Spotted Owl and Option Grants
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
PROSPECT RIDGE RESOURCES ANNOUNCES KNAUSS CREEK PROPERTY OPTION AGREEMENT
INCLUDING THE DORREEN MINE, WITH HISTORICAL PRODUCTION GRADES AVERAGING 57
GRAMS PER TONNE OF GOLD & 205.71 GRAMS PER TONNE SILVER
Vancouver – November 8th, 2021 – Prospect Ridge Resources Corp. (the " Company" or
"Prospect Ridge ") ( CSE: PRR) (OTC: PRRSF) is pleased to announce that it has entered into a
property option agreement with Knauss Creek Mines Ltd. (the “ Optionor”) dated November 3,
2021 (the "Agreement"), pursuant to which the Company has acquired an option (the “Option”)
to purchase a 100% interest in a single block of 35 mineral claims covering approximately 3,152.2
hectares collectively known as the Knauss Creek Property (the “Property”). Prospect Ridge’s Holy
Grail holdings now comprise over 80,000 hectares of road-accessible property approximately 35
kilometres from Terrace.
The Property is located northwest of Terrace, BC, and creates a contiguous block with existing
mineral claims in the Company’s Holy Grail properties (see Figure 1). The Company considers
the Property to be highly prospective and consistent with high-grade mineralization observed
on the Holy Grail property, including the historical Dorreen Mine. Production in 1924 assayed
57.26 grams per tonne gold, 205.71 grams per tonne silver, 1.3% copper, 6.2% lead and 5.8%
zinc. The Property includes several other mineralized zones that have never been drill tested.
Multiple logging roads across the property many creating significant mineralized exposures, in
addition to Canadian National railways crossing the property.
Michael Iverson, CEO states, “Prospect Ridge continues to build an unprecedented district sized
property over ground th at contains historical hard -rock and placer mines, resemblances and
continuation of geological and structural features in the Golden Triangle just 50 kilometres to the
northeast, bon anza grade precious and base metal mineralization.” Iverson continues, “A
significant difference is the property is only kilometers from significant infrastructure at Terrace
and crisscrossed with existing logging roads. The opportunity allows us to put cost -effective
prospecting and exploration into one of the most overlooked opportunities in the area.”
Knauss Creek Property Overview
Property Description and Ownership
The Property mineral claims are located in the Ominica Mining Division in British Columbia. The
southern portion of the Property is approximately 35 km northea st of the City of Terrace (see
Figure 1). The Property covers 3,152 hectares in mineral claims. The Optionor is the registered
owner (100%) of all the claims of the Property.
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
Figure 1 – Knauss Creek Property Location
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
Geology and Mineralization
The Property is underlain by a sequence of stratified argillites, sandstones, and conglomerates of
the Jurassic to Cretaceous age Bowser Lake Group sedimentary rocks and Upper Triassic to
Middle Jurassic Hazelton Group volcano-sedimentary rocks. These are intruded by granodioritic
units ranging from Cretaceous to Tertiary in age. Hornfels alteration halos occur around the
intruding granodioritic bodies. Bowser Lake and Hazelton group rocks have been intruded by the
Eocene aged Carpenter Cre ek Pluton in the southwestern part of the property and by Eocene
rhyolite dykes in the central part of the property.
The Property lies in the “Golden Triangle” area of northwestern British Columbia where
extensively occurring precious and base-metal mineralization have historically been discovered.
The Knauss Creek Property is being explored for polymetallic veins and potential associated skarn
and porphyry mineralization within an orogenic geological environment. Placer deposits were
mined in creeks adjacent, west and east, to the Property during the early part of the 20th century.
Mineral Occurrences
Four mineral occurrences have been identified on the Property: Saturn, Kandy, Hugin, and the
Dorreen Mine (see Figure 2). Mineralization is structurally and stratigraphically controlled and is
hosted within argillaceous sedimentary rocks and diorite intrusions, which are likely the driver of
the mineralized system.
The Saturn target hosts multiple auriferous-quartz veins, results pending.
