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| December 08, 2003 Mexican Gold Project Acquisition And Short Form Offering Financing For Up To $1.87 Million | |
| No. 23/2003 Vancouver, BC, December 8, 2003 - Copper Ridge Explorations Inc. (the "Company") is pleased to announce that it has acquired an option to earn up to a 75% interest in the road accessible Quitovac gold deposit, Sonora, Mexico from CastleRock Resources Inc. The deposit is similar to the nearby La Choya heap leach mine that profitably produced over 300,000 ounces of gold for Hecla Mining during the period 1994 to 1999. It also has similarities to a number of other nearby fault associated gold deposits such as La Herradura (Newmont and Peñoles -- 145,000 ounces of gold produced in 2002) and El Chanate deposits in Sonora and the Mesquite, Picacho and American Girl deposits in the adjacent United States. The Quitovac deposit as presently defined remains open along strike in both directions and down dip. Historical Resource Calculations The property contains numerous small, near-surface lode and dry placer workings dating from the late 1800's and early 1900's. In more recent times, Servicio Industriales Peñoles, S.A. de C.V. ("Peñoles") drilled 6,700 metres of reverse circulation drilling in 45 holes during the period 1987 to 1990 and Santa Cruz Gold Inc. ("Santa Cruz") drilled 2,759 metres of reverse circulation holes in 1997. Two resource estimates were prepared by Santa Cruz using this drill data, including 3.3 million tonnes at 1.35 g/t gold, for 143,230 ounces of contained gold, and 1.1 million tonnes at 3.14 g/t gold for 112,125 ounces of contained gold. These resources are quoted here for historical information and the reader is cautioned that neither of the calculations conforms to National Instrument 43-101 requirements for reporting reserves and resources, they have not been verified by the issuer's qualified person and should not be relied upon. It is the Company's intention to carry out a Phase I core drilling program to improve the data quality such that a 43-101 compliant resource calculation may be made. Exploration Potential At Quitovac, gold occurs within a gently dipping zone of deformation in localized high grade veins and structures as well as broad areas of low grade disseminations. The majority of the drilling to date has been completed along this structure over an area approximately 500 m along strike and 250 m down dip. Showings and old workings occur along a 7 km strike length within the property. Some of the best drill intersections obtained from the project, such as hole Q-13 that intersected 7.01 g/t gold over 20 m and hole Q-14, that intersected 9.93 g/t gold over 23 m, are on the most southeasterly drill section tested. The Company believes there is excellent potential to expand the size of the Quitovac gold deposit. The Phase I exploration program will include trenching and step-out drilling in order to test this potential. Proposed Exploration Program The Company intends to carry out Phase I of the exploration program recommended by R.L. Comeau, M.Sc., P.Geo., of A.C.A. Howe International Limited. The program will include mapping, 1,000 m of trenching and 2,250 m of diamond drilling, at a budget of $500,000. Acquisition Terms Copper Ridge can earn a 55% interest in the Quitovac property by spending US$1.5 million, making payments of US$375,000 and issuing one million shares over five years. Copper Ridge can earn an additional 20%, for a total 75% interest, by producing a feasibility study. CastleRock retains a 1% NSR. The acquisition is subject to regulatory approval. Financing Details Copper Ridge also announces that it intends to carry out a public offering to raise up to $1.87 million through the sale of units by way of a Short Form Offering Document ("SFOD") to purchasers in British Columbia and Alberta and such other jurisdictions as the offering may legally be sold. Under the SFOD, the Company, through its Agent, Canaccord Capital Corporation, will offer up to 8.5 million units at a price of $0.22 per unit. Each unit will consist of one Common Share and one-half of one non-transferable share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one additional Common Share for a period of one year at a price of $0.25 or such price as will be determined in accordance with TSX Venture Exchange rules. Canaccord, as agent for this offering, will be paid a commission of 8% on the gross proceeds, of which it may elect to be paid up to half in units, agent's warrants equal to 20% of the offering sold, a corporate finance fee of 160,000 units and an administration fee of $7,500. The proceeds will be used for option payments and a Phase 1 exploration program on the Quitovac Property as well as for general working capital. The foregoing is subject to regulatory approval. Copper Ridge's focus is on discovery of deposits with world class potential, emphasizing gold and copper-gold in Yukon and Alaska. The Company's Lucky Joe/Shamrock IOCG property is under option to Kennecott Canada Exploration Inc., the Yukon Olympic IOCG (Olympic Dam) property is under option to Canadian Empire Exploration Ltd., the Scheelite Dome Property is under option to Golden Patriot Mining Inc and the Joss'alun copper project is under option to Imperial Metals Corporation. Copper Ridge also holds a 100% interest in the Ogopogo property, 4 km from the Pogo gold deposit in Alaska as well as its latest addition, the large Hart River IOCG (Olympic Dam) target in the same geological setting as Yukon Olympic. Contact: Copper Ridge Explorations Inc. Gerald G. Carlson, President Suite 500 -- 625 Howe Street Vancouver, B.C. V6C 2T6 Phone: 604-688-0833; 1-888-278-2288 Fax: 604-688-0835 info@copper-ridge.com This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. | |
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