VANCOUVER, Feb. 27, 2013 /CNW/ - Zimtu Capital Corp. (TSXv:
ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce
that the Company and one of its prospecting partners have signed an
agreement with Pistol Bay Mining Inc. (TSXv: PST) ("Pistol Bay")
whereby Pistol Bay can earn a 100%-interest in the advanced stage
Portland Graphite Property located in southern Ontario.
Portland Graphite Property, Ontario:
The Portland Graphite Property (the "Property")
is situated 1.6 km north of Highway 15 between Kingston and Ottawa. It is road-accessible and consists of
private lands covering approximately 429 hectares, located 5.5 km
northeast of the community of Portland,
Ontario. Power and water are available on-site and rail
access is nearby.
Graphite on the Property is hosted primarily in
Precambrian marbles of the Grenville
Province. Ontario
government geologists reported in the 1960s that the graphite
occurs as disseminated flakes averaging 1/8 inch in diameter. Work
on the Property by previous operator Victoria Graphite Inc., including 73 drill
holes (5,884m), identified graphite mineralization in three
zones (D-zone, G-zone and I-zone) over a total strike length of
1700m. Mineralization dips at approximately 70 degrees to the west.
In general, the zones are characterized by broad envelopes of
lower-grade graphite mineralization with widths up to 75m, within
which are zones of higher grade material, to >10% graphitic
carbon ("Cg"), based on the diamond drilling by Victoria Graphite
in the late 1980s.
Victoria Graphite also carried out test mining
and milling utilizing a 100 tonne per day pilot plant in the early
1990s. Results of this test milling work are not available to the
Company at this time. The mill building is still present and
represents a potentially significant asset to Pistol Bay in terms
of the ongoing development of the Property.
A historical "probable reserve" of 295,000
tonnes grading "slightly above 6% graphite" was delineated on the
property. This estimate is a historical estimate prepared by
R.A. Elliot for Victoria Graphite in
1989. Although it appears to have been done in a professional
manner by the standards of the time, it does not conform to the
standards of NI 43-101. The category "probable reserve"
appears to conform most closely to the currently accepted category
of "Inferred Mineral Resource". A program of re-logging, resampling
and re-assaying of drill core would be required to bring the
estimate up to 43-101 compliance. A qualified person has not done
sufficient work to classify the historical estimate as a current
mineral resource or mineral reserve. Pistol Bay is not
treating the historical estimate as a current mineral resource or
mineral reserve.
In terms of the quality of the graphite
material, metallurgical testing on a 34 tonne sample of material
from the D-zone was carried out in 1989 by Lakefield Research Ltd
on behalf of Victoria Graphite. This work indicated recoveries of
87 to 95% of the graphite for material ground to -10 mesh.
Flotation concentrates grading 80 to 85% Cg were produced which
could be upgraded to 91-93% Cg by heavy liquid separation. Of
particular note, this work indicated a coarse flake (+48 mesh or
0.325mm) content of 66% in the concentrate (Ontario Geological
Survey, Open File Report 5729, 1990).
A detailed helicopter EM/magnetic survey over
the Property is planned by Pistol Bay in order to establish
geologic controls on mineralization, to better define the known
graphite zones, and to identify new drill targets outside of the
main zones. Trenching and diamond core drilling will support the
development of an initial NI 43-101 compliant resource. Resource
definition and exploration work will be complemented with
metallurgical test-work.
Terms:
For its participation in the transaction, Zimtu
will receive cash/share payments from Pistol Bay as follows: (i)
1,000,000 common shares on acceptance by the TSX Venture Exchange
("TSXv"); (ii) $75,000 cash 6 months
from the date of TSXv acceptance (iii) 750,000 common shares 12
months from the date of TSXv acceptance; (iv) 1,000,000 common
shares 24 months from the date of TSXv acceptance. Zimtu will also
receive a 1,000,000 common share break fee should Pistol Bay not
make certain option payments to the underlying landowners or if the
agreement is terminated prior to TSXv acceptance. Zimtu's
prospecting partner will receive cash/share consideration equal to
that of Zimtu.
The optioned claims were acquired by the Company
and its partner by option from private landowners. Zimtu, along
with its prospecting partners, continue to evaluate and acquire
prospective resource properties to make available for sale or joint
venture. As part of the Company's business, Zimtu provides mineral
property advisory services and helps to connect companies with
mineral properties of interest.
Technical information in this news release has
been reviewed by William Brereton P.
Eng of MPH Consulting Limited, Toronto, and a Qualified Person under the
definition of National Instrument 43-101.
About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and grows natural resource
companies thereby providing a way for shareholders to indirectly
participate and profit in the public company building process. The
Company also provides mineral property advisory services helping to
connect companies to properties of interest.
Zimtu Capital trades on the TSX Venture Exchange
under the symbol "ZC" and the Frankfurt Stock Exchange under the
symbol "ZCT1."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
"David Hodge"
David Hodge
President & Director
Phone: 604.681.1568
Neither 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.
Statements in this document which are not purely
historical are forward-looking statements, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future.
Forward-looking statements in this news release
include that Pistol Bay can earn a 100%-interest in the Portland
Graphite Property; that in consideration for its interest, Zimtu
will receive staged cash/share payments from Pistol Bay, that Zimtu
will also receive a 1,000,000 common share break fee should Pistol
Bay not make certain underlying option payments or if the agreement
is terminated prior to TSXv acceptance; that Zimtu's partner will
receive cash and share consideration equal to that of Zimtu; that a
detailed helicopter EM/magnetic survey over the Property is planned
by Pistol Bay in order to establish geologic controls on
mineralization, to better define the known graphite zones, and to
identify new drill targets outside of the main zones; that
trenching and diamond core drilling by Pistol Bay will support the
development of an initial NI 43-101 compliant resource; that
resource definition and exploration work by Pistol Bay will be
complemented with metallurgical test-work; and that Zimtu with the
support of its prospecting partners will continue to evaluate and
acquire prospective resource properties to make available for sale
or joint venture.
It is important to note that actual outcomes and
the Company's actual results could differ materially from those in
such forward-looking statements. Risks and uncertainties include,
but are not limited to, economic, competitive, governmental,
environmental and technological factors that may affect the
Company's operations, markets, products and prices. Readers
should refer to the risk disclosures outlined in the Company's
Management Discussion and Analysis of its audited financial
statements filed with the British Columbia Securities
Commission.
SOURCE Zimtu Capital Corp.