@PistolBayMining $PST Increases Size of Confederation Lake VTEM Survey

Pistol Bay Logo3Pistol Bay expanded the upcoming VTEM airborne electromagnetic and magnetic survey to cover almost twice the area of the original survey plan. Geotech Limited is contracted to survey the 40 km length of the Confederation Lake greenstone belt, southeast of Red Lake, Ontario.

With a larger loop, more power and better signal-to-noise resolution than earlier airborne electromagnetic systems, the current version of VTEM™, known as VTEM™ Plus, is able to resolve conductors at significantly greater depths than any previous airborne system.  By flying a survey over large areas of favourable geology, Pistol Bay will be exploring a depth slice that has only been investigated in the past by large-loop ground EM systems over very limited areas.  Target definition will be materially assisted by two recently acquired data sets.  A whole-rock geochemical database with almost 7,000 analyses was inherited from Noranda Exploration by AurCrest Gold Inc. and delivered to Pistol Bay as part of the AurCrest Gold property acquisition (see Pistol Bay news release January 18, 2017).  As well, a data set of Selco drill results, many of which were never in the public domain was supplied by the vendor of the Joy North property (see Pistol Bay news release February 22, 2017).

@PistolBayMining $PST Executes LOI to Option Copperlode Property with Five Known Zinc-Copper Zones

Pistol Bay has the option to acquire up to an 80 percent interest in the Copperlode Property by making certain payments and share issuances.  The Copperlode Property consists of four mining claims comprising 31 claim units for a total area of approximately 496 hectares or 1,225 acres.  Frontline holds the claims under option from a vendor.  The Copperlode Property hosts two mineralized zones with historical mineral resources based on drilling by Copperlode Mines Ltd. and Rexdale Mines Ltd. in the 1960s and 1970s:

The Copperlode “E” Zone has a historical resource of 145,000 tonnes with reported grades of 8.28% zinc, 1.02% copper and 24 grams per tonne silver.  The Copperlode “D” Zone has a historical resource of 32,600 tonnes reported to average 7.58% zinc and 0.26% copper.  These historical resources do not comply with current standards as spelled out in National Instrument 43-101.  Insufficient work has been done on these zones by a qualified person to determine whether 43-101 compliant mineral resources exist.

Other mineralized zones on the Copperlode Property, with selected diamond drill intercepts, are:

  • Copperlode “B” zone, 6.3 metres @ 2.50% zinc and 1.68% copper
  • Copperlode “C” zone, 1.5 metres @ 0.21% zinc and 6.02% copper
  • Hornet Zone, 6.6 metres @ 7.56% zinc and 0.08% copper, also 5.03 metres @ 4.07% zinc and 1.13% copper.  The Hornet zone was discovered by Noranda Exploration in 1997; it is open at depth and along strike.

Visit:  www.pistolbaymining.com for full news release  Pistol Bay Logo3

@PistolBayMining $PST Closes #Financing, Extends Expiry on #Warrants

Pistol Bay Logo3Pistol Bay $PST closed a non-brokered private placement financing for gross proceeds of $336,600, issuing 3,960,000 units at a price of $0.085 per unit, each unit comprising of one common share and one transferable share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of 18 months at a price of $0.12.

The Company has paid finder’s fees of a total of $32,810, 173,000 common shares, and an aggregate 223,000 finder’s warrants. Pistol Bay will use the proceeds of the private placement for exploration expenditures and general working capital.

The Company will extend the expiry date of 7,632,500 common share purchase warrants that were issued on August 29, 2016. The old expiry date of August 29, 2017 will be extended to August 29, 2018.

@PistolBayMining $PST to Commence VTEM (TM) Survey, Confederation Lake Project, Northwest Ontario

Pistol Bay $PST has contracted Geotech Ltd to carry out a 1,128 line-km helicopter-borne survey of the central part of the Company’s land position in Ontario. The survey will use Geotech’s Versatile Time-Domain Electromagnetic (VTEM Plus) system, which  includes a horizontal magnetic gradiometer.

