Pistol Bay (TSX.V-PST) has signed Confidentiality Agreements (“CAs”) with two prospective partners who have expressed interest in farming in to part or all of the 42,000-acre Confederation Lake zinc-copper project east of Red Lake, Ontario. One CA has been signed by a mid-tier producer, and the other by a junior exploration group.
Pistol Bay has applied to the Ontario Ministry of Northern Development and Mines (“MNDM”) for exploration permits covering the Garnet, Fredart, Moth and Fly claim groups. The MNDM circulated the applications to potentially affected First Nations and other aboriginal organizations on September 22, 2017, with no comments or concerns received to date. Exploration permits are normally issued within 50 days of the circulation date unless serious concerns have been raised by indigenous interests. The Company currently holds an exploration permit for the Dixie property.
Charles Desjardins, CEO of Pistol Bay, commented “The level of interest expressed by companies that have approached us about possible farm-ins and joint ventures is a testament to the quality of the Confederation Lake project. With zinc prices at a record high, there’s lots of demand for zinc and copper exploration projects. Not many companies can offer a belt-wide property base with proven VMS mineralization and a new airborne EM survey with multiple untested targets.”
Pistol Bay Mining (TSX.V-PST) (Frankfurt: OQS2) has received approval from the TSX Venture Exchange to acquire from AurCrest all the mining claims held by AurCrest in the Confederation Lake greenstone belt southeast of Red Lake, Ontario. TheTSXV approval requires Pistol Bay to file an NI-43-101 compliant technical report related to the Arrow Zone of the Confederation Lake Property by mid-March 2017.
Mr. Desjardins, President of Pistol Bay, stated, “Pistol Bay is a major land holder in a very prolifically mineralized VMS-rich belt. Our holdings include the largest zinc-copper-silver deposit in the area, the second-largest VMS deposit remaining (Fredart Lake Property), and a portfolio of exploration targets ready for follow up drilling. Pistol Bay is engaged in compiling data and re-appraising the AurCrest property with a view to planning an aggressive exploration program that will generate new drill targets, as well as follow up existing target areas and known deposits.”
Under the terms of the Agreement, Pistol Bay has the option to acquire a 100% interest in the AurCrest properties by paying AurCrest an aggregate of $250,000 and issuing an aggregate of 5 million common shares over four years with an initial payment of $25,000 and the issuance of 1 million common shares on closing, the payment of a further $25,000 within 90 days following closing and the payment of $50,000 and the issuance of 1 million common shares on each of the four anniversaries following closing. Each of the AurCrest properties is subject to a 2% net smelter returns royalty in favour of third parties.
#PistolBayMining (TSX.V-PST) has retained MPH Consulting to carry out a review of all historical geophysical surveys on the Dixie zinc-copper-silver projects, in preparation for a planned fall diamond drill program. The Dixie projects are in the Confederation Lake greenstone belt, 35 km southeast of Red Lake, Ontario. the Confederation Lake belt is known for its numerous volcanogenic massive sulphide (VMS) deposits and occurrences.
- Between 1977 and 2004, Selco Ltd., BP Minerals, Noranda and Tribute Minerals (now Aucrest Gold) carried out numerous ground geophysical surveys including magnetic surveying, horizontal loop electromagnetic, large-loop pulse EM surveys and a Titan 24 deep earth-imaging survey that comprises DCIP and magneto-telluric surveys, including a borehole probe. The Titan 24 survey defined a new blind anomaly that does not come to surface below the Dixie 19 zone.
- A second, much larger and deeper conductive anomaly was located approximately coincident with, but below the Dixie 20 anomaly. The conductive body has an irregular shape and reported to extend over an east-west length of 1,800m.
- Because of the complexity of the historical data, the company has requested that a critical review of all of the past geophysical surveys that will lead to prioritizing targets for future exploratory drilling be carried out by Jeremy S. Brett, MSc. PGeo, senior geophysical consultant at MPH Consulting.