Copper Ridge raises $1.87 million

Vancouver — Copper Ridge Explorations (KRX-V) has closed a $1.87 million short form offering at a price of 22. The proceeds will be used for a first phase exploration program on the recently acquired Quitovac gold property in Mexico as well as for option payments and general working capital.

The junior sold 1.1 million units where each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to acquire one additional share for $0.25 until January 21, 2005.

The shares and warrants are subject to a four-month hold period that expires on May 22, 2004. 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 agent’s warrants and an administration fee of $7,500. The securities issued to Canaccord are also subject to a four-month hold period.

“This financing will allow us to commence initial drill testing on the Quitovac gold property in Sonora, Mexico” said Gerald Carlson, President of Copper Ridge. “It will also give the company the opportunity to aggressively pursue additional exploration opportunities in the Yukon, Alaska and in Mexico. Our strategy has always been to maximize the company’s exposure to high quality exploration plays while minimizing financial risk.”

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, the Quitovac gold property in Sonora, Mexico.

The junior can earn a 55% interest in the Quitovac property from CastleRock Resources by spending US$1.5 million, making payments of US$375,000 and issuing one million shares over five years. The company stands to earn an additional 20% interest by producing a feasibility study. CastleRock retains a 1% NSR.

The deposit is similar to the nearby La Choya heap leach mine that profitably produced over 300,000 ounces of gold for Hecla Mining from 1994 to 1999. The Quitovac deposit as it is presently defined remains open along strike in both directions and down dip.

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

Two resource estimates were prepared by Santa Cruz using this drill data, including 3.3 million tonnes at 1.35 grams gold, and 1.1 million tonnes averaging 3.14 grams gold. Neither of these calculations conform to National Instrument 43-101. Copper Ridge plans to perform a Phase I core drilling program to improve the data quality such 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. Most of the drilling to date targeted this structure over a 500 metre strike length and 250 metres down dip. Showings and old workings occur over 7 km of strike length within the property. Some of the best drill intersections obtained from the project include; hole Q-13 which intersected 7.01 grams gold over 20 metres and hole Q-14, that intersected 9.93 grams gold over 23 metres. These were collared on the most southeasterly drill section tested.

Copper Ridge believes there is excellent potential to expand the size of the Quitovac gold deposit. The Phase I exploration program will include mapping, 1,000 metres of trenching and 2,250 metres of diamond drilling, at a budget of $500,000.