Pacific North West Capital Announces High Grade PGM Results at Depth in Dana South Zone on its River Valley Project, Sudbury, Ontario

• The Highest Grade PGM* Intersection at depths greater than 350 m
• High grade PGM drill results for the Dana South Area are
• 2.1 gpt** 3E*** over 33 metres in hole DS001
  Including 15.4 gpt 3E over one metre
• 2.45 gpt 3E over 20 metres in hole DS003
  Including 3.94 gpt 3E over 10 metres
• And 2.94 gpt 3E over 15 metres
  Including 4.31 gpt 3E over 5 metres
• Three holes intersected PGM mineralization at depths greater than 350 metres from surface, indicating the presence of mineralization at depths greater than previously drilled
• PGM mineralization has relatively consistent high grade PGM values in the Dana South Zone

*PGM=Platinum Group Metals  **gpt= grams per tonne  ***Pd+Pt+Au= Palladium + Platinum + Gold (aka 3E)

TSX: PFN OTCQX: PAWEF Frankfurt: P7J

VANCOUVER, March 20, 2012 /CNW/ - Pacific North West Capital Corp. (TSX: PFN) (OTCQX: PAWEF) (Frankfurt: P7J) is pleased to announce assay results for six drill holes in the River Valley 2011 Phase I Exploration program on its 100% owned River Valley PGM Property, 70 km from Sudbury, Ontario.  The drill holes in the Dana South Zone intersected high grade PGM mineralization over wide intervals within the breccia unit on the footwall contact of the River Valley intrusion.

In order to infill gaps in the drilling and test continuity in the northern sections of the Dana South Zone, six drill holes were drilled to the northeast (Table 2) to test approximately 500 metres (m) strike length of the PGM mineralization (Figure 1).  All six holes were designed to test deeper targets on this section. Holes DS001, DS003 and DS004 intersected wide intervals of PGM mineralization (Table 1).

Drill holes DS001 and DS002 were designed to test the down-dip extension of mineralization encountered in DL-32 (2.52 gpt 3E over 9.5 m). Both holes intersected PGM mineralization within the main breccia unit.  In DS001 PGM-bearing sulphide mineralization was encountered from 368 m to 498 m, with a higher grade interval from 368 m to 401 m (33 m of 2.1 gpt 3E, including 5 m of 4.98 gpt 3E from 377 m to 385 m) and 1 m of 15.40 gpt 3E (from 380 m to 381 m).

Drill holes DS003 and DS004 were designed to test for the presence of PGM mineralization at depth, thereby expanding the mineralized zone down‐dip. DS003 intersected 20.0 m of 2.45 gpt 3E including 10 m of 3.94 gpt 3E. In addition, hole DS003, one of the deepest holes drilled in this phase of exploration tested a second shallower target structurally above the footwall contact. There, DS003 intersected 15 m of higher grade interval mineralization down hole (from 446 m to 458 m) of 2.94 gpt 3E including 5 m of 4.31 gpt 3E (331 m vertical from surface). This hole extended the PGM mineralization down-dip by approximately 30 m.DS004 also tested the along strike continuity of mineralization to the northwest from the Dana South Zone. DS004 intersected wide mineralized Breccia Unit from 213 m to 406 m (193 m) down hole. The mineralization within this breccia is 31 m from 334 m to 365 m at 1.98 gpt 3E. This interval includes 3 m from 336 to 339 m at 4.11 gpt 3E.

DS005, the deepest hole drilled on the River Valley PGM project, targeted a deep 3D IP anomaly and tested the presence of PGM mineralization at depth. DS005 was drilled to the depth of 639 metres downhole, 503.5 metres from surface. DS005 intersected 2 m of 1.6 gpt 3E from 514 m to 515 m. In addition hole DS005 intersected 1 metres of 2.13 gpt 3E from 629 m to 630 m, which confirms the presence of PGM mineralization at much greater depths than previously drilled.

Results for significant intercepts achieved in the current drill program at Dana South Zone are tabulated in Table 1. True widths of intercepts are shown.

