Pacific Ridge Exploration's 2026 Drill Program Across Kliyul and RDP Eyes to Expand Gold-Copper Resource Base

• Pacific Ridge Exploration is developing two copper-gold porphyry projects in British Columbia with a current resource of 334 million tons at 0.33% copper equivalent or 5.7 million ounces at 0.2 g/t gold equivalent at its flagship Kliyul project.
• The company has spent $15 million drilling 20,000 meters to define the current resource and aims to expand to a minimum of 500 million tons and potentially reaching 1 billion tons through step-out drilling and testing three untested porphyry targets.
• Management characterises Kliyul as a gold deposit with strong copper credits (2:1 gold-to-copper value ratio), benefiting from copper prices around $6/pound compared to $2 when drilling began in 2021.
• The RDP project shows potential for a concealed porphyry center between two mineralised magnetic lobes, with planned drilling targeting this high-priority zone in the 2026 season.
• Despite comparable resources to peers trading 6-8x higher, Pacific Ridge maintains a market cap of approximately $15 million, with management attributing the discount to recent share dilution and quiet news flow during winter months.

Pacific Ridge Exploration is positioning itself to become British Columbia's leading copper exploration company during a period of elevated commodity prices. With copper trading around $6 per pound, triple the $2 level when the company initiated drilling at its flagship Kliyul project in 2021, the economics of porphyry copper-gold systems have fundamentally improved. CEO Blaine Monaghan outlined the company's strategic vision in a recent interview, emphasising resource expansion, discovery potential, and the ultimate goal of attracting merger and acquisition interest from major mining companies.

The company's two primary assets, Kliyul and RDP, are located in what Monaghan describes as "probably the hottest exploration district in Canada right now." This positioning provides significant strategic value, as nearby projects have attracted substantial investment and corporate interest over the past year.

Current Resource Base and Development Strategy

Pacific Ridge's flagship Kliyul project hosts a maiden resource of 334 million tons grading 0.33% copper equivalent, representing 2.42 billion pounds of copper equivalent or 5.7 million ounces of gold equivalent. This resource was defined through approximately 20,000 meters of drilling across 36 holes with $15 million spent, a relatively modest discovery cost that suggests significant leverage potential from additional exploration.

Monaghan explained the company's strategic approach: 

"Ultimately what we're trying to achieve here is to outline something big enough and economically robust to attract M&A." 

He noted that when Kliyul was acquired, the initial target was to outline a minimum of 250 million tons at 0.5% copper equivalent, appropriate for the $2 copper price environment of 2020-2021. However, with copper now at $6 per pound, the economics have shifted favourably, and management believes 0.4% copper equivalent grades are sufficient for economic viability.

The current resource calculation is based on 150-meter drill spacing, which means relatively modest additional drilling can significantly expand tonnage. The Kliyul main zone remains open in multiple directions, providing clear targets for resource growth through systematic step-out drilling.

Gold-Rich Copper System

An important aspect of the Kliyul deposit is its metal distribution. While initially marketed as a copper-gold project, Monaghan acknowledged that the value ratio is approximately 2:1 gold to copper, making it more accurately characterised as a gold deposit with strong copper credits and minor silver credits. This distinction matters for investors evaluating comparable projects and understanding the economic drivers. Monaghan explained,

"If you look at it from a gold equivalent, it's 5.7 million ounces gold equivalent. Maybe that's a better way to approach it because I think people can get their heads around that number pretty quickly and go, "wow that's actually in pretty big already. And you guys think you can make it bigger?" Yes, we do."

Exploration Targets and Discovery Potential

Beyond resource expansion at the Kliyul main zone, Pacific Ridge has identified three additional porphyry targets along the same 6-kilometer mineralised trend that have never been drill-tested. These include:

• ‍M39 Target: Located in the southeastern corner of the property, this target exhibits multiple favourable data points indicating a potential high-grade porphyry center. Management has been eager to test this target since acquiring Kliyul but was previously reticent due to lack of control over adjoining ground. Despite this constraint, the company has decided to proceed with drilling.

• Klip Target: Identified through 2024 airborne ZTEM geophysical surveys, Klip is located just north of the Kliyul main zone and displays a magnetic signature similar to - but larger than - the main zone. This suggests Kliyul main zone may represent only one component of a much larger porphyry system.

Monaghan noted that magnetic geophysical signatures have proven highly effective at identifying porphyries in this geological environment, with both Kliyul main zone and the RDP day target discovered through magnetic anomalies. Management believes a discovery at any of these three untested targets would significantly enhance the company's valuation and demonstrate the path to exceeding 500 million tons of resource.

As Monaghan explained: 

"I think of getting to 500 million tons. It is relatively easily achievable through continued resource expansion drilling. But also you can come up with another discovery at a number of these other targets that we plan to test this year."

