VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/12/13 -- Pistol Bay Mining Inc. (TSX VENTURE: PST) ("the Company") is pleased to announce that Mr. Paul Gorman, founder of Mega Graphite Inc., has joined the Company as an advisor for its Portland Graphite Project.
Mr. Gorman is a resource based corporate specialist with over 20 years of experience in the junior mining sector. He has been involved in several IPO's as well as the assessment of asset viability and the operating growth of emerging public companies.
Mr. Gorman is the President and managing partner of Riverbank Capital Inc. - a merchant bank that works with small-cap companies to assist them in financing property exploration and developing well defined marketing programs. Mr. Gorman has been responsible for raising capital totaling in excess of $55 million. With Riverbank Capital, he has been involved in the promotion of companies to the investment community and the development of strategic plans for business growth for over 12 years.
Mr. Gorman is currently a director of several private companies and has held directorships with several publicly listed corporations. He has held senior management positions with Canadian and US based firms, providing expertise in the areas of capital raising, corporate governance and strategic initiatives. He has also held the position of CEO at Yukon Gold Inc. and Southampton Ventures Inc.
Mr Gorman had this to say regarding the project and his association with Pistol Bay Mining: "The Portland Graphite Project - a former producer from 20 years ago - has many of the positive attributes required to attract investment and position it as a near term production project. The location is extremely close to major highways, rail, waterways and power supply. The graphite flake itself is world class and the grade, with its low ash and sulphur content, makes it a candidate for purification - which will be highly sought after from graphite consumers world-wide. I look forward to working closely with Pistol Bay's management team to move this project ahead and quickly build value into the recently acquired graphite asset."
The Portland Graphite Project
The project is situated 1.6 km north of Highway 15 between Kingston and Ottawa. It is road-accessible and consists of private lands covering approximately 429 hectares, located 5.5 km northeast of the community of Portland, Ontario. Power and water are available on-site and rail access is nearby.
Graphite on the project is hosted primarily in Precambrian marbles of the Grenville Province. Ontario government geologists reported in the 1960's that the graphite occurs as disseminated flakes, averaging 1/8 inch in diameter. Work on the project by previous operator Victoria Graphite Inc., including 73 drill holes (5,884m), identified graphite mineralization in three zones (D-zone, G-zone and I-zone) over a total strike length of 1,700m. Mineralization dips at approximately 70 degrees to the west. In general, the zones are characterized by broad envelopes of lower-grade graphite mineralization with widths up to 75m, within which are zones of higher grade material, to greater than 10% graphitic carbon ("Cg") based on the diamond drilling by Victoria Graphite in the late 1980's.
Victoria Graphite also carried out test mining and milling, utilizing a 100 tonne per day pilot plant in the early 1990's. Results of this test milling work are not available to the Company at this time. However, the mill building is still present and represents a potentially significant asset to the Company in terms of the ongoing development of the project.
A historical "probable reserve" of 295,000 tonnes to a depth of 20 metres and grading "slightly above 6% graphite" was delineated on the property. This estimate is a historical estimate prepared by R.A. Elliot for Victoria Graphite in 1989. Although it appears to have been done in a professional manner by the standards of the time, it does not conform to the standards of NI 43-101. The category "probable reserve" appears to conform most closely to the currently accepted category of "Inferred Mineral Resource". A program of re-logging, resampling and re-assaying of drill core would be required to bring the estimate up to 43-101 compliance. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve and the Company is not treating the historical estimate as a current mineral resource or mineral reserve.
In terms of the quality of the graphite material, metallurgical testing on a 34 tonne sample of material from the D-zone was carried out in 1989 by Lakefield Research Ltd on behalf of Victoria Graphite. This work indicated recoveries of 87 to 95% of the graphite for material ground to -10 mesh. Flotation concentrates grading 80 to 85% Cg were produced which could be upgