projects > cerro solo uranium play
Pacific Bay's Cerro Solo claims lie to the east of the Cerro Solo uranium mine (estimated to hold 10.3 million pounds of uranium) which is the subject of increasing international interest. The Cerro Solo claims include 3 contiguous uranium exploration concessions totaling 300 square kilometres (115 square miles) were acquired based on favorable geology and proximity to the Cerro Solo, Cerro Condor and Los Adobes uranium deposits. In April/May of 2006, Mega Uranium (MGA.TSX) conducted a reconnaissance RC drilling programme next to Pacific Bay's claims to investigate the projected extension of the mineralized zone eastwards from the Cerro Solo uranium deposit. The programme, comprising 26 widely spaced holes of 42-144 metre depths, included intersections of 2m @ 0.11% U3O8 and 1m @ 0.21% U3O8. In October of 2009, PBM optioned the Cerro Solo property to UrAmerica Ltd., a private company focused on uranium discovery in Latin America. Under the option agreement, UrAmerica can earn a 60% interest in the Property by incurring USD$1,200,000 in exploration expenditures and paying Pacific Bay USD$140,000 over a 4 year period. Upon UrAmerica completing the option, the parties will then form a joint venture and contribute to Property expenditures pro-rata according to their respective interests.
In early 2010, UrAmerica Ltd outlined drill targets on Pacific Bay's uranium Cerro Solo property. Nine drill locations have been outlined to target potential paleo-channels favourable for uranium mineralization similar to the Cerro Solo deposit of the region. Field observations by UrAmerica indicate that the favourable "Los Adobes" formation may lie below the rocks of the Chubut Group which outcrop on the Property. UrAmerica is scheduled to commence a 20,000 meter drill program in October 2010 on its various claims in the district, including some drilling on the Pacific Bay/UrAmerica property.
Claims and UrAmerica
properties
sites and possible
Paleo-Channel Trend on the
PBM "East Block" Property