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.
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.