Pacific Bay Minerals Ltd Files Technical Report and Signs Extension on Letter of Intent to Acquire Pereira-Velho Gold Property in Alagoas State, Brazil
Pacific Bay Minerals Ltd Files Technical
Report and Signs Extension on Letter of Intent
to Acquire Pereira-Velho Gold Property in
Alagoas State, Brazil
Vancouver, British Columbia--(Newsfile Corp. - May 29, 2025) -
Pacific Bay Minerals Ltd.
(TSXV: PBM)
("
Pacific Bay
" or the "
Company
") is pleased to announce the signing of an extension to the previously
announced non-binding Letter of Intent ("
LOI
") with
Appian Capital Advisory LLP
("
Appian
") to acquire
a 100% interest in the
Pereira Velho
gold project (the "
Project
") located in Alagoas State, Brazil. The
Acquisition includes 11 mineral claims totaling 14,596 hectares. The Company is also pleased to
announce the filing of the related 43-101 technical report related to the Pereira-Velho Gold project.
The Project
The
Pereira Velho
Project lies in inland Alagoas State-an emerging gold and base metal jurisdiction in
northeastern Brazil where copper ores and concentrates rank as the state's second-largest export*. The
Project is strategically positioned just 25 kilometers from the Serrote Copper Mine, which was recently
acquired by Baiyin Nonferrous for USD $420 million, underscoring the district's development potential
and growing strategic importance.
With paved highway access, grid power nearby, and proximity to the city of Arapiraca (population
230,000+), Pereira Velho benefits from infrastructure and a skilled local workforce that supports cost-
effective exploration and development.
Established Mineralization in a Large, Underexplored Land Package
The 14,596-hectare land position hosts a >2.5-kilometer gold-in-soil anomaly and has seen 6,363
meters of diamond drilling across 47 holes from 2018 to 2022. Historical results confirmed widespread,
near-surface gold mineralization hosted within fractured quartzite and gneiss units.
This work underpinned a historical resource estimate filed with the Brazilian National Mining Agency
(ANM) in 2023. The estimate includes 23,700 ounces (
1,156,000 tons at 0.64 g/t Au
) of gold in the
Measured category
, 44,200 ounces of gold (
969,000 tons at 0.66 g/t Au
) in the
Indicated category
,
and 40,500 ounces (
2,098,000 tones at 0.6 g/t Au
)
in the
inferred category
in oxidized materia and
highlights the presence of
free gold
, supporting the potential for low-cost, open-pit, heap leach-style
development.
Measured
Tons (000's)
Grade (g/t)
Ounces (000's)
Oxide
1,156
0.64
23.7
Sulphide
392
0.44
5.6
Indicated
Oxide
969
0.66
44.2
Sulphide
355
0.42
4.8
Inferred
Oxide
2,098
0.6
40.35
Sulphide
190
0.43
2.61
Total (Measure + Indicated)
Oxide
2,125
0.65
67.9
Sulphide
747
0.43
10.4
Table 1 Historical mineral resources disclosed to the Brazilian National Mining Agency (ANM) in
2023. These estimates are not current and should not be relied upon. A Qualified Person has not
done sufficient work to classify the historical estimates as current mineral resources under NI 43-101
and Pacific Bay is not treating them as such.
Inferred Mineral Resources are reported separately from
Measured and Indicated categories and should not be aggregated. Pacific Bay considers the
historical estimate to be relevant as it outlines the presence of gold mineralization in oxide and
sulphide domains, which aligns with the Company's exploration model. However, the reliability of the
estimate is uncertain due to the lack of available information on QA/QC protocols, database
validation, and estimation methodology.
This historical estimate was prepared and filed with the Brazilian National Mining Agency (ANM) in 2023
by Geologica Consultoria Ltda., in a report titled "Relatório Final de Pesquisa - Projeto Pereira Velho"
(Geologica, 2023).
The historical estimate used a cutoff grade of 0.3 g/t Au for oxide material and 0.4 g/t Au for sulphide,
based on gold price assumptions of USD $1,400/oz and preliminary metallurgical recovery factors of
80% for oxide and 60% for sulphide zones. The resource categories used in the historical estimate-
namely 'Measured', 'Indicated', and 'Inferred'-generally correspond to definitions outlined by the Brazilian
ANM. However, these categories may not be directly comparable to those defined by CIM under NI 43-
101 standards, and a Qualified Person has not validated their equivalency. To the best of the Company's
knowledge, no more recent resource estimate has been prepared for the Pereira Velho Project since
the 2023 filing with ANM.
Metallurgical Testing Highlights
Preliminary metallurgical testing conducted at SGS Geosol laboratories on oxidized mineralization from
the Pereira Velho Project yielded
highly encouraging gold recoveries
. Column leach tests returned
51.1% (1-inch crush), 79.2% (½-inch), and up to 94.8% (3 mm crush)
over a 31-day period. These
results confirm the potential for
low-cost, conventional heap leach processing
, particularly in the
oxide domain, which represents nearly 90% of the total historical ounces. In contrast, sulfide-rich zones
displayed refractory behavior, underscoring the strategic importance of prioritizing oxide material for
near-term development.