Pistol Bay anticipates that this survey will explore the survey area to a significantly greater depth than previous airborne surveys, the last of which was done 20 years ago.

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@RioTinto to Provide $750,000 Cash Injection to @PistolBayMining $PST

Pistol Bay $PST has amended their agreement with Rio Tinto Exploration Canada with regard to the C4, 5 and 6 Uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay.

Under the amending agreement, Rio Tinto will acquire an additional 25% interest in the Property (thereby increasing its aggregate interest to 100%), by:

a) paying Pistol Bay $750,000 on or before April 17, 2017; and b) paying Pistol Bay one of the following payments:

i) $1,500,000 on or before 31 December 2017; ii) $2,000,000 on or before 31 December 2018; or iii) $2,250,000 on or before 31 December 2019.

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@PistolBayMining $PST Acquires Additional Ground at Confederation Lake-Gold, as well as Zinc-Copper Historic Drill Holes

Pistol Bay Logo3Pistol Bay $PST has optioned two additional claim groups in the Confederation Lake greenstone belt, Ontario which brings their land position in this belt to approximately 9,450 ha over a 53 km length of favourable volcanic geology.

The two claim groups are called Lucky 7 and Moth groups. The Lucky 7 covers a number of mineralized zones which adjoin the Garnet Lake and Garnet East claim groups. A copper-gold sulphide zone, which apparently grades into a siliceous gold zone at its eastern end, was stripped and drill tested in 2002 by Kings Bay Gold Corp. A zone of massive to disseminated sulphides has been trenched but apparently never drilled.

The Moth group of 10 claims comprises 85 units over 1,360 ha and covers a 5.5 km length of favourable geology and its north boundary is only 2 km from former producing South Bay mine.The area was extensively explored between 1970 and the mid 1990s, with at least 14 diamond drill holes. Widespread hydrothermal alteration was noted and there were numerous indications of zinc and/or copper mineralization.

$PST @PistolBayMining Closes #Financing

Pistol Bay closed a non-brokered private placement financing for total gross proceeds of $548,436.89, issuing 5,566,126 NFT units at a price of $0.07 per NFT unit and 1,764,534 FT unit at a price of $0.09 per FT unit. Gross hard dollars raised is $389,628.83 and FT dollars is $158,808.06.

The FT units are one common share and 1/2 share purchase warrant with each whole warrant priced at $0.15 for a period of up to 18 months.

Finder’s fees of $9,580 were paid and 50,000 finder’s warrants issued.

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@PistolBayMining $PST Options Joy North Property – Acquires Historic Data Set

Pistol Bay Mining TSXV-PST acquired a 100% interest in the Joy North Property, located in the Gerry Lake Area, approximately 50 km southeast of Red Lake, Ontario (the “Property”).

The Joy North Property consists of a single mining claim comprising 4 units (64 hectares), which has been held by the vendor continuously since 1992.  It covers a 1,000 metre long conductive zone, defined on the ground by a Horizontal Loop Electromagnetic (HLEM) survey.  A mobile metal ion (MMI) geochemical survey has indicated anomalies in zinc, copper and gold associated with parts of the conductor.  The stronger parts of the HLEM conductor also have more intense magnetic responses.

Pistol also announces that the vendor of the Joy North Property (see news release dated February 16, 2017) has supplied the Company with a package of historical data on exploration in the Confederation Lake greenstone belt in the 1960s and 1970s, much of which has never been in the public domain.

Most of the historical data comprises diamond drill logs and ground geophysical survey maps from Selco Mining Company.   Selco carried out a series of extensive and intensive exploration programs over most of the Confederation Lake belt that resulted in the discovery of several occurrences of zinc-copper Volcanogenic Massive Sulphide (VMS) mineralization with associated silver and gold values.  The South Bay deposit was one of the first discoveries made by Selco, and it went into production in 1971.  Over the period 1971-1981, the South Bay mine produced 1,486,000 tonnes averaging 14.7% zinc, 2.3% copper and 121 g/T silver (see footnote).

