VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/13 -- Pacific Ridge Exploration Ltd. (TSX VENTURE: PEX) ("Pacific Ridge" or the "Company") has entered into an agreement with Shawn Ryan and Wildwood Exploration Inc. (the "Vendors") whereby Pacific Ridge has the right to earn a 100% interest in the King Solomon Gold property, comprising 331 claims (6,700 ha - the "Property") located in the heart of the Yukon's famous Klondike Gold District. The King Solomon property, located approximately 40 kilometres southeast of Dawson City is accessible by all-weather road.
The King Solomon property covers one of the largest and strongest gold-in-soil anomalies in the Klondike that has not yet been explored by trenching or drilling. Quartz Creek, Sulphur Creek, Gold Bottom Creek and Dominion Creek are well-known Klondike gold placer creeks with drainages originating within the King Solomon property.
The main target of interest is a 1,600 m by 1,600 m gold-in-soil anomaly that lies near the summit of King Solomon Dome. Within this anomaly, gold values range to a maximum of 1,377 ppb or 1.38 grams/tonne gold, above an anomaly threshold value of 30 ppb Au. The core of the anomaly has a strong association with silver and tungsten values. A second gold zone target, measuring 600 m by 800 m, located just west of the main target zone, has a strong silver-bismuth association.
Pacific Ridge believes that there is an excellent chance for the discovery of a bedrock source of gold mineralization associated with these soil gold anomalies and the headwaters of placer gold creeks. An exploration program of deep penetrating soil sampling and high resolution IP-resistivity geophysical surveying is planned over the two anomalies and will commence during the month of June. This work will then be followed by drill testing of the highest priority targets.
In order to earn a 100% interest in the Property, Pacific Ridge will, subject to TSX Venture Exchange approval, and prior to May 15, 2017, commence the making of staged payments totaling $500,000, issue 1,500,000 shares and complete $2,500,000 in exploration work. The initial payment will be $50,000 and 250,000 shares. After Pacific Ridge has earned a 100% interest in the Property, it will issue up to an additional 500,000 shares to the Vendors upon the Property attaining certain future exploration milestones. The Vendors will retain a 2% net smelter return royalty in the Property, 50% of which can be purchased by Pacific Ridge for $2 million at any time. After earning a 100% interest in the Property, Pacific Ridge must make annual advance royalty payments of $50,000, which will be deducted from the net smelter return royalty after commencement of commercial production.
About Pacific Ridge
Pacific Ridge is a mineral exploration company focused on the Yukon's new White Gold District, with three exploration projects that are well located in the same vicinity and in the same geological environment as Kinross Gold's White Gold deposit, Kaminak Gold's Coffee gold deposits and Comstock Metals' new QV gold discovery. Pacific Ridge's 280 km2 Mariposa gold project covers the prolific Scroggie and Mariposa placer gold creeks. It has seen $6 million in soil sampling, trenching and drilling spent over the past three years resulting in discovery of a number of well mineralized gold zones. The 27 km2 Eureka Dome property also covers the headwaters of placer mining creeks. The 49 km2 Gold Cap/Polar-Stewart property adjoins the Kinross White Gold property and contains yet-to-be drilled gold soil anomalies, the strongest of which is a possible extension to one of the Kinross gold-in-soil anomalies.
Pacific Ridge's Fyre Lake property, in Yukon's Finlayson Lake District, hosts a copper-gold-cobalt massive sulphide deposit with a 43-101 compliant indicated mineral resource of 3.6 million tonnes grading 1.57% copper, 0.10% cobalt and 0.61 grams gold per tonne at a 1 percent copper cut-off grade plus an inferred mineral resource, at the same cut-off grade, of 5.4 million tonnes grading 1.48% copper, 0.08% cobalt and 0.53 grams gold per tonne. This open-ended copper and gold deposit has yet to be fully defined by drilling. Joint venture participation is being considered for Fyre Lake.
The Company also controls a uranium exploration project in the Baker Lake area, NWT, for which joint venture participation is also being considered.
On behalf of the Board of Directors,
John S. Brock, President & CEO
Pacific Ridge Exploration Ltd.
The technical information contained within this News Release has been reviewed and approved by Gerald G. Carlson, Ph.D., P.Eng., Vice President Exploration of Pacific Ridge Exploration, and Qualified Person as defined by National Instrument 43-101 policy.
Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling and other activities and events or developments that Pacific Ridge Exploration Ltd. ("Pacific Ridge") expects to occur, are forward-looking statements. Forward-looking statements in this news release include statements regarding the placements and future exploration plans and expenditures. Although Pacific Ridge believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploration successes, and continued availability of capital and financing and general economic, market or business conditions. These statements are based on a number of assumptions including, among other things, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of Pacific Ridge and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for Pacific Ridge's proposed transactions and programs on reasonable terms, and the ability of third party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Pacific Ridge does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Neither the 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.
Pacific Ridge Exploration Ltd.
John S. Brock
President & CEO
(604) 688-4670 (FAX)
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Vybz Kartel Convicted of Murder
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Koch Brothers Step up Anti-Obamacare Campaign
- U.S. Consumer Sentiment Falls in Early March
- U.S. to Relinquish Gov't Control Over Internet