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.