by Greg Klein | September 1, 2016
An option announced September 1 would add 640 hectares to Pistol Bay Mining’s (TSXV:PST) zinc-copper claims in Ontario’s Red Lake mining district. Formerly known as the Snake Falls property, Dixie 3 sits eight kilometres from the company’s Dixie 17, 18 and 19 properties. All four host mineralized zones and reside within the Confederation Lake greenstone belt, home to several volcanogenic massive sulphide deposits. The four Dixies now total 1,712 hectares, roughly 35 to 45 kilometres southeast of the town of Red Lake.
Past exploration on Dixie 3 included 80 drill holes, finding a number of mineralized zones including the Dixie 3 VMS zone. Some historic intervals from the property include:
- 1.1% zinc and 0.08% copper over 30.5 metres in downhole depth
- 0.95% zinc over 18.4 metres
- 0.5% zinc and 0.04% copper over 28 metres
- (including 1.9% zinc and 0.11% copper over 5.2 metres)
- 0.57% zinc and 0.05% copper over 24 metres
A notable intercept from Dixie 17 found 7.34% zinc and 1.4% copper over 9.5 metres. The Dixie 18 mineralized zone has been drilled to 250 metres in length and 150 metres in depth. The Dixie 19 zone has been tested over a length of 500 metres, with intervals up to 6.33% zinc and 1.5% copper over 3.55 metres.
Pistol Bay intends to compile Dixie 3’s historic drilling and geophysical data. Future work could include additional deep-penetration surveys, as well as drilling new targets and possible extensions of mineralized zones. The property can be reached by all-weather forestry access roads.
Dixie 3 comes with a price tag of $56,000 and 2.4 million shares over three years. NSR royalties totalling 1% apply.
In Saskatchewan’s Athabasca Basin, Pistol Bay holds the C-5 uranium property, a JV with a Rio Tinto NYSE:RIO subsidiary which has so far earned 75% of its 100% option.
Earlier this week Pistol Bay closed a private placement of $563,450.