Rio Tinto Completes Drilling on C-5 Uranium Property Saskatchewan
04 June 2014 - 11:00PM
Marketwired
Rio Tinto Completes Drilling on C-5 Uranium Property Saskatchewan
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 4, 2014) -
Pistol Bay Mining Inc. (TSX-VENTURE:PST) ("the Company") reports
that Rio Tinto Exploration Canada Inc. (Rio Tinto) has completed
the planned 2014 winter diamond drill program and gravity survey on
Pistol Bay Mining Inc.'s C-5 property, located in the Athabasca
basin, Saskatchewan.
The 2014 winter drilling program consisted of six diamond drill
holes totalling 3,344 metres. This drill program followed up the
2013 drill program which consisted of 6 drill holes, totalling
2,760 metres.
The best uranium mineralization in drill hole 14CBK003 returned
0.054% U3O8 over 1.5 m (including 0.071% U3O8 over 0.5 m) in
sandstones immediately above the unconformity. However, due to high
core loss; 1m of loss over 2m, these assay numbers are not
considered truly reflective of the mineralization. Down hole gamma
values for the mineralized interval returned >1000 cps over 1.3m
with a max of 1970 cps. This drill hole is located 100 m northeast
of 2013 drill hole 13CBK003 which intersected what appeared to be a
minor mineralized facture associated with quartzite just below the
unconformity. Gamma probing returned a maximum value of 688CPS
across the interval of mineralization which appears to be isolated
to a fracture coating.
Uranium mineralization in drill hole 14CBK005, located 50m
northeast and along strike of mineralization in 14CBK003, returned
0.041% U3O8 over 0.32m located immediately below the unconformity,
as well as 0.022% U3O8 over 1m located 5m further down hole.
Significant mineralized drill hole intercepts are summarized
below:
DDH |
From (m) |
To (m) |
Interval (m) |
U (ppm) |
U3O8 (%) * |
14CBK003 |
366 |
367.5 |
1.5 |
460 |
0.054 |
Including |
366.5 |
367 |
0.5 |
606 |
0.071 |
14CBK005 |
379.82 |
380.04 |
0.32 |
346 |
0.041 |
14CBK005 |
385 |
386 |
1.0 |
184 |
0.022 |
*U3O8 calculated by multiplying U ppm by 1.179
The project under option to Rio Tinto consists of three
properties (designated C-4, C-5 and C-6) cover a total area of
4,011 acres (1,624 hectares) in the southeastern part of the
Athabasca basin. The dispositions adjoin the northwest side of the
Wheeler River property of Denison Mines Corp. (60 per cent), Cameco
Corp. (30 per cent) and JCU (Canada) Exploration Co. (10 per cent)
containing the Phoenix discovery. The C-6 property lies
approximately one kilometre north of the Phoenix deposits. The
property lies midway between the producing McArthur River mine and
the former producing Key Lake mine.
Denison Mines (as OF December 31, 2012) has reported an
indicated resource of 52,300,000 pounds of U3O8 grading 15.6 per
cent U3O8 and inferred resource of 7,600,000 pounds of U3O8 grading
29.8 per cent in the Phoenix deposits. Denison is presently
preparing a new resource estimate. The McArthur River uranium mine
owned by Cameco (70 per cent) and AREVA Resources Canada (30 per
cent) is mining an orebody with estimated proven and probable
reserves of approximately 360 million pounds of U3O8 grading 15.76
per cent U3O8, a measured and indicated resource of 13.6 million
pounds of U3O8, an inferred resource of 57 million pounds of U3O8,
and past production of 250.6 million pounds of U3O8 (Cameco 2013
annual report). This uranium deposit (approximate size of 680
million pounds of U3O8) is the world's largest high-grade uranium
mine.
The three properties lie on a structural corridor located along
a belt of Aphebian metasediments in the subAthabasca basement.
Previous airborne EM surveys have defined conductors on the C-4 and
C-5 blocks. Previous drilling in the area has resulted in the
recognition of a broad zone of clay alteration of the type that is
always associated with unconformity-type uranium mineralization in
the Athabasca basin. There is also evidence from prior drilling
that a quartzite ridge in the basement, similar to that which
appears to be at least partially responsible for localizing the
giant McArthur River orebody and the Phoenix zones, is present on
the C-5 block.
Technical information in this news release has been prepared
and/or revised by Mike Magrum, PEng, and qualified person as
defined in National Instrument 43-101.
Terms of Option Agreement
Rio Tinto earned an initial 55% interest in the C Blocks
(including C-5) property by incurring $1,000,000 in expenditures
and making an initial payment of $147,000 to Pistol Bay Mining in
January 2012. Rio Tinto has the right to increase its interest to
75% by incurring an additional $1,000,000 in expenditures before
December 31, 2014. For a period of five years after the exercise of
this second option, Rio Tinto may increase its interest to 100% by
paying Pistol Bay $5,000,000 - whereupon Pistol Bay shall receive a
5% net profits interest royalty.
About Pistol Bay Mining Inc. (TSX-VENTURE:PST) is a diversified
Junior Canadian Mineral Exploration Company with a focus on
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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