Pacific Ridge Exploration Ltd. ("Pacific"), operator of the Baker Basin Uranium Project, and project partner Kaminak Gold Corporation ("Kaminak") have completed all prepatory work for commencement of the Baker Basin Uranium Project exploration program.
Pacific plans an aggressive $3 million 2007 drilling program with follow-up drilling of two uranium zones that yielded encouraging uranium assays from seven holes drilled in late 2006. Diamond drilling will also be directed to two new uranium discoveries made last year by Pacific's exploration crew. Helicopter and diamond drilling contracts have been arranged, and required permitting is in hand for commencement of drilling within the next month.
The Baker Basin Uranium Project is located about 50 kilometres south of the town of Baker Lake in southern Nunavut. The project covers an area of 500,000 acres over an approximate 60 kilometre length of the southern boundary of the Baker Lake basin, where over 20 uranium prospects have been discovered. Baker Lake basin is one of four Canadian proterozoic basins that are attractive depositional environments for large uranium deposits.
Highlights of the 2006 Baker Basin Uranium Project program include:
- Fourteen holes drilled in three zones
- Seven of the fourteen holes (50%) intersected attractive uranium grades
- Two of the three zones, each traced over one kilometer in length, host structurally controlled perched uranium mineralization in basinal sandstone. Continued drilling to depth is a priority
- At the Lucky-7 Zone, a new discovery, two of three holes intersected uranium values to 0.32% U3O8 over 3.4 metres
- At the KZ Zone, four of six holes intersected uranium values to 0.31% U3O8 over 11.5 metres
- New discoveries, including 7-one and Niner zones, consist of surface exposed uranium mineralization in boulders grading to 1.83% U3O8
- Stratigraphic mapping suggests the more porous conglomerate at the base of the sandstone would be a more favourable host for uranium mineralization, an unconformity target that lies below the 2006 drilling
- Exploration targets defined by the 2006 program are of sufficient extent that, with drill intersected uranium mineralization, size potential is suggested
Pacific plans a $3 million exploration program at the Baker Basin Uranium Project. A 3,000 metre Phase I drilling program is scheduled to start on June 1, 2007. Drilling will be initiated on the Lucky-7 and KZ Zones with five deep holes on each zone to test for "structurally controlled unconformity-style" uranium mineralization. Upon completion of geophysical surveys, initial drilling of the 7-one and Niner zones will follow.
Pacific's disclosure of a technical or scientific nature has been reviewed by Wayne Roberts, P.Geo, Vice-President Exploration of Pacific, a Qualified Person under the definition of National Instrument
Significant Exploration and Development in the Baker Lake Region
The Baker Basin Uranium Project, located within the Baker Lake basin, is immediately adjacent to the Thelon basin, where Areva Resources Canada Ltd. ("Areva") owns the Kiggavik-Sissons Schultz uranium deposits, located approximately 80 kilometres west of Baker Lake. Areva, in a November 2005 project presentation, reported that three of the Kiggavik uranium deposits contained a combined geological resource of 50,630 tonnes uranium (representing a non-43-101 compliant historic resource of 131 million pounds U3O8). It is of interest that Areva recently opened a community relations office in the town of Baker Lake.
Pacific and Kaminak
Under the terms of the option agreement, Pacific has the right to earn an initial 51% interest by December 31, 2008 by making exploration expenditures totaling $2.0 million and staged payments totaling 400,000 Units, with each Unit consisting of one common share and one 12-month share purchase warrant with an exercise price set in accordance with market at the time of issuance of the Unit. Pacific has the right to increase its interest to 60% by spending an additional $1.0 million prior to December 31, 2010. Thereafter, Pacific and Kaminak will form a joint venture in accordance with their interests then held. Underlying interests are held by Hunter Exploration Group as to a 2% Net Smelter Return interest, and by Shear Minerals Ltd./Stornoway Diamond Corporation who collectively hold a 5.0% Net Profits Interest. The option agreement with Pacific pertains to all commodities other than diamonds.
"John S. Brock"
John S. Brock
President and Chief Executive Officer
For further information, contact:
Pacific Ridge Exploration Ltd.
John S. Brock
Tel: (604) 604.641.2759
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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, exploitation activities and events or developments that Pacific Ridge Exploration Ltd. ("Pacific Ridge") expects to occur, are forward-looking statements. 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 in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. 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.