Pacific Ridge Acquires Additional Claims in the Great White Gold Area Play

Pacific Ridge Exploration reports that it has entered into a binding Letter of Understanding for an option to acquire the Polar/Stewart Property consisting of 149 mineral claims from Ryanwood Exploration Inc. (“Ryanwood”) of Dawson City, Yukon.

The Polar/Stewart Property is tied on to the eastern border of Pacific Ridge’s Goldcap Property which in turn is adjacent to the northeastern boundary of mineral claims held by Underworld Resources Ltd. The western boundary of the Goldcap mineral claims is approximately 6,000 metres northeast from Underworld’s White Gold – Golden Saddle gold zone.

The principal terms of the Letter of Understanding, which is subject to regulatory approval, include a cash downpayment of $75,000 to be made and 250,000 post consolidation common shares of Pacific Ridge to be issued, upon the receipt of regulatory approval. Pacific Ridge has the option to earn a 100% interest in the Property on or before June 30, 2013 by making staged cash payments totaling $300,000, share issuances   totaling 1,250,000 shares and exploration expenditures in the aggregate amount of $1.5 million. Ryanwood will retain a 2% net smelter return interest that requires advance royalty payments in the amount of $25,000 per year commencing June 30, 2014. At the option of Pacific Ridge, the net smelter return interest may be reduced to 1 % upon making a $2.0 million payment to Ryanwood. 

Ryanwood is headed by Yukon prospector Shawn Ryan who is credited with the discovery of Underworld’s White Gold property.

The acquisition of the Polar/Stewart Property will add to Pacific Ridge’s property holdings in the region of Underworld’s White Gold discovery.   Pacific Ridge, through it’s Klondike Kate Project, now owns and has rights to 361 mineral claims comprising 4 properties prospective for gold discovery within the Yukon’s South Klondike region.

Pacific Ridge’s exploration plans will include establishment of trenching and drill targets based on results of geochemical and magnetometer surveys plus geological mapping. It is significant that anomalous gold values were obtained by the Geological Survey of Canada’s Regional Geochemical silt sampling survey conducted in the vicinity of the Goldcap and Polar/Stewart mineral claims.

Pacific Ridge’s disclosure of a technical or scientific nature has been reviewed by Wayne J. Roberts, P. Geo., Vice President, Exploration of Pacific Ridge and a Qualified Person under the definition of National Instrument 43-101.

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