Monday 23rd January 2017

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Posts tagged ‘Pistol Bay Mining Inc (PST)’

Pistol Bay Mining updates exploration plans for Ontario VMS-style mineralization

January 18th, 2017

by Greg Klein | January 18, 2017

Holding the largest property package in Ontario’s Confederation Lake greenstone belt, Pistol Bay Mining TSXV:PST intends to take a regional and multi-disciplinary approach to turf that has previously seen relatively piecemeal work. With that in mind, the company updated its exploration plans on January 18.

Pistol Bay Mining updates exploration plans for Ontario VMS-style mineralization

Nearly complete is an extensive review of records that include historic data from approximately 850 holes sunk between 1962 and 2007. Although the entire belt has undergone at least a few geophysical surveys, Pistol Bay plans more electromagnetics. The primary method of exploration will be VTEM Plus, with its ability to reach far greater depths than was possible 20 years ago.

Another legacy of the Confederation Lake acquisitions is a database of rock chemical analysis, mostly compiled by Noranda from 1987 to 2003. “It appears that Noranda did not make a great deal of use of the data, perhaps because of changing priorities and budgets,” Pistol Bay stated. The info could help define areas of hydrothermal alteration related to the VMS mineralizing process, aid lithological mapping and locate areas enriched in zinc and/or copper. Very preliminary study has outlined five areas suggesting intense hydrothermal alteration, one of them 3.5 kilometres long.

Characteristic of some of the past work, the project area had previously been mapped by different companies with different levels of detail, according to Pistol Bay. “There is room for substantial improvement in mapping detail and the reconstruction of the submarine volcanic history and the tectonic framework of the belt.”

It’s obviously a very well-mineralized belt and if we are smart and if we try harder we’ll maximize our chances of making Canada’s next base metal VMS discovery.—Charles Desjardins,
Pistol Bay Mining CEO

With closing of a four-year option on AurCrest Gold’s (TSXV:AGO) regional holdings, Pistol Bay’s Confed Lake package will comprise 7,050 hectares along a 43-kilometre stretch of the 60-kilometre-long greenstone belt. The company also stated it has preliminary negotiations underway to potentially acquire four more blocks of claims with significant mineral occurrences or exploration targets.

“The Confederation Lake project has experienced 50 years of exploration by well-funded companies using the best technologies that were available at the time,” pointed out CEO Charles Desjardins. “Exploring deeper using the latest geophysics is one obvious advantage that we have, but we must also use every other tool at our disposal. It’s obviously a very well-mineralized belt and if we are smart and if we try harder we’ll maximize our chances of making Canada’s next base metal VMS discovery.”

Additionally, Pistol Bay plans to file a 43-101 technical report on Confederation Lake’s Arrow zone by mid-March.

In late December the company closed the first tranche of a financing totalling $201,850.

Read more about Pistol Bay Mining.

Polymetallic promise

December 16th, 2016

Pistol Bay Mining brings regional exploration to Ontario’s VMS-rich Confederation Lake

by Greg Klein

During the doom and gloom of mid-2015 Charles Desjardins saw a hopeful sign in zinc. A search for prospective sources led the president of Pistol Bay Mining TSXV:PST to the volcanogenic massive sulphide deposits of western Ontario’s Confederation Lake greenstone belt. There he found different operators left what he considered a mixed legacy—work that was very impressive but carried out in a rather unco-ordinated manner. Now, with a commodity that’s justified his optimism and a portfolio that’s poised to be the belt’s largest, his company’s launching an ambitious new program to take a region-wide approach to Confederation Lake.

“Even though there’s been a lot of money spent in that region there really hasn’t been a lot of continuity in exploration programs,” says Desjardins. “For example we found 8,000 rock geochemistry samples that Noranda did. In today’s terms that’s about $300,000 worth of work just for the analysis, never mind actually acquiring all those samples. We don’t know if Noranda did anything with this, it might have been right when they were getting out of there. But it showed us some obvious things, including a couple of new, big, big targets and extensions of known targets.”

Pistol Bay Mining brings regional exploration to VMS-rich Confederation Lake

That’s just part of the inspiration for a two-tiered program to begin in January. Drilling would start with about six holes and a few thousand metres, he says. “Beyond that, the plan is to do a regional airborne survey with new technology that can see VMS-style mineralization at 600 to 700 metres. When you look at Flin Flon and Snow Lake, geophysics there found two major deposits at the 500-metre level.”

