Pacific North West Capital Corp (TSX: PFN; OTCBB: PAWEF) said it has entered into an option agreement to acquire up to 100 percent in the Rock and Roll gold and silver project in northern British Columbia from Misty Creek Ventures Ltd, First Fiscal Enterprises Ltd and Pamicon Developments Ltd.
The property hosts precious metals rich, volcanogenic massive sulphide mineralization, showing similarities to the gold and silver rich mineralization of Barrick Gold Corp’s (TSX, NYSE: ABX) past producing Eskay Creek mine.
PFN can earn a 100 percent interest in the property over a four year period by completing C$2 million in exploration expenditures, paying the vendors C$130,000 and providing them with a total of 600,000 PFN shares.
The vendors will retain a 2 percent net smelter royalty, of which 1 percent can be bought for C$3 million. Rock and Roll is also subject to an underlying NSR of 2 percent, and an underlying net profits interest of 15 percent, both of which payable to Prime Equities International Corp, and both can be bought for C$1.5 million each.
Known mineralization on the Rock and Roll property occurs in two zones, the Black Dog and SRV zones, over a strike length of approximately 950 metres.
A total of approximately 14,000 metres of core drilling in 110 holes was completed on the property from 1991 to 1997. Only six drill holes probed outside of the known mineralization. Historic drilling has tested the known mineralization down to depths of only about 160 metres, thus there is the potential for additional mineralization along strike and at depth.
A 350 line kilometre AeroTem3 helicopter-borne magnetic/electromagnetic survey covering the property was completed in early August. Following interpretation of the airborne survey, a crew will be mobilized to ground truth anomalies. The crew will also complete re-sampling and partial re-logging of the existing core to evaluate historic results and interpretations.
Upon receipt of permits, a drill will be mobilized to Rock and Roll to complete infill drilling on the known areas of mineralization and to test anomalies identified by the airborne survey. Drilling is expected to commence in mid-September.