Pistol Bay Mining Inc.: Rio Tinto Canada Uranium Corporation
Announces Drill Program for the C-5 Uranium Property in the Athabasca
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/09/13 -- Pistol Bay
Mining Inc. (TSX VENTURE:PST) reports that it has received notice
from Rio Tinto Canada Uranium Corporation ("RTCUC") of the upcoming
proposed 1800 meter diamond drill program and ground gravity survey
for the Pistol Bay Mining C5 property, located in the Athabasca
Basin, Saskatchewan. The program will have a combined budget of
RTCUC has integrated the existing data available from the C-5 area
including the historic drilling, geophysics, and geochemistry, into
Arc GIS and Leapfrog 3D. Based on the available datasets, several
possible structural trends have been identified on the property and
therefore, the drilling will be aimed at confirming the presence of
some of these structures, while also testing them for mineralization.
Historic drilling also indicates the presence of a quartzite unit on
the property. One of the primary goals of the drilling will be to
better constrain and define this unit: similar units are known to be
spatially associated with mineralization in areas adjacent to the C-5
RTCUC has identified a series of drill holes designed to confirm
structural trends and test for uranium mineralisation. By better
understanding the lithological and structural knowledge base at the
C5 property, RTCUC will be able to refine and advance any further
work on the property.
The planned 2013 gravity survey has been designed to infill and
extend the gravity survey completed in 2011 by Terra Ventures. The
objective of the survey is to extend the current data set and
identify areas of potential alteration that may be related to
mineralization. The survey will be completed at 50 meter station
spacings along 100 meter spaced lines and will extend the coverage
over the entire C-5 block property, which does not already have
gravity data. This will amount to approximately 1500 stations.
Terms of Option Agreement
RTCUC has earned an initial 55% interest in the C Blocks (including
C-5) property by incurring $1,000,000 in expenditures and making an
initial payment of $147,000 to Pistol Bay Mining in January 2012.
RTCUC will have the right to increase its interest to 75% on or
before December 31, 2014 by incurring an additional $1,000,000 in
expenditures. For a period of five years after the exercise of this
second option, RTCUC may increase its interest to 100% by paying
Pistol Bay $5,000,000, whereupon Pistol Bay shall receive a 5% net
profits interest royalty.
Technical information in this news release has been prepared and/or
revised by Mike Magrum, PEng, and qualified person as defined in NI
About Pistol Bay Mining Inc. (TSX VENTURE:PST) is a diversified
Junior Canadian Mineral Exploration Company with a focus on precious
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.
Pistol Bay Mining Inc.
President and Director
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