Confederation Lake characterizes the tendency of VMS deposits to appear in clusters, Desjardins points out. He attributes the region’s largest mine, South Bay, for around 354 million pounds of zinc, 57.6 million pounds of copper and 3.74 million ounces of silver produced between 1972 and 1981. Grades averaged about 11.06% zinc, 1.8% copper and 72.7 g/t silver.

Pending exchange approval for a four-year option on AurCrest Gold’s (TSXV:AGO) regional holdings, Pistol Bay’s turf comprises 7,050 hectares along a 43-kilometre stretch of the 60-kilometre-long belt. The projects include four historic deposits.

Already under a four-year option is a contiguous group of properties named Dixie 17, 18, 19 and 20 that’s been consolidated into a single project. Dixie comes with a 1992 historic, non-43-101 “mineral inventory” from Noranda estimating 150,000 short tons with an average 14% zinc.

Some eight kilometres southeast, the Dixie 3 property, formerly called Snake Falls, hosts another historic, non-43-101 Noranda estimate, this one 91,000 short tons averaging 1% copper and 10% zinc.

Roughly 20 kilometres northeast sits the Arrow zone, one of the acquisitions waiting approval. Arrow comes with a 2007 resource compiled by AurCrest predecessor Tribute Minerals that Pistol Bay isn’t treating as 43-101 and intends to re-do. Using three cutoff grades, the estimate showed:

3% zinc-equivalent cutoff

  • indicated: 2.07 million tonnes averaging 5.92% zinc, 0.75% copper, 21.1 g/t silver and 0.58 g/t gold

  • inferred: 120,552 tonnes averaging 2.6% zinc, 0.56% copper, 18.6 g/t silver and 0.4 g/t gold

5% zinc-equivalent cutoff

  • indicated: 1.76 million tonnes averaging 6.75% zinc, 0.79% copper, 22.3 g/t silver and 0.61 g/t gold

  • inferred: 51,631 tonnes averaging 3.86% zinc, 0.79% copper, 23.9 g/t silver and 0.58 g/t gold

10% zinc-equivalent cutoff

  • indicated: 633,000 tonnes averaging 14.3% zinc, 1.11% copper, 31.7 g/t silver and 0.85 g/t gold

That acquisition includes the contiguous Copperlode A or Fredart zone, with its historic, non-43-101 estimate of 425,000 tonnes averaging 1.56% copper and 33.6 g/t silver.

Even though there’s been a lot of money spent in that region there really hasn’t been a lot of continuity in exploration programs.—Charles Desjardins,
president of Pistol Bay Mining

Obviously these deposits cry out for 43-101 treatment. Pistol Bay intends to begin with Arrow, the most recent resource but with another 16 holes to consider. Desjardins hopes to have that done within six months.

He points to assays that followed historic estimates on the other deposits, like 7.34% zinc and 1.4% copper over 9.5 metres, and another 15.44% zinc and 0.43% copper over 4.3 metres at Dixie. Intriguing zinc-copper intercepts also came from the Joy-Caravelle area, part of the AurCrest package. Historic sampling at Copperlode A found molybdenum grading up to 1.46%.

Then there’s the 8,000 geochemistry samples left by Noranda. Additionally, Pistol Bay has MPH Consulting at work on an extensive review of previous geophysics. Add to that the new airborne and drilling to begin in January and Desjardins looks forward to a wealth of data with considerable potential waiting to be unlocked.

There’s strong community support too, he adds. “One First Nation invested I think about $600,000 in AurCrest,” he says.

In Saskatchewan’s uranium-prolific Athabasca Basin, Pistol Bay JVs with a Rio Tinto NYSE:RIO subsidiary on the C-5 project. Having earned 75% of its option already, Rio has stated its intention to acquire the full 100% by the end of 2019. That would bring Pistol Bay $5 million and a 5% net profit interest.

The company expects to soon close the first tranche of a private placement offered up to $810,000. Other financings would follow, as Confederation Lake’s regional exploration continues in stages.

“We already have significant deposits that might be developed with one central mill,” Desjardins says. “But we’ll be looking for an elephant too.”

