New acquisition near other PST holdings
PISTOL BAY MINING OPTIONS JOY NORTH PROPERTY, ONTARIO
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 Joy North property, located in the Gerry Lake area, approximately 50 kilometres southeast of Red Lake, Ont.
The Joy North Property consists of a single mining claim comprising 4 units (64 hectares), which has been held by the vendor continuously since 1992. It covers a 1,000 metre long conductive zone, defined on the ground by a Horizontal Loop Electromagnetic (HLEM) survey. A mobile metal ion (MMI) geochemical survey has indicated anomalies in zinc, copper and gold associated with parts of the conductor. The stronger parts of the HLEM conductor also have more intense magnetic responses.
A single 48 metre diamond drill hole was put down in the vicinity of the conductor (exact location unknown) in 1970 by Caravelle Mines Ltd. It intersected a variety of metavolcanic rocks exhibiting intense alteration of the type associated with Volcanogenic Massive Sulphide (VMS) deposits. It also intersected calc-silicate rocks suggesting that the Property may lie at the same stratigraphic horizon as the Dixie zone, 11 kilometres to the west. The Dixie 18 zone, which lies on the Dixie Property, also held by Pistol Bay, was estimated by Noranda Inc. to contain 100,000 tonnes grading 12.5% zinc and 0.5% copper (see caution in footnote).
The Joy North claim is contiguous with the Joy group of claims, which is part of the property package acquired by Pistol Bay from AurCrest Gold Inc. (see news release dated November 1, 2016). The Joy group of claims covers five separate mineralized zones, all of VMS character, that lie on two "horizons" that lie parallel to and 1,000 and 1,300 metres respectively, south of the Joy North anomaly. The Diamond Willow Zone has a historical resource estimate of 270,000 tonnes grading 4% zinc plus copper (see caution in footnote). No mineral resource, historical or otherwise, has been calculated for any of the other four zones. Following is a list of their more significant diamond drill intercepts:
Joy Zone: 5.7 metres @ 3.10% Cu, 0.20% Zn 3.35 metres @ 4.01% Cu, 0.17% Zn Creek Zone: 0.95 metres @ 2.33% Cu, 0.27% Zn South Zone: 0.60 metres @ 0.28% Cu, 17.17% Zn 0.25 metres @ 0.17% Cu, 8.36% Zn Caravelle Zone: 0.25 metres @ 0.13% Cu, 21.60% Zn 1.10 metres @ 0.22% Cu, 4.44% Zn
Charles Desjardins, CEO of Pistol Bay, stated: "The Joy North Property includes one of the very few electromagnetic anomalies in the prolifically mineralized Confederation Lake greenstone belt that has not been satisfactorily explained by diamond drilling. It's associated MMI geochemical anomalies make it a prime exploration target. An existing logging road that comes within 200 metres of the target also makes it one of the most accessible. The Company intends to apply for an Exploration Permit and to include drilling this target in its plans for the 2017 program."
The Transaction
The Company can earn a 100% interest in the Property by issuing an aggregate 1,005,000 common shares and paying a total of $40,500 over a four-year period. A 2% NSR has been granted to the vendor, of which 1% may be purchased at any time by the Company for $500,000 and the remaining 1% at any time for $1,500,000. In addition, the Company must drill a minimum of two diamond drill holes with core of BTW or larger size, to a minimum aggregate depth of 600 metres on the Property, subject to the Company being granted an Early Exploration Permit by the MNDM.
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, Ph.D., P.Geo., a Qualified Person as defined in National Instrument 43-101
