projects > otish mountains uranium
Synopsis
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July 2007 Airborne Geophysical Survey
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May 2007 Ground Geophysical Survey
Jan 2007 Airborne Geophysical Survey
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Geology
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Otish Photo Gallery
The Otish Mountain Proterozoic Basin uranium district of central Québec contains uranium deposits similar to those in the prolific Athabasca Basin of Sasktechewan. The focus of Pacific Bay's staking and acquisition effort has been the area immediately surrounding the Matoush high grade uranium deposit, discovered by Uranerz Exploration and Mining in the mid-1980's. Strateco Resources Inc. has been exploring the Matoush deposit since 2005 and in October 2007 released a 43-101 report outlining 4.1M lbs U3O8, including 3.48M lbs U3O8 of indicated mineral resources with a grade of 0.79 U3O8. Strateco is prepare a scoping study scheduled for completion in late 2008 and is compiling documentation to obtain permits for an underground exploration program scheduled to begin in mid-June, 2009. Strateco's goal is to outline sufficient resources to produce a minimum of two million pounds of U3O8 per year for at least 10 years.
Pacific Bay aggressively staked and acquired ground throughout the Matoush District beginning in early 2006, and as the claim map shows, Pacific Bay became the only other player in the immediate Matoush camp. Exploration began in the late summer of 2006 with an airborne helicopter geophysical survey. The first ground work was undertaken in March-April 2007 when winter VLF/mag surveys were run over magnetic linear structures seen in the airborne data that resembled the geophysical signature of the original Matoush discovery. In June 2007 Pacific Bay established a camp on Lac Alfred, named after the local trapper Alfred Coon-Come, and embarked on ground scintillometer prospecting surveys across priority areas on its Matoush claims. Another helicopter airborne geophysical survey was flown during the summer of 2007 on additional claims staked subsequent to the first survey, and the strong "Rabbit Ears" coincident magnetic linear and radiometric anomaly was discovered in the NE part of the claim block (see map below). When this anomaly was seen in the preliminary data, a ground geophysical crew was immediately mobilized to run VLF/magnetics across the linear features to locate possible dikes and faults that could contain uranium mineralization.
Drill targets were defined in 4 main areas, Grid 1, the Matoush fault projection 4 kilometers north of the Matoush deposit; Grid 6, an area of magentic linears and conductors about 3 kilometers east of the Matoush deposit; Block "B", an airborne magnetic linear with a coincident radiometric signature approximately 12 kilometers southeast of the Matoush; and the "Rabbit Ears", approximately 11 kilometers northeast of the Matoush deposit, so called because the claims were staked in two elongated northeasterly groups following radiometric anomalies in an up-ice direction. There is little outcrop in this region, and the diamond and uranium explorers use the Ice Age glaciers' inferred movement patterns dispersal patterns to prospect back to the source of pathfinder minerals and elements such as uranium. In this case, a strong radiometric anomaly in the southern "Rabbit Ear" was observed to stop up-ice at a magnetic linear feature that could be the source of the anomaly.
In late October 2007, Pacific Bay Minerals Ltd. made a strategic decision to join forces with Strateco Resources Inc and option 60% of its 277 claims in the Matoush in order to consolidate the district into a single exploration block. Pacific Bay has combined its database with Strateco's to prospect potential mineralized trends which extend through both companies' claims. This synergy will result in a better focused exploration program and will make both companies stronger.
The terms of the Option agreement are as follows:
Strateco Resources Inc. can earn a 60% interest in 277 claims by paying Pacific Bay a total of $500,000, issuing 200,000 Strateco shares, incurring $3 million in exploration expenditures (minimum of 10,000 meters of drilling) over 4 years.
$3 million Strateco expenditure schedule:
$750,000 first year with minimum of 2500 meters diamond drilling
$750,000 second year with minimum of 2500 meters diamond drilling
$750,000 third year with minimum of 2500 meters diamond drilling
$750,000 fourth year with minimum of 2500 meters diamond drilling
Upon Strateco earning a 60% interest in the Property, the parties will form a joint venture and participate in programs and budgets pro-rata according to their interest. In addition to cash and stock payments above, Strateco is to acquire 1 million units of Pacific Bay at a price of $0.30 per unit (12 month hold period). Each unit is comprised of one common share and one warrant to purchase one common share of Pacific Bay at $0.60 per share for a period of 24 months.
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