Pistol Bay (TSX.V-PST) has entered into an amending and final agreement with Rio Tinto Canada Uranium Corp. (”RTCUC” or “Rio Tinto”), with regard to the C 4, 5 and 6 Uranium properties, whereby Rio Tinto will make a final cash payment of $1,000,000 to Pistol Bay.
The C block of Uranium properties, located in the Athabasca Basin of Saskatchewan, is under option to Rio Tinto, which has earned a 75-per-cent interest to date.
Under the 4th amending and final agreement, Rio Tinto will acquire an additional 25% interest in the Property (thereby increasing its aggregate interest to 100%), by making a cash payment of $1,000,000 to Pistol Bay within 14 days from the effective date of this final agreement. As part of this final agreement, no royalty is granted to Pistol Bay with respect to the property under the agreement.
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.
The 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