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 approximately $750,000.
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 property.
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 43-101.
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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