Pacific Ridge plans Yukon, Nunavut drillingPacific Ridge Exploration Ltd (C-PEX) - News Release
Pacific Ridge plans Yukon, Nunavut drilling
2006-01-09 12:32 ET - News Release
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PEX Close 2006-01-06 C$ 0.12
Mr. John Brock reports
EXPLORATION PLANS FOR 2006
Pacific Ridge Exploration Ltd. plans to drill its 100-per-cent-owned Fyre Lake copper, cobalt and gold massive sulphide property in Yukon and confirms that Newmont Canada Ltd., a subsidiary of Newmont Mining Corp., plans drilling on the Pacific Ridge-Kaminak Gold Corp. Matrix gold project in Nunavut.
Fyre Lake property
The Kona massive sulphide deposit forms part of Pacific Ridge's Fyre Lake property located in the Finlayson Lake area of southeast Yukon. With renewed exploration interest in the Yukon, increased metals prices and improved infrastructure in the Finlayson Lake area, the partially defined Kona deposit, warrants continued drilling.
Since Pacific Ridge last worked on the Fyre Lake project in 1996 and 1997, metal prices have seen significant increases in particular; copper from 80 cents per pound to $2 per pound and gold from $288 per ounce to an 18-year high of over $500 per ounce.
The Kona copper-cobalt-gold massive sulphide deposit, defined by Pacific Ridge's $6-million drilling program of 115 holes, consists of open-ended zones of massive sulphide mineralization, with mineralized thicknesses varying from eight to 40 metres over a length of 1,500 metres and a width of 250 metres. Based on a National Instrument 43-101 compliant report prepared by Minorex Consulting Ltd. in August, 2002, the Kona deposit is calculated to contain 15.4 million tonnes within which 8.2 million tonnes grades 2.1 per cent copper (378 million pounds), 0.11 per cent cobalt (20 million pounds), and 0.73 gram per tonne gold (175,000 ounces), using a 1 per cent copper cut-off. Metallurgical studies indicate metal recoveries of 90 per cent for copper and 70 per cent for gold and cobalt.
The ultimate dimensions and tonnage of the Kona deposit, which remains open to depth, will be determined with additional drilling. Copper and gold grades appear to be improving with depth, where drill hole 97-100 intersected 5.7 metres of 3.23 per cent copper, 2.3 g/t gold and 0.14 per cent cobalt.
Over and above drilling to determine the ultimate size of the Kona, significant exploration potential remains with adjacent geophysical anomalies, suggesting potential for additional massive sulphide mineralization, also being the subject of drill testing during the summer of 2006.
In addition to increases of the Kona deposit's gross metals value, the infrastructure within the Finlayson Lake camp has improved with a winter road network and airstrip located approximately five kilometres north of the Fyre Lake property. Within 30 kilometres of Fyre Lake, Yukon Zinc spent $18-million during 2005 with the objective of producing a feasibility study in early 2006.
Matrix project
Pacific Ridge has been advised by Newmont that their 2005 exploration program at the Matrix gold project in Nunavut was successful in exploration of gold-bearing conglomerate zones to the extent that an expanded 2006 exploration program, to include diamond drilling, is planned.
As previously reported by Pacific Ridge, the gold-bearing conglomerate horizons found within the Matrix project have geological analogies to the billion-ounce Witwatersrand basin in South Africa.
Newmont has the option to earn an initial 60-per-cent interest in mineral properties comprising the Matrix project by spending a total of $4-million in staged exploration expenditures and making cash payments totalling $400,000 to Pacific Ridge and Kaminak Gold Corp. prior to Dec. 31, 2007. Upon earning its initial interest, Newmont may elect to form a joint venture, with Newmont owning 60 per cent, and Pacific Ridge and Kaminak each holding 20 per cent. Newmont may also elect to increase its interest to 70 per cent by spending an additional $10-million on the project, after which a joint venture would be formed with Newmont holding 70 per cent, and Pacific Ridge and Kaminak each holding 15 per cent.
Nevada
On Nov. 28, 2005, Pacific Ridge relinquished an option to earn an interest in the Whistler West property in Nevada, the results of a six-hole drilling program not having met expectations.