Charles Desjardins outlines his company’s plans on becoming the largest claimholder in Ontario’s Confederation Lake greenstone belt

November 14th, 2016

…Read more

Pistol Bay Mining plans November drilling on Dixie zinc projects in Ontario

October 26th, 2016

by Greg Klein | October 26, 2016

It’s neither the land of cotton nor of traditional jazz, but of zinc with additional metals. And that’s why Pistol Bay Mining TSXV:PST has a November drill program planned for three of its western Ontario Dixie properties. Totalling about 1,900 hectares, Dixies 17, 18 and 19 host lenses of volcanogenic massive sulphides with zinc, copper, silver and minor gold in the Confederation Lake greenstone belt southeast of Red Lake.

Pistol Bay Mining plans November drilling on Dixie zinc projects in Ontario

All three have historic zinc-copper assays.

A review of previous geophysics will help determine drill targets for the three zones. Additionally, Pistol Bay proposes confirmation holes for Dixie 17 and 18.

Also on October 25, the company announced a private placement of up to $820,000. Pistol Bay closed a $563,450 placement in August.

Earlier this month the company announced a letter of intent to acquire regional properties from AurCrest Gold TSXV:AGO, which would make Pistol Bay the greenstone belt’s largest claimholder. The 5,136-hectare package includes a zinc-copper-silver resource and an historic, non-43-101 estimate.

In Saskatchewan’s Athabasca Basin, the company has a joint venture with a Rio Tinto NYSE:RIO subsidiary on the C-5 uranium property. Having earned 75% of its option so far, Rio intends to acquire the full 100%.

See an infographic: Eleven things every metal investor should know about zinc.

Infographic: Eleven things every metal investor should know about zinc

October 20th, 2016

by Jeff Desjardins | posted with permission of Visual Capitalist | October 20, 2016

Certain commodities tend to fly under the radar for periods of time.

For example, it was only in the last couple of years that markets have been able to digest the potential impact of the electric vehicle boom and what it may mean for raw materials. The lithium, graphite and cobalt prices reacted accordingly, and suddenly these essential ingredients for lithium-ion batteries were hot commodities.

Another of those metals that comes and goes is zinc—and after shooting up in price over 35% this year, it definitely has the attention of many investors and speculators again.

Re-thinking zinc

Today’s infographic comes to us from Pistol Bay Mining, a company that also focuses on zinc, and it highlights 11 things that investors need to know about a metal that is gaining substantial momentum.

Eleven things every metal investor should know about zinc

 

Here’s why the metal is back in fashion:

1. Zinc is a $34-billion-per-year market.
It’s bigger than the silver ($18 billion), platinum ($8 billion) and molybdenum ($5 billion) markets combined. In fact, it is the fourth-most used metal worldwide.

2. Smelting and production technology came much later for zinc than for other metals.
The ancients were able to smelt copper, lead and iron, but it wasn’t until much later that people were able to work with zinc in any isolated state.

3. Even despite this, it was a crucial metal for ancient peoples.
They would smelt zinc-rich copper ores to make brass, which was used for many different purposes including weaponry, ornaments, coins and armour.

4. Zinc is also crucial to produce many alloys today.
For example, brass is used for musical instruments and hardware applications that must resist corrosion. Solder and nickel-silver are other important alloys.

5. The world’s first-ever battery used zinc as an anode.
The voltaic pile, made in 1799 by Alessandro Volta, used zinc and copper for electrodes with brine-soaked paper as an electrolyte.

6. The metal remains crucial for batteries today.
Zinc-air, silver-zinc, zinc-bromine and alkaline batteries all use zinc, and they enable everything from hearing aids to military applications to be possible.

7. Galvanizing is still the most important use.
About 50% of the metal is used in galvanizing, which is essentially a way to coat steel or iron so it doesn’t rust.

8. China is both a major producer and end-user.
China mined 37% of the world’s 13.4 million tonnes of zinc production in 2015. The country consumed 47% of the world’s supply that same year.

9. Major mines have been shutting down.
In 2016, China ordered the shutdown of 26 lead and zinc mines in parts of Hunan province for environmental reasons. Meanwhile, Ireland’s Lisheen mine and Australia’s Century mine both shut down last year after being depleted of resources. That takes 630,000 tonnes of annual production off the table.

10. Stockpiles are dwindling.
Warehouse levels are less than half of where they were in 2013.

11. Zinc has been one of the best performing metals in 2016 in terms of price.
It started the year around $0.70 a pound, but now trades for $1.04 a pound.

Posted with permission of Visual Capitalist.

