The vendor of the Joy North property (see the news release dated Feb. 16, 2017) has supplied Pistol Bay Mining Inc. with a package of historical data on exploration in the Confederation Lake greenstone belt in the 1960s and 1970s, much of which has never been in the public domain.
Most of the historical data comprise diamond drill logs and ground geophysical survey maps from Selco Mining Company. Selco carried out a series of extensive and intensive exploration programs over most of the Confederation Lake belt that resulted in the discovery of several occurrences of zinc-copper-volcanogenic-massive-sulphide (VMS) mineralization with associated silver and gold values. The South Bay deposit was one of the first discoveries made by Selco, and it went into production in 1971. Over the period from 1971 to 1981, the South Bay mine produced 1,486,000 tonnes averaging 14.7 per cent zinc, 2.3 per cent copper and 121 grams per tonne silver (1).
A significant number of the Selco drill holes and many of the survey maps were never filed for assessment. The regulatory regime in Ontario at the time allowed mining claims to have a maximum of five years of assessment work, after which they would have been eligible to be leased; there was no incentive to report any excess work for assessment. Further, many of the drill holes that Selco did file for assessment did not include assay data.
Over the next several weeks, Pistol Bay will be incorporating the newly available data into a digital database that includes drill information, geology, assays, rock chemistry, and petrology and ground geophysics. Consideration is being given to carrying out a new airborne electromagnetic and magnetic survey using current technology that can see deeper than earlier systems and can also better discriminate bedrock from overburden conductivity.
Charles Desjardins, president of Pistol Bay, stated: "This data package will make our regional and property-scale compilations as complete as they can possibly be. When we follow up on some of the partially drilled-off zinc-copper zones that were originally discovered by Selco, we will be in possession of essentially all of the data that still exists, and that will allow us to make the most effective use of drilling metres."
(1) The South Bay mine site does not form part of Pistol Bay´s property holdings. Production figures from the South Bay mine vary depending on the source. Selco appears to have been equally as cautious about publishing production figures as it was about filing assessment reports. The numbers quoted here are from a 2003 report by Noranda Exploration Company. Noranda acquired most of its Confederation Lake properties through a joint venture with Selco; hence, Noranda had access to Selco data, and these production figures are considered sufficiently reliable for the purposes of this news release.
Technical information in this news release has been provided and/or reviewed by Dr. 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 precious and base metal properties in North America.
Pistol Bay agreement for Joy North property
2017-02-22 20:54 ET - Property Agreement
The TSX Venture Exchange has accepted for expedited filing documentation pertaining to an option agreement dated Feb. 9, 2017, between Pistol Bay Mining Inc. and Precambrian Ventures Ltd. (Greg Campbell), pursuant to which the company may acquire a 100-per-cent interest in four units, comprising approximately 64 hectares, located in Gerry Lake area of Ontario, known as the Joy North property. In consideration, the company will make cash payments totalling $40,500 and issue a total of 1,005,000 shares as follows:
-- Upon exchange acceptance, $3,000 cash and 55,000 shares;
-- On or before first anniversary, 100,000 shares;
-- On or before second anniversary, 100,000 shares;
-- On or before third anniversary, 150,000, two diamond drill holes to depth of 600 metres;
-- On or before fourth anniversary, $37,500 cash and 600,000 shares.
Pistol Bay enters option to acquire Joy North property
2017-02-16 10:42 ET - News Release
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 four units (64 hectares), which have 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 meta-volcanic 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 per cent zinc and 0.5 per cent copper.
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 Nov. 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 per cent zinc plus copper. No mineral resource, historical or otherwise, has been calculated for any of the other four zones. Following is a list of the more significant diamond drill intercepts:
-- Joy zone -- 5.7 metres at 3.1 per cent copper and 0.2 per cent zinc, and 3.35 metres at 4.01 per cent copper and 0.17 per cent zinc;
-- Creek zone -- 0.95 metre at 2.33 per cent copper and 0.27 per cent zinc;
-- South zone -- 0.6 metre at 0.28 per cent copper and 17.17 per cent zinc, and 0.25 metre at 0.17 per cent copper and 8.36 per cent zinc;
-- Caravelle zone -- 0.25 metre at 0.13 per cent copper and 21.6 per cent zinc, and 1.1 metres at 0.22 per cent copper and 4.44 per cent zinc.
Charles Desjardins, chief executive officer 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. Its 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 company can earn a 100-per-cent interest in the property by issuing an aggregate of 1,005,000 common shares and paying a total of $40,500 over a four-year period. A 2-per-cent net smelter return royalty has been granted to the vendor, of which 1 per cent may be purchased at any time by the company for $500,000, and the remaining 1 per cent at any time for $1.5-million. 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, PhD, PGeo, a qualified person as defined in National Instrument 43-101.