Replies to post #29 on Pegasus Resources Inc (SLTFF)

[Sam Dan]

Here is an independent view of PST Looks like things are starting to move forward
Pistol Bay Mining (TSXV: PST)
This is a zinc opportunity that is just coming out to the market. It has been quiet until now while the
company sewed up the land it wanted and figured out financing. With those aspects now complete,
Pistol Bay Mining (TSXV: PST) is ready to tell and advance its story.
The story is focused on the Confederation Lake VMS greenstone belt in Red Lake, Ontario.
Volcanogenic massive sulphide (VMS) deposits can carry any or all of copper, lead, zinc, silver, and
gold; the ratios depend on the setting and where the deposit is in the system. In Confederation Lake
the VMS’s are zinc-dominant but also carry good copper, as evidenced by the South Bay mine. South
Bay tapped into one of Confederation Lake’s VMS deposits, at the northeast end of the greenstone
belt, and between 1971 and 1981 mined 1.45 million tonnes grading 11.06% zinc, 1.8% copper, and
72.7 g/t silver.
Characteristically, where greenstone belts in Ontario host one VMS deposit there are others. Pistol
Bay’s land package stretches along 31 km of the belt and includes three historic deposits plus
numerous mineralized drill hits that deserve follow up.
I am moving on this opportunity now for two reasons:
1. The story is about to get busy. Pistol Bay’s team has plans to get out and tell the story; trading
volumes today suggest they had some success doing so at PDAC. Having acquired all the
ground it wants and with a financing almost wrapped up and some additional cash expected
from another property deal, PST has what it needs to get going.
2. News flow over the next few months should be constant and good. To upgrade the historic
resources to compliant standards, half of the pending drill program will twin historic holes to
verify results. That work should produce reliably good results that will highlight what Pistol Bay
has in Confederation Lake. The company will also fly a VTEM survey over the entire belt. It
has never been done, because the belt was divided into a dozen properties with different
owners, but now that PST has acquired a good number of those projects VTEM is the obvious
geophysical tool to assess the potential for new zones, connections between zones, and
feeders beneath zones.
The stock has moved up some in the last two months as Pistol Bay got organized, but between news
flow and leverage to zinc I think PST offers good odds of near-term upside from here