Pistol Bay Mining to take largest position in Ontario’s VMS-rich Confederation Lake

October 19th, 2016

by Greg Klein | October 19, 2016

Pistol Bay Mining to take largest position in Ontario’s VMS-rich Confederation Lake

Pistol Bay’s newest holdings will cover a 31-kilometre length
of the VMS-rich Confederation Lake greenstone belt.

 

A new acquisition would make Pistol Bay Mining TSXV:PST the biggest claimholder in Ontario’s Confederation Lake greenstone belt. The 5,136-hectare package comprises all the regional claims held by AurCrest Gold TSXV:AGO and includes a zinc-copper-silver resource compiled by AurCrest as well as an historic, non-43-101 estimate. Along with Pistol Bay’s optioned Dixie and Dixie 3 properties, the letter of intent announced October 19 would increase the company’s holdings to 7,050 hectares on the volcanogenic massive sulphide-rich belt.

With three cutoff grades, AurCrest’s resource for the Arrow zone showed:

3% zinc-equivalent cutoff

  • indicated: 2.07 million tonnes averaging 5.92% zinc, 0.75% copper, 21.1 g/t silver and 0.58 g/t gold

  • inferred: 120,550 tonnes averaging 2.6% zinc, 0.56% copper, 18.6 g/t silver and 0.4 g/t gold

5% zinc-equivalent cutoff

  • indicated: 1.76 million tonnes averaging 6.75% zinc, 0.79% copper, 22.3 g/t silver and 0.61 g/t gold

  • inferred: 51,630 tonnes averaging 3.86% zinc, 0.79% copper, 23.9 g/t silver and 0.58 g/t gold

10% zinc-equivalent cutoff

  • indicated: 633,000 tonnes averaging 14.3% zinc, 1.11% copper, 31.7 g/t silver and 0.85 g/t gold
Pistol Bay Mining to take largest position in Ontario’s VMS-rich Confederation Lake

Pistol Bay’s Dixie properties have been
undergoing field work and a review of historic data.

Additionally, the Copperlode A or Fredart zone has an historic, non-43-101 estimate of 425,000 tonnes averaging 1.56% copper. Exploration in the 1970s produced samples up to 1.46% molybdenum.

The 100% option would cost $25,000 and one million shares on closing and $25,000 90 days later, as well as $50,000 and one million shares on each of the four anniversaries following closing. In addition to regulatory approvals, the transaction needs the consent of Glencore plc, whose rights to the Confederation Lake property include a 2% NSR.

The companies expect to close within a week.

“Pistol Bay proposes an ambitious exploration program that will not only pursue existing targets and known VMS deposits, but will use the latest airborne geophysical survey technologies to explore the whole area to a greater depth than was possible in the past,” said president Charles Desjardins.

Earlier this month the company announced MPH Consulting will review historic geophysical data on Pistol Bay’s Confederation Lake-region Dixie properties, where field work began in September. Historic drilling has found zinc, copper and silver, while the recently optioned Dixie 3 project comes with an historic, non-43-101 estimate of 82,500 tonnes averaging 1% copper and 10% zinc.

The company has a joint venture with a Rio Tinto NYSE:RIO subsidiary on the C-5 uranium property in Saskatchewan’s Athabasca Basin. Having already earned 75% of its option, Rio has stated its intention to acquire the full 100%.

Pistol Bay closed a $563,450 private placement last August.

MPH Consulting to review Ontario zinc-copper-silver data prior to Pistol Bay’s drill program

October 6th, 2016

by Greg Klein | October 6, 2016

A company with experience spanning 40 years and 70 countries will apply its expertise to Pistol Bay Mining’s (TSXV:PST) Dixie projects. MPH Consulting has been contracted to review historic geophysical data from the zinc-copper-silver options about 35 kilometres southeast of Red Lake in Ontario’s Confederation Lake greenstone belt, Pistol Bay announced October 5.

MPH Consulting to review Ontario zinc-copper-silver data prior to Pistol Bay’s drilling

“Because of the complexity of the historic data, the company has requested a critical review of all the past geophysical surveys that will lead to prioritizing targets for future exploratory drilling,” Pistol Bay stated.

Historic work found a geophysical anomaly below the Dixie 19 zone. Two holes from 2002 ended before the anomaly, intersecting:

  • 9.71% zinc, 0.2% copper and 10.7 g/t silver over 1.25 metres in downhole depth

  • 5.32% zinc over 1.25 metres

Historic drilling on other zones found:

Dixie 17

  • 7.34% zinc and 1.4% copper over 9.5 metres

Dixie 18

  • 15.44% zinc, 0.43% copper and 20.9 g/t silver over 4.3 metres

Noranda calculated an historic, non-43-101 estimate for Dixie 18 of 136,000 tonnes averaging 14% zinc.