Interview with Blaine Monaghan, President & CEO of Pacific Ridge Exploration

RDP Project: High-Grade Potential

The RDP project has been the focus of exploration at the Day target. The project was optioned to Antofagasta from 2022 to 2024, which returned strong intervals in 2022 but conducted inadequate follow-up drilling in 2023 before dropping the option. This proved fortuitous for Pacific Ridge when Amarc Resources announced a significant discovery 80 kilometers to the north, causing Amarc's stock to quintuple and providing Pacific Ridge with market justification to return to RDP.

Recent drilling at RDP has identified two mineralised magnetic lobes - eastern and western - that management believes are related to a concealed porphyry center nestled between them. Only 12 modern holes have been drilled at the Day target, and none have tested this interpreted central porphyry zone, which represents the primary target for the 2026 drill program.

Monaghan characterised the potential: 

"I think the real prize there is that if we are indeed correct and there's a porphyry center that is nestled between them and you intersect that in drilling, well, that really changes the nature of the game."

2026 Drill Program and Capital Requirements

Pacific Ridge plans to drill a minimum of 4,000 meters at both Kliyul and RDP during the 2026 field season, which typically runs from late June through early September. At RDP, management intends to allocate 1,500 to 2,000 meters toward testing the interpreted porphyry center between the mineralised lobes.

At Kliyul, the company faces a strategic choice between resource expansion drilling at the main zone versus testing the three greenfield targets. Monaghan indicated a preference for discovery-focused drilling: 

"I think the market today recognises and rewards discoveries. So if push came to shove, even if we weren't able to achieve all that we wanted to do at Kliyul this year, I would be focused on testing those three targets that have never seen a drill bit."

The company plans to secure financing within the coming weeks, with management not anticipating significant difficulties given current market conditions and the strength of their exploration pipeline.

Valuation Disconnect and Market Positioning

Despite possessing resources comparable to peers such as Northwest Copper, Vizsla Copper, and Kodiak Copper, Pacific Ridge trades at a significant discount as management estimates peers trade 6 to 8 times higher despite having similar tonnage and grades. Monaghan attributes this disconnect to several factors. First, the resource at Kliyul is relatively new, having been published only last year, giving the market less time to digest the discovery compared to longer-established peer projects. Second, the company issued substantial equity last year, increasing from 17 million shares to 62 million shares in a relatively short period. This dilution may have capped valuation upside, though management believes the company has largely worked through this overhang, having traded 150 million shares since September.

The company's projects are located 8 kilometers from road and power infrastructure, only marginally less accessible than road-accessible peer projects that still operate on similar seasonal schedules. Location within the southern Toodoggone district provides additional strategic value, with many positive developments happening among peers.

Regulatory Framework and First Nations Partnerships

Monaghan emphasised the critical importance of First Nations relationships in British Columbia mining:

"Without First Nations support your project is worth nothing. So typically before we look to submit or amend permits in provincial government we're talking to all of our nations partners first to make sure that there there aren't any problems or any issues."

The company prioritises communication with First Nations partners before submitting or amending permits with provincial authorities, ensuring alignment and addressing concerns proactively. This approach has resulted in positive relationships and streamlined permitting. All necessary permits for the 2026 drill program are in place, removing a potential source of execution risk.

The Investment Thesis for Pacific Ridge Exploration

• Valuation Arbitrage: Trading at significant discount (6-8x) to peers with comparable resources despite similar geological settings and exploration potential
• Resource Expansion Leverage: Current 5.7 million ounce gold equivalent resource calculated on 150-meter drill spacing with main zone open in multiple directions, providing straightforward path to 500 million ton target
• Discovery Upside: Three untested porphyry targets along 6km mineralised trend offer binary discovery potential that could significantly expand resource base and improve grade profile
• Favourable Commodity Environment: Copper at $6/pound versus $2 when drilling commenced fundamentally improves project economics; gold-rich nature (2:1 gold-to-copper value ratio) provides additional leverage
• Capital Efficiency: $15 million spent to define 5.7 million ounce resource demonstrates low discovery costs and potential for continued cost-effective resource growth
• Near-Term Catalysts: 4,000+ meter 2026 drill program targeting both resource expansion and greenfield discoveries with results expected late summer through year-end
• M&A Optionality: Explicit strategy to build resource sufficient to attract acquisition interest from major miners active in British Columbia
• Proven Geology: Magnetic geophysical signatures effectively predict porphyry locations in this district; similar methodology identified current resource and high-priority targets
• Derisked Permitting: Strong First Nations relationships and existing drill permits eliminate regulatory uncertainty for near-term exploration programs

TL;DR: Executive Summary

Pacific Ridge Exploration offers leveraged exposure to copper-gold exploration in British Columbia's emerging southern Toodoggone district, with a current 5.7 million ounce gold equivalent resource discovered for $15 million providing a platform for expansion. The company plans 4,000+ meters of drilling in 2026 targeting both resource growth at the open Kliyul main zone and discovery potential at three untested porphyry targets along a 6km mineralised trend. Trading at a 6-8X discount to comparable peers despite similar resources and exploration potential, management aims to reach 500 million tons to attract M&A interest while benefiting from $6 copper - triple the price when drilling commenced.

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