Pacific Ridge Exploration (PEX.V) has finally released the long-awaited assay results from hole 37 at Kliyul as it took the company almost two full months since releasing the results from hole 36. Hole 37 didn’t disappoint and actually exceeded our expectations as the drill bit encountered just under 317 meters of 0.44 g/t gold and 0.2% copper (resulting in a 0.75% CuEq or 1.17 g/t AuEq grade when using an equivalent-basis). The company reported a headline result of 566 meters containing 0.48% CuEq but considering the vast majority of the grade is carried in the 317 meter interval (indicating the remaining 249 meters of has an average grade of just under 0.14% CuEq), it’s perhaps more fair to just use the 317 meter interval.
The very encouraging part of the update is that this 317 meter interval starts just 12 meters down-hole. So rather than digging through 200 meters of dirt, the (relatively high-grade) mineralization starts right at surface. The table above also shows there are several higher grade intervals within the thick 317 meter intercept and for instance the 24.1 meters containing 1.09% copper and 2.21 g/t gold are excellent as this represents a gross rock value of about US$220/t using $4 copper and $1800 gold. And considering those values are encountered at a depth that should be within open pit limits, hole 37 didn’t disappoint. The final 249 meters of the wider 566 meter interval aren’t too exciting but there’s plenty to like in the upper portion of the hole.
The assay results for hole 38 which was a vertical hole haven’t been released yet. That hole will be interesting to see how deep the mineralization extends at depth closer to hole 36 where the grades appeared to continue at depth (compared to hole 37).
Pacific Ridge Exploration will have to fill its treasury if it wants to design a meaningful drill program in 2022 but we expect there will be plenty of ‘risk capital’ available after seeing the assay results from the first two holes. The share price has already reacted favorably and at Tuesday’s peak of C$0.58 per share, its share price has more than tenfolded since the end of December 2020.
Disclosure: The author has no position in Pacific Ridge. Pacific Ridge is a sponsor of the website. Please read our disclaimer.