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David H. Brett, President and CEO,
Pacific Bay Minerals Ltd. (TSX VENTURE:PBM - News; "Pacific
Bay" or the "Company") reports that private company UrAmerica Ltd has defaulted on its option to acquire a
60% interest in Pacific Bay's 300 square kilometre
uranium property in Chubut Province, Argentina which is located 20 km east of
the 15.4 million lb. U3O8 Cerro Solo Deposit (0.47% U3O8). After giving UrAmerica ample time to cure it's
defaults, the Company terminated the agreement. Pacific Bay now owns 100% of
the property which is underlain by the favourable
Los Adobes formation that hosts several uranium deposits in the region,
including the Cerro Solo deposit, owned by Argentina's National Commission of
Atomic Energy (CNEA).
Pacific Bay plans to use part of the
proceeds from its recently announced financing for an exploration program
during the first quarter of 2011, the optimal time to work in the area. A
number of potential partners have expressed exploration interest in the
property.
The Cerro Solo uranium camp has been
actively explored recently by several major, junior and state mining
companies. In 2009 Argentina's National Commission of Atomic Energy (CNEA)
undertook an aggressive drilling campaign designed to define the Cerro Solo
resource prior to feasibility and environmental studies that are now
underway. Press reports indicate an additional 10,000-metre program is now
underway and that CNEA intends to have its feasibility and environmental
studies completed prior to 2012. With Argentina's new Attucha
II nuclear power plant proceeding, the government has made it a priority to
secure a reliable domestic supply of uranium.
Active exploration companies in the
region include Cameco (under an agreement with
Calypso Resources), U3O8 Corp of Toronto (who recently acquired all the
Argentine uranium assets of Mega Uranium), UrAmerica,
and Wealth Minerals. Including Pacific Bay's 100% owned Regalo
property, the Company now controls 100% of 682 square km (682,000 hectares)
of favourable ground in the Cerro Solo Uranium
Camp.
"Pacific Bay is now better
positioned in a uranium camp that is becoming a lot more active," said
Pacific Bay CEO David H. Brett. "Pacific Bay believes this area of
Chubut Province, Argentina, is one of the better places in the world to be
exploring for Uranium right now."
The technical information contained in
this news release has been reviewed and approved Doug Blanchflower,
P.Geo.,
a consultant to the Company and a Qualified Person under policy NI 43-101.
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.
Contact:
Investor Relations
Pacific Bay Minerals Ltd.
604-682-2421 or Toll Free: 1-800-670-6570 (Canada)
Toll Free: 1-800-665-5101 (USA)
604-682-7576 (FAX)
www.pacificbayminerals.com |