Next Steps
Pacific Bay is preparing for a focused exploration and development program at Pereira Velho in 2025.
The Company plans to initiate a
confirmatory and step-out drilling campaign
aimed at validating
historical results and expanding the known mineralized envelope along strike and at depth. In parallel,
additional
metallurgical optimization studies
will be conducted to refine recovery parameters,
particularly for heap leach processing of oxidized material. These efforts are designed to support the
publication of a
maiden NI 43-101 compliant resource estimate
, , and to lay the groundwork for a
preliminary economic assessment
to evaluate potential project development scenarios.
"With gold prices continuing their upward trajectory and investor appetite returning to the junior resource
sector, Pacific Bay is uniquely positioned to unlock significant near-term value at Pereira Velho," stated
Reagan Glazier, CEO and President of Pacific Bay Minerals
.
"This is a near-surface, oxide-dominant
gold system with excellent infrastructure, strong initial metallurgy, and a historical resource already in
hand - and it remains wide open for expansion. We believe this combination gives us a clear runway for
discovery, development, and value creation in a tightening gold market."
Notes to investors
Historical exploration data and analytical results featured in this announcement were taken from
assessment reports filed with the department of Mines Brazil. Neither Pacific Bay nor a qualified person
has verified the historical sampling, analytical, and test data contained in this news release. Historical
work and results include a gold-in-soil anomaly across some of the 11 claims totaling 14,596 hectares,
drill testing, and an initial phase of metallurgical testing. The Company is providing these historical data
for informational purposes only and gives no assurance as to their reliability and relevance to the
Company's potential exploration program on the Project. The Company has not completed any quality
assurance program or applied quality control measures to the historical data.
Investors are cautioned that there can be no assurance that the parties to the LOI will come to agreement
and execute a binding, definitive agreement or that the Acquisition will be completed as proposed, or at
all. In addition, the Company can give no assurances at this time that the Project will contain economic-
grade mineralization and reserves that would be required for any profitable mining or will fulfill the
Company's business development goals described herein. Trading in the securities of the Company
should be considered highly speculative.
The Company will issue additional press releases related to execution of definitive documentation in
respect of the Acquisition and other material information as it becomes available.
All technical information including historical resource can be found in the NI 43-101 report. A copy of the
NI 43-101 technical report can be found on our website or SedarPlus. The 43-101 report was completed
by Mr. Rodrigo Mello of Brazil and is an independent and "Qualified Person" as defined in NI 43-101.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved
by Mr. David Bridge, P.Geo., a consultant of the Company, who is a "Qualified Person" as defined in NI
43-101.
For more Information please contact:
Reagan Glazier, CEO, President and Director
E-mail:
Telephone:+1 403-815-6663
About Pacific Bay Minerals Ltd.
Pacific Bay, a Canadian-based junior mineral exploration company, currently has a portfolio of
properties in British Columbia including the Haskins Reed and Sphinx Mountain Rare-Earth Element
Project. Focus will be directed to actively exploring and developing all three projects.
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to the Appian Natural Resources Funds, which
are long-term, value-focused funds that invest in metals, mining, and adjacent industries.
Appian is a leading investment advisor with global experience across South America, North America,
Australia and Africa. It has a successful track record of supporting companies in metals, mining, and
adjacent industries to achieve their development targets, with a global operating portfolio overseeing
nearly 5,000 employees.
Appian has a global team of 85 experienced professionals with presences in London, New York, Hong
Kong, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.
For more information, please visit
www.appiancapitaladvisory.com
, or find us on LinkedIn, Instagram or
Twitter/X.
Forward-Looking Statements
This News Release contains forward-looking statements, which relate to future events. In some cases,
you can identify forward-looking statements by terminology such as "will", "may", "should", "expects",
"plans", "intends", or "anticipates" or the negative of these terms or other comparable terminology. All
statements included herein, other than statements of historical fact, are forward-looking statements,
including but not limited to the Company's expectations regarding the terms of the Acquisition, the
closing date of the Acquisition, expected benefits of the Acquisition, mineralization of the Project and
other matters. These statements are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause the Company's actual results, level of activity,
performance, or achievements to be materially different from any future results, levels of activity,
performance, or achievements expressed or implied by these forward-looking-statements. While
these forward-looking statements, and any assumptions upon which they are based, are made in good
faith, and reflect the Company's current judgment regarding the direction of its business, actual results
may vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other
future performance suggestions herein. Except as required by applicable law, the Company does not
intend to update any forward-looking statements to conform these statements to actual results.
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https://www.newsfilecorp.com/release/253778