|By Marketwired .||
|January 8, 2014 02:30 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/08/14 -- Pistol Bay Mining Inc. (TSX VENTURE: PST) ("the Company") is pleased to report that it has received notice from Rio Tinto Canada Uranium Corporation ("RTCUC") that it mobilized a camp crew on January 5th 2014. Drilling is scheduled to commence on or around January 11th 2014.
A total of approximately 2,500m of diamond drilling is proposed for the 2014 C-5 Block winter exploration program with a budget of $1,200,000. The program is designed to test five (5) to six (6) holes within the Corridor A target area as a follow-up to mineralization intersected during the winter 2013 exploration program. Drilling is expected to take approximately six (6) to seven (7) weeks.
Based on the results of previous exploration carried out by RTCUC, the current focus of exploration at the C-5 property are two quartzite units interpreted to be trending north-south within the southern portion of the project area. These units are potentially analogous to those seen at the Phoenix and McArthur River deposits which lay in close proximity to the C-5 project area.
Following 2013 exploration, two priority targets were identified within the southern portion of the C-5 claim block. These areas are east-west trending structural corridors interpreted from geophysical data sets including VTEM and ground gravity survey data which cross cut the N-S trending quartzites of interest.
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 43-101.
About Pistol Bay Mining Inc. (TSX VENTURE: PST) is a diversified Junior Canadian Mineral Exploration Company with a focus on graphite, 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
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.