TSX Venture Symbol: PEX
OTC:BB: PFREF
VANCOUVER, Jan. 9 /CNW/ - Pacific Ridge plans to drill its 100% owned
Fyre Lake copper, cobalt and gold massive sulphide property in the Yukon and
is pleased to report that Newmont Canada Limited ("Newmont"), a subsidiary of
Newmont Mining Corporation (NYSE & ASX:NEM; TSX:NMC), plans drilling on the
Pacific Ridge-Kaminak Gold Corporation's 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
$0.80/pound to $2.00/pound and gold from $288/ounce to an 18-year high of over
$500/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
8 to 40 metres over a length of 1,500 metres and a width of 250 metres. Based
on a NI 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% copper (378 million pounds), 0.11% cobalt
(20 million pounds), and 0.73 grams per tonne gold (175,000 ounces), utilizing
a 1.0% copper cut-off. Metallurgical studies indicate metal recoveries of 90%
for copper and 70% 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% copper, 2.3 g/t gold and 0.14% 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 5 kilometres north of the Fyre Lake
Property. Within 30 kilometers 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% interest in mineral
properties comprising the Matrix Project by spending a total of C$4.0 million
in staged exploration expenditures and making cash payments totaling C$400,000
to Pacific Ridge and Kaminak Gold Corporation prior to December 31, 2007. Upon
earning its initial interest, Newmont may elect to form a joint venture, with
Newmont owning 60%, and Pacific Ridge and Kaminak each holding 20%. Newmont
may also elect to increase its interest to 70% by spending an additional C$10
million on the project, after which a joint venture would be formed with
Newmont holding 70%, and Pacific Ridge and Kaminak each holding 15%.
Nevada
On November 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.
John S. Brock
President
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
