10:04:23 EDT Mon 22 Oct 2018
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or Name

Pistol Bay Mining Inc (2)
Symbol C : PST
Shares Issued 44,482,648
Close 2018-01-09 C$ 0.07
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Pistol Bay options three Ontario properties from vendor

2018-01-10 01:14 ET - News Release

Mr. Charles Desjardins reports


Pistol Bay Mining Inc. has entered into an option agreement with an arm's-length vendor to acquire a 100-per-cent interest in the Mitchell, Gerry Lake and Karas Lake properties, located in the Karas Lake area, Red Lake mining division, Ontario.

The property consists of 33 mining claims, comprising 232 claim units and covering approximately 3,700 hectares.

Charles Desjardins, president and chief executive officer of Pistol Bay, stated: "These newly acquired claims were part of our recent 2017 VTEM Plus survey. We are very excited about the data and have given these targets a high priority for geophysical modelling."

The Mitchell township or Fly-Moth claim group covers a nine-kilometre stretch of the Confederation Lake greenstone belt and extends to within 1.5 kilometres of the former producing South Bay zinc-copper-silver mine. The property was explored by Selco Mining Corp., Placer Dome Inc., Kerr-Addison Mines, St. Joseph Explorations Ltd., Minnova Inc./Inmet Mining and Noranda Inc. at various times between 1967 and 1999. Previous exploration included approximately 90 diamond drill holes.

Historical work has identified numerous zinc-bearing sulphide zones across the Mitchell claims, including the Wasp Lake, Fly Lake, Trippier, Culvert, Moth and Road zones. Herein area few highlights from previous work.

The Wasp Lake mineralized trend was extensively drilled by Selco. Most results are unavailable. Two holes by St. Joseph Explorations yielded the following:

  • DDH 3197-6-80:
    • 2.79 metres of 2.96 per cent zinc and 0.04 per cent copper;
    • Includes 0.76 m of 7.44 per cent Zn and 0.05 per cent Cu;
    • And 4.02 m of 2.18 per cent Zn, 0.01 per cent Cu and 0.26 per cent lead;
    • Includes 0.50 m of 8.97 per cent Zn, 0.02 per cent Cu and 1.17 per cent Pb;
    • And 3.31 m of 1.27 per cent Zn and 0.09 per cent Cu;
  • DDH 3197-7-80:
    • 7.19 m of 1.12 per cent Zn and 0.04 per cent Cu;
    • Includes 1.24 m of 3.63 per cent Zn and 0.14 per cent Cu;
    • And 4.29 m of 0.98 per cent Zn, 0.01 per cent Cu and 0.15 per cent Pb.

This mineralized trend gave a strong conductive response on Pistol Bay's recent VTEM Plus airborne survey. The company plans to have the geophysics modelled to assess the possibility of a deep-seated massive sulphide zone.

The Fly Lake zone was tested by four drill holes by St. Joseph Minerals in 1976 over a 50-metre length. Pistol Bay's VTEM Plus survey gave a well-defined response on two lines, indicating a length of up to 400 metres. Results of the St. Joseph drilling include:

  • DDH 3197-2-79:
    • 0.60 metre of 1.71 per cent zinc, 0.15 per cent copper and 0.3 gram per tonne silver;
    • And 0.27 m of 2.00 per cent Zn and 0.08 per cent Cu;
  • DDH 3197-1-80:
    • 4.51 m of 0.53 per cent Zn and 0.06 per cent Cu;
    • Includes 0.76 m of 1.34 per cent Zn and 0.18 per cent Cu;
    • And 11.5 m of 1.36 per cent Zn and 0.17 per cent Cu;
    • Includes 2.65 m of 4.30 per cent Zn and 0.21 per cent Cu;
    • Includes 1.01 m of 8.25 per cent Zn and 0.34 per cent Cu;
  • DDH 3197-2-80:
    • 0.30 m of 2.69 per cent Zn and 0.07 per cent Cu;
    • And 4.90 m of 1.51 per cent Zn and 0.06 per cent Cu;
    • And 0.90 m of 1.98 per cent Zn and 0.01 per cent Cu;
  • DDH 3197-3-80:
    • 8.90 m of 1.51 per cent Zn and 0.08 per cent Cu;
    • Includes 3.90 m of 2.53 per cent Zn and 0.06 per cent Cu;
    • Includes 1.00 m of 4.63 per cent Zn and 0.09 per cent Cu.

This zone appears to be open along strike and at depth. The company proposes to drill for extensions of the mineralization, assisted by modelling of the VTEM data.

VTEM anomalies

There are nine discrete VTEM Plus conductive anomalies that do not appear to have had any previous drill testing. Their conductivity varies from very weak to moderate. Most are in areas with little or no outcrop, and one is under a lake.

The transaction

The company can earn a 100-per-cent interest in the property by issuing an aggregate of 500,000 common shares and paying a total of $104,000 over a four-year period. A 1.5-per-cent NSR (net smelter royalty) has been granted to the vendor, of which 0.75 per cent may be purchased at any time by the company for $400,000.

This transaction is subject to TSX Venture Exchange approval. All shares issued will be subject to a hold period expiring four months and one day from the day of issuance.

Technical information in this news release has been provided and/or reviewed by Colin Bowdidge, PhD, PGeo, a qualified person as defined in National Instrument 43-101.

About Pistol Bay Mining Inc.

Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America.

We seek Safe Harbor.

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