VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2011) - David H. Brett, President and CEO, Pacific Bay Minerals Ltd. (TSX VENTURE:PBM) (the "Company") reports that the Company's wholly owned Argentine subsidiary Bahia Atlantica, S.A. has signed an agreement with state owned Petrominera Chubut S.E. granting the Company an option to acquire 90% of the July Uranium Project, located Chubut Province, Argentina. The 2,330 hectare July Project is located within the boundaries of the Company's 100% owned, 38,000 hectare Regalo Property, and hosts a number of significant uranium zones explored historically by the Argentine government.
Situated within the favorable Los Adobes formation, the July Project was explored historically by CNEA, Argentina's state owned nuclear energy firm that is also the owner of the Cerro Solo deposit 40km to the south. Of interest were two uraniferous paleo-channels discovered along the hydro-electric power-line that traverses the property which to date have been traced in outcrop on surface for approximately 250 meters long on surface and measuring 1-5 meters in width, with high scintillometer readings traced along strike for 1,500 meters. The shallow dipping structures are near surface and have potential for significant tonnage. A brief reconnaissance of the July Project by Pacific Bay in March of 2011 returned grab samples up to 0.108% and scintillometer readings up to 9,000 counts per second.
The uranium mineralization at the July Project is similar to Pacific Bay's "Regalo Norte" discovery announced in May of this year, approximately 3 km to the south, where reconnaissance prospecting revealed high scintillometer readings and assays up to 0.14% uranium over a 1km square area.
"Management believes the Cerro Solo region of the San Jorge basin in Chubut is one of the world's premier uranium exploration destinations," said Pacific Bay CEO David H. Brett. "With majors such as Cameco recently making significant investments in the area, Pacific Bay is confident that adding to its already sizable land position will position the Company to take advantage of increasing exploration activity."
Under the agreement with Petrominera, to earn a 90% interest in the property, Pacific Bay must incur exploration expenditures of USD $3.7 million over 6 years as follows: i) first six months, $50,000, ii) next 6 months, $50,000, iii) next 36 months, $1,600,000, iv) next 24 months, $2,000,000 towards a preliminary feasibility study.
The technical disclosures in this news release were reviewed and approved by Dr. Richard Culbert, Ph.D., P.Geo., a Qualified Person, as defined by National Instrument 43-101. Samples collected from the referenced in this news release were submitted to and analysed by Alex Stewart Group located in Mendoza, Argentina.
Pacific Bay Minerals Ltd.
David H. Brett, MBA, President & CEOThe TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.