Pacific Ridge Exploration Ltd. ("Pacific Ridge" or the "Company") reports that it has acquired an option to earn a 100% interest in the TL Zinc Project. TL is a 6,420 hectare, road accessible zinc-lead-silver project located 80 km northeast of Vernon, British Columbia. The target at TL is a large Broken Hill type or SEDEX (Sedimentary Exhalative) Zn-Pb-Ag massive sulfide deposit in the same geological environment as the Ruddock Creek deposit (Imperial Metals), 125 km to the north, and the nearby River Jordan, Big Ledge and Kingfisher properties. The property is ideally situated with nearby highways, electrical power grid and rail. The price of zinc has performed well since the beginning of the year and long term forecasts are bullish due to declining reserves and a lack of new supply coming on stream.
About the TL Property
TL Zinc is a recent discovery in a largely overburden-covered area made by sampling coniferous tree needles and bark. Subsequent prospecting in the area of a broad Zn-Tl-Cd-Mn vegetation anomaly resulted in the discovery of massive to semi-massive sulphide float, containing sphalerite, pyrite and pyrrhotite. Of 56 grab samples collected, 40 assayed +1% Zn with a range of 1.08% to 18.87% and an average of 4.96% Zn. Trenching in the area encountered a zone of 7.16% Zn over 4 m.
An airborne magnetic-electromagnetic survey defined a strong conductive layer, 4 km in length and approximately 100 to over 200 m wide that appears to be conformable within the flat-lying stratigraphy and could reflect massive sulphide mineralization. In 2012, a previous optionor drilled 6 shallow holes (total 490 m) below the trenching, but not in the area of the main conductor. The drilling encountered a 10 to 13 m thick sulphide mineralized zone with zinc values ranging from less than 1% to 5%. Mineralization encountered in trenches and drilling is believed to be a peripheral mineralized horizon stratigraphically above or distal to the main exploration target.
The Company proposes to carry out a gravity geophysical survey over the electromagnetic conductor in order to define targets for drilling. If the conductor is caused by massive sulphides, this should be reflected in the gravity survey due to the high density of massive sulphide mineralization relative to the surrounding country rocks.
The Company has an option to earn a 100% interest in the TL property by making payments totaling $350,000, issuing 1,500,000 shares and completing $3,325,000 in exploration over five years. In addition, 500,000 bonus shares will be issuable upon cumulative exploration expenditures of $8 million and an additional 500,000 bonus shares will be issuable upon completion of a feasibility study. The vendors will retain a 3% NSR that can be bought down to 1.5% for $3,000,000. The agreement is subject to regulatory approval.