Wednesday 22nd November 2017

Resource Clips


Posts tagged ‘Pistol Bay Mining Inc (PST)’

Pistol Bay Mining wants to bring blockchain to resource companies

November 15th, 2017

Update: On November 20 Pistol Bay announced it had created a subsidiary called PB Blockchain Inc to create applications for mining and resource companies.

by Greg Klein | November 15, 2017

Although still focused on its Confederation Lake zinc-copper portfolio in northwestern Ontario, Pistol Bay Mining TSXV:PST sees untapped potential in technology’s current upheaval. The company reports ongoing discussions to form a wholly owned subsidiary that would create blockchain applications for the mining sector, as well as oil and gas and possibly other industries. Some products could include “Ethereum smart contracts, security, claim management, resource management and the tokenization of resources,” Pistol Bay stated.

Pistol Bay Mining wants to bring blockchain to resource companies

“We believe a unique opportunity exists to lead the mineral development industry by building a resource-focused blockchain company to facilitate modern mining-related transactions,” explained president/CEO Charles Desjardins. “This represents an exciting opportunity for the shareholders of Pistol Bay and, as a founder of the original Investment.com portal, I have always recognized the need to be early in adapting to new technologies.”

Back to mineral exploration, last month Pistol Bay announced confidentiality agreements with two companies interested in partnering on Pistol Bay’s 17,000-hectare Confederation Lake properties. One company was described as a mid-tier producer, the other a junior explorer. The news followed completion of the first regional and modern geophysical program carried out over the VMS-rich greenstone belt.

Having already received an exploration permit for Confederation Lake’s Dixie claims, Pistol Bay now has applications pending for the Garnet, Fredart, Moth and Fly claim groups. “With zinc prices at a record high, there’s lots of demand for zinc and copper exploration projects,” said Desjardins. “Not many companies can offer a belt-wide property base with proven VMS mineralization and a new airborne EM survey with multiple untested targets.”

Read more about Pistol Bay Mining here and here.

Charles Desjardins discusses Pistol Bay Mining’s portfolio covering most of Ontario’s Confederation Lake belt

October 27th, 2017

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Confederation Lake in focus

October 2nd, 2017

Regional geophysics bring expansion and JV potential to Pistol Bay’s quest for Ontario VMS zinc-copper

by Isabel Belger

Isabel Belger

Isabel Belger

Isabel: I would like to introduce the president and CEO of Pistol Bay Mining [TSXV:PST] Charles Desjardins. I am very glad you could find the time. Charles, tell us something about your background and how you got started in the mineral exploration industry.

Charles: I started in Vancouver as a stockbroker in the 1980s. Then you could say I got lured into the venture capital space, at that time the Vancouver stock exchange. The first thing that I worked on was actually a technology deal. Since then I have worked in a lot of different sectors: tech, biotech, oil and gas, diamonds, mining, etc.

This was a natural transition—I started more as a promoter and then I just became more hands-on because I wanted to get things done the way that I wanted to do them.

Isabel: How did you get involved with Pistol Bay?

Charles: Pistol Bay was actually in the Dave Hodge camp before as Solitaire Minerals and it came from somebody that kind of gave up. I wanted to take it over and one of the first things I acquired were the C3, C4, C5 and C6 uranium properties in Saskatchewan, which we are selling now to Rio Tinto [NYSE:RIO].

I got an e-mail from them last night. Basically I asked them if they were planning to pay the $1.5 million this year and they said probably. If they don’t pay it this year, then they’ll have to pay $2 million next year. It’s most likely that they will pay in 2017.

Isabel: Your principal properties are located in the Confederation Lake VMS greenstone belt in Ontario. Can you give me a little overview of what you have there and what makes your projects valuable?

Charles: Confederation Lake has been explored to some extent since the 1950s with only one producing mine, the South Bay mine. There are about nine historic occurrences there that we control.

Regional geophysics bring expansion and JV potential to Pistol Bay’s quest for Ontario VMS copper-zinc

The technology of exploration and mining has changed a lot just since 2000. I was recently in Toronto and I met the geophysicist who used to handle the area for Noranda. A lot of this ground was Noranda. Up until 2000 they couldn’t see anything beyond 200 metres in depth. Originally my plan two years ago was to tie up zinc and copper properties focusing on zinc. At that time zinc was at 62 cents per pound, now it is more like $1.40. Let’s call it prescience—I was able to tie up most of the belt, which is over 50 kilometres long and about 28 kilometres wide. The whole goal was to explore the belt using modern exploration methods, mostly with a deep-penetrating airborne study. Pistol Bay has just completed that.

I would also like to mention that there are about 800 historic drill holes in this belt and we have data on 600 of them. And we have access to a big geochemical study that was done, probably worth about $500,000 or even $600,000, that was never really followed up on or plotted in to any degree. That is very valuable because it went through all alteration zones and all the occurrences. Recently we did the airborne survey, as I have mentioned. I doubled the size of the survey area, ending up being about 2,100 line-kilometres. What that does, and what it has shown us, is that there are two trends in this belt. The first trend has stronger copper and zinc numbers and the lower trend is more zinc-dominated. The conductors we found are actually deeper in places. They have not been followed up before…. Keeping that in mind we have also staked another 14,500 acres [about 5,860 hectares] of conductors and IP anomalies. So there is a lot to follow up on.

