Pacific Ridge results send shares down

Pacific Ridge Exploration (PEX-V) and project partner Kaminak Gold (KAM-V) have their final 2006 drilling program results and the market isn’t impressed.

The results come from the Baker Basin uranium project in Nunavut, and while 14 holes were drilled for the program four of which were previously reported none were significant enough to wow the Street.

In Toronto on Nov. 14 Pacific Ridge shares were down 19% or 4 to 17 on roughly 1 million shares traded. Kaminak was off roughly 7% to 4 on roughly 105,000 shares traded.

Holes were drilled to test the depth of the KZ, 694 zones and also to drill test the newly discovered Lucky-7 Zone.

In its release, Pacific Ridge highlighted first ever drilling at Lucky-7, reporting that a hole there returned an intersect of 0.32% U3O8 over 3.4 metres.

The company says the exploration results warrant continued drilling in 2007

But the new holes were unable to top the first four drill holes completed at the KZ zone, where intercepts of 0.31% U3O8 over 11.5 metres and 0.27% U3O8 over 5.8 metres reported on October 18th, had raised expectations.

Pacific Ridge spent over $1.6 million in 2006 exploring the 2060 sq. km Baker Basin uranium project.

The company says the project area is host to at least 20 known uranium prospects that occur along 75 km of the Archean-Proterozoic unconformity.

Three of these targets, the Lucky-7, KZ and 694 zones, saw initial drill programs in 2006.

Pacific Ridge can earn an initial 51% interest in the project by the end of 2008 by spending $2 million and paying 400,000 units in stages. Units consist of one common share and one 12-month warrant with an exercise price to be set in accordance with market at the time of issuance.

Pacific Ridge will have the right to increase its interest to 60% by spending an additional $1 million before the end of 2010, after which Pacific Ridge and Kaminak will form a joint venture.