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 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).
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.
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.
Pistol Bay Mining (TSX.V-PST) has closed the first tranche of its financing previously announced October 25, 2016 and amended November 25, 2016.
2,710,000 non flow-through units at $0.07 for $189,700. One share and one full warrant priced at $0.12 for 18 months.
135,000 flow-through units at $0.09 for gross proceeds of $12,150. One share and one half warrant priced at $0.15 for 18 months.
The proceeds of the private placement will be used for general working capital and exploration on the company’s mineral properties.
#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.
Pistol Bay Mining (TSX.V-PST) (#Frankfurt OQS2) is commencing a program of field work on its zinc-rich base metal projects (the “Dixie Projects”) in the Confederation Lake greenstone belt, southeast of Red Lake in northwestern Ontario. Pistol Bay has received an Early Exploration Permit which is valid for three years and allows diamond drilling and mechanized stripping. An Exploration Plan has also been placed on file covering line cutting and geophysical surveys requiring a generator.
The Company is now planning an initial diamond drilling program of between 1,500 and 2,000 metres for the fall of 2016. The program will focus on confirmation of previously drilled targets for which information is incomplete.
Compilation of historical exploration data is continuing, as well as plans for a possible deep-penetrating electromagnetic survey and/or a gravity survey.
Pistol Bay (TSX.V-PST) has executed an option agreement to acquire a 100% interest in additional zinc-copper claims located in the Red Lake, Ontario region. The Dixie 3 property is 640 ha, 45 km southeast of Red Lake and accessible by all-weather forestry access roads. The property is 8 km of the company’s Dixie 17, 18, 19 properties within the Confederation Lake greenstone belt.
From past exploration by Noranda, Tribute Minerals (now Aurcrest Resources) and Hudson Bay Exploration, a total of approximately 80 drill holes have been drilled on the property. The Dixie 3 property hosts the Dixie 3 VMS zone, which was estimated to contain 91,000 short tons grading 1% copper and 10% zinc (historical resource estimate – non-43-101 compliant).
Pistol Bay plans to compile the historical diamond drilling and geophysical survey data for the Dixie 3 property and, if possible, to re-acquire and re-evaluate the results of the 2008 Titan 24 survey. The company will consider additional deep-penetration surveys over the remainder of the property and drill testing of the new target areas as well as lateral and depth extensions of known mineralized zones.