Pacific Wildcat Resources Corp.
TSX VENTURE : PAW

Pacific Wildcat Resources Corp.

February 28, 2012 13:05 ET

Pacific Wildcat Resources Corp.: Results Confirm Regional Potential of the Mrima Hill Carbonatite Complex

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2012) - Pacific Wildcat Resources Corp. (TSX VENTURE:PAW) ("PAW" or the "Company") is pleased to announce that Mrima Hill niobium and rare earth oxide rich carbonatite along with other surrounding alkaline intrusions, principally at Kiruku Hill and Jombo Hill, are components of a single very large (17 km x 9 km) alkaline igneous complex - the Dzombo Intrusive Complex.

This conclusion is a result of a recently completed report prepared for PAW by a renowned rare earths consultant, Professor Ken Collerson. Professor Collerson based this major reinterpretation on reconnaissance magnetic and gravity data, coupled with a geochemically coherent model to explain the diverse geology of the area. This has shown that a large alkaline ultramafic intrusion links Mrima Hill with the surrounding outcropping alkaline rocks at Jombo Hill, Nguluku Hill, Kiruku Hill and Dzirihini ("Figure 1"). The discovery has substantially increased the area of prospectivity around Mrima Hill to more than 110 km2.

The Dzombo Intrusive Complex appears to be similar in size, geological complexity and prospectivity to the economically important rare metal rich intrusions on the Kola Peninsula in Russia and Finland. This discovery is a significant advance in understanding the geology and hence mineral potential of the Mrima Hill area.

In addition to the current resource drilling program at Mrima Hill, PAW and Cortec Mining Kenya ("CMK") intend to undertake an exploration program within the Dzombo Intrusive Complex to identify other areas of specialty metals, rare earth oxides, platinum group elements ("PGE"), gold, scandium, gallium and copper mineralization. PAW has a conditional purchase agreement to acquire an indirect 70% interest in CMK, owner of the Mrima Hill Niobium and Rare Earth project.

Further Key Points

  • Significant Total Rare Earth Oxide ("TREO") rock chip results of 1.33% and 0.71% at Kiruku Hill collected over 3km from Mrima Hill ("Figure 2") support the interpretation of the Dzombo Intrusive Complex.
  • Total count radiometric survey shows an anomaly at the northwest corner of Mrima Hill, which has the potential for TREO mineralization. Further anomalies correlate to the surrounding hills and show the potential for TREO in the alluvial plain from transported eroded material ("Figure 1").
  • TREO are present at Jombo Hill and Nguluku Hill with a higher HREO and Yttrium to LREO ratio than at PAW's drill programs at Mrima Hill.
  • Anomalous TiO2 rock chip result at Jombo Hill of 3.77% and Nguluku Hill of 2.47%.
  • TREO rock chip results of 0.17% at Nguluku over 6km from Mrima Hill.

Rock chip sampling was focused on the TREO potential from both fenitised (hydrothermal alteration to surrounding rock) and intrusive alkaline igneous rocks. PAW collected thirty-four rock chips across Jombo Hill (17), Kiruku Hill (8), Nguluku Hill (6) and the base of Mrima Hill (3) at an old quarry outside of the known mineralization zone. Twenty of these samples have been received and are listed in Appendix 1. The remaining 14 results are yet to be verified and will be released when available. The samples are indicative of the source and presence of TREO, and provide strong follow up targets for further exploration.

All sample preparation was undertaken by the Nagrom assay labs in Perth. Prepared samples were dispatched to both the Ultratrace (Nb2O5 analysis by XRF) and Genalysis (for rare earth and matrix analysis by ICP-MS) assay labs in Perth, Western Australia. Please refer to the table in Appendix 1 for a summary of results.

Potential of Kiruku Hill

In 1993, the Metal Mining Agency of Japan ("MMAJ") collected seven samples from the northeast ridge at Kiruku Hill. Although they did not assay for the full range of TREO elements and neglected to report grid co-ordinates these results are significant in identifying a mineralized area (Appendix 2). Samples collected by PAW have substantiated the anomaly identified by MMAJ. From a limited sample population PAW, has found Kiruku Hill to be favorably elevated in Heavy Rare Earth Oxides and Yttrium ("HREO") with a high ratio of 14.3% in proportion to Light Rare Earth Oxides ("LREO"). In comparison, drilling assays reported to date from Mrima Hill have a HREO and Yttrium to LREO ratio of 9.3% (Table 3). PAW drill results can be referred to in news releases NR #2011-06, NR #2011-08, NR #2011-11, NR #2011-21, NR #2011-22, and NR #2012-03.

