High Ridge Resources Inc.

High Ridge Resources Inc.

February 21, 2007 14:51 ET

High Ridge Announces Details of Acquisitions in Peru

'Chanape Project': High Grade Polymetallic Potential, Gold, Silver, Lead, Zinc and Copper

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 21, 2007) - High Ridge Resources Inc. ("High Ridge") (TSX VENTURE:HRR) is pleased to announce that it holds an option to acquire a 100% interest (news release dated: February 8, 2007) in the Chanape concessions ("Chanape") in Peru. The Chanape property consists of 20 mining concessions, which are all in good standing, totaling 808.34 hectares - located within the Matucana cadastral sheet 24-k.

High Ridge has obtained numerous internal reports, planes and sections for Chanape prepared by geologists of the Banco Minero, Pacococha Mine and Milpo, as well as several publications on the geology of the Chanape area by INGEMMET (Peru's geological survey). The following information has been taken from these reports which were not prepared in accordance with the requirements of NI 43-101. References to the authors and dates of the reports are indicated in parentheses.

The Chanape project is located in the district of San Damian, in the province of Huarochiri and department of Lima. It is located 138 km from Lima and can be accessed by road. The first 100 km east of Lima is along the well maintained paved Central Highway to the town of San Mateo; the remaining 38 km from San Mateo to the Chanape property is via gravel roads.

Chanape is the only known gold-producing property in the area and occupies elevations between 4300 m and 4900 m. Numerous mineralized, gold-rich polymetallic veins and intrusive breccia pipes have been mapped within the property on two opposing sides of Chanape Creek (e.g. Tumialan, 1982; Ly et al., 1997 and 1999).

The Chanape area is part of an old and active mining district located southeast of San Mateo. This region has been explored and mined since the colonial period, but more extensive mining development began in 1950 with the building of the access gravel road from the Central Highway to the Pacococha mining area. Various facilities including hotels, phones and internet, as well as manpower are available in San Mateo.

Coricancha Mine, formerly the Tamboraque Mine, is the largest nearby active mine and is wholly owned by Gold Hawk Resources Inc. ("Gold Hawk"). Gold Hawk currently mines a set of mineralized veins similar to Chanape and owns a processing facility located just south of San Mateo. Coricancha and several smaller independent and active mines are situated near the gravel road leading to Chanape.

History and Previous Work

In 1943, the American Embassy was briefly interested in Chanape and considered it to have a very good mining potential (Middleton, 1943). In 1950, Banco Minero del Peru believed Chanape was the number one mining property in the area because of the wealth of available information, ready drifts, and the readily accessible ore (Engineering & Mining Journal, May 1950).

In 1978, the Sindicato Minero Pacococha S.A. ("Pacacocha S.A.") built a road and started to develop Chanape; about 64,000 tons of ore were mined from the very northeastern tip of the Fulvia vein in the early 1980's (Ly et al., 1997). Approximately 2,000 m of drifts, cuts and other various works are present on the property; related works continued until 1984. In the late 1990's Compania Minera Milpo S.A., owner of Pacococha, initiated major work on Chanape that included detailed mapping, sampling, and an environmental study. This work came to a halt and the property was dropped by Milpo in the early 2000's during a corporate reorganization. Subsequently the Chanape project did not enter any serious exploitation phase and the reserves remain nearly intact (Ly et al., 1997).


Chanape's predominant rock types are Cenozoic andesitic volcanic flows, interlayered with tuffs and rhyolites, of the Rimac group and Millotingo formation; the composite thickness of these units is 700-1000 m (Salazar, 1983; Mineralogical Record, 1997). During the Miocene period, these rocks were intruded by various bodies of quartz monzonite and diorite, both tourmaline-rich, which have pyritized, silicified, kaolinized, and otherwise altered the adjacent volcanics.

