Look at these NEWS RELEASES in company format they just sent out to SHs:
December 16, 1997 VSE - PBM
FOR IMEDIATE RELEASE
PACIFIC BAY OPTIONS MAJOR YUKON ZINC-SILVER RESOURCE
NEW DIRECTOR APPOINTED
David H. Brett, President, reports that Pacific Bay Minerals has obtained from Energold Minerals Inc. an option to acquire all of Energold's 60% interest in the Logan zinc-silver property located in the Watson Lake mining district in southern Yukon, subject to the approval of the Vancouver Stock Exchange. The Logan property is an advanced stage project with various mineral zones, the most significant of which is the Main Zone where diamond drilling has outlined a calculated mineral inventory of 12,300,000 tonnes grading 6.17% zinc and 0.77 oz/ton silver. The deposit is open at depth, where grade appears to be improving significantly. In conjunction with the option agreement, Pacific Bay has appointed Mr. Walter Sellmer, P.Eng., to the Company's board of directors.
Under the option agreement, Pacific Bay must a) make payments to Energold of $550,000 over three years with $150,000 payable in the first year; b) incur exploration expenditures of $1,300,000 over three years, with $300,000 required to be spent in the first year; and, c) by October 31, 2000, pay Energold $1,800,000. Energold also retains a 1%NSR over Pacific Bay's ultimate interest at production. Energold's 60% interest in the Logan project is held through a joint-venture agreement with Fairfield Minerals Ltd. (TSE-FFD), which holds the remaining 40%. Under the joint venture, Fairfield's interest is carried until such time a positive feasibility study is produced, after which Fairfield may elect either to participate as to its 40% of further expenditures, or convert to a 15% net profits interest. The Logan property is not subject to any other underlying royalties or interests.
Over $4,500,000 in exploration work has been completed at Logan to date, including 103 diamond drill holes totalling 16,223 metres. Located 108 kilometres NW of Watson Lake, the property has a 700 metre gravel airstrip in good condition and tote roads provide 4X4 access from the airstrip to most of the key areas of the property. A 52 KM winter tote road connects the property to the Alaska Highway.
Drilling on 100 metre sections with holes spaced at 50 metres has outlined a mineral inventory within the Main Zone of 12.3 million metric tonnes (13,600,000 tons) grading 6.17% zinc and 26.4 grams/ton silver with a gross metal value of CDN$103 per tonne (at current metal prices*). The Main Zone is 1,100 metres long by 50-140 metres wide and has bee drilled to a depth of 275 metres. The mineralization occurs in a quartz-stockwork/breccia zone situated in an East/North East trending, steeply (700) North-dipping fault zone. The fault cuts granodiorite and contains andesite, quartz porphyry and rhyolite dykes. Preliminary metallurgical test work indicates high zinc recoveries (95%) and good concentrate grades (52%Zn). Early results indicate that 10 million tons of the resource are open-pittable at an estimated 5:1 waste ore ratio with little overburden stripping.
Although the Main Zone is amenable to open-pit mining, Pacific Bay intends to explore the feasibility of developing a high grade underground resource with a view to trucking ore off site for processing as a possible first phase mine plan. Based on current information, Pacific Bay believes that this approach has strong potential. The economics of this strategy would be enhanced if "heavy media separation" could be utilised to upgrade hauled material. Pacific Bay will research this option. A first phase drilling program will concentrate on further testing the deposit's potential at depth. Previous deep drilling produced the following reported intersections:
DDH 23: 9.0 m (29.5 ft.) of 10.07% Zn, 2.02 opt silver, gross metal value/tonne*: $173
DDH 103: 7.0 m (23 ft.) of 10.89% Zn, 0.53 opt silver, gross metal value/tonne*: $173
DDH 100: 10.0 m (32.8 ft.) of 14.30% Zn, 0.65 opt silver gross metal value/tonne*: $227
and 4.0 m (13 ft.) of 14.34% Zn, 0.60 opt silver gross metal value/tonne*: $227
*I n Canadian Dollars based on current metal prices of US$1,104/tonne for zinc and US$5.80/oz for silver. These figures do not take into account significant allowances for recovery losses, smelter charges and other costs.
Pacific Bay welcomes Mr. Walter Sellmer to the board of directors. Mr. Sellmer is a geologist and mining executive who brings outstanding experience and expertise to the Company. Also, Pacific Bay has retained Pamicon Developments Limited as geological consultants for the Logan project. Pamicon geologist Mike Stammers, P.Geo, will assist in directing the Company's exploration program. Previously with Cordilleran Engineering, Mr. Stammers was project manager at the Logan property for five years.
Pacific Bay Minerals Ltd. For further information contact:
David Brett @ 1-800-670-6570( The CN #)
665-5101 ( The USA #)
David H. Brett
President
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
FINANCING ARRANGED
David H. Brett, President, reports that the Company has arranged, subject to regulatory approval, private placements totalling 1,000,000 units at $0.20 per unit for proceeds of $200,000. Each unit consists of one common share and one warrant to purchase one common share at a price of $0.20 during the first year and $0.30 during the second year. 375,000 of the units provide "flow-through" benefits to the holders, while the balance do not. The flow-through funds are allocated to the Company's Yukon projects while the balance of the funds are to be added to general working capital.
Pacific Bay Minerals Ltd.
Per/
David H. Brett
President
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
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