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VANCOUVER, Jan. 26 - Pacific Ridge Exploration Ltd. is pleased to announce it has entered into an option agreement to acquire up to a 60% interest in Kaminak Gold Corporation's Baker Uranium Project located near Baker Lake, Nunavut.
This approximate 350,000 acre property is located within a highly favourable geological environment for the discovery of uranium and gold mineralization. The property is host to at least 20 known uranium prospects that occur along 75 kilometres of a geological unconformity.
Pacific Ridge Program
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Pacific Ridge proposes to complete a compilation of historical
exploration data, followed by airborne radiometric surveys and ground follow-up, all of which will be used to prioritize drill targets for a diamond drilling program.
Previous Exploration
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The property's uranium potential was recognized when Pan Ocean Oil Ltd. explored the area from the late 1960s until 1976. Shortly thereafter, Noranda Ltd. undertook a program between 1978 and 1984. These companies conducted prospecting, mapping, geophysics and diamond drilling, resulting in the discovery of 20 individual uranium prospects along the trace of the unconformity.
The uranium mineral occurrences and prospects share many geological similarities with the Beaverlodge Uranium District, located on the north rim of the Athabasca Basin, Saskatchewan. The overall geological setting of the Baker Lake Uranium Project also suggests a favourable environment for the discovery of iron-oxide-copper-gold deposits (IOCG). These criteria include diatreme breccia hosted Cu-Au-U mineralization, presence of continental alkaline volcanic rocks, and pervasive hematite alteration zones.
The Agreement
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Under the terms of the option agreement, Pacific Ridge has the right to earn an initial 51% interest by December 31, 2008 by making exploration expenditures totaling $2.0 million dollars 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 Ridge will have the right to increase its interest to 60% by spending an additional $1.0 million prior to December 31, 2010. Thereafter, Pacific Ridge 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, as well as by Shear Minerals Ltd./Stornoway Diamond Corporation who collectively hold an 8.5% Net Profits Interest. The option agreement with Pacific Ridge pertains to all commodities other than diamonds. |
