Full version / Map of Pistol Bay´s Confederation Lake Project in northwest Ontario, Canada (source: Pistol Bay Mining Inc.)
Today, Pistol Bay Mining Inc. provided a significant update on its activities in the last months. The company has now received the final results of an extensive VTEM PLUS survey over the eastern two-thirds of its properties, covering 40 km length of the Confederation Lake greenstone belt in Ontario, Canada. This state-of-the-art survey has successfully detected multiple new conductive zones below surface.
The latest versions of VTEM have also detected an "IP Effect" response, which is capable of responding to disseminated sulphides. All of the historic deposits in the area have been found near such conductors and none of them was associated with "false" conductors (i.e. graphite) according to my knowledge. Thus, the likelihood of the conductors being sulphide deposits is given. Pistol Bay now has almost complete coverage of its very large land package with a modern VTEM PLUS system that can detect sulphide zones at depths of 300 m or more, possibly much more (up to 700 m). This gives them the opportunity to look much deeper than anyone else has ever been able to – and thanks to today´s final results, the potential for several new deposit discoveries is exceptionally high.
Pistol Bay controls such a large land package with so many drill-ready targets that joint ventures are the best way now to unlock values on multiple fronts simultaneously. With around 43 million shares issued and outstanding, Pistol Bay´s market capitalization currently stands at $2 million CAD – providing its shareholders with substantial upside in case joint ventures can be formed and subsequent discoveries via the drill bit are made.
After reviewing the VTEM data with the company’s consulting geophysicist, Jeremy S. Brett of MPH Consulting Ltd., the following observations were made:
-- Conductive responses were confirmed at all historic showings, zones and mineralized drill intersections;
-- There are conductive extensions of several known zones, beyond sections that have been drilled in the past;
-- There are untested conductors on strike with known mineralized zones or occurrences;
-- There are new clusters of conductors, away from any known mineralization, that are in areas of favorable geology, and constitute new target areas;
-- Numerous IP effect anomalies have been identified, either as separate anomalies or as extensions of conductors.
Charles Desjardins, CEO of Pistol Bay, commented in today´s press-release:
“This is an exciting time for Pistol Bay. We are working to develop and prioritize targets for ground follow-up and drill testing. Because of the large number of potential targets generated by the VTEM survey, we are considering inviting joint venture partners for all or parts of the Confederation Lake project. We have had early-stage discussions with potential joint venture partners. Once we’ve got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property.”
In another development, Pistol Bay has received a new NI43-101 Technical Report on the Garnet Lake Property (which includes the Fredart and Lucky 7 claim groups). The report includes a new Inferred Mineral Resource for the Arrow Zone: 2.1 million tonnes averaging 5.78% zinc, 0.72% copper, 0.6 g/t gold and 19.5 g/t silver. The resource is based on a cutoff grade of 3% zinc equivalent, and a 3 m minimum true width. The technical report recommends 2,000 m of diamond drilling to test for possible down-plunge extensions of the Arrow Zone. The report is available on sedar.com and can be read here or below:
The VTEM (Versatile Time-domain Electro Magnetic) system was first deployed in 2005, when it featured a 30 m diameter transmitter loop, capable of putting out more powerful “pulses” than any other helicopter-borne system, giving it unprecedented depth penetration. Continual improvements over the years have led to the VTEM PLUS® system, with a 36 m transmitter loop and improved signal processing, allowing it to “see” even deeper.
The Confederation Lake greenstone belt has long been known as being prospective for zinc-copper VMS (Volcanogenic Massive Sulphide) mineralization. Electromagnetic survey methods, both on the ground and airborne, have been the most important exploration tool for VMS deposits and have been responsible for virtually every VMS discovery since the early 1960s.
The history of the Confederation Lake greenstone belt has paralleled the history of electromagnetic surveying. The first substantial deposit in the belt was the Copperlode “A” (also known as Fredart “A”) Deposit was discovered in the early 1960s by prospecting, which led to widespread appreciation of the VMS potential of the area. In the late 1960s, Selco Exploration carried out an airborne EM survey and drill testing of anomalies led to the discovery of the South Bay Zinc-Copper-Silver Deposit. Selco put the South Bay Mine into production in 1971, producing approximately 1.45 million tonnes until its closure in 1981. Although it was a relatively small deposit, it was high grade (11.06% zinc, 1.8% copper and 72.7 g/t silver is reported to have made it a very profitable mine for Selco).
Between the South Bay discovery and 1998, several companies, including Noranda Exploration and Minnova Inc., surveyed all, or parts, of the Confederation Lake belt with airborne EM systems of increasing power and depth penetration, looking for “blind” sulphide zones (i.e. zones that do not come to surface). New sulphide zones were found by drill testing of EM anomalies. However, the next 2 substantial discoveries were made by Noranda in the 1990s using deep-penetrating, time-domain ground surveys in areas of favourable geology. The top of the Arrow Zone is approximately 150 m below surface. The Arrow Zone was drilled by Noranda, then by Tribute Minerals Inc., which acquired all of Noranda’s assets in the area in 2003. Pistol Bay optioned all of Tribute Minerals’ properties, including the Arrow Zone.
The top of the Hornet Zone is 300 m below surface; Noranda only tested it with three drill holes. Pistol Bay is in negotiations to acquire a majority interest in the 4-claim property that includes the Hornet Zone. Ground time-domain EM systems, like the Crone PEM and Geonics EM-37 that were used by Noranda, are not practical for exploring large areas, because of their high cost. The new VTEM PLUS® system offers similar depth penetration capabilities at a cost that allows large areas to be covered effectively.
Pistol Bay Mining Inc.
Suite 760 - 777 Hornby Street
Vancouver, B.C. V6Z 1S4 Canada
Phone: +1 604 369 8973
Shares Issued & Outstanding: 42,882,648
Canadian Symbol (TSX.V): PST
Current Price: $0.045 CAD (September 8, 2017)
Market Capitalization: $2 Million CAD
German Symbol / WKN (Frankfurt): 0QS2 / A12DZH
Current Price: €0.024 EUR (September 11, 2017)
Market Capitalization: €1 Million EUR
Report #5: "Rio Tinto injects cash into Pistol Bay" (March 28, 2017)
Report #4: "Rio Tinto to drill for uranium while Pistol Bay focuses on zinc, copper and gold" (January 24, 2017)
Report #3: "Pistol Bay acquires high-grade zinc-copper deposits and becomes dominant land holder in the prolific Confederation Lake VMS Belt" (October 19, 2016)
Report #2: "Pistol Bay acquires new zinc project amidst smoking hot zinc prices" (September 1, 2016)
Report #1: "Early Bird Special Report: Pistol Bay with Zinc like a Phoenix from the Ashes?" (July 29, 2016)
Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.