Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

March 30 2021, 09:31 GMT+01:00

Pacific Ridge Exploration

  • TSX-V: PEX
  • Shares Outstanding: 42.85M
  • Share price C$0.125 (24.03.2021)
  • Market Cap: C$5.36M

Pacific Ridge’s goal is to become one of the leading Copper-Gold exploration companies in British Columbia. Their flagship project is the advanced-stage Kliyul Copper-Gold project, located in the Quesnel Trough, approximately 50 km southeast of Centerra Gold’s Kemess project. Historic drilling at Kliyul encountered significant porphyry Copper-Gold mineralization and the drill hole KL-15-34 returned 245m of 0.62% CuEQ. The Company plans to launch a drill programme at Kliyul in 2021. 

We met with Blaine Monaghan, President & CEO of Pacific Ridge Exploration to discuss the company and their plans moving forward.

Company Overview & History

Pacific Ridge Exploration has been around since the late 1970s and has been focused primarily on Gold in the Yukon. Last year, they pivoted to Copper-Gold projects in BC and acquired the Kliyul and Redton from Centerra. Kliyul is advanced stage with about 33 drill holes and recent drilling in 2015 identified Copper-Gold porphyry mineralization. It hasn't been drilled since then but Pacific Ridge has done a lot of work since they acquired it last year and the timing was perfect given the fast moving Copper market. 

Pacific Ridge is looking forward to starting drilling at Kliyul this summer and has just raised a $1M financing from one individual in Germany which gets them almost all the way to funding the drill programme starting in July. Projects of this type are very much in high demand with GT Gold having just been acquired by Newmont and the Kliyul project is geologically quite similar to GT’s Saddle North deposit.Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

Backed by 1 Person in Germany: Why and Who?

The individual backer in Germany has been acquiring large stakes in companies over the past few years and came across Pacific Ridge project wanting to invest and the money will be used for drilling the Kliyul project.  

Team Experience & Time Allocation 

Blaine Monaghan is splitting his time 50-50 between Fremont and Pacific Ridge. Fremont is focused on Gold in Nevada and Pacific Ridge is focused on Copper-Gold projects in BC and they have completely separate technical teams. Pacific Ridge has a really strong team with Jerry Carlson, a PhD geologist, leading the technical team. They brought in a VP of exploration last year called Danette Schwab and recently added a new board member called Borden Putnam. They also have Craig Hart, who is the head of the mineral resource department at UBC and recently added another former senior geologist of the BC Ministry of Energy and Mines to the technical committee. 

The Project: Data, Progress, & Plans

The Kliyul project is a Copper-Gold porphyry system and Pacific Ridge is hoping to make a discovery that will lead to a deposit. The project has had some drilling but only a few holes that went deep enough to identify the porphyry style mineralization. Pacific Ridge needs to drill a little bit deeper to continue to extend the Kliyul Main Zone.There are also some adjacent targets called Kliyul West and Kliyul East that haven't been tested, so they need to test those too. The Kliyul Main Zone itself is just one porphyry target along a 4km long mineralized trend that could host additional porphyry targets. Pacific Ridge will be starting this year with at least a 2,500m programme in 5 holes, testing the Kliyul Main Zone and the East and West target, and continuing to build up those other porphyry targets as well.Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

Pacific Ridge farmed out a project called the Fyre Lake to a private British company called BMC Metals so has been receiving payments for that project and using those payments to conduct small exploration programmes. With the Kliyul project as the flagship, Pacific Ridge now needs to raise a lot of money and needs to create an interest in awareness. They need to spend more money on marketing and IR responsibly going forward. 

There are other deposits and mines in the area that have geological similarities to Kliyul like Kemess to the North, Mount Milligan to the south, Red Chris and GT Gold’s Saddle North and could provide information to Pacific Ridge on that style of mineralization.

Business Plan & Approach to Value Growth

Pacific Ridge needs to get those headlines out there to get the share price moving to be able to make the money that they need to raise a lot cheaper. The $1M that they raised goes a long way to funding the drill programme, as they'd budgeted about $1.65M and they have about $500,000 in the treasury. They plan to do another small raise but would like to do it at higher prices to minimise dilution and as people become more aware of Pacific Ridge and their team and their projects they will see the value. Apart from the Kliyul project and the technical team, they also have other Gold projects in the Yukon that they'll look to spin out or sell at some point time to unlock further value. They are also due another $1m from BMC Metals at the end of 2021.Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

Timing the Market & Raising Money 

In the past, Pacific Ridge was more focused on Gold in the Yukon but now they're focused on Copper-Gold projects in BC. People will start to see them as a Copper dominant company which will play in their favour as they continue to communicate their story. With the money they have available right now, they are confident they can continue to wait for a better rate closer to their drill date in July when they will be raising money at higher prices.Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

Great Expectations: Why Invest in Such a Small Company?

Pacific Ridge is a small Copper-Gold company with only around CAD$5M market cap but they have already increased dramatically since Blaine Monaghan joined in January and they will continue to add value going forward. They only have 44M shares out and are trading at $0.11 or $0.12. They have the money and a good project that will deliver results for the company.

The key for Pacific Ridge is market awareness of the company and their plans moving forward. Since January, they have brought on an IR consultant and a new board member, raised $1M from a German investor and added to the technical committee.  The company has the Kliyul project which is the focus and where they will be drilling and also have Redton which was a part of the deal with Centerra. Pacific Ridge would like some additional Copper-Gold project acquisition in the future to add to their existing projects to continue to build the pipeline in BC or in other jurisdictions. They also want to unlock the value from the Yukon Gold project portfolio, and then ultimately move forward with drilling there.Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

It was good to catch up with Pacific Ridge Exploration and to find out what they're doing with Copper-Gold, BC. We hope that they have the timing right as Copper is looking good for a long time ahead. Pacific Ridge has a project that has both Copper and Gold in a great jurisdiction which will be exciting for the company going forward.Pacific Ridge Exploration (PEX) - Copper & Gold Explorer, Solid Management.

To find out more, got to  the Pacific Ridge Exploration Website

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