Pacific Ridge Exploration (TSXV:PEX) - Tapping into BC's Copper-Gold Amid Global Demand Surge

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

Our previous interview: https://www.cruxinvestor.com/posts/pacific-ridge-exploration-pex-copper-gold-drilling-for-250mt-3127

Recording date: 30th July 2024

Pacific Ridge Exploration (TSXV:PEX) is positioning itself as a key player in the copper-gold exploration sector in British Columbia, Canada. Led by President and CEO Blaine Monaghan, the company is strategically focused on porphyry deposits in the mineral-rich Quesnel Terrane, a geological belt known for hosting significant copper-gold deposits.

The company's portfolio includes several promising projects:

Kliyul: The flagship project, where Pacific Ridge has invested nearly $20 million since acquisition in 2020. Recent drilling has expanded the mineralized footprint and indicated potential for higher-grade mineralization at depth.
RDP: A 100% owned project recently returned from an option agreement with Antofagasta, with claims in good standing for over a decade.
Chuchi: The focus of an upcoming drill program, optioned from Centerra Gold. Historical drilling was shallow, and the company believes there's significant potential to extend mineralization at depth.
Redton and Onjo: Earlier-stage projects offering additional exploration upside.

Pacific Ridge's near-term catalyst is the planned drill program at Chuchi. CEO Monaghan states, "We believe the mineralization is open to depth," highlighting the potential for a new discovery if they can extend known mineralization beyond current shallow depths. 

The company has demonstrated resilience in challenging market conditions, successfully raising capital to fund exploration activities. A recent financing of approximately $1.6-1.7 million will primarily support the Chuchi drill program.

Pacific Ridge's focus on British Columbia offers several advantages. The region boasts excellent geological potential, improving infrastructure, and a supportive mining jurisdiction. Monaghan emphasizes, "We are most certainly in the right area, and infrastructure, although not ideal, is pretty good for this part of the world." For investors, Pacific Ridge presents an opportunity to gain exposure to copper-gold exploration in a tier-one mining jurisdiction. The company's projects align well with the growing global demand for copper, driven by the transition to renewable energy and electric vehicles.

However, investors should be aware of the risks inherent in mineral exploration. Pacific Ridge's projects are still in the exploration stage and will require significant capital and time to advance. The company's success will depend on exploration results, ability to raise future capital, and broader market conditions in the mining sector.

Recent challenges include the exit of a major shareholder, which pressured the stock price but also cleared a potential overhang and attracted new investors. The company has also utilized flow-through financing, which, while providing necessary capital, may lead to future selling pressure. Pacific Ridge's investment thesis centers on its portfolio of promising projects in a prolific mining region, upcoming exploration catalysts, experienced management team, and exposure to the growing demand for copper. The current market conditions may present an attractive entry point for long-term investors willing to accept the risks associated with junior mining stocks.

As the global need for copper continues to rise, 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.

View Pacific Ridge Exploration's company profile: https://www.cruxinvestor.com/companies/pacific-ridge-exploration

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