Pistol Bay Mining (TSX.V-PST) (FSE:OQS2) announced a planned diamond drilling program to take place in November on the Dixie zinc properties (totalling 4,700 acres) in the base metal rich Confederation Lake greenstone belt, southeast of Red Lake, Ontario. Confirmation drill holes are proposed for the Dixie 17 and 18 zones.
The Dixie 17 and 18 zones are typical Volcanogenic Massive Sulphide (VMS) deposits. Historic drill results for the Dixie 18 zone include 4.30 m of 15.44% zinc, 0.43% copper and 20.9 g/t silver and for Dixie 17 9.5 m of 7.34% zinc and 1.44% copper.
A non-brokered private placement has been arranged of up to 9 M units for total proceeds of up to $820,000. Up to 4 M units will be issued as non flow-through units at a price of $.08 per unit consisting of one common share and one whole warrant, each whole warrant priced at $.12/ share for 18 months. Up to 5 M units will be issued as flow-through units at a price of $.10/unit consisting of one common share and one-half of one whole warrant, each whole warrant priced at $.15/share for 18 months.