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Pac Bay Strikes Deal with Golden Cariboo on Craze Creek Property June 28th, 2004
Mr. Guilford H. Brett, President, Consolidated Pacific Bay Minerals Ltd. (TSX Venture: CBP, the Company) reports that the Company has entered into an agreement with Golden Cariboo Resources Ltd. (TSX Venture: GCC) whereby Golden Cariboo can acquire up to 60% of the Companys Craze Creek Gold property (the Property) located in the Cariboo Gold Belt in central British Columbia, 15 miles south of International Waysides Bonanza Ledge gold deposit along the favorable Rainbow-Baker contact. To earn a 60% interest in the Property, Golden Cariboo must spend $150,000 in exploration over three years and pay $10,000 and issue 200,000 of its shares to the owners of the claims. Simultaneous with signing the option agreement Golden Cariboo and the Company acquired 100% of the Craze Creek property from the owners in consideration for the payments made by Golden Cariboo, subject to a 2.5% net smelter royalty in favor of the owners.
The Company and prior operators have explored the Craze Creek Property (formerly Nugget Mountain property) with strong gold drilling results (as reported in prior news releases). The Craze Creek property covers an integral portion of Bonanza ledge stratigraphy that has been traced by Golden Cariboo to the southeast of the Bonanza ledge zone with significant documented gold occurrences including the Switchback, Hibernian, Jewellery Shop and B zone (northwesterly trending occurrences exposed over a strike length of approximately one kilometre with reported values of 16 grams per tonne gold, 49 grams per tonne silver over 6.1 metres and 23 grams per tonne gold over four metres ), and underlain by key features favourable for the discovery of Bonanza-ledge-style mineralization, such as the presence of the magnetite porphyroblastic unit (occurs in the hanging wall of the Bonanza ledge zone), proximity to northerly trending faults and to gold bearing quartz veins. The Company is pleased that Golden Cariboo will be following up on these results and developing the property to the next level.
Trenching and drill targets, generated by a continuing aggressive exploration program of geological mapping, prospecting, geochemical and geophysical surveying over the land package will be permitted as identified. The program will be guided by exploration criteria and models developed for the Bonanza ledge zone using in-house expertise.
Dealing the Craze Creek property to Golden Cariboo will also help the Companys management to focus its attention and resources solely on its Regalo Property in Chubut Province, Argentina, under option from IMA Explorations. The Regalo to date has shown encouraging gold anomalies and an extensive epithermal alteration zone that is favorable for gold mineralization.
On Behalf Of The Board Of Directors
Guilford H. Brett
President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.