VANCOUVER, BRITISH COLUMBIA–(Marketwire – May 13, 2010) – David H. Brett, President and CEO, Pacific Bay Minerals Ltd. (TSX VENTURE:PBM) (the “Company”) reports the Company has entered into an option agreement with Mr. Piotr Lutynski (the “Vendor”) for the Ax silver and base metals prospect, which yielded an assay of 12.5g/t silver, 1.3% copper, and 4.8% lead over 10 meters (the “Property”).
The Property consists of 15 mineral claims covering 5,664 hectares along a 10km mineralized trend hosting a number of showings, located approximately 40 km north of Cassiar, 40km southeast of Silvercorp’s Silvertip Deposit and 10 km north of the Company’s Haskins-Reed polymetalic property.
Under the option agreement, the Company can acquire a 100% interest in the Property by making cash payments totalling $246,000 and issuing an aggregate of 1,000,000 common shares over a five-year period, with $8,000 and 100,000 shares payable in the first year, subject to the approval of the TSX Venture Exchange.
“The prospect of new silver and base metals production in this region of BC is a significant development,” said Pacific Bay CEO David H. Brett. “Pacific Bay is positioning itself to be a key player in this revived exploration camp.”
Mineralization on the Ax Property consists of stratigraphically and structurally controlled mantos-type bodies that appear to be of the same type as at the Silvertip Deposit (Indicated resource: 2,349,055 tonnes grading 352g/t Ag, 6.73% Pb, 9.41% Zn & 0.54g/t Au). Mineralization is of a high grade, silver-lead-zinc-copper carbonate replacement type with potential large high tonnage ‘chimney’ mineralization which may exist at depth closer to the hyrothermal fluid source. Ax mineralization is associated with up to 15 metre wide silicified zones of brecciated dolomite, hosted in carbonates belonging to the Lower Cambrian Rosella Formation. Mineralization comprises massive to disseminated galena, chalcopyrite, covelite, sphalerite, chalcocite, malachite, barite, iron oxides.
The Ax property was explored in the late 1960s and 1980s. The most significant assay values obtained from three structures traced over 500m are as follows:
10.0m @ 12.5g/t Ag, 1.3% Cu, 4.8% Pb
1.0m @ 37.7g/t Ag, 1.5% Cu, 10.6% Pb
1.0m @ 34.0g/t Ag, 1.1% Cu, 1.3% Pb
2.5m @ 36.0g/t Ag, 1.2% Cu, 1.2% Zn
Historic soil geochemistry indicates the presence of several new mineralized structures within the prospective belt. The Company’s initial 2010 exploration program will consist of soil and rock sampling, mapping, and trenching.
The Option Agreement is subject to regulatory acceptance and approval. Moreover, all securities issued pursuant to the Agreement will be subject to a four-month trading restriction period, from the date of issuance.
Ernie Black, M.Sc., P.Eng., is a Consultant to the Company and is the Qualified Person (as defined by National Instrument 43-101) for this project. Geologist Black has verified and supervised preparation of the scientific and technical information in this release.
About Pacific Bay: Led by mining veterans Guilford, BA and David Brett, MBA, Pacific Bay has a diverse portfolio of uranium, silver and base metals properties, including extensive holdings in Quebec’s Otish Mountains Uranium region, the San Jorge uranium basin in Chubut Province, Argentina. The Company also has an office in Namibia, Africa, seeking uranium opportunities. Pacific Bay’s strategy is to its properties mainly through strong partnerships, such as Strateco Resources Inc. (Otish, Quebec) and UrAmerica (Chubut, Argentina).
Pacific Bay Minerals Ltd.
David H. Brett, MBA, President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.