Associated with the intrusions are numerous gold rich polymetallic veins and breccias with gold and tourmaline. Mineralization fills two systems of fractures and there are 8 main veins and numerous lesser veins on the property. The largest is the Fulvia vein located on the southeast side of the Chanape Valley with a length of more than 1500 m and average thickness of 1.5 m, which in places reaches 5.0 m (Tumialan, 1982; Ly at al., 1997).

Vein mineralization is predominantly galena, dark sphalerite, and chalcopyrite, with lesser pyrite, tetrahedrite, silver sulfosalts, acanthite, marcasite, gold, and quartz. Fluorite, barite, calcite and rhodochrosite are minor constituents. Most of the high-grade veins have little or no quartz, which is usually found in the sub-economic portions of the veins, or where the veins narrow and pinch-out (Mineralogical Record, 1997). Pyrite is usually present as stringers in the veins and disseminated as small cubes in the wall-rock.

At least thirty gold mineralized breccia pipes were mapped and documented on the property, with the total surface of more than 62,000 m2. (Ly at al., 1997); estimated vertical dimensions are approximately 350 m. Extensive areas with argilic alteration suggest that in Chanape there are favorable conditions for discovery of the Cu-Mo-Au porphyry-type deposits.

The estimated potential in the known veins is 2,160,000 tons with average grades of 7.42 grAu/t, 16.82 OzAg/t, 7.55 %Pb/t, 1.10 %Zn/t, 5.16 %Cu/t (grades from Banco Minero del Peru, 1949).

The volcanic breccias have an estimated potential, based only on the 8 larger structures, of 22,349,250 tons with 2.5 grAu/t, 1.32 OzAg/t, 0.56 %Pb/t, 0.82 %Zn/t (grades from Banco Minero del Peru, 1949, P.H.Tumialan, 1982).

The foregoing grade and tonnage information are historical estimates which were not prepared in accordance with the requirements of NI 43-101. High Ridge has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves, and High Ridge is not treating the historical estimates as current mineral resources or mineral reserves. Accordingly, readers should use caution when considering this information and should not rely upon the accuracy of such information.

Current Activities

As consideration for the Chanape concessions, High Ridge must pay the aggregate sum of US $2,000,000 to the vendor and issue a total of 1,000,000 common shares of High Ridge to the vendor. High Ridge is obligated to make the payments of cash and the issuance of common shares in semi-annual payments over a five year period, with the final payment and issuance due February 5, 2012. High Ridge has made its first financial commitment of US $50,000 to the vendor and the next payment of US $50,000 is due on or before August 5, 2007. The first tranche of 100,000 High Ridge common shares is due to be issued to the vendor on or before August 5, 2007. The vendor has retained a 2.5% net smelter royalty ("NSR") and High Ridge has the option to purchase a 1.5% NSR for US $1,000,000. No finders' fees were payable in connection with this transaction.

High Ridge has retained the services of M. Kalinaj, a consulting geologist from Lima, to complete an independent NI 43-101 compliant report on the Chanape property.

In addition to Chanape concessions, High Ridge has staked approximately 10,000 additional hectares of highly prospective ground in the area, for a total of just under 11,000 hectares. Approximately 4,000 hectares of this total includes the 'over-staking' of old-style randomly oriented claims. High Ridge is in discussions with other groups to acquire additional advance stage land packages in Peru.

A. Szybinski, Ph.D. (Geology), the Vice President of Exploration of High Ridge, is the "qualified person" responsible for the contents of this news release.

About High Ridge Resources Inc.:

High Ridge is focused on large scale exploration projects in British Columbia and Peru. In addition to the recent Peruvian gold and poly-metallic acquisition of the Chanape property, High Ridge has three advanced exploration projects in British Columbia. These properties include the Chuchi property (Cu-Au porphyry), 30 km northwest of Terrane's Mt. Milligan project; Newton Mountain (Au-Cu porphyry), 35 km north of Taseko Mine's Prosperity project - formerly Fish Lake (Au-Cu porphyry); and the Silver Bay (Ag, Pb, Zn, and Cu porphyry) project, 10 km south of Cominco's former Bluebell mine.

Forward-Looking Statements: The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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