projects > otish sw claims
PacBay's first staking in the Otish Mountains Proterozoic Basin in early 2006 was on the SW rim, in an area previously prospected for diamond bearing kimberlite pipes just before the uranium exploration boom by companies including Ashton, Majescor, Ditem, Digem and Soquem. Here the basin sandstones and conglomerates are much thinner than in the Matoush area, and the unconformity at the base of the Proterozoic sediments is close to the surface. In the Athabasca basin unconformity uranium deposit model, the basin rim is the first place to prospect for uranium, and PacBay's SW Otish claim block has several attractive exploration targets for both uranium and kimberlite bodies.
The SW Otish claims comprise 33 square kilometres (13 square miles) and form a key-shaped group of claims at the junction of large claim blocks controlled by Cameco, Ditem and Dios on the SW nose of the elongated Otish Basin.
The most striking magnetic feature is an interpreted regional NW trending diabase dyke cutting across the western portion of the PacBay SW Otish claims. Several very interesting total count airborne radiometric anomalies are associated with this dyke. In the eastern portion of the claim block, a pair of circular magnetic anomalies may represent intrusives of unknown composition. These two magnetic anomalies have associated potassium channel radiometric signatures suggesting a possible increased clay content in the surface rocks which may be reflecting hydrothermal alteration. There are a total of 46 small circular magnetic anomalies on the SW Otish claims that have been flagged as possibly representing kimberlite pipes. These magnetic anomalies are shown on the interpretation maps together with other kimberlite targets generated in a 2002 airborne survey conducted by Ditem Exploration.
The SW Otish property was optioned to Otish Energy in 2008. The original terms of the agreement were revised in 2010. Under the revised Agreement, to earn a 60% interest in the Property, Otish Energy must:
- Issue to Pacific Bay 550,000 shares of Otish Energy upon TSX-V approval (paid)
- Issue to Pacific Bay an additional 75,000 shares of Otish Energy by September 24, 2011.
- In 2010 complete assessment work or pay cash-in-lieu to keep the property in good standing, up to $68,000 (completed)
- Incur expenditures related to the Property of totalling $250,000 by September 24, 2011.
- Incur an additional $375,000 in exploration expenditures by 2012.
- Incur an additional $500,000 in exploration expenditures by 2015.
Upon Otish earning a 60% interest in the Property on completion of the above, the parties will form a joint venture whereby each will participate in programs and budgets according to their respective working interests.