Table 1 - High grade assay intervals of DS001, DS003 and DS004 (Composited Results)

Hole No.	From (m)	To (m)	Length of the Intersect (m)	Length of the Intersect (feet)	True Thickness (m)	Pt (gt)	Pt (opt)	Pd (gt)	Pd (opt)	Au (gt)	Rh (gpt)	3E (gt)	3E (opt)	Ni (%)	Cu (%)
DS001-2011	368	401	33	108.2	28.3	0.51	0.02	1.53	0.05	0.06		2.10	0.07	0.02	0.09
Including	368	373	5	16.4	4.3	0.98	0.03	3.37	0.11	0.12		4.47	0.14	0.03	0.15
Including	377	382	5	16.4	4.3	1.32	0.04	3.53	0.11	0.13		4.98	0.16	0.03	0.16
Including	380	381	1	3.3	0.9	3.73	0.12	11.30	0.36	0.37		15.40	0.50	0.08	0.40
And	492	498	6	19.7	5.1	0.45	0.01	1.45	0.05	0.08		1.98	0.06	0.03	0.14
DS003-2011	400	420	20	65.6	14.6	0.53	0.02	1.84	0.06	0.08		2.45	0.08	0.03	0.22
Including	409	419	10	32.8	7.3	0.82	0.03	2.99	0.10	0.13		3.94	0.13	0.05	0.36
And	446	461	15	49.2	11.0	0.64	0.02	2.19	0.07	0.11		2.94	0.09	0.04	0.22
Including	453	458	5	16.4	3.7	0.93	0.03	3.20	0.10	0.18		4.31	0.14	0.05	0.31
DS004-2011	334	365	31	101.7	21.9	0.48	0.02	1.41	0.05	0.09	0.005	1.98	0.06	0.02	0.12
Including	336	339	3	9.8	2.1	0.98	0.03	2.97	0.10	0.16	0.009	4.11	0.13	0.02	0.13

Data from this resource drilling has been combined with that from approximately 111,000 m in 590 holes drilled previously up to 2005, and delivered to Wardrop Engineering for a mineral resource update. The resource update is schedule for completion by the end of the first quarter of 2012.

Exploration Update and Discussion

Exploration Drilling

The exploration phase of drilling at River Valley in 2011-2012, focused primarily on drilling in the interior of the River Valley Intrusion Complex (RVIC) (see Press Release dated December 8th 2011).  Six exploration holes for approximately 2,500 m have been completed in the Dragon, Spade Zone and East Banshee (Figure 4) and encountered favourable olivine-bearing gabbronorite units in the RVIC.  Assay results will be announced after receiving the results and conducting final QA/QC checks.

Discussion

Information from drilling suggest that the Main Zone of the breccia-hosted PGM mineralization averages 20-50 m in thickness, continues to depths of greater than 200 m, and is for the most part open along strike and downdip.  In addition, the drilling demonstrates predictable grade to depth with significant high grade intersections (5-10 gpt 3E over 1-5 m & 3-5 gpt 3E over 5-10 m) enveloped by broader (commonly >20 m and sometimes >100 m) lower grade (1.0-1.5 gpt 3E) intersections.

The continuity of mineralization and the remarkable consistency in the geology and stratigraphy along strike and at depth, suggests that there is significant potential to increase resources on the property through further extensional drilling away from the currently defined mineralized zones.

Deeper holes confirmed the presence of mineralization at depths greater than 350 m (down dip and down plunge).

There is a general correlation between three dimensional induced-polarization (3D-IP) geophysical survey anomalies and PGM sulphide intersections. The intersections for most of the holes correlate with relatively high chargeability, an indication of disseminated sulphide.

Qualified Person Statement

This news release has been reviewed and approved for technical content by Ali Hassanalizadeh M.Sc. P.Geo, Vice President, Exploration for PFN a Qualified Person under the provisions of National Instrument 43-101.