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
Figure 2 – Mineral Occurrences at the Knauss Creek Property
The Kandy occurrence has seen limited work; however, 6 different quartz veins were identified
and 4 grab samples returned between 0.77 and 3.87 g/t Au and 39.5 and 532 g/t Ag.
The Hugin occurrence consists of a 65 m wide and 175 m long (open along strike) fractured
gossanous zone located along the contact of an intrusion and metasedimentary country rocks.
Historical chip and grab s amples assayed between 1.29 to 2.69 g/t Au, wh ile rocks collected by
Mr. Beck in 2017 yielded up to 28.4 g/t Au, 210 g/t Ag, 9.13% Pb, including 5 others that averaged
1.42 g/t Au (up to 3.65 g/t).
The Dorreen Mine
In 1912, the Dorreen gold vein was discovered and developed intermittently from 1914 to 1952.
The mine focused on a g old-bearing quartz vein hosted along a bedding fault plane in argillite
near a dioritic intrusion.
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
Three ore shipments were made; in 1924, 1926 and 1952. In 1924, 80 tonnes of ore was shipped
and reportedly assayed 57.26 grams per tonne gold, 205.71 grams per tonne silver, 1.3 per cent
copper, 6.2 per cent lead and 5.8 per cent zinc. In 1926, approximately 8 tonnes of similar ore
was shipped. In 1952, 476 tonn es of ore was shipped and 3,266 grams of gold, 8,118 grams of
silver, 3,137 kilograms of lead and 1,342 kilograms of zinc were recovered.
In 1952, 252 feet of drifting, 113 feet of crosscutting, 166 feet of raising, and 1,400 feet of
diamond drilling wer e done. A vein recently discovered above the top entry to the mine was
followed for 48 feet by a drift at 2,466 feet elevation. During operation of the mill from May 23rd
to August 28th, 525 tons of ore was milled. Approximately 20 tons of bulk concentrate shipped
to the Trail smelter assayed: gold, 5.25 oz. per ton; silver, 13.05 oz. per ton; lead, 17.3 per cent;
zinc, 7.4 per cent; copper, 2.6 per cent.
No further development has occurred since 1952.
Recently a 30 cm chip sample returned 33.6 g/t Au, 161.8 g/t Ag, 6.73% Pb, 35% Zn and 1.04%
Cu. Another 20 cm chip sample from a parallel vein 21 m above the main vein assayed 32.2 g/t
Au, 19.2 g/t Ag, 1.28% Pb and 0.24% Cu (see Figure 3).
Figure 3 – Photos of the Dorreen Vein
Knauss Creek Exploration Program
Exploration at the Property has already begun with geological mapping and geochemical
sampling. Management of the Company expects that this work will significantly expand the
Company’s knowledge of the complex vein system and refine targets.
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
The Property was held for 30 years by a prospector, who mapped and sampled a number of other
auriferous polymetallic quartz -veins ranging from 6 inches to 5 feet wide with strike lengths in
excess of 600 m. Company is reviewing and digitizing the extensive inventory of to facilitate and
guide exploration efforts.
A high focus will be placed on confirming the trend of the historical orebody in the Dorreen Mine,
follow-up on the Saturn target , review of additional target polymetallic gold veins , as well as
potential associated epithermal or porphyry mineralization wi thin an orogenic geological
environment. A structurally related gold system like Coffee Creek in the White Gold district,
Knauss Creek has many resemblances to Fort Knox Mine in Anchorage, Alaska, hosted in diorite.
Prospect Ridge has filed an independent technical report on SEDAR on the Property (the “Knauss
Creek Report”) conducted by Rein Turna, P.Geo. dated November 4, 2021, in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43 -101”). The
Knauss Creek Report can be viewed on www.sedar.com.
