Pistol Bay’s blockchain application targets digital ledger technology for the mining industry
Core Consultants, amongst others, last year proposed that digital ledger technology become a key part in the future of the mining industry in order to increase transparency and auditability. The robust and decentralized nature of blockchain makes it an ideal solution for many issues relating specifically to data management and security in resource industries, and Pistol Bay Mining Inc. (TSXV: PST) (“Pistol Bay”) is the most recent of a number of exploration companies to begin implementing the technology in the hope of simplifying cross-border payments, removing intermediaries, lowering costs and increasing overall efficiency.
The company’s development team is creating a blockchain application called HashDrop to manage and update digital assets and documents within client data centers while providing trusted transactions via the secure, comprehensive, and unalterable platform, eliminating the time and cost of document sharing and assembly. It will enable organizations to better coordinate compliances, deliver information more efficiently, and trade digital assets securely. Pistol Bay has set up a subsidiary to manage all aspects of the blockchain program while the parent company focuses on developing its mineral assets.
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The company plans to commence a 2018 drilling program on it’s Confederation Lake greenstone belt property in the very near future. Confederation Lake is a volcanogenic massive sulphide (VMS) deposit, and Pistol Bay intends to drill three 500m holes in an area known as the Arrow zone, which was the subject of a 43-101 report in 2017 showing an inferred mineral resource of 2,100,000 tonnes grading 5.78% zinc, 0.72% copper, 0.60 grams per tonne (g/t) gold and 19.5 g/t silver.
A historical resource estimate also exists for the Fredart “A” zone based on diamond drilling in the 1960s, which showed 386,000 tonnes grading 1.56% copper and 33.6 g/t silver, or 219,500 tonnes at 1.95% copper and 41.8 g/t silver, depending on which you’re looking for. The area will be tested by 10 diamond drill holes totaling approximately 2,000 metres as part of the upcoming phase of exploration.
Having already received an exploration permit for its Dixie claims, Pistol Bay now has applications pending for the Garnet, Fredart, Moth and Fly claim groups at Confederation Lake. Considering that zinc prices are at record highs, considerable demand now exists for new zinc and copper exploration, and Pistol Bay is in the rather fortunate position of being able to offer a belt-wide property base with proven VMS mineralization and a new airborne EM survey showing numerous prospective targets.
Results from Confederation Lake’s first regional state-of-the-art geophysics back in April last year prompted the company to expand its presence in the VMS-rich northwestern Ontario greenstone belt. Within only eight days of reporting its initial findings from the 2,100-line-kilometre VTEM-Plus survey, Pistol Bay announced two further acquisitions, and because of the large number of potential targets generated, the company is eager to attract joint venture partners to develop all or part of Confederation Lake.
The company recently received a $1m cash payment from mining giant Rio Tinto for the remainder of Pistol Bay’s uranium assets in Canada (Rio had already earned a 75% interest) despite uranium prices having fallen more than 70% since the Fukushima disaster of 2011. Prices have remained depressed as a result of excess inventory in the industry, forcing some top producers such as Canada’s Cameco to close some operations and lay off workers, but we expect this to shift dramatically in the very near term, and apparently, so do Rio Tinto.
Pistol Bay stock is trading at CAD$0.06 as of 22 February and has considerable promise stemming from the company’s highly encouraging geology and willing attitude towards improving industry-wide operations with new technologies.
Lara Smith has spent over a decade covering commodity markets. She started her career as a buyside analyst in South Africa where she covered soft ... <Read more about Lara Smith>