Pacific Ridge Exploration Prepares Copper Gold Drill Programme

• ‍Pacific Ridge Exploration is focused on copper-gold porphyry projects in British Columbia, with their flagship project being Kliyul.
• The company has a portfolio of projects including Kliyul, RDP, Redton, Onjo, and Chuchi, with varying levels of ownership and development.
• PEX is currently preparing for a drill program at Chuchi, which they believe offers significant discovery potential.
• The company has faced challenges in the current market but has been able to continue accessing capital to advance their projects.
• Pacific Ridge is exploring in the Quesnel Terrane of BC, which hosts several major copper-gold porphyry deposits and has improving infrastructure.

Pacific Ridge Exploration (TSXV:PEX) is emerging as a significant player in the copper-gold exploration sector in British Columbia, Canada. With a strategic focus on porphyry deposits in one of the world's premier mining jurisdictions, the company is positioning itself to capitalize on the growing demand for critical metals.

Uncovering Copper-Gold Potential in British Columbia

Pacific Ridge Exploration is led by President and CEO Blaine Monaghan, who brings a wealth of experience in the mining sector. The company's primary focus is on copper-gold porphyry projects in British Columbia, a region known for its rich mineral endowment and supportive mining infrastructure.

The company's project portfolio includes:

• Kliyul: Flagship Project - Kliyul stands as Pacific Ridge's cornerstone asset. Located in north-central British Columbia, this project has seen significant investment and exploration work since its acquisition in 2020. Monaghan notes, "We've spent close to $20 million there since acquiring it in 2020." The claims are in good standing for over a decade, providing a solid foundation for long-term exploration and development.
• RDP: 100% Owned - Recently returned to full ownership after an option agreement with Antofagasta, RDP represents another valuable asset in the company's portfolio. The work completed by Antofagasta has ensured that the claims are in good standing for over a decade, adding to Pacific Ridge's asset security.
• Chuchi: Current Focus - Chuchi is the target of Pacific Ridge's upcoming drill program. Optioned from Centerra Gold, this project offers what Monaghan describes as a "fantastic discovery opportunity." The company plans to test the depth potential of known mineralization, which has historically only been drilled to shallow depths
• Redton and Onjo - These are earlier stage projects of the company's portfolio, offering additional exploration potential with manageable work commitments.

Interview with President & CEO, Blaine Monaghan

Exploration Strategy & Recent Developments

Pacific Ridge's exploration strategy is methodical and focused on maximizing the potential of its key assets. The company is currently preparing for a significant drill program at Chuchi, which Monaghan believes could be transformative. "We believe the mineralization is open to depth," he states, highlighting the potential for a new discovery if they can extend the known mineralization beyond its current shallow depths.

At Kliyul, the company is conducting a ZTEM survey to refine deeper targets. This approach demonstrates Pacific Ridge's commitment to using advanced exploration techniques to guide future drilling efforts and potentially uncover higher-grade mineralization at depth.

The company's recent financing of approximately $1.6-1.7 million is primarily earmarked for the Chuchi drill program, underscoring the importance of this project in Pacific Ridge's near-term plans.

Market Challenges & Opportunities

Like many junior explorers, Pacific Ridge has faced challenges in the current market environment. Monaghan candidly admits, "I'm not going to say it's been easy because that would be a lie. It has been extremely challenging." However, the company has managed to continue accessing capital, a testament to the quality of its projects and management team.

The disconnect between commodity prices and equity valuations in the exploration sector presents both challenges and opportunities. While raising capital has been difficult, it also means that companies like Pacific Ridge are potentially undervalued relative to the potential of their assets.

The British Columbia Advantage

Pacific Ridge's focus on British Columbia, particularly the Quesnel Terrane, is strategic. This geological belt hosts several major copper-gold porphyry deposits, including the producing Mount Milligan mine. Monaghan emphasizes the advantages of operating in this region:

"We are most certainly in the right area, and infrastructure, although not ideal, is pretty good for this part of the world."

The improving infrastructure in northern BC, supported by ongoing government investments, is gradually reducing exploration costs and improving project economics. This trend could significantly benefit Pacific Ridge's projects in the medium to long term.

Financial Position & Capital Strategy

Pacific Ridge has demonstrated its ability to raise capital in challenging market conditions, a crucial factor for junior explorers. The company's recent financing provides the funds needed for its planned exploration activities, particularly the Chuchi drill program.

