Copper Ridge funds work at Quitovac

Vancouver — Copper Ridge Explorations (KRX-V) has closed a $1.9-million short-form offering, with most of the proceeds earmarked for initial exploration of the Quitovac gold property in Mexico’s Sonora state.

The junior sold 1.1 million units at 26 apiece. A unit consists of one share and half a share purchase warrant. Each whole warrant entitles the holder to acquire one additional share for 25 until Jan. 21, 2005.

The shares and warrants are subject to a 4-month hold period that expires May 22. Canaccord Capital acted as the agent for this offering and was paid a commission of $81,840 and 308,000 units, a corporate finance fee of 160,000 units, 1.7 million agents’ warrants, and an administration fee of $7,500. The securities issued to Canaccord are also subject to a 4-month hold period.

“This financing will allow us to commence drill testing on the Quitovac property, while pursuing additional opportunities in the Yukon, Alaska and elsewhere in Mexico,” says Copper Ridge President Gerald Carlson.

Copper Ridge controls six properties under option agreements and holds a 100% interest in the Ogopogo property, 4 km from the Pogo gold deposit in Alaska, plus its latest addition, Quitovac.

The junior can earn a 55% interest in Quitovac from CastleRock Resources by spending US$1.5 million, paying US$375,000, and issuing 1 million shares over five years. The company stands to earn an additional 20% interest by producing a feasibility study. CastleRock retains a 1% net smelter return royalty.

The deposit is similar to the nearby La Choya heap-leach mine, which profitably produced more than 300,000 oz. gold for Hecla Mining from 1994 to 1999. Quitovac remains open along strike in both directions and down dip.

Servicio Industriales Peoles and Santa Cruz Gold were the last companies to work the Quitovac property. From 1987 to 1990, Peoles drilled 6,700 metres of reverse- circulation holes, and in 1997, Santa Cruz drilled an additional 2,759 metres of RC holes.

Santa Cruz prepared two resource estimates using these drill data, including 3.3 million tonnes grading 1.35 grams gold, and 1.1 million tonnes of 3.14 grams gold. Neither of these calculations conforms to National Instrument 43-101. Copper Ridge will perform a first phase of core drilling to improve the data quality so that a 43-101-compliant resource calculation can be made.

At Quitovac, gold is hosted in a gently dipping zone of deformation in localized high-grade veins and structures, as well as broad areas of low-grade disseminations. Drilling has targeted this structure over a 500-metre strike length and 250 metres downdip, and showings and old workings occur over 7 km of strike length on the property. Highlights include holes Q-13, which intersected 7.01 grams gold over 20 metres, and hole Q-14, which cut 9.93 grams gold over 23 metres. These were collared on the southernmost drill section tested.

Copper Ridge’s first-phase program at Quitovac will include mapping, 1,000 metres of trenching, and 2,250 metres of diamond drilling. The budget for this phase is $500,000.