Pacific Ridge (PEX) News. PEX says it has $1.1 billion of gross contained metal at reasonably good grades. Mr. Market says "you're only worth C$8 million". Either Mr. Market or PEX management is confused. I do have some PEX. May add here.
Pacific Ridge's Kona reaches $1.1-billion (U.S.) value
Pacific Ridge Exploration Ltd PEX
Shares issued 37,135,539 Feb 20 close $0.21
Mon 23 Feb 2004 News Release
Mr. John Brock reports
STRONG METALS MARKET ADDS VALUE TO PACIFIC RIDGE'S FYRE LAKE DEPOSIT Pacific Ridge Exploration's Kona volcanogenic massive sulphide (VMS) copper, cobalt and gold deposit on the Fyre Lake property in Yukon is seeing renewed interest as a result of dramatic increases in the price of copper and gold. A $1.1-billion (U.S.) gross metals value has now been reached for the 8.2-million-tonne Kona deposit with current metal prices at $1.35 (U.S.) per pound for copper, $400 (U.S.) per ounce for gold and $25 (U.S.) per pound for cobalt. Based on a National Instrument 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 deposit 8.2 million tonnes grades 2.1 per cent copper, 0.11 per cent cobalt and 0.73 grams per tonne (g/t) gold, using a 1.0-per-cent copper cutoff. Metallurgical studies prepared by Lakefield Research Ltd. in June, 1997, indicate metal recoveries of 90 per cent for copper and 70 per cent for gold and cobalt. Cobalt is associated with pyrite and can be efficiently recovered as a separate product from copper-gold concentrates. Using prices of $1.00 (U.S.) for copper, $365 (U.S.) per ounce of gold and $10 (U.S.) per pound of cobalt, an independently prepared scoping study by Kilborn Engineering Pacific Ltd. in August, 1997, suggests economic viability for a 20-million-tonne reserve, with an open-pit grade of 2.0 per cent copper, 0.7 g/t gold and 0.12 per cent cobalt, and an underground grade of 3.0 per cent copper, 1.0 g/t gold and 0.12 per cent cobalt. With a presently defined deposit of eight million tonnes, exploration potential is well
demonstrated for the discovery of additional mineralization through
drilling within a 20-million-tonne envelope.
Pacific Ridge holds the right to a 100-per-cent interest in the Fyre Lake property, 80 per cent of which is directly held and the remaining 20 per cent subject to an option to purchase. To date, Pacific Ridge has spent over $6.0-million on exploration and mineral resource definition at Fyre Lake. During 1996 and 1997, Pacific Ridge focused its attention to delineating one target, the Kona deposit, through completion of 23,200 metres of drilling in 115 holes. No further exploration has been conducted since 1997. Fyre Lake is located in the Yukon's Finlayson Lake district in southeastern Yukon. The potential of the Finlayson Lake district was recognized in the late 1950s with the discovery of massive sulphide mineralization at Fyre Lake, followed in the mid-1990s with the discovery of the Kudz Ze Kayah VMS deposit 30 kilometres to the north of Fyre Lake and the discovery of the Wolverine VMS deposit 30 kilometres to the northeast of Fyre Lake. More recently, discovery of emeralds has also drawn attention to the district. The Kona deposit consists of two parallel northwest-trending zones of copper-cobalt-gold massive sulphide mineralization found in horizons with mineralized thicknesses varying from eight to 40 metres over a length of 1,500 metres and a width of 250 metres. 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 per cent copper, 2.3 g/t gold and 0.14 per cent cobalt. Significant exploration potential remains, in addition to determining the ultimate size of the Kona massive sulphide deposit. Increased tonnage at
Fyre Lake may quickly be recognized with proposed drilling of a
four-kilometre-long magnetic anomaly located northeast of Kona and a three-kilometre-long magnetic anomaly lying west of Kona. These geophysical targets, larger and more intense as compared with the magnetic feature reflecting the Kona mineralization, represent priority drill targets for discovery of additional massive sulphide deposits. Potential also exists for discovery of emeralds within four beryllium, chromium, tungsten and copper in soil anomalies on the Fyre Lake property. Pacific Ridge is inviting a joint venture participation to finance further drilling leading to definition of a minimum 20-million-tonne resource, followed by a feasibility study for development of an open-pit and underground mine plan. It is notable that within the Finlayson Lakes district, there may be an opportunity for future shared infrastructure with other mining interests in the camp, a process that could lead to substantial capital cost advantages to a new mining project. Wayne J. Roberts, PGeo, and vice-president of exploration of Pacific Ridge, is the designated qualified person for the Fyre Lake project. |