Table 2 -Drill Hole Collar and End of Hole Information

Drill Hole	Easting (m)	Northing (m)	Azimuth	Dip (m)	EoH (m)
DS001	555415	5171800	45	-59	690
DS002	555417	5171802	45	-47	390
DS003	555455	5171709	45	-47	528
DS004	555497	5171701	45	-45	469
DS005	555272	5172002	45	-52	639
DS006	555515	5171581	45	-52	466

Figure 1 - 2011 Dana South Drill Holes Location Map

Figure 2 - DS001 and DS002 Cross Section

Figure 3 - DS003 and DS004 Cross Section

(For Figures 1, 2 and 3 see http://www.pfncapital.com/s/NewsReleases.asp?ReportID=513395)

About River Valley Project

On April 20^th, 2011 Pacific North West Capital (PFN) announced that it commenced the Phase I of a five million Dollars, 15,500 metre drill program for its 100% owned River Valley PGM Project. As of January 2012, PFN completed more than 15,000 m of drilling and more than 140 line km of 3D IP geophysics survey. 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 zone. The main zone occurs within about 20 m of the intrusive contact with country rocks. This contact zone extends for over 9 km of prospective strike length and hosts the currently defined resource. The current NI43-101 mineral resource estimate was published in 2006 and the results are summarized as follows:

PFN's objective for River Valley is to delineate sufficient resources to establish a multi-million tonne open pit PGM mine.  Completion of a new NI43-101 mineral resource estimate is scheduled for the end of first quarter of 2012.

NI43-101 Compliant 2006 Mineral Resources for River Valley

• Measured Resources:
  7.99 million tonnes grading 1.33 g/t p palladium,  0.44 g/t platinum, 0.08 g/t gold, 0.12% copper and 0.02% nickel using a cut-off grade of 1.00 g/t palladium + platinum (Pd+Pt).

• Indicated Resources:
  11.31 million tonnes grading 1.08 g/t palladium,  0.36 g/t platinum,0.07 g/t gold, 0.10% copper and 0.02% nickel using a cut-off grade of 1.00 g/t Pd+Pt.

• Inferred Resources:
  0.88 million tones grading 1.36 g/t palladium,, 0.47 g/t platinum , 0.07 g/t gold, 0.10% copper and 0.02% nickel using a cut-off grade of 1.00 g/t Pd+Pt

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 optioning/joint venturing its projects through to production. In January 2011, Pacific North West Capital Corp. successfully negotiated the 100% acquisition of the River Valley PGM Project from Anglo Platinum Limited, which makes Anglo Platinum the largest shareholder of PFN. The River Valley PGM project is one of North America's newest and largest primary platinum group metals (PGM) deposits. The project has excellent infrastructure support and is located 100 km from Sudbury, Ontario, one of Canada's largest mining centres with two large mineral processing facilities that have excess capacity.

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 (defined as "PGM" above), gold and base metals.

The Company has PGM, gold and base metal projects in BC, Ontario, Saskatchewan and Alaska and continues to evaluate additional PGM, precious metals and base metals projects.

Pacific North West Capital Corp. is an International Metals Group Company.
(www.pfncapital.com)

On behalf of the Board of Directors

Harry Barr
Chairman and CEO

Disclaimer: Neither the TSX nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: Certain information presented, including discussions of future plans and operations, contains forward-looking statements involving substantial known and unknown risks and uncertainties. These forward-looking statements are subject to risk and uncertainty, many of which are beyond control of company management. These may include, but are not limited to the influence of general economic conditions, industry conditions, fluctuations of commodity prices and foreign exchange rate conditions, prices, rates, environmental risk, industry competition, availability of qualified staff and management, stock market volatility, timely and cost effective access to sufficient working capital or financing from internal and external sources. Actual results, performance, or achievements may differ materially from those expressed or implied by these forward looking statements.

 

 

Please send requests for further information to: 

Harry Barr 
Chairman & CEO 
Pacific North West Capital Corp. 
Tel:  [phone] 
Email: [email protected] 

Bill Stone 
President  & COO 
Pacific North West Capital Corp. 
Tel: [phone] 
Email: [email protected]