Pistol Bay Mining Inc. is happy to announce that it has signed an option deal with Northbound Capital to procure a complete right, title, and interest in and to 104 mining cells situated in the Cabin Bay Township of Ontario’s Red Lake Mining District.
The option agreement is subject to TSX Venture Exchange approval. The property, stretching to 5264 acres, is situated southeast of the recent discovery of Great Bear Resources.
We are excited about this new Red Lake gold prospect coming to Pistol Bay having always been Red Lake Mining district believers. We feel the recent discoveries by Great Bear will help focus attention on the gold and base metal potential of Pistol Bay’s Confederation Lake land package and the Red Lake Mining district as a whole.
Charles Desjardins, President and CEO, Pistol Bay Mining Inc.
As part of the terms of the option agreement, Pistol Bay will make a total cash payment of $82,500 to stake a 100% right, title, and interest in and to the property. The company will also release a total of 3,000,000 shares over a period of three years. However, a 2.0% net smelter returns royalty will be retained by Northbound Capital.
Pistol Bay Mining Inc. will have the right to buy one-half (1/2) of the NSR Royalty at any given time. This would be 1% from Northbound Capital considering the $1,000,000 payment to be made to the latter. This will leave a 1% NSR Royalty for Pistol Bay Mining Inc.
The Pakwash South property, covering 2130 hectares (5264 acres), is located southeast of the Dixie Lake gold discovery that is currently being investigated by Great Bear Resources Ltd. The property can be accessed through old forestry access roads that lead from provincial highway 105, and also by boat through the Chukuni and English Rivers and Pakwash Lake.
It is situated in a region of metasedimentary rocks of the English River terrain, which includes a range of granitoid intrusives, and lies just to the south of a significant structural zone known as the Sydney Lake Fault.
Located within the vicinity of key structures, metasedimentary terrains were once believed to possess low mineral potential. They have been the site of the latest gold discoveries like the Valentine Lake gold deposit located in Newfoundland, the Curraghinalt gold deposit situated in Northern Ireland, and Newmont-Goldcorp’s Éléonore mine located in northern Québec.
Earlier, the property included part of a huge claim group called the Goldpines. This was the only former exploration in the vicinity, and work carried out in this part of the Goldpines property was mostly geochemical, with extensive soil sampling, lake-sediment, and lake-water surveys for MMI analysis. The property spans a group of anomalous gold present in MMI soil samples over a 2600 m × 1900 m area.
Furthermore, Pistol Bay Mining Inc. is planning to conduct a preliminary work program of sampling and prospecting in the near term on its Vanadium Project Mining Inc. located in Nevada, USA.