Pistol Bay Mining (TSX-V: PST) entered into an option agreement with 1544230 Ontario Inc. to acquire a 100% right, title and interest in and to 141 mining cells located in the Pakwash Lake Area in Ontario’s Red Lake mining district.
In a press release, the Vancouver-based miner explained that under the terms of the option agreement, it is required to make total cash payments of $45,000 and issue of 500,000 shares over a three-year period. 1544230 Ontario Inc. will retain a 1.5% net smelter return royalty.
The Pakwash North Block formerly comprised part of a large claim group known as the Goldpines property, which was explored by Laurentian Goldfields in 2010 and 2011
In the brief, Pistol Bay said that the properties total 7130 acres, are located east and south of Great Bear Resources’ recent discovery and comprise two separate claim blocks.
The first claim group is referred to as the Pakwash East block and it comprises 35 cells, with an area of approximately 1,760 acres. Published geological maps reveal that this zone is underlain by metasedimentary rocks and granitic intrusions.
The second claim group is referred to as the Pakwash North block. It comprises of 106-cells that extend for 5,370 acres and it lies in an area of metasedimentary rocks of the English River terrain, including a variety of granitoid intrusives, and straddles a major structural, the Sydney Lake Fault.
“The company is excited about the additional prospects for gold in the vicinity of the recent Great Bear Resources discovery,” Charles Desjardins, Pistol Bay’s president and CEO, said in the media brief. “We believe there is considerable potential for gold on our Confederation Lake side of the Red Lake Mining district as well as the known historic resources of silver, copper and zinc.”