The company has also benefited from flow-through financing, a tax-incentivized investment mechanism in Canada. While Monaghan acknowledges the potential downsides of flow-through financing, including future selling pressure, he views it as a necessary tool in the current market:

"If that is the only capital available to continue to move your projects forward, then you take it."

Risk Factors & Challenges

Investors should be aware of the risks inherent in mineral exploration. Pacific Ridge's projects, while promising, are still in the exploration stage and will require significant capital and time to advance. The company's ability to raise future capital and the results of its exploration programs will be critical factors in its success.

The recent exit of a major shareholder (Crescat Capital) has put pressure on the stock price. However, Monaghan sees a silver lining in this development, noting that it has cleared a potential overhang and attracted new investors,

"There was buying there. There were people looking at this saying, 'Okay, I'll buy it here. This looks great. I like the team, I like the projects.'"

Investment Potential

For investors interested in the copper-gold space, Pacific Ridge offers exposure to a portfolio of promising projects in a tier-one mining jurisdiction. The company's focus on porphyry deposits aligns with the growing demand for copper, a critical metal in the global transition to renewable energy and electric vehicles.

The upcoming drill program at Chuchi represents a potential catalyst for the company. If successful, it could significantly enhance the project's value and attract attention from larger mining companies looking to secure copper assets.

Monaghan's commitment to "keep moving forward" in the face of market challenges demonstrates the management team's resilience and belief in the company's assets. This determination and the company's ability to continue raising capital suggest that Pacific Ridge is well-positioned to weather current market conditions and potentially thrive when sentiment improves.

Pacific Ridge Exploration represents an intriguing opportunity for investors seeking exposure to copper-gold exploration in a stable mining jurisdiction. While the company faces the typical risks associated with junior explorers, its portfolio of projects in the prolific Quesnel Terrane, coupled with a focused exploration strategy and experienced management team, positions it well for potential discovery success.

As the global demand for copper continues to grow, companies like Pacific Ridge that are actively exploring and developing new resources could see significant upside. However, investors should approach this opportunity with a clear understanding of the risks involved and as part of a diversified portfolio strategy.

The Investment Thesis for Pacific Ridge Exploration

• Exposure to copper-gold exploration in a tier-one mining jurisdiction (British Columbia, Canada)
• Portfolio of projects in the prolific Quesnel Terrane, known for major porphyry deposits
• The upcoming drill program at Chuchi presents a near-term catalyst for potential value creation
• Management team with proven ability to raise capital and advance projects in challenging markets
• Strategic focus on porphyry deposits aligns with growing global demand for copper
• Potential for the discovery of higher-grade mineralization at depth in the flagship Kliyul project
• 100% ownership of key assets (Kliyul and RDP) with claims in good standing for over a decade
• Improving infrastructure in northern BC could enhance project economics over time
• Current market conditions may present an attractive entry point for long-term investors
• Potential for corporate transactions or partnerships with major mining companies if discoveries are made

Macro Thematic Analysis

The investment case for Pacific Ridge Exploration is fundamentally tied to the broader macro thematic of copper demand in the global transition to clean energy and electrification. Copper, often called "the metal of electrification," is crucial in renewable energy systems, electric vehicles, and energy-efficient technologies.

The International Energy Agency (IEA) projects that the clean energy transition could drive a quadrupling of mineral demand by 2040, with copper being one of the key beneficiaries. Electric vehicles use up to four times more copper than conventional cars, while renewable energy systems like wind and solar require significantly more copper than traditional power generation.

However, this surging demand is set against a backdrop of tightening supply. Many of the world's largest copper mines face declining grades and increased production costs. The discovery of new, high-quality copper deposits has become increasingly rare, making the exploration efforts of companies like Pacific Ridge Exploration all the more critical.

British Columbia, where Pacific Ridge operates, is strategically positioned to benefit from this trend. The province's rich mineral endowment, particularly in porphyry deposits, and its stable political environment and improving infrastructure make it an attractive jurisdiction for copper exploration and development.

The disconnect between current copper prices and junior mining valuations presents a potential opportunity for investors.

President & CEO Blaine Monaghan notes:

"We continue to find higher grade copper-gold porphyry mineralization laterally and at depth."

This statement encapsulates Pacific Ridge's opportunity – the potential to uncover significant copper resources in a world that will increasingly need them.

The macro thematic of copper demand in the clean energy transition provides a compelling backdrop for Pacific Ridge's exploration efforts, potentially positioning the company to benefit from long-term structural growth in copper demand.