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Duke Island, Alaska

Projects

Duke Island, Alaska

Target - Voisey's Bay style magmatic Copper-Nickel-Platinum-Palladium deposit.

Property and Ownership Description

Copper Ridge has the right to earn up to a 51% interest in the Duke Island Cu-Ni-PGE property from Quaterra Resources Inc. (NYSE-A: QMM / TSX-V: QTA) ("Quaterra") by issuing one million shares (pre-consolidation shares - issued) and spending $3 million on exploration by December 31, 2012. Of the $3,000,000 expenditure, $750,000 is a firm commitment to be spent by December 31, 2010. Copper Ridge may increase its interest in the Duke Island property to 65% by spending an additional $2 million on exploration by December 31, 2013.

Project Description

The Duke Island property is located in southeast Alaska, 50 km south of Ketchikan (Figure 1). Mineralization at Duke Island includes copper, nickel and PGE enriched sulphide mineralization within an Alaska-type zoned ultramafic intrusion in Alaska's Alexander Platinum Belt. The occurrence is unique in the high percentage of disseminated and net-textured to massive sulfide mineralization within certain phases of the ultramafic intrusions. Geochemical, geological, and geophysical data suggest the sulfide system extends for over 14.5 km along strike, up to 3.8 km across strike and remains open to expansion (Figure 2). Multiple airborne magnetic and electromagnetic surveys reveal numerous strong conductive EM highs. To date, eleven sulfide showings have been discovered, six of which have received limited exploration.

Outcrop samples have returned values from less than 10 ppm Cu to 2.8% Cu, from less than 10 ppm Ni to 0.25% Ni and from less than 5 ppb to over 1 ppm PGE from the South Rim of the Marquis prospect. An IP survey conducted over the discovery outcrop outlines a high conductivity zone of massive sulfide surrounded by a disseminated sulfide zone. Nine of eleven core holes drilled on the IP anomaly at the South Rim of the Marquis prospect intercepted from 6 to 90 m of semi-massive to massive sulfide containing highly anomalous values for Cu (10 to 12,500 ppm), Ni (27 to 4,694 ppm), Pt (<5 to 680 ppb), and Pd (<5 to 548 ppb) and established a north dip to the upper contact of sulfide mineralization (Figure 3).

Historical Exploration

The Duke Island Property was discovered and staked by Quaterra in 2001. Between 2001 and 2006, Quaterra had completed geological mapping, soil and rock sampling, ground and airborne geophysical surveys and 1,820 m of core drilling in 11 holes.

Recent Results

Quaterra recently completed a Natural Source Audio-frequency Magnetotellurics (NSAMT) survey over the Marquis prospect. Modeling of EM and NSAMT survey results defines an eastern plunge and a wine-glass shaped conduit below the covered conductive anomaly, reminiscent of other high grade magmatic sulfide deposits (see Figure 4). The historical drilling focused on the western periphery and shallower southern portions of the main Marquis zone. Copper Ridge believes that potential exists for a significant Cu-Ni-PGE discovery focusing on the deeper core or feeder pipe area of the Marquis Zone, as defined by the NSAMT survey, and by the strongest of the EM anomalies, particularly in the basin area of the North Rim of the Marquis prospect, which have not yet been drill tested.

Future Plans

Copper Ridge proposes to immediately carry out a surface mapping and sampling program over the core of the main Marquis prospect and to extend the NSAMT survey over the unexplored Monte prospect to the south. This work will be followed by a 1,500 m drill test of the highest priority drill targets to be carried out during the 2010 field season.

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