The Option Agreement
Pursuant to the terms of the Agreement and in order to exercise the Option, Prospect Ridge must
satisfy the following requirements:
Shares Cash Expenditures
On closing date of the Agreement (the
“Closing Date”) 500,000 $10,000 -
On first anniversary of the Closing Date 500,000 - -
On second anniversary of the Closing
Date 200,000 - -
The earlier of (a) one year following
receipt of a drill permit in respect of the
Property, or (b) 18 months after the
Closing Date - - $250,000
On or before October 31, 2023 - -
$1,000,000
(inclusive of the
above amount)
TOTAL 1,200,000 $10,000 $1,000,000
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
The Company has also granted the Optionor a 1.0% net smelter returns royalty (the “ NSR
Royalty”) with respect the Property. The Company has the right to purchase from Optionor one-
half of the NSR Royalty for $1,000,000 at any time prior to 45 consecutive production days at 70%
of processing plant design capacity or mining rate if a processing facility is not constructed on the
Property.
Finder’s Fees
In connection with the Agreement, the Company has agreed to issue to Loan Wolf Exploration
Ltd. (the “Finder”) 120,000 common shares (50,000 common shares issued on the Closing date,
50,000 common shares issued on the first anniversary of the Closing date, and 20,000 common
shares on the second anniversary of the Closing date). The Company has also granted the Finder
a 2 .0% net smelter returns royalty with respect to the Property , effective as of the d ate the
Option is deemed exercised by the Company pursuant to the terms of the Agreement.
Stock Option Grants
The Company also announces that it has issued a total of 500,000 stock options to certain of its
directors, officers, employees and consultants. All of the stock options will be exercisable for a
period of 5 years at an exercise price of $1.40.
Resignation and Appointment of Corporate Secretary
Further to the Company’s news release dated November 5, 2021, the Company also announces
that Bennett Liu has resigned from his position as Corporate Secretary. Mr. Liu is an associate of
Red Fern Consulting Ltd. (“Red Fern”), which provides the Company with accounting and advisory
services. The Company has chosen to replace Mr. Liu with Stella Chen, a senior associate with
Red Fern and the Company’s current Chief Financial Officer. Ms. Chen is a graduate from Simon
Fraser University and the University of British Columbia . She is a Chartered Professional
Accountant candidate and has worked in a variety of roles for publicly listed companies on the
TSX and TSXV. Ms. Chen will step into the role of Corporate Secretary effective immediately.
Qualified Person
All scientific or technical information included in this news release has been reviewed, verified
and approved by Rein Turna , P.Geo., a consultant to the Company and a qualified person as
defined by NI 43-101.
488-1090 West Georgia Street
Vancouver, BC V6E 3V7
778-788-4836
About Prospect Ridge Resources Corp.
Prospect Ridge Resources Corp. is a BC based exploration and development company focused on
strategic mineral exploration in Canada concurrently with developing a location in British
Columbia and Quebec. Prospect Ridge’s technical team and management with over 100
combined years of mineral exploration experience believes the Holy Grail to have the potential
for a district scale hydrothermal system and will extend the boundaries of the Golden Triangle to
cover this vast under-explored region.
Contact Information
Prospect Ridge Resources Corp.
Michael Iverson, Chief Executive Officer
Email: [email protected]
Telephone: 778-788-4836
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This release includes certain statements and information that may constitute forward -looking
information within the meaning of applicable Canadian securities laws. Forward -looking
statements relate to future events or future performance and reflect the expectations or beliefs
of management of the Company regarding future events. Generally, forward-looking statements
and information can be identified by the use of forward-looking terminology such as “intends” or
“anticipates”, or variations of such words and phrases or statements that certain actions, events
or results “may”, “could”, “should”, “would” or “occur”. This information and these statements,
referred to herein as "forward -looking statements", are not historical facts, are made as of the
date of this news release and include without limitation, statements regarding discussions of
future plans, estimates and forecasts and statements as to manag ement's expectations and
intentions with respect to, among other things: the prospective nature of the Property and
expected exploration results, the exercise of the Option on the terms set out in the Agreement
and finder’s fees to be paid in connection wi th the Option. These forward -looking statements
involve numerous risks and uncertainties and actual results might differ materially from results
suggested in any forward-looking statements. These risks and uncertainties include, among other
things: a failure to obtain regulatory approval of the Option on the terms set out in the Agreement
and a failure to exercise the Option on the terms set out in the Agreement or at all.