 2,487,500 warrants of FAU
Commissioning of the mill --
July 2011
Commercial production -- Q4
2011
Senior technical and
administrative staff/consultants added to help achieve
objectives
Recent financings maintain a
strong treasury and attract key institutional shareholders
Aggressive ongoing acquisition
program -- new projects to be announced in Canada and Alaska
Fundamental Research initiated
analyst coverage ()
[1]NI 43-101
Technical Report and Resource Estimation of the DAC Deposit,
Destiny Property, Quebec, Wardrop a TetraTech Company, March
2011
[2]2010
TECHNICAL REPORT ON THE ROCK AND ROLL PROPERTY,EQUITY
EXPLORATION CONSULTANTS LTD .February 23rd, 2011
PROJECT UPDATES
RIVER VALLEY PLATINUM GROUP METALS (PGM) -- ONTARIO, CANADA
The River Valley
property is located in Dana Township and in the southwest corner of
Pardo Township, Ontario, which is about 20 km northwest of the
village of River Valley and about 60 km east of Sudbury, Ontario,
one of Canada's most prominent mining districts with over 100 years
of production and with facilities geared to PGM production that have
extra mining and smelting capacity available.
The project has excellent road accessibility, water, power and is in
a well-established mining district.
KEY HIGHLIGHTS OF THE RIVER VALLEY PROJECT
One of the only major PGM
discoveries in North America in the past two decades
100% ownership as of April 2011
-- 2.6 years of negotiations to acquire 50% of the project from
world's largest platinum producer, Anglo Platinum who owns
approximately a 9% of PFN's shares
Anglo Platinum expended
approximately $22M on exploration since 1999
Renewed investor interest in
PGMs and Gold
As of July 25th 2011
Palladium: $ 804.00 USD
Platinum: $ 1786.00 USD
Gold: $ 1614.00 USD
Rhodium, Copper and Nickel
credits
Three NI 43-101's completed to
date
Measured & Indicated
resource -- 19.3 million tonnes containing:
733,000 ounces palladium
(1.18 g/t)
245,100 ounces platinum
(0.39 g/t)
43,600 ounces gold (0.07
g/t)
550 holes drilled by end of 2006
-- 32 holes/7800 metres drilled in 2011
Exploration upside considered to
be excellent
Aggressive 2011 exploration
program in progress
$5 million, 15,500 metre
exploration and drill program producing excellent results to
date
Phase 1A exploration
program, consisting of more than 3700m drilling and more
than 85 line km 3D IP was completed in May 2011
Phase 1B exploration program
consisting of more than 4000m of drilling and 55 line km 3D
IP commenced in May 2011 and was completed in June 2011
Phase 1C exploration is
slated to commence in August 2011 and will include more than
5000m of drilling
Results of drill hole DB010 and
DN011:
3.50 gpt, (0.10opt), 3E over
53 metres (173.8 ft) in hole DN011
including 3.89 gpt,
(0.11 opt), 3E over 13m (42.6ft)
including 8.00 gpt,
(0.23 opt), 3E over 11m (36.1ft)
And 2.38 gpt, (0.07 opt), 3E
over 14 meters (45.9ft)
including 4.09 gpt,
(0.12 opt), 3E over 4m (13.1ft)
1.59 gpt, (0.05 opt), 3E
over 18 meters (59.0 ft) in hole DN010
including 2.16 gpt,
(0.06 opt), 3E over 5m (16.4ft)
River Valley PGM Project
objectives:
Management's objective for
River Valley is to prove sufficient reserves to establish a
multi-million tonne open pit PGM bulk mineable project.
Conclude a series of exploration programs including ground
geophysics to generate new drill targets.
Complete multiple drill
campaigns to test new targets and update the NI 43-101
compliant resource estimate; within 12 months (Spring 2012).
Preliminary Economic
Assessment (PEA): in 18 months
Commence Pre -Feasibility in
36 months.
New 3D IP technology being
utilized which is producing new and additional drill targets to
expand current resource
9 kilometer prospective horizon
with past resource discoveries made with limited drilling that
needs to be followed up on throughout the entire project
DESTINY GOLD PROJECT -- QUEBEC,
CANADA
KEY HIGHLIGHTS OF THE DESTINY GOLD
PROJECT
The project has excellent
infrastructure. It is road accessible with water, power and with
industrial grade transport readily available in one of Canada's
best known mining areas, located in Quebec.
2011 NI 43-101 compliant
resources at a 0.5 g/t gold cut-off grade completed by Wardrop
10,825,500 tonnes, 1.05 g/t,
364,530 oz gold (indicated)
8,330,400 tonnes, 0.92 g/t,
247,590 oz gold (inferred)
Deposits are open along strike
and down-dip. Great potential for more discoveries within the
project area
PFN has an option to earn 60% of
the project with Alto Resources (TSX.V:ATV)
Currently finalizing technical
and financial plans to advance project to next stage of
development
ROCK AND ROLL
POLYMETALLIC PROJECT BRITISH COLUMBIA, CANADA
KEY HIGHLIGHTS
OF THE ROCK AND ROLL POLYMETALLIC PROJECT
Drill
highlights include intersections up to 1.31
g/t gold, 296.2 g/t silver, 0.46% copper,
1.25% lead, and 3.99% zinc over 3.14 meters
in drill hole RR09-107
Open along
strike and at depth
Phase II
exploration program was completed at 2010
First NI
43-101 compliant resource completed April
2011
2,155,679 tonnes grading 0.68 g/t gold
(47,040 contained oz gold) and 82.7 g/t
silver (5,734,445 contained oz silver)
at a cut-off grade of 0.5 g/t AuEq
Including 10,500,833 lbs Copper,
10,399,960 lbs Lead and 44,522,995 lbs
Zinc
Numerous new airborne
geophysical anomalies remain to be tested outside of known zones
of mineralization
Currently finalizing technical
and financial plans to advance project to next stage of
development
MAJOR SHAREHOLDER IN FIRE RIVER GOLD CORP.
PFN sold the Nixon Fork Gold
Mine to Fire River Gold Corp (TSX.V:FAU) in September 2009. PFN
continues to participate in the upside of Nixon Fork Gold Mine
through its share ownership of FAU (insert shares).
PFN holds 5,152,500 common
shares and 2,487,500 warrants of FAU
The Nixon Fork Gold Mine is a
fully permitted gold mine with silver and copper credits and is
scheduled for commercial production by Q4 2011.
ONGOING PROJECT SEARCH AND
ACQUISITION STRATEGY
Focus on underfunded, advanced
stage projects
Projects with demonstrated
resources
Major focus on new PGM projects
in Ontario and Alaska
Continued aggressive stance on
global PGM, gold and base metals exploration and development
The junior exploration sector has
suffered considerably from the recent global economic crisis.
However the first five months of 2011 provided the junior market
with excellent liquidity, increasing share prices and the ability to
raise equity to further Pacific North West Capitals objective.
Through to July, some gains have been marginalized but metal prices
have remained strong and demand is going up; analysts that focus on
platinum group metals point to growing demand for the metals and
strong pricing over the foreseeable future. The directors and
management of PFN are very optimistic about our company and its
projects and look forward to continuing to provide you with the
positive results from our project for the balance of this year's
exploration activities.
For further information on your
Company, please visit our website at www.pfncapital.com or email us
at .
On behalf of the Board of Directors,
and your Company's management, I wish to thank you for your
continued support.
