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Pistol Bay Mining Inc (3)
Symbol PST
Shares Issued 50,833,822
Close 2019-09-16 C$ 0.03
Market Cap C$ 1,525,015
Recent Sedar Documents

Pistol to option Pakwash Lake area from Ont. company

2019-09-17 11:42 ET - News Release

Mr. Charles Desjardins reports

PISTOL BAY ACQUIRES ADDITIONAL GOLD EXPLORATION CLAIMS IN RED LAKE

Pistol Bay Mining Inc. has entered into an option agreement with 1544230 Ontario Inc. subject to TSX Venture Exchange approval, to acquire a 100-per-cent right, title and interest in and to 141 mining cells located in the Pakwash Lake area in the Red Lake mining district, Ontario. The 7,130-acre properties are located east and south of Great Bear Resources recent discovery.

Charles Desjardins, president and chief executive officer of Pistol Bay, stated: "The company is excited about the additional prospects for gold in the vicinity of the recent Great Bear Resources discovery. We believe there is considerable potential for gold on our Confederation Lake side of the Red Lake mining district as well as the known historic resources of silver, copper and zinc. Many of the historic drill holes in Confederation Lake were not assayed for gold."

The property comprises two separate claim blocks. The first claim group is referred to as the Pakwash East block. It comprises 35 cells, with an area of approximately 716 hectares (1,760 acres). It is 12.5 kilometres southeast of the Great Bear Resources Dixie property. It adjoins a 9,650-hectare claim group registered to Great Bear Resources. It is traversed by provincial Highway 105, 115-kilovolt transmission lines and a natural gas pipeline. It is underlain by metasedimentary rocks and granitic intrusions, according to published geological maps. Although it formed part of Laurentian Goldfields Inc.'s Goldpines project, the only exploration reported in the area of the Pakwash East block was an airborne magnetic and VLF-EM (very low frequency electromagnetic) survey.

The second claim group is referred to as the Pakwash North block. It comprises 106 cells for 2,174 hectares (5,370 acres). It lies 21 kilometres southeast of the Dixie Lake gold discovery now being explored by Great Bear and 44 kilometres southeast of the town of Red Lake. It is accessible by old forestry access roads leading from Highway 105, as well as by boat on Pakwash Lake, and the Chukuni and English Rivers.

The Pakwash North block lies in an area of metasedimentary rocks of the English River terrain, including a variety of granitoid intrusives, and straddles a major structural, the Sydney Lake fault. Metasedimentary terrains in the vicinity of major structures, once considered to have low mineral potential, have been the site of recent gold discoveries such as Newmont-Goldcorp's Eleonore mine in Northern Quebec, the Curraghinalt gold deposit in northern Ireland and the Valentine Lake gold deposit in Newfoundland.

The Pakwash North block formerly comprised part of a large claim group known as the Goldpines property that was explored by Laurentian Goldfields Inc. in 2010 and 2011. This was the only previous exploration in the area and work in this part of the Goldpines property was confined to geological mapping, lake-sediment geochemical surveying, and MMI (mobile metal ions) soil sampling and analysis. The mapping confirmed the existence of the Sydney Lake fault. There are a small number of MMI soil samples with anomalous gold adjacent to the Sydney Lake fault in the eastern part of the property.

Under the terms of the option agreement, in order to acquire a 100-per-cent right, title and interest in and to the property, Pistol Bay is required to make total cash payments of $45,000 and issue a total of 500,000 shares over a three-year period. 1544230 Ontario will retain a 1.5-per-cent net smelter returns royalty. Pistol Bay shall have the right at any time to purchase one-half of the NSR royalty, being 0.75 per cent, from 1544230 Ontario in consideration of the payment to 1544230 Ontario of $500,000, thereby leaving Pistol Bay with a 0.75-per-cent NSR royalty.

The technical information in this news release was prepared and/or reviewed by Colin Bowdidge, PGeo, a qualified person as defined in National Instrument 43-101.

About Pistol Bay Mining Inc.

Pistol Bay is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholders value.

We seek Safe Harbor.

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