Isabel: What is the plan for the rest of 2017 and where do you see more excitement?

We are talking right now to four companies about joint-venturing this. We don’t really have the capital to pay for our own drill program unless Rio Tinto writes us that cheque. I don’t want to dilute at this moment. I’d rather wait for the cheque if I have to or enter in joint ventures.—Charles Desjardins

Charles: We are talking right now to four companies about joint-venturing this. We don’t really have the capital to pay for our own drill program unless Rio Tinto writes us that cheque. I don’t want to dilute at this moment. I’d rather wait for the cheque if I have to or enter in joint ventures. I can say that we are permitting right now for drilling, but it might be a joint venture partner drilling. In the worst-case scenario we would drill in the first quarter of next year.

But I am pretty sure that Rio Tinto will write the cheque.

Isabel: You have a 5% NPI royalty on the Rio Tinto project, is that correct?

Charles: Yes, we have a 5% net profit interest after they paid the $1.5 million. I am rather confident that at some point they will come and try to buy that. If it is something that they think they are going to take to production—of course it is not even close to that—they would never leave us with 5% NPI.

Isabel: You said that you won’t be able to do a drill program yourself right now. How much money do you have in the bank right now?

Charles: A couple of hundred thousand.

Isabel: How much of Pistol Bay is held by the management?

Charles: Management, friends and family own about 35%.

Isabel: That is quite a bit. Interesting. Let’s talk a bit about zinc and copper. Recently a lot of articles were published on copper. It was Robert Friedland who recently noted that about 150 kilograms of copper is required for each electric vehicle manufactured, whereas people talk mostly about lithium and cobalt and EVs, but not so much about the increasing demand for copper. But I think many people are aware of rising copper prices and what copper is used for, being an interesting commodity in this “rechargeable” era. But maybe not everyone is as well-informed about zinc and what it is used for. Can you say a bit about the usage of zinc and also the zinc market?

Charles: One of the reasons that I got into zinc was that I was looking at all the commodities at a time when the resource market was quite depressed. I was looking for something that looked promising for a commodity shock. The zinc market is working in a production deficit. The prices have more than doubled, I wouldn’t call that a commodity shock, but it has gone well. And the fact that we hadn’t had that jump is probably the length of the bull zinc market.

About its usage, more than half of all zinc that is mined is used for galvanizing other metals, such as steel and iron. And significant amounts of zinc are also used to form alloys with other metals.

Isabel: What do you like most about your job?

Charles: I always like this kind of work. It is risky and can be stressful at times, but it doesn’t mean sitting behind a desk. I was up at the property in Ontario earlier this summer seeing first hand what everything looks like. How much infrastructure there is, which I was certainly quite surprised about, roads and even power lines as well. I love the variety that the job offers.

Isabel: What is your favourite commodity beside the ones in your company?

Charles: Probably gold though we do have some gold in our Confederation Lake. To me, in a world right now with the geopolitics that we are facing it is kind of a must-have. You have to have some gold.

Isabel: Thank you so much for the insights.

Charles: Thanks for having me, Isabel.

Isabel Belger

Charles Desjardins, president/CEO
of Pistol Bay Mining

Bio

Mr. Desjardins brings more than 25 years of experience in public company finance and management. He is president and CEO of Tandem Capital Group Inc, which was active in the investor relations field during the mid 1980s. Mr. Desjardins was also past president of numerous public mineral exploration and technology companies which traded on the TSXV.

Fun facts

My hobbies: Running marathons, biking, fishing
My favourite airport: JFK
My favourite tradeshow: Mines and Money Hong Kong, PDAC
My favourite commodities: Copper, zinc and gold
With this person I would like to have dinner: Elon Musk
If I could have a superpower, it would be: Extraordinary vision

Read more about Pistol Bay Mining here and here.

Update: Pistol Bay Mining announces 43-101 resource, JV discussions and—again—newly staked land

September 20th, 2017

by Greg Klein | Updated September 20, 2017

Update: With staking announced on September 14 and 20, Pistol Bay Mining has added more than 5,860 hectares to its property package, bringing the total to about 17,000 hectares.

Results from Confederation Lake’s first regional state-of-the-art geophysics have prompted Pistol Bay Mining TSXV:PST to expand its presence in the VMS-rich northwestern Ontario greenstone belt. Two acquisition announcements came within eight days after the company reported initial findings from the 2,100-line-kilometre VTEM-Plus survey. Those results accompanied announcements of a new resource estimate for one of the portfolio’s projects as well as potential joint venture interest.

Pistol Bay Mining announces VTEM-inspired acquisition, resource update and JV discussions

“We are seeing lots of new anomalies in the survey data, not just conductors but the IP effect anomalies as well, and Pistol Bay is going to have a busy few years exploring them all,” said CEO Charles Desjardins.