A significant number of the Selco drill holes, and many of the survey maps were never filed for assessment.  The regulatory regime in Ontario at the time allowed mining claims to have a maximum of 5 years of assessment work, after which they would have been eligible to be leased; there was no incentive to report any excess work for assessment.  Further, many of the drill holes that Selco did file for assessment did not include assay data.

Over the next several weeks, Pistol Bay will be incorporating the newly available data into a digital database that includes drill information, geology, assays, rock chemistry and petrology and ground geophysics.  Consideration is being given to carrying out a new airborne electromagnetic and magnetic survey using current technology that can “see” deeper than earlier systems and can also better discriminate bedrock from overburden conductivity.

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@PistolBayMining Appoints Jody Dahrouge to Advisory Board

Pistol Bay Mining Inc. TSXV-PST announced that Jody Dahrouge, B.Sc., Sp.C., P.Geol., has joined their Advisory Board.

Mr. Dahrouge is a professional geologist with over 25 years of experience in Canada and internationally, and has a successful background in base metals, industrial minerals, rare metals and uranium exploration.

Since 1998, Mr. Dahrouge has been the President of Dahrouge Geological Consulting Ltd., a geological services company that provides consulting services to a broad range of public and private exploration and mining companies. He is a professional geologist (Alberta) and holds Bachelor of Science degrees in geology and computing science, both from the University of Alberta.  Mr. Dahrouge has been involved in all aspects of mineral exploration and development for a wide variety of commodities worldwide.

Until September 2007, Mr. Dahrouge was President and COO of Fission Energy Corp. (“Fission”), and played a key role in the acquisition of several of Fission’s key exploration properties, including Waterbury Lake, Patterson Lake and Patterson Lake South (“PLS”). Two very significant uranium occurrences were eventually discovered at those projects, including the J-Zone at Waterbury Lake, and the Triple R uranium deposit at PLS.  Mr. Dahrouge has been a director and VP Exploration of Commerce Resources Corp. since 2000.

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Rio Tinto to Drill on @PistolBayMining ‘s C-5 #Uranium #Property, #Saskatchewan

Rio Tinto Exploration Canada Inc. (”RTECI” or “Rio Tinto”) has informed Pistol Bay that is continuing with its exploration program on the 2,500-acre (1016 hectares) C5 uranium property in the Athabasca Basin, northern Saskatchewan.

Rio Tinto intends to drill between 4 and 6 diamond drill holes for a program total of approximately 2,600 metres, targeting uranium mineralization at the unconformity between the Athabasca Basin sediments and the older basement rocks, and in the basement itself.  The C5 property adjoins the Wheeler River property, controlled by Denison Mines Corp.  It lies 4.5 kilometres north of the Phoenix uranium deposit, 5 kilometres northeast of the Gryphon uranium deposit, and 2.6 kilometres northeast of the 489 Uranium Zone.

The C5 property, together with the C4 and C6 claims, is under option to Rio Tinto, which has earned a 75% interest, and has previously announced its intention to exercise the further option to acquire 100% interest by paying Pistol Bay C$5,000,000 within 5 years of December 31st 2014 and granting Pistol Bay a 5% net profits interest (see Pistol Bay news release of February 16th, 2015).  Rio Tinto has, to date, completed 12 diamond drill holes totalling 6,104 metres on the C5 property and carried out a gravity survey and a DC resistivity.  The 2017 diamond drilling program is scheduled to commence on January 20th.

Pistol Bay LogoThe C4, C5 and C6 properties are road-accessible, an important feature that allows exploration funds to be used much more effectively than more remote, fly-in projects.  The 75-kilometre all-weather haul road from the McArthur River mine to Cameco’s Key Lake mine/mill passes approximately 5 kilometres from the properties, and there is a network of bush roads or trails that can be used by 4-wheel drive vehicles.

see: www.pistolbaymining.com for complete news release