VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 13, 2011) – David H. Brett, President and CEO, Pacific Bay Minerals Ltd. (TSX VENTURE:PBM) (the “Company”) reports that partner Strateco Resources Inc. (“Strateco”) (TSX:RSC) plans to commence their diamond drilling program on the Company’s Otish Mountains uranium property in Quebec within 3 to 4 weeks. This work will target the highly prospective Matoush-style Alfred Fault zone that was discovered by Strateco in October, 2010, 4 km west of the Matoush uranium deposit. The Alfred Fault drilling is part of a $1.1 million, 5,500-metre drilling program planned for 2011 on Pacific Bay’s Otish Mountains Uranium property, where Strateco is earning a 60% interest.
A Strateco news release issued today reported the following: “In early October 2010, three holes were drilled to test a north-south striking structure similar to the Matoush fault, located on the Pacific Bay-Matoush property 4.0 km west of the Matoush fault. The holes intersected a Matoush-type fault called the Alfred fault, with identical alterations to the Matoush fault, over a distance of 365 metres. The geophysical anomaly indicates that the Alfred fault extends northward and southward. This was one of the most important discoveries on the Matoush project outside the Matoush fault corridor. The holes, which intersected low uranium grades, demonstrated that other Matoush-type structures (faults) exist elsewhere on the Matoush project.”
Strateco also noted that the “Rabbit Ears” area, 9KM northeast of the Matoush Deposit, which has been the target of past drilling, remains of significant exploration interest.
The Alfred Fault is believed by Pacific Bay and Strateco to be a significant discovery because it is the first “Matoush-Style” fault zone found outside the Matoush Fault itself, which hosts the Matoush Deposit. According to Strateco’s website, 43-101 compliant indicated resources of the Matoush deposit have been estimated to total 436,000 tonnes grading 0.78% U3O8 containing 7.46 million pounds U3O8 and inferred mineral resources are estimated at 1.16 million tonnes grading 0.50% U3O8 containing 12.78 million pounds U3O8. Key indicators present in the Alfred Fault Zone include: 1) the presence of low but anomalous uranium levels, 2) a mafic dyke, and 3) similar hydrothermal alteration, such as fuchsite, all within the prospective ACF-4-C geologic unit that hosts most of the Matoush uranium deposit.
“We believe the uranium discovery potential at the Alfred Fault is excellent,” said Pacific Bay CEO David H. Brett. “Strateco will draw on their intimate knowledge of the Matoush Fault for their Alfred Fault drilling program, which greatly enhances our chances of success.”
Upon completion of the proposed $1.1 million 2011 exploration program, and payment of an additional $175,000 and 70,000 additional shares of Strateco (all by October 29th, 2011), Strateco will have earned a 60% interest in the property. The parties will at that time form a joint venture and participate in ongoing programs on a pro-rata basis according to their respective interests.
The technical information in this news release was reviewed and approved by Doug Blanchflower, P.Geo., a Qualified Person as defined by National Instrument 43-101.
Pacific Bay Minerals Ltd.
David H Brett, President & CEO
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