Tonsina Property

Summary and Request for Proposal

Nickel‐Copper‐Platinum Group Metal Potential in South‐Central Alaska, USA

  • Drill Ready Ni-Cu-PGM reef style target with 0.96% Ni, 0.58% Cu, 0.284 gpt Pt & 0.569 gpt Pd
  • Property boundary located 3 km from paved highway and an electric transmission line
  • 4,100 hectare property on State of Alaska land with multiple PGM targets
  • Mineralized reef identified in outcrop for 850 m along strike and 40 m in true thickness at Sheep Hill
  • Reef mineralization open to the east, west, north and at depth
  • Separate style of chromite mineralization contains up to 2.8 gpt Pt & 2.5 gpt Pd at Bernard Mountain

Figure 1: Satellite image of the Tonsina Property showing its location relative to nearby paved highway and electrical transmission line. The east-to-west extent of the property is approximately 12 km.

Figure 2. Geological setting of the Tonsina Property (outlined in red). The Tonsina Property overlies the central part of the Tonsina Ultramafic Complex (TUC). The five massifs of the TUC are labeled above. Purple shading corresponds to ultramafic rock types and magenta corresponds to mafic rock types, mainly gabbro. Base map -- USGS Valdez Quad C-3, C-4. Geology from Winkler et al., 1995.

Pacific North West Capital's 4100 ha Tonsina Property is a highly prospective Ni‐Cu‐PGM property located in the northeastern Chugach Mountains, Alaska. The property is 120 road km north of the port city of Valdez and 3 km from a paved, all‐season highway and major electric power line (Figure 1).

Geologically, the Tonsina Property lies within the Tonsina Ultramafic Complex (TUC) (Figure 2). The TUC is part of the Border Ranges ultramafic‐mafic assemblage that continues to the west along the north side of the Border Ranges Fault to the west end of Kodiak Island. The TUC is composed of olivine and pyroxene rich rock types, specifically harzburgite, lherzolite, dunite, websterite, and clinopyroxenite. The TUC also has gabbro on its northern part. This gabbro correlates to the Melchina and Wolvarine Complex to the west. The ultramafic and mafic lithologies of the Border Ranges ultramafic‐mafic assemblage are prospective for Ni‐Cu‐PGM mineralization.

Figure 3. Photograph of the mineralized "reef" horizon and mapped geologic units on the Sheep Hill area, Tonsina Intrusion. Chip channel continuous outcrop sample assays are presented in Table 1.

Recent exploration of the TUC defined stratabound Ni‐Cu‐PGM mineralization within steeply dipping magmatic layers of the ultramafic Tonsina rocks at Sheep Hill (Figure 3). Pyrrhotite, pentlandite, chalcopyrite and bornite occur in bleb and net‐textured sulphide segregations associated with disseminated to banded chromite. This "reef" is hosted in a 150 metre thick, steeply northdippping layer of dunite and lherzolite (Du‐Lh). The mineralized horizon has been traced in outcrop Sampling for 850 metres along strike and for 40 metres across strike (true thickness). Contents of PGM correlate strongly with chromite rich intervals of the mineralized horizon, whereas Ni and Cu correlate strongly with sulfide rich intervals. Metal grades are regular over multiple metre intervals: for example, 6 metres grading 0.804 gpt Pt and 1.018 gpt Pd, and 12 metres grading 0.594% Ni (Table 1). Results of outcrop sampling from the western portion of the exposed Sheep Hill "reef" returned values of up to 0.966% Ni, 0.580% Cu, 0.284 gpt Pt and 0.569 gpt Pd (Table 2). Secondary sulfide minerals identified in thin section include millerite (NiS), diginite (Cu9S5), covellite (CuS), and chalcocite (Cu2S). There has been no drilling and the extent of Ni‐Cu‐PGM mineralization remains open to expansion.

In addition samples from two areas of banded chromite on Bernard Mountain (Figure 1) returned assays with multiple gpt PGM. A sample of banded chromite from the olivine websterite unit (OlW) at Bernard Mountain returned assays of 2.8 gpt Pt and 2.5 gpt Pd.

Six‐element PGM profiles of mineralized Tonsina property outcrop samples are similar to PGM profiles for layered intrusions such as the Stillwater and Great Dyke.

Table 1. Selected Assay Results for Chip Samples from Channel TOC0717 at Sheep Hill.

Chip Channel TOC0717 was designed to cross the mineralized horizon and test the grade of the exposed mineralization. Results from the chip channel show that copper and nickel are positively correlated with sulfur, and that PGE are positively correlated with chromium.

Table 2. Select Grab Sample Assays from the Ni-Cu-PGM Reef Unit at Sheep Hill, Tonsina.

Assay results from grab samples show that copper and nickel are positively correlated with sulfur, and that PGM are positively correlated with chromium.

Proposal

Pacific North West Capital Corp is seeking a partner to finance exploration of its 100% owned Tonsina Property, Alaska. An indicative exploration program and budget for 2012‐2013 is $1 million, including phase 1 diamond drill testing of nickel‐copper sulphide and PGM targets in the Tonsina Intrusion.

Digital data sets for the Tonsina Property are available under a signed Confidentiality Agreement. Interested companies should contact Mr. Ali Alizadeh (VP Exploration) or Mr. Bill Stone (President & COO) to sign a CA.

Qualified Person Statement: Technical information provided on this report has been reviewed and approved for technical content by Ali Hassanalizadeh M.Sc. MBA, P.Geo, Vice President Exploration for PFN and a Qualified Person under the provisions of NI 43-101.