Pistol Bay Mining (TSXV: PST) this morning announced that it has entered into a letter of intent to acquire the Icefield Gold Project, located near Golden, British Colombia. The project consists of three claim groups covering a total of 6,752 hectares that features historic drill results with values that include 59.03 g/t gold, 7,530 g/t silver, 16.9% copper, and 8.95% lead over 4.04 metres.
The project is focused on portions of what is believed to be a 90 kilometre long trend line, and features highly anomalous gold occurrences. These gold occurrences have been discovered via both historical outcrops and drilling results. The claim groups, referred to as Punch Bowl, Vertebrae Ridge, and Gold Mountain are spread throughout this long trend line and consist of the following.
- Gold Mountain: 802 hectares in size, Gold Mountain has seen historical trenching and eight previous drill holes drilled on site. Located just North of Highway 1, the property covers the historical Grizzly Prospect and is known to host both gold and silver.
Surface work conducted in the 1980’s on this claim block was highly successful, with five veins being exposed by trenches returning highlight values of 30.3 g/t gold, 13,001 g/t silver, and 32.5% copper. Subsequently drilling conducted in 1984 saw the above mentioned highlight value of mineralization over 4.04 metres, as well as 4.50 metres of 7.89 g/t gold, 1,034 g/t silver, 2.30% copper and 5.26% lead.
- Vertebrae Ridge: At 2,871 hectares in size, these claim blocks are located within the centre of the trend line. Quartz veins, stockworks and breccias are said to be traced over a two kilometre strike on these claims, with strike being 50 to 100 metres wide.
Limited exploration has been documented on these portions of the claim, however two copper mineralizations were found on site in 2014 and 2015. The first zone has been traced via outcrop as being over 2 kilometres long, while the second zone has been traced to being at least 200 metres long.
- Punch Bowl Claims: The largest claim block of the Icefields project, Punch Bowl consists of 3,079 hectares and is located at the northern end of the trend line. Gold mineralization is known to occur on this claim bloc within variable quartz veins.
Mineralization on these claims was originally found in the 1960’s, when grab samples collected from the outcrop returned values of up to 79 oz/t gold and 14.5 oz/t silver from the main showing, located in the north-central part of the property. Exploration then conducted in 1987 and 1989 verified these claims (although historic in nature now), discovering over 20 veins that produced anomalous gold values, with grading ranging up to 500 g/t gold, with visible gold being observed several times.
Punch Bowl is considered to be the prime exploration target of the project, with sediment hosted gold occurrences believed to be similar to the Fosterville Mine operated by Kirkland Lake Gold in western Australia.
“We are extremely excited to have acquired the Icefield Gold Project, which offers the opportunity to explore for Fosterville type gold occurrences in Canada, both at a regional setting and by revisiting showings with previously documented high-grades of gold mineralization in both outcrop and drill core.”Charles Desjardins, President and CEO of Pistol Bay
Under the terms of the transaction, the Icefields Gold project can have a 100% interest acquired by Pistol Bay through the payment of $50,000 in cash and the issuance of seven million common shares and two million transferable common share purchase warrants. The warrants are to have an expiry of three years from issuance and an exercise price of $0.05. Payment is occur as follows:
- $25,000 cash to be paid upon signing the agreement
- One million common shares and one million warrants are to be issued upon exchange approval of the agreement
- $25,000 and one million shares and one million warrants are to be issued on the one year anniversary of exchange approval
- Five million shares to be issued on the two year anniversary of the exchange approval.
Pistol Bay Mining last traded at $0.06 on the TSX Venture.
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