Recent field work has located historic drill hole collars on Dixie 18, 19 and 20, Pistol Bay added. Additional field work will focus on Dixie 17. Precise positioning using differential GPS will help model the mineralized zones.

Should all go to plan, a fall drill program will follow the MPH review.

Early last month Pistol Bay announced an option to acquire the 640-hectare Dixie 3 property, about eight kilometres south of the other Dixies. Dixie 3 comes with an historic, non-43-101 estimate of 82,500 tonnes averaging 1% copper and 10% zinc.

In Saskatchewan’s Athabasca Basin, Pistol Bay JVs with a Rio Tinto NYSE:RIO subsidiary on the C-5 uranium property. Rio has so far earned 75% of its option and has stated its intention to acquire the full 100%.

In August Pistol Bay closed a $563,450 private placement.

Pistol Bay readies geophysics, fall drilling for Ontario zinc and copper

September 8th, 2016

by Greg Klein | September 8, 2016

With field work about to begin, Pistol Bay Mining TSXV:PST renews the search for zinc and other base metals on its newly expanded Dixie projects in Ontario’s Red Lake region. Historic geophysics and drilling found multiple occurrences of predominantly zinc-rich, volcanogenic massive sulphide mineralization and two historic, non-43-101 estimates for near-surface deposits, the company stated.

An historic, non-43-101 estimate for the Dixie 3 zone, for example, showed 82,500 tonnes averaging 10% zinc and 1% copper.

Pistol Bay readying geophysics, fall drilling for Ontario zinc and copper

Subject to permitting, the company plans line cutting, ground geophysics, stripping and a fall/winter drill program on shallow targets that have yet to be adequately tested. Work could also entail additional deep-penetrating electromagnetic surveys.

A review of previous exploration will include locating drill collars, where possible, to model mineralized zones. Work might also entail downhole EM surveys to search for deeper mineralization. Historic core will be assessed, as well as new rock samples.

Last week Pistol Bay announced an option to add the 640-hectare Dixie 3 property to its other Dixie projects about eight kilometres away. The properties sit within the Confederation Lake greenstone belt, host to numerous VMS occurrences and deposits, the company added.

In a JV with a Rio Tinto NYSE:RIO subsidiary, Pistol Bay holds the C-5 uranium property in Saskatchewan’s Athabasca Basin. Having so far earned 75% of its option, Rio has stated its intention to acquire the full 100%.

On August 29 Pistol Bay closed a $563,450 private placement.

Pistol Bay benefits from previous work by expanding its Dixie zinc-copper project

September 1st, 2016

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.

Pistol Bay benefits from previous work by expanding its Dixie zinc-copper project

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.

Pistol Bay expands Garland presence with option from Zimtu Capital

October 21st, 2015

by Greg Klein | October 21, 2015

Recent land acquisitions place another company in the vicinity of Equitas Resources’ (TSXV:EQT) Garland nickel-copper project in Labrador. Announced October 21, Pistol Bay Mining TSXV:PST signed a 100% option with Zimtu Capital Corp TSXV:ZC on 40 claims totalling 1,000 hectares. The new turf increases Pistol Bay’s Garland Peninsula Group, acquired late last month, to 1,150 hectares.

The new claims feature mafic intrusive rocks including gabbro, norite and anorthosite, the same general suite of intrusives that host the Voisey’s Bay nickel-copper-cobalt deposit about 35 kilometres northwest, the companies stated. Cominco conducted limited historic work in 1995 and 1996, when the claims formed part of its Merrifield project. Geophysics revealed weak conductors apparently unexplained by surface observations. Prospecting on Merrifield found disseminated sulphide mineralization containing up to 0.154% copper and 0.22% nickel.

Five kilometres northwest, Equitas has drilling underway at its Garland project following the property’s first-ever exposure to modern geophysics. Pistol Bay has its property slated for a magnetic/electromagnetic survey with ground follow-up.

The deal gives Zimtu $2,500 on signing, another $2,500 and 500,000 shares within five days of TSXV approval, $10,000 and 750,000 shares within a year, and a 2% NSR.

Zimtu staked the claims, part of the prospect generator’s model of evaluating and acquiring properties to offer other companies for sale or joint venture.