Pistol Bay Options Summit B Property to Revolver Resources Inc.
May 21, 2013 — VANCOUVER, BRITISH COLUMBIA (Source: Marketwired) — Pistol Bay Mining Inc. (TSX VENTURE:PST) announces that it has entered into an option agreement (the “Option Agreement“) dated May 17, 2013 (the “Effective Date“) with Revolver Resources Inc. (“Revolver”) whereby Revolver may earn a 60% interest in the Summit B property (the “Property“), located in northwestern British Columbia. Under terms of the Option Agreement, subject to TSX Venture Exchange (the “Exchange“) approval, Revolver has the option to earn a 60% interest in the Property by completing $2,500,000 in exploration expenditures on the Property, making $500,000 in cash payments to Pistol Bay and issuing Pistol Bay 4,000,000 common shares over the next three years as follows:
|Date||Cash Payment||Share Issuance||Expenditure Requirement|
|On the Effective Date||$||25,000||Nil||Nil|
|On Exchange approval of the Option Agreement||$||75,000||2,000,000 common shares||Nil|
|On or before the date which is one year from the Effective Date||$||200,000||1,000,000 common shares||$||250,000|
|On or before the date which is two years from the Effective Date||$||200,000||1,000,000 common shares||$||750,000|
|On or before the date which is three years from the Effective Date||Nil||Nil||$||1,500,000|
The 1,394 hectare (3,446 acre) Property is located in the Iskut area of northwestern British Columbia, Canada, and is contiguous with Colorado Resources Ltd.’s (“Colorado“) North Rok copper-gold property (the “North Rok Property“). Colorado’s recent North Rok Property discovery hole intersected 242 metres grading 0.63% copper and 0.85 g/t gold. More complete details can be found in Colorado’s news release dated April 25, 2013. The Summit B property is also 20 kilometres northwest of Imperial Metals Red Chris Copper-Gold project.
In 2010 Pistol Bay carried out preliminary surface geological mapping and geochemical sampling which outlined a gold-bearing horizon on the Summit B property. Previous programs had focused on copper exploration, outlining a trend of roughly 100 metres of strongly anomalous copper values from rock sampling. Although copper was the main focus, rock sampling also returned several high gold values, including 4.95 g/t gold, along a parallel zone roughly 30 metres southwest of the main trend.
Further exploration in 2010, at this location, yielded two notable rock composite grab samples of similar gold-bearing rock. Results of 17.9 g/t gold with 18.5 g/t silver, and 10.9 g/t gold with 15.9 g/t silver respectively, were returned. Detailed grid soil sampling and rock sampling indicate these correspond to a 250 metre trend of anomalous gold values, including a rock chip sample of similar material grading 1.875 g/t gold across 2.0 metres. Similar coincident anomalous copper-gold values were returned from soil sampling about 250 metres farther northwest along trend. This trend represents a new target warranting further exploration within the Summit B block. Composite grab sampling throughout the property returned numerous anomalous copper values from 0.271% to 1.505% copper.
The B.C. Minfile description of the Kitty occurrence reports historic work including 9 bulldozer trenches over an area of 170 by 5 metres (B.C. Assessment Report 21416) and historic results from surface grab samples as high as 8.98% copper, 24.5 g/t silver and 0.045 g/t gold. Grab samples as high as 1.61 g/t gold and 0.6% copper have been returned from another showing approximately 50 metres southwest of the bulldozed trench area.
Grab samples are selective in nature and assays may not be representative of all mineralization on the property.
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Pistol Bay’s total land package, in the Iskut area, consists of three properties totaling over 8,500 hectares, much of which is adjacent to the Red Chris project. (To view the property map click here: http://pistolbaymining.com/wp-content/uploads/2013/04/Summit-Properties.png).
Technical information in this news release has been prepared and/or revised by Mike Magrum, PEng, and qualified person as defined in NI 43-101.
About Pistol Bay Mining Inc. (TSX VENTURE:PST) is a diversified Junior Canadian Mineral Exploration Company with a focus on graphite, precious metals 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
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.
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.
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>