Pistol Bay Mining Inc. Prepares to Conduct Comprehensive Metallurgical Testing and Mineral Characterization on the Portland Graphite Deposit, Ontario
September 12, 2013 (Source: Marketwire) — Pistol Bay Mining Inc. (TSX VENTURE:PST) (“the Company”) is pleased to announce that it is proceeding with a metallurgical test program on a composite of material originating from the Portland Graphite Deposit.
The primary objectives of processing this bulk sample will be to develop a systematic flow sheet that produces a saleable graphite concentrate grading greater than 95% carbon, while minimizing breakage or smearing of the graphite flakes and maximizing the overall recovery of graphite for the concentrate that is produced.
These tests will outline the quality of the Portland crystalline flake and re-confirm the metallurgical testing on a 34 tonne sample of material that was carried out in 1989 by Lakefield Research Ltd. This preliminary work indicated excellent recoveries of up to 95% of the graphite for material ground to -10 mesh. 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). This flake size is in high demand on a global level due to declining inventories and can command up to $2200 per tonne in a concentrate form.
Charles Desjardins, President and Director of Pistol Bay Mining commented on the importance of this development by stating, “With improved methods being utilized for graphite flake recovery, flotation and purity, the Company is encouraged that the saleable concentrate produced through the metallurgical test program will be a sought after commodity in the North American carbon marketplace. For that reason, our plans will be to share these test results with our prospective customers in order to prove the Company’s capability of quality and supply.”
Currently, Pistol Bay has received quotes from three (3) reputable third party metallurgical and mineral laboratories in Ontario and a decision will be made next week of which lab will be awarded the contract to process the sample.
Work on the property by previous operator Victoria Graphite Inc., included 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. A historical “probable reserve” of 295,000 tonnes grading 6% 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. A program of re-logging, re-sampling and re-assaying of drill core would be required to bring the estimate up to 43-101 compliance. The company is not treating the historical estimate as a current mineral resource or mineral reserve.
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About Pistol Bay Mining Inc. (TSX VENTURE:PST)
Pistol Bay Mining Inc. is a diversified Junior Canadian Mineral Exploration Company with a focus on graphite, precious and base metal properties in North America..
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.
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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>