Pistol Bay Options Summit A&D to Vega Mining
27 February 2014 - 8:45AM
Marketwired
Pistol Bay Options Summit A&D to Vega Mining
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 26, 2014) -
Pistol Bay Mining Inc. (TSX-VENTURE:PST) ("the Company") is pleased
to announce that it has entered into an option agreement (the
"Option Agreement") dated February 26, 2014 (the "Effective Date")
with Vega Mining Inc. ("Vega") whereby Vega may earn a 70% interest
in the Summit A&D properties (the "Property"). Vega intends to
rename the Summit D property Vega Star 1 and the Summit A property
Vega Star 2.
In early February 2014, Pistol Bay received the final Assessment
Report and accompanying assay results from the field program
conducted on the Property adjoining the boundary of Imperial
Metals' Red Chris Copper-Gold project, located 80km south of the
town of Dease Lake in the Iskut area of northern British
Columbia.
In July 2013 UTM Exploration Services Ltd. (UTM) of Smithers,
British Columbia mobilized a crew to conduct field mapping and
sampling on areas of the Property (approximately 7,106 hectares)
which were not previously explored in 2010. In 2010 work done on
the Property included a soil geochemical survey and minor
geological mapping and stream silt sampling, resulting in 102 soil
samples and 7 silt samples. Two anomalous gold values were found.
Work was concentrated around the northern third of the Property,
and the southern quarter. Work resulted in a few anomalous soil
samples suggesting potential in the southwest and north.
The purpose of the July 2013 work program was to follow up on
the success of the 2010 field program and identify possible new
trends, as well as to discover new areas of interest and
mineralization. More exploratory work was to focus on the Summit D
(Vega Star 1) area in the north of the claim group where favorable
Hazelton group Calc-Alkaline volcanics and coincident copper
mineralization has been exposed and discovered in recent years,
both on neighbouring claims of other Minfile and tenure holders as
well as the success of 2010 rock sampling.
During the 2013 field program, 51 rock samples were taken over
the Property. All but 7 samples were taken from outcrop. The
Property was traversed following a similar path taken during the
2010 exploration field program with focus on following up on the
areas where assay values were elevated. In the process of this
follow up work, numerous new locations were discovered that yielded
visual mineralization and oxidation that warranted sampling.
As the sampling progressed and more and more areas were
exhibiting significant malachite staining and sulphide
mineralization, the sampling traverses were then focused on
following any and all apparent trends of this newly found
mineralization. An apparent trend of copper mineralization, all
within similar calc-alkaline rocks, extends an assumed 1200m from
the 2010 rock sample that assayed 0.85% Cu to the 2013 sample
#54872 that assayed 0.84% Cu.
Additional favourably mineralized and altered float boulders,
2km north of this trend, yielded 2 samples of 1.00% Cu and 0.71% Cu
respectively. The source outcrop of these samples remains
unknown.
In addition, a single rock sample taken in strongly veined
andesitic rocks along the claims on the eastern side of the Klappan
River produced a sample boasting 8.78 g/t Au.
The 2013 field program yielded a significant upside to the
property in that there is what appears to be a new discovery on the
Summit D (Vega Star 1) portion of the claim group and the new
corridor of mineralization is open in all directions. To date, the
Property has seen minimal exploration activity; however, given the
amount of excitement generated in the area in the past year,
coupled with the geological upside of the location of the
mineralization, further work is warranted on the Property to better
determine the extent of this new discovery.
For favourable assay results from the 2013 sampling program and
within the new discovery trend - see Pistol Bay's news release
dated February 5th 2014. (To view rock sample photos visit Pistol
Bay's website at www.pistolbaymining.com.)
Technical information in this news release has been prepared
and/or revised by Mike Magrum, PEng, a qualified person as defined
in NI 43-101.
Under terms of the Option Agreement, subject to TSX Venture
Exchange (the "Exchange") approval, Vega has the option to earn an
initial 60% interest in the Property by completing $1,500,000 in
exploration expenditures on the Property, making $110,000 in cash
payments to Pistol Bay and issuing Pistol Bay 3,500,000 common
shares over the next three years as follows:
Date |
Cash Payment |
|
Share Issuance |
|
Expenditure Requirement |
On the Effective Date |
$ |
15,000 |
|
Nil |
|
|
Nil |
On Exchange approval of the Option Agreement |
|
Nil |
|
500,000 common shares |
|
|
Nil |
On or before the date which is six months from Exchange
Approval |
$ |
20,000 |
|
500,000 common shares |
|
|
Nil |
On or before the date which is one year from Exchange Approval |
|
Nil |
|
Nil |
|
$ |
250,000 |
On or before the date which is two years from Exchange
Approval |
$ |
35,000 |
|
1,000,000 common shares |
|
$ |
500,000 |
On or before the date which is three years from Exchange
Approval |
$ |
40,000 |
|
1,500,000 common shares |
|
$ |
750,000 |
Total |
$ |
110,000 |
|
3,500,000 |
|
$ |
1,500,000 |
If Vega earns the initial 60% interest in the Property, it may
earn an additional 10% for a total of a 70% interest by spending an
additional $1,000,000 on exploration work by the date which is five
years from Exchange Approval.
About Pistol Bay Mining Inc. (TSX-VENTURE:PST) is a diversified
Junior Canadian Mineral Exploration Company with a focus on
graphite, precious and base metal properties in North America..
For additional information please contact Charles Desjardins at
Pistol Bay Mining Inc. or visit www.pistolbaymining.com.
On Behalf of the Board of Directors
PISTOL BAY MINING INC.
Charles Desjardins, President and Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative.
Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward
looking statements involve risk and uncertainties because they
relate to events and depend on factors that will or may occur in
the future. Actual results may vary depending upon exploration
activities, industry production, commodity demand and pricing,
currency exchange rates, and, but not limited to, general economic
factors. Cautionary Note to US investors: The U.S. Securities and
Exchange Commission specifically prohibits the use of certain
terms, such as "reserves" unless such figures are based upon actual
production or formation tests and can be shown to be economically
and legally producible under existing economic and operating
conditions.
Pistol Bay Mining Inc.Charles DesjardinsPresident and
Director604-683-5445604-687-9631info@pistolbaymining.comwww.pistolbaymining.com
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