Pacific Ridge Exploration Ltd. has the option to acquire up to a 75% interest in the Chuchi porphyry copper-gold project (“Chuchi” or the “Project”) from AuRico Metals Inc., a wholly owned subsidiary of Centerra Gold Inc. (“Centerra”). Chuchi is located in the prolific Quesnel Trough, north central British Columbia (see Figure 1).
The Quesnel Trough, North Central British Columbia
Over 6,100 hectares (61 sq. km) in size, the road accessible Chuchi is located 90 km north of Fort St. James and 35 km northwest of Centerra’s Mount Milligan mine (see Figure 2). The Project is in the Quesnel terrane and is underlain by lower Jurassic volcanic and sedimentary rocks of the Takla Group (Chuchi Lake succession). Porphyry copper-gold mineralization at the BP and Rio Algom Zones is associated with a cluster of early Jurassic monzodiorite to syenite porphyry intrusions, dated at 188.5 Ma ± 2.5 Ma. The main BP Zone is defined by 4 km x 3 km halo of outer propylitic alteration surrounding a central 1.5 km x 1.5 km area of copper-gold mineralization, which is open to depth and potentially to the east across the north-south trending Valley Fault (see Figure 3).
Chuchi has a long history of exploration by companies such as Noranda, BP, Rio Algom, Kiska Metals and AuRico, including 8,886 m of drilling in 48 holes, of which 39 holes have targeted the main BP Zone. An additional 27 holes were drilled in 1991, but the records for this drilling have been lost. Most of the drilling was shallow, less than 150 m in depth, with many of the drill holes ending in mineralization. Grades within the mineralized portion of the BP Zone range from 0.21% to 0.4% Cu and from 0.21 g/t to 0.44 g/t Au (see Table I). Pacific Ridge believes that the core of the porphyry system has yet to be identified. The Project also contains other targets that could represent porphyry centres.
Pacific Ridge is planning an airborne ZTEM resistivity survey and a surface exploration program consisting of mapping, sampling, and core re-logging this summer with the objective of defining drill targets for the 2023 field season.
Southern Hogem Batholith and Regional Magnetics – Chuchi, Onjo, and Mt. Milligan
Chuchi Project with IP Chargeability and Historical Drill Holes
BP Zone Drill Highlights
Pacific Ridge has the right to earn a 51% interest in Chuchi by making cash payments totaling $60,000, issuing 2.0 million shares, and spending $5 million on exploration by the fourth anniversary of the agreement. The Company then has the right to increase its interest in the Project to 75% by making additional payments totaling $100,000, issuing 1.5 million shares and completing an additional $5 million in exploration by the sixth anniversary of the agreement. The agreement is subject to regulatory approval. Various claims are subject to up to 6% in net smelter royalties, which can be bought down to 2.1%.
The Company will also pay a finder’s fee of $15,000 on signing of an agreement and $5,000 each 6 months thereafter plus 2% on exploration expenditures after certain other property payments have been made.
None of the results in this news release have been independently verified by the Company. As such, the results should be interpreted to be historical in nature and investors are cautioned not to rely unduly on such results.