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If the Pacific North West Capital Corporation (PFN) continues to build on its success, it hopes to become a significant player in the precious metals market.

Photo by Dan Racicot

“We plan to become the third largest producer of Platinum Palladium in North America,” says PFN spokesperson, Heather Pearson.

Pearson’s enthusiasm rises from a series of developments that have emerged from PFN’s River Valley project located 65 kilometers north east of Sudbury. Significant levels of Platinum Group Metals (PGM’s) have been detected in the region and, according to Pearson, evidence of more deposits continues.

“The mineralization just keeps getting bigger and bigger,” she said.

PFN began exploring the River Valley area in 2000, one year after partnering with the South African based Anglo Platinum, the world’s largest primary producer of platinum. Bouyed by the results of significant mineralization, Anglo Platinum has invested over $15 million in PFN’s ongoing exploration efforts.

Supply and demand considerations have generated a lot of excitement. With costs of platinum exceeding $800 per ounce and palladium priced at $215, generated revenues could be significant. Estimates put the supply of platinum group metals at one-tenth the supply of gold deposits worldwide. Because platinum metals are more inert than other precious metals they tend not to corrode or rust, and so are used extensively in computers and the manufacture of automotive catalyctic converters. Most jewelry contains 40 per cent platinum and, according to Pearson, efforts are underway to include palladium in some cancer fighting medications.

Finding platinum group metals outside the Sudbury basin is unusual, so much so that it has attracted the attention of Rick Bartolucci, provincial Minister of Northern Development and Mines, who recently visited the River Valley site.

Pacific North West has maintained a steady pace of exploration activity. To date over 400 drill holes have been dug. And according to CFN President and CEO Harry Bar, the findings are encouraging. “Very few of the drill sites have missed,” he said.

PFN’s contact zone, the strip along which drilling occurs, has grown from three to nine kilometers of strike length, revealing unusually high levels of the precious metals. The work has paid off. “Over a million proven ounces have been found,” said Heather Pearson.

Further exploration efforts are underway. Phase 7 of the development will see another 15000 meters of drilling spread over an additional 80-plus holes. Pacific North West hopes to find another 800,000 ounces, bringing the total up to 2 million ounces of palladium and platinum rich minerals, the threshold at which South Africa’s Anglo Palladium may consider establishing an on-site open pit mine. By doing so Anglo’s percentage of ownership would rise from its current level of 50 per cent to a controlling advantage of 65 per cent, an unusual arrangement which speaks to the confidence they have invested in Pacific North West Capital.

“It’s rare for a Junior company to have that kind of arrangement with its partner,” Pearson said, adding that the Junior is usually bought out completely once production begins.

Pearson credits her boss, Harry Bar, for his skill in negotiating the interests of his shareholders. Bar, for his part, attributes his success to the longevity of relationships he has formed with major partners. His first two discoveries of any consequence have been supported by a 19 year history with other partners. “I tend to be like the green parrot
that finds the right partner and tries to mate for life,” he jokes.

The River Valley project is the third stand-alone discovery of platinum group metals in North America in the last 20 years. And its success, according to company officers, is due to the excellent team of geologists, technicians and support staff. A lot of knowledge and science is involved in finding platinum group metals that avoid easy
detection.

According to Joan Barry, PFN’s geologist and office manager, a studied approach is required. “You can’t see platinum embedded in rock because it is tied up in finely disseminated sulphite,” she explained.

Consequently PFN relies on a steady pace of geophysics testing, sampling and assaying, the results of which continue to keep optimism high for the eventual construction of an open pit mine.

“We are hoping that what we have seen on the surface will extend deeper,” said John Londry, PFN’s experienced vice president of development. Like Pearson, Londry hopes the discovery of an additional 800,000 ounces of
reserves measuring 1.3 grams per tonne, will bridge the gap between exploration and production.

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For professional results, contact Marek Krasuski at (705) 675-5571 or by email: news@marekkrasuski.com

Marek Krasuski writes for:

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