VANCOUVER, British Columbia, Sept. 04, 2019 (GLOBE NEWSWIRE) -- Pistol Bay Mining Inc. (TSX-V - PST; Frankfurt - OQS2, OTC/Pink Sheet symbol SLTFF) (“Pistol Bay” or the “Company”) is pleased to announce, subject to the approval of the TSX Venture Exchange, it has entered into an option agreement whereby Belmont Resources Inc will option from Pistol Bay its Fredart-Gerry Lake properties in Red Lake, Ontario.
Fredart/Gerry Lake Property Acquisition -Red Lake Mining Division
Pistol Bay is pleased to announce that they have entered into a mineral property acquisition agreement (the “Agreement”) with Belmont Resources Inc. (TSX-V: BEA) on its Fredart-Gerry Lake and several adjoining claim groups in the Confederation Lake greenstone belt, approximately 70km southeast of Red Lake, Ontario. The Arrow Zone-Garnet Lake, an adjoining claim block also owned by Pistol Bay contains an Inferred Mineral Resource (2017 NI 43-101) containing 2.1 million tonnes @ 5.78% Zn, 0.72% Cu, 195 g/t Ag, and 0.60 g/t Au as filed on SEDAR – September 2017. The geological setting of the Fredart and associated claims is similar to the Garnet Lake claims area.
The Fredart property had 124 drill holes between 1956 and 2003, totaling 22,500 metres. Additional drilling on the western extension of the Fredart trend and the Joy-Caravelle area has not been compiled yet. The Copperlode “A” or Fredart Zone deposit has a historical mineral resource of 425,000 tonnes grading 1.56% copper. This historical resource estimate does not comply with the standards of NI 43-101 and has not been reviewed by a Qualified Person. The zone was drill-tested to a depth of approximately 200 metres over a length of 350 metres, and was reported as being open at depth. Only portions of the drill holes were assayed for gold, due to the low price of gold at the time. The area was also explored for molybdenum in the 1970s, and samples containing up to 1.46% Mo were reported.
Access to the area is by all-weather roads, and a first class gravel road for 40km from the town of Ear Falls, along the length of the property. Local resources include the availability of skilled labour; a 115kV transmission line from Ear Falls hydro-electric generating station to Pickle Lake and Musselwhite crosses the property; natural gas at Ear Falls; and water is readily available throughout the area.
The Fredart property and additional claim units comprises 406 mining claims with an area of approx. 6,700 hectares (16,500 acres). It covers a 17 km length of the Confederation Lake greenstone belt. It includes two substantial mineral deposits and a number of mineralized drill intersections that are ready for follow-up drill testing. Mineralization on the property is of volcanogenic massive sulphide (VMS) type, dominated by zinc, copper and silver, with occasional associated gold values and areas drilled but untested for gold. The mafic-dominated part of the belt hosts an iron formation, which defines the Fredart-Gerry Lake “favourable horizon.” Iron formations are very often associated with gold mineralization.
The property is 25 km northeast of the Dixie property – owned by Great Bear Resources Ltd. that has been reporting high-grade gold intersections and their pace of discoveries has accelerated. Numerous other junior venture companies have been exploring the area, which is becoming one of the most active mining camps in Ontario.
In 2017 a VTEM Plus survey was completed which covers most of the greenstone belt. Airborne magnetics and electromagnetic anomalies are superimposed on the Ontario government surveys. Mag from the VTEM survey suggests the presence of granitic intrusions below surface in the northeast part of the Fredart area. The VTEM survey revealed two, or even three parallel conductive responses over large parts of the Fredart-Gerry Lake trend.
Also included in the claim block is the Joy-Caravelle area. This western end of the property area contains multiple zones of Zn-Cu VMS deposits in a felsic-dominated part of the belt. Drill hole assays reported were as high as 21.6% Zn, 0.13% Cu over 0.25m; 17.17% Zn, 0.28% Cu over 0.60m; 4.01% Cu over 3.55m; to name a few. Most of the drill holes were not assayed for gold. The Joy North claim has an undrilled 1100 metre long conductor, which is at a different stratigraphic horizon from the Fredart-Gerry Lake trend, and is unexplored.
Terms of the Option:
The Options terms over a three-year period are as follows:
For a 65% Interest:
- $40,000 cash and 1.5 million shares upon Exchange approval;
- $50,000 cash and 1.5 million shares -1st year Anniversary of Exchange approval;
- $50,000 cash and 1.0 million shares – 2nd year Anniversary of Exchange approval.
Belmont can earn an additional 10% interest (total 75%) upon completion of 2nd anniversary obligations by payment of $200,000 in cash. Belmont and Pistol Bay would then enter into a joint venture agreement. A royalty of 2% Net Smelter Returns (“NSR”) is payable to Glencore plc on all the claims except the Fredart Claims, where a 2% NSR royalty is payable to Perry English, with a $10,000 annual advance royalty payment to Mr. English.
Colin R. Bowdidge, Ph.D., P.Geo, and a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the above technical information in this news release.
About Pistol Bay Mining Inc.
Pistol Bay Mining Inc. 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. For additional information please visit the Company website at www.pistolbaymininginc.com or contact Charles Desjardins at email@example.com.
On Behalf of the Board of Directors
PISTOL BAY MINING INC.
President and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements:
Statements included in this announcement, including statements concerning of the Company’s plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/70b660d9-889a-4804-b87e-36fc9f6cf66fFredart Group Claims Fredart Group Claims