Pacific Ridge Exploration Ltd. has dusted off its 100% owned Fyre Lake Project in the Finlayson Lake district, Yukon and is planning a resource expansion drilling program of the Fyre Lake - Kona massive sulphide deposit as well as initial testing of two additional exploration targets.
On January 9, 2006, Pacific Ridge reported an 'in-house' historic resource estimate of the Kona deposit which was not compliant with the new National Instrument 43-101 guidelines. Pacific Ridge subsequently contracted Minorex Consulting Ltd. of Aldergrove, BC to complete a NI 43-101 compliant Technical Report including an independent resource calculation of the Kona deposit.
The Kona volcanogenic massive sulphide deposit has been tested by 115 holes totaling 22,663 metres of diamond drilling. Most of this drilling was conducted along a 1,500-metre section of an apparent 2,100 strike length from near its surface exposure in Kona Creek, southeasterly towards Outfitters Creek. The drill-tested mineralization occurs within an area approximately 1,500 metres long by 250 metres wide.
Two parallel zones of volcanogenic massive sulphide mineralization, East Kona and West Kona, comprise the Kona deposit, separated by an inferred reverse fault. The East Kona zone mineralization is 100 to 150 metres wide, and consists of two massive to banded sulphide-bearing horizons (i.e. Upper and Lower East Kona) separated by 40 to 70 metres of chlorite schist. The Lower East Kona horizon has been divided into north and south portions separated by an apparent gap in the horizon. The northern portion is 3 to 16 metres thick and the southern portion is 2 to 11 metres thick. The Upper East Kona horizon averages thicknesses of 8 to 12 metres. These horizons consist mainly of pyrite with lesser pyrrhotite and chalcopyrite, local lenses of massive magnetite, and minor sphalerite.
The West Kona zone is inferred to be 75 to 125 metres wide. The thickness of the mineralized horizon varies across this width from about 44 metres in the east to less than 1 metre at the western margin; the thickness also varies along strike. It includes mineralization that changes laterally from magnetite, pyrite and chalcopyrite in a siliceous matrix, through massive pyrite and lesser chalcopyrite, to massive pyrrhotite with minor pyrite and chalcopyrite. This mineralization occurs close to a stratigraphic contact between chlorite schist and overlying carbonaceous phyllite.
The Kona resource calculation is summarized as follows:
Indicated Mineral Resources Copper Cut-off Tonnage Copper Cobalt Gold Grade (% Cu) (million tonnes) (%) (%) (grams/tonne) 2.00 0.595 2.46 0.11 0.82 1.50 1.639 1.97 0.10 0.70 1.00 3.571 1.57 0.10 0.61 0.50 6.415 1.20 0.08 0.50 No Cut-off 7.772 1.05 0.07 0.44 Inferred Mineral Resources Copper Cut-off Tonnage Copper Cobalt Gold Grade (% Cu) (million tonnes) (%) (%) (grams/tonne) 2.00 0.418 2.69 0.08 0.61 1.50 2.056 1.87 0.09 0.54 1.00 5.361 1.48 0.08 0.53 0.50 9.148 1.18 0.07 0.42 No Cut-off 12.407 0.93 0.06 0.32
(The above mineral resource estimates are NOT mineral reserves and do not have demonstrated economic viability.) The above resources were calculated from 113 drill holes collared on 50-metre-spaced sections with approximate 50-metre-hole spacing along the sections. The resource estimation utilized Gemcom software. A solid three-dimensional ("3D") geologic model was first constructed by joining correlatable horizons of similar mineralogy using 3D polylines. These correlations were completed on 25-metre-spaced sections. Once completed, the sectional polylines were joined together to form a 3D solid body model of that specific mineralization. A total of six distinct 3D solids were created, each representing specific mineralogy. Once the 3D solid models were completed and verified, drill hole assay and specific gravity data were composited to 1-metre intervals inside the respective solids. A geostatistical study of the assay composites was conducted utilizing variograms generated at various orientations. The grades and specific gravities of individual blocks were interpolated using an 'ordinary kriging' method with a 100-metre search radius. A 100-metre search radius was deemed appropriate, given the geostatistical results, since it was a sufficiently conservative distance to interpolate between tested drill sections without projecting grades and specific gravities over unrealistic distances. Kriging parameters included a number of restrictions, such as only two assay composites from each hole, to force interpolation along the relatively thin, elongated mineralized horizons. Once the rock type, percent, specific gravity and copper, cobalt and gold grade block models had been created, indicated and inferred mineral resources were calculated individually using Gemcom 'Volumetrics' software subroutine. Those resources within a 100-metre search radius with geological and grade continuity were reported as 'Indicated Mineral Resources'. Any mineral resources beyond the 100-metre search radius limits with a lower confidence level of geological and grade continuity were reported as 'Inferred Mineral Resources'. The estimates of mineral resources for the Kona volcanogenic massive sulphide deposit were conducted in accordance with National Instrument 43-101, and the classification of indicated and inferred resources as defined by the Canadian Institute of Mining and Metallurgy 'CIM Definition Standards on Mineral Resources and Mineral Reserves'. The Kona deposit remains open for expansion. It is notable that copper and gold grades appear to be improving with depth, where hole 97-100 near the down-dip limit of prior drilling intersected 5.7 metres grading 3.23% copper, 2.3 g/t gold and 0.14% cobalt. Based upon data review of the Fyre Lake Property, Minorex has confirmed that exploration potential exists for additional volcanogenic massive sulphide mineralization within the Fyre Lake Project and has recommended a $1.0 million, 5,000-metre diamond drilling program. The priority target will be expanding the down-dip extension of copper-gold-cobalt mineralization at the Kona deposit, as well as initiating drill testing of two large geophysical targets supporting massive sulphide mineralization proximal to the Kona deposit. All pertinent disclosure of a technical or scientific nature reported within this release was reviewed by Wayne J. Roberts, P.Geo, Pacific Ridge's Vice-President of Exploration, who serves as the Qualified Person under the definition of NI 43-101. The Minorex Technical Report will be filed on SEDAR shortly. Overview As previously announced, Pacific Ridge holds interests in the Baker Lake Uranium Project and the Matrix Gold Project, within Nunavut. Pacific Ridge has the right to earn up to a 60% interest in the Baker Lake Uranium Project. A summary of exploration potential and work plans for the Baker Lake Project will be announced in early March. Pacific Ridge and Kaminak Gold Corporation will each hold a 15% interest in the Matrix Gold Project, subject to Newmont Canada making staged exploration expenditures of $14 million. Newmont plans drilling this year at Matrix. "John S. Brock" John S. Brock President For further information, contact: Corporate Information Pacific Ridge Exploration Ltd. John S. Brock President Tel: (604) 604.641.2759 www.pacificridgeexploration.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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, 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.