Consolidated Pacific Bay Minerals Ltd.
TSX VENTURE : CBP

Consolidated Pacific Bay Minerals Ltd.

June 10, 2008 09:00 ET

Pacific Bay Acquires BC Moly/Base Metals Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2008) - Mr. David H. Brett, President and CEO, Consolidated Pacific Bay Minerals Ltd. (TSX VENTURE:CBP) (the "Company") reports the signing of an option agreement, subject to the approval of the TSX Venture Exchange, to acquire 100% of the advanced exploration stage Haskins-Reed Property, located near Cassiar in Northern British Columbia (the "Property"), for total consideration of $400,000 and 1.5 million shares payable over four years, subject to a 2% NSR, purchasable for $2,000,000.

The Haskins-Reed Property

(The Company has reviewed numerous historical technical reports describing past exploration of the Property which predate National Instrument 43-101 Standards for Disclosure for Mineral Projects ("NI 43-101") and has not been verified by the Company's qualified person. As a result, the following summary of exploration of the property contains technical information which is not compliant with NI 43-101, therefore investors should not rely on this information in making investment decisions.)

The Property, located just off Highway 37, on Mount Haskins and Mount Reed, hosts numerous skarn, replacement and porphyry-style mineral occurrences, including a drill intercept of 72 meters grading 0.19% MoS2 and 0.15% tungsten, an historic resource of 1,917,000 tons of 0.82 opt silver, 0.52% copper, 0.47 lead, 2.77% zinc and 0.24% bismuth, as defined by diamond drilling, and a 600 meters of underground drifts and cross-cuts on two levels. Another molybdenum-tungsten rich skarn zone returned a drill intercept of 0.33% MoS2 and 0.22% Wo3 over 39 meters and another zinc-rich skarn that yielded 18.63% zinc over 3 meters. Access to the Property is good. The Company believes the Property has potential to host additional porphyry-type and manto- style mineralization and is therefore an excellent exploration target.

The Property has undergone extensive exploration over the past forty to forty-five years. Base metal potential was first recognized in by Bill Haskins and Joe Reed. Reed is credited with the first discovery of silver, lead, zinc on Reed Mountain, in 1937, and staked the original showing in 1947. The Property comprises a number of different mineralized zones, surface and underground workings, and geochemically and geophysically anomalaous areas of interest, which have been partially explored as separate projects by various companies.

Consolidated Mining & Smelting Co. (Cominco) optioned the property in 1955 and drilled five Diamond Drill holes in 1956 (totalling 1498 feet) which tested 560 feet of the Joe Reed vein to a depth of 200 feet. Cominco concluded that there was about 80,000 tons of "indicated and inferred" ore, grading 6.4 opt silver, 5.5% lead and 4.1% zinc with an average width of 5 feet.

In 1968, molybdenum mineralization (on claims presently controlled by Velocity Minerals Ltd., TSX-VLC) was discovered in a porphyry stock about 5KM north of the Joe Reed showing, and in 1969, molybdenum mineralization was discovered in Skarns adjacent to the intrusion. Soil and stream sediment sampling indicated widespread molybdenum, tungsten and lead-zinc-silver mineralization. Further geological mapping, geochemistry, mag and IP surveys led to the discovery of two new areas and several geochemical anomalies for moly/tungsten mineralization spatially related to Eocene monzo-granite stocks or cupolas. These localized intrusives invade carbonate-rich rocks and develop extensive skarns within their selvages containing tungsten and molybdenum mineralization. The presence of Moly in monzo-granite supports the possibility for large-tonnage low-grade porphyry-moly deposits and adjacent high-grade skarn deposits.

Drilling campaigns carried out from 1969-71 targeting the moly/tungsten porphyry encountered mineralization which at the time was not of sufficient grade to warrant development. At current prices for molybdenum, the Company believes this porphyry zone is much more economically interesting. This zone reportedly yielded an intercept of 72 meters grading 0.19% MoS2 and 0.15% tungsten.

In the late 1960's and early 1970's, private company Della Mines Ltd. (headed up by Andrew Robertson, P.Eng., former president, founder and a co-discoverer of Endako Mines Ltd.), commenced an extensive exploration program on part of the Property. In 1970, Robertson's work resulted in the discovery of molybdenite (MoS2) in the Haskin cupola, and a large adjacent skarn system containing copper, zinc, lead and bismuth mineralization. One of Robertson's discovery holes (in the skarn) assayed 10.79 oz/t of silver, 1.66% copper, 1.69% lead, 4.44% zinc and 0.96% bismuth, over 17.3 m. This and similarly mineralized holes prompted Robertson to drive a 2,000 foot adit (600 meters) into the deposit, opening up two levels and enabling a comprehensive underground drilling program. This work led to the calculation of an "inferred resource of 1495 tons per lineal foot", or 1,510,000 tons, over a strike length of 1,010 feet. An additional 407,000 tons of a semi-developed resource (403 tons per lineal foot) was also delineated. From this data Della Mines calculated 1,917,000 tons of 0.82 opt silver, 0.52% copper, 0.47 lead, 2.77% zinc and 0.24% bismuth.

In 1978-1980, Canadian Superior Exploration Limited conducted a $1.5 million dollar drilling program on Reed Mountain; and, in 1980-81, focused on attempting to develop a moly/tungsten deposit. One of Canadian Superior 's better holes encountered an intercept of 39 meters of 0.33% MoS2 and 0.22% Wo3 in a skarn environment. Although significant molybdenum/tungsten mineralization was found, Canadian Superior concluded that the skarn zones associated with the Mt. Reed stock were not large enough to warrant mine development at the time. The Company's Management believes that with current increased metals prices, this zone warrants further economic evaluation.

Another skarn zone, evaluated in 1997 by Demand Gold Ltd., resulted in high grade zinc intercepts, including 18.63% zinc over 3 meters.

In summary, the Haskins-Reed Property hosts numerous, separate mineralized zones which have been explored and defined to varying degrees by different companies, over the past 45 years. The Company believes that there is good potential to outline one or more economic polymetalic deposits on the Property as well as a good opportunity for new discoveries. The Company has recently engaged, Discovery Consultants of Vernon BC, to complete a compilation of the substantial database related to the Property with the objective of leading to a NI 43-101 compliant technical report of the Property as soon as possible.

The present owner of the Property is Dan Brett, brother to David Brett, the Company's President and CEO. Dan Brett initially staked the Property in 1993. As such, the acquisition is non-arms length and will be subject to review and approval by the TSX Venture Exchange. The option agreement calls for $25,000 payable on signing, plus $25,000 and 200,000 shares following TSX-V approval, $50,000 and 200,000 shares on or before June 9, 2009, $100,000 and 300,000 shares on or before June 9, 2010, $100,000 and 300,000 shares on or before June 9, 2011, and $100,000 and 500,000 shares on or before June 9, 2012. The Property is subject to a 2% NSR in favour of the owner, purchasable by the Company at any time for $2 million.

All technical information contained in this news release has been reviewed and approved by Ernie Black, P.Eng., a Qualified Person under policy NI 43-101.

Consolidated 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 Information

  • Consolidated Pacific Bay Minerals Ltd.
    Investor Relations
    (604) 682-2421 or Toll Free: 1-800-670-6570 (Canada)
    Toll Free: 1-800-665-5101 (USA)
    (604) 682-7576 (FAX)
    Website: www.pacificbayminerals.com