by Greg Klein | January 24, 2017
Having resumed drilling, a Rio Tinto NYSE:RIO subsidiary advances towards a 100% interest in Pistol Bay Mining’s (TSXV:PST) C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin. Rio Tinto Exploration Canada has so far earned 75% of the properties and stated its intention to exercise the full option. That would bring Pistol Bay $5 million by the end of 2019 and a 5% net profits interest.
Located in a prolific area, C4, C5 and C6 adjoin Wheeler River, a JV of Denison Mines TSX:DML, Cameco Corp TSX:CCO and JCU (Canada) Exploration that hosts two exceptionally high-grade deposits. The Phoenix zone holds an indicated resource of 70.2 million pounds averaging 19.13% U3O8, the world’s highest-grade undeveloped uranium deposit.
Wheeler’s Gryphon zone shows an inferred 43 million pounds averaging 2.3%. C4, C5 and C6 are located about halfway between Cameco’s majority-held McArthur River, the world’s largest high-grade uranium mine, and Key Lake, the world’s largest uranium mill.
Rio plans four to six holes totalling about 2,600 metres on C5 beginning this month. Past work at C5 has included 12 holes totalling 6,104 metres, along with gravity and DC resistivity surveys.
Five kilometres of rough roads link the three properties to the all-weather route connecting McArthur River with Key Lake.
Last week Pistol Bay updated plans for its properties in Ontario’s Confederation Lake greenstone belt, where the company holds the area’s largest property package. Pistol Bay plans to bring modern geophysics and a region-wide approach to a district where previous companies have explored individual properties at different times.
Late last month the company closed a private placement first tranche totalling $201,850.