Pistol Bay Mining (PST-V) Jan 8, '14 has received notice from Rio Tinto Canada Uranium Corp. (RTCUC) that it mobilized a camp crew on Jan. 5, 2014. Drilling is scheduled to commence on or around Jan. 11, 2014.
A total of approximately 2,500 metres of diamond drilling is proposed for the 2014 C-5 block winter exploration program with a budget of $1.2-million. The program is designed to test five to six 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 to seven 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 crosscut the north-south-trending quartzites of interest.
Terms of option agreement
RTCUC has earned an initial 55-per-cent interest in the C blocks (including C-5) property by incurring $1-million 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 per cent on or before Dec. 31, 2014, by incurring an additional $1-million in expenditures. For a period of five years after the exercise of this second option, RTCUC may increase its interest to 100 per cent by paying Pistol Bay $5-million, whereupon Pistol Bay shall receive a 5-per-cent 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 National Instrument 43-101. |