MMAJ reported that mineralization at Kiruku Hill originated from hydrothermal activity along NW-SE regional faults and that the hill is the result of a small plug of brecciated highly baked potassium rich fenities. PAW has commissioned a recent internal review (2012) of this and other datasets by Professor Collerson who also visited the site in November 2011. His findings indicate that these fenites formed due to fluids from the alkaline intrusive complex that lies beneath the hill and "has significant exploration potential for TREO and Nb2O5". The Dindi and Swain 1988 historic aeromagnetic gravity survey ("Figure 1"), supports Professor Collerson's interpretation that outcropping alkaline intrusions are part of a single very large (>110 km2) alkaline ultramafic intrusion at depth.

The total count contoured radiometric data sourced from Terra Surveys Ltd of Canada ("TSL") 1977, which is on a more detailed scale, confirms an anomaly at Kiruku Hill supporting the theory of an alkaline intrusion beneath it (see Figure 2).

Potential of Jombo Hill and Nguluku Hill

Work undertaken by Professor Collerson (2012) has identified Jombo Hill as having the potential for PGE associated with pyroxenites and ultramafics, as well as gold in ijolites and nepheline syenites. He has mentioned the strong possibility of Phoscorites at Jombo Hill, which have a high potential for PGE's and scandium. Jombo Hill is part of the same large intrusion that produced Mrima Hill ("Figure 1 and 3") and it lacks the laterite seen at Mrima Hill. Faulting after the major weathering event that produced the laterite blanket at Mrima Hill has exposed the exposed fresh rocks.

Professor Collerson's report has also indicated the prospectivity for copper and gallium within the region. Although no anomalies have yet identified, copper sulphide mineralization was noted by Professor Collerson in diamond drill core in fresh carbonatite at Mrima Hill.

Nguluku is a small hill composed of an agglomerate, which has the strong potential for an underlying alkaline intrusion based on xenolith (exotic rock fragment) composition and total count radiometric data sourced from TSL in 1977 (see Figure 2).

TREO's are present at Jombo Hill and Nguluku Hill with a higher HREO and Yttrium to LREO ratio (Table 3) than at Mrima Hill with HREO ratio of 9.3% based on drilling results. This is geochemically consistent with the common association of HREO's in nepheline syenites (Jombo) cf. carbonatites (Mrima). These results show the presence of TREO, the highest TREO value (0.17%) achieved at Nguluku Hill (NR006) TREO over 6km from Mrima Hill. Soils and saprolitic clays in the region therefore will form a potential exploration target.

Titanium results (JR016, 3.77% TiO2) are also anomalous around Jombo Hill and Nguluku Hill (NR006, 2.47% TiO2) indicating the likely presence of pyrochlore in the intrusion.

Mrima Quarry

Three rock chips have been taken from an old quarry on the slopes of Mrima Hill, historically used for road base and outside of the zone of known mineralisation. These samples are composed of alkaline lava flows (phonolites) and ash deposits (tuff) along the lower edge of Mrima Hill, indicating that these unweathered rocks must have been exposed by post-laterite faulting.

As expected, the results show that TREO were present at this outcrop, though not highly elevated being outside the enriched saprolite and carbonatite zones ("Appendix 1").

A New Exploration Initiative

Following these positive results, PAW plans to undertake the following exploration program to better delineate mineralized areas and the intrusive complex that formed these hills in tenement SPL256.

  • Detailed airborne regional aerial radiometric and magnetic surveys to define the underlying alkaline and ultramafic igneous complex surrounding Mrima Hill and the other surrounding hills. This will also aim to identify new mineralized alkaline intrusive targets, which are now buried and relate to the ultramafic intrusion at depth and fenitised zones that are undercover.
  • Soil sampling, trenching, auger and or aircore drill programs to further identify and define buried targets and any potential ionic clay mineralization. Based on the results from these geochemical sampling programs an exploratory reverse circulation drilling program is then planned to be undertaken.
  • PGE potential will be further investigated surrounding Jombo Hill where phoscorites might be present.
  • Rock chip and soil sampling, as well as mapping to better define the genesis of the intrusions and provide further anomalies for drill testing.