The new claims cover multiple conductors and IP-effect anomalies, some of which have had previous drilling with results showing zinc or copper, the company stated. The new data also shows parallel conductors or extensions of known conductors.

New claims between Pistol Bay’s Fredart and Joy claim groups host four conductors of 400, 850, 900 and 950 metres that appear not to have undergone drilling. Fredart A holds an historic, non-43-101 copper estimate. Like the four newly found anomalies, the Joy North anomaly hasn’t been drilled.

The airborne survey confirmed conductivity at all of the portfolio’s historic showings, zones and mineralized drill intercepts, Pistol Bay added. While analysis continues, data so far shows conductivity extending beyond known zones, along strike and in new clusters apart from known mineralization.

Once we’ve got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property.—Charles Desjardins,
CEO of Pistol Bay Mining

“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,” Desjardins noted. “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.”

Pistol Bay also filed a technical report for Garnet Lake, a Confederation Lake property that hosts the Fredart A zone. Updating an historic 2007 estimate for the Arrow zone, the 43-101 incorporates 20 additional holes. Using a base case 3% zinc-equivalent cutoff, an inferred category shows:

  • 2.1 million tonnes averaging 0.72% copper, 5.78% zinc, 19.5 g/t silver and 0.6 g/t gold, for a zinc-equivalent grade of 8.5%

Contained amounts come to:

  • 34.3 million pounds copper, 274 million pounds zinc, 1.33 million ounces silver and 41,000 ounces gold

Contingent on favourable geophysical and other data, the 43-101 recommends two 1,000-metre holes at Arrow to test for possible down-plunge extensions of the resource. The report also calls for another 3,000 metres on targets to be identified elsewhere on the Garnet property.

Last May the company signed an LOI to acquire the 496-hectare Copperlode property, about four kilometres along strike from Arrow.

Update: Pistol Bay Mining announces VTEM-inspired acquisition, new resource and JV discussions

September 14th, 2017

This story has been updated and moved here.

Pistol Bay Mining announces VTEM results, resource update, JV discussions

September 12th, 2017

This story has been updated and moved here.

Pistol Bay Mining president Charles Desjardins begins a state-of-the-art re-examination of Ontario’s Confederation Lake

May 24th, 2017

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Pistol Bay Mining CEO Charles Desjardins brings modern techniques and a region-wide approach to Confederation Lake

May 15th, 2017

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Pistol Bay Mining CEO Charles Desjardins prepares for state-of-the-art, regional exploration of his polymetallic Ontario projects

May 11th, 2017

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Pistol Bay signs LOI on Confederation Lake property, expands airborne geophysics

May 5th, 2017

by Greg Klein | May 5, 2017

Update: On May 8 Pistol Bay announced a further expansion of the airborne VTEM Plus survey, from 1,128 to 2,100 line-kilometres, covering a 40-kilometre length of the Confederation Lake greenstone belt.

An upcoming geophysical program has been extended to fly a potential land acquisition under consideration by Pistol Bay Mining TSXV:PST. The company announced a letter of intent on the 496-hectare Copperlode property, about four kilometres along strike from Pistol Bay’s Arrow zone in Ontario’s Confederation Lake greenstone belt. Having already assembled the area’s largest land package, the company plans region-wide, state-of-the-art exploration over neglected but VMS-rich ground.

Copperlode would bring Pistol Bay two more historic, non-43-101 estimates:

  • D zone: 32,600 tonnes averaging 7.58% zinc and 0.26% copper

  • E zone: 145,000 tonnes averaging 8.28% zinc, 1.02% copper and 24 g/t silver
Pistol Bay signs LOI on Confederation Lake property, expands airborne geophysics

Additionally, some historic, non-43-101 drill intercepts include:

  • B zone: 2.5% zinc and 1.68% copper over 6.3 metres

  • C zone: 0.21% zinc and 6.02% copper over 1.5 metres

  • Hornet zone: 7.56% zinc and 0.08% copper over 6.6 metres
  • 4.07% zinc and 1.13% copper over 5.03 metres

Hornet remains open at depth and along strike.

On finishing the region-wide airborne VTEM Plus campaign Pistol Bay may acquire an initial 65% option on Copperlode from Frontline Gold TSXV:FGC, which holds an option on the claims from another vendor. Pistol Bay would pay Frontline $26,000 and issue 450,000 shares over two years and spend $150,000 over three years. Another $50,000 and 300,000 shares would boost Pistol Bay’s stake to 80%.

Pistol Bay’s current Confederation Lake portfolio consists of 9,450 hectares with a number of historic estimates, including the 2007 Arrow resource on which the company began a 43-101 update last month.

Also last month, the company closed a $336,000 private placement that followed a $548,436 placement in March. April brought more money with $750,000 from a Rio Tinto NYSE:RIO subsidiary as part of its 100% option on Pistol Bay’s uranium properties in Saskatchewan’s Athabasca Basin.

Read more about Pistol Bay Mining.