Closing Comments

PAW's President and CEO Mr. Darren Townsend commented, "These results demonstrate the regional potential of the large intrusive complex beneath Mrima Hill. The exploration work undertaken by our geologists and Professor Ken Collerson identifies this potential and provides many new exploration targets. It is the intention of PAW and CMK to actively explore these anomalies to gain a better understanding of the potential mineralization as an addition to the company's successful work at Mrima Hill."

ON BEHALF OF THE BOARD OF DIRECTORS OF

PACIFIC WILDCAT RESOURCES CORP.

Darren Townsend, President & CEO

About Pacific Wildcat Resources Corp. - Pacific Wildcat is a TSX Venture Exchange listed Canadian mineral exploration company having the trading symbol "PAW". It has a producing Tantalum mine at Muiane in northern Mozambique where it has the largest land position of over 450 square kilometers on the Alto Ligonha pegmatite belt, the location of numerous historic Tantalum mines.

PAW's flagship project is located in Kenya where a conditional contract is in place whereby the Company has the right to acquire an indirect 70% interest in the Mrima Hill Niobium and Rare Earth Project. This is an ex Anglo American and Pechiney property the subject of extensive historic work. In July 2011, the Company completed an initial NI 43-101 compliant inferred niobium resource estimate of 105.3 million tonnes at 0.65% Nb2O5 for a total of 1.519 billion pounds contained Nb2O5 to a depth of 30 metres from the surface. In addition, substantial rare earths mineralization has been identified and work has commenced on a Rare Earth Resource reverse circulation drilling program.

For information about Pacific Wildcat Resources Corp. and its development and exploration activities shareholders and other interested parties are invited to visit the company's website at www.pacificwildcat.com.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/PAWFig1228.pdf

To view Figure 2, please click on the following link: http://media3.marketwire.com/docs/PAWFig2228.pdf

To view Figure 3, please click on the following link: http://media3.marketwire.com/docs/PAWFig3228.pdf

To view all Tables and Appendixes, please click on the following link: http://media3.marketwire.com/docs/PAWTabs228.pdf

Qualified Person

The individuals who completed the niobium mineral resource estimate have extensive experience in the mining and exploration industry and are members in good standing of appropriate professional institutions are as follows:

  • Dr William (Bill) Northrop, PhD, Pr. Sci. Nat. (400164/87), FSAIMM, FGSSA, MGASA
  • Mr. Andre Deiss, BSc (Hons), Pr. Sci. Nat. (400007/97), MSAIMM

Dr. Northrop and Mr. Deiss are competent person's registered with the South African Council of Natural Scientists ("SACNASP") as well as with various mining and geological professional bodies and are qualified persons as defined under NI 43-101. Both Dr. Northrop and Mr. Deiss have reviewed the content of this press release and consent to its disclosure.

Timothy David Major, BSc, MSc - Geology and Mineral Exploration. MAusIMM. Qualified person under NI 43-101, and as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' has reviewed the scientific and technical data and exploration data relating to the Mrima Hill Project contained in this news release on behalf of the Company and consents to its release.

A Quality Assurance/Quality Control (QA/QC) program forms part of the drilling, sampling and assay program on the Mrima Hill Project. This program includes chain of custody protocol as well as systematic submittal of certified reference materials and blank samples into the flow of samples produced by the drilling. The results of the Company's drill program have been reviewed, verified (including drill logs, assay certificates, test data and additional supporting information sources) and compiled by the Company's Exploration Manager (Timothy David Major, who is a qualified person for the purpose of NI 43-101 - Standards of Disclosure for Mineral Projects).

Investors are cautioned that trading in the securities of Pacific Wildcat Resources Corp. should be considered highly speculative. Cautionary note: This press release contains forward looking statements, particularly those regarding cash flow, capital expenditures, work programs, the estimation of mineral resources and the Company's plans with respect to the exploration and development of its projects and its investment plans. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. There can be no assurance that the Company will be able to obtain a mining licence or any of the permits that are required in order to commence mining operations at the Mrima Hill Project. The rare earths historical resource estimates is considered speculative and therefore noncompliant with National Instrument 43-101 ("NI 43-101") reporting standards and should not be relied upon. The Company is not treating the historical estimate as current mineral resources or reserves. The Company has not undertaken any independent investigation of the historic rare earths resource estimates. The Company believes that these historical resource estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration. The Company intends to confirm the historic resource estimates through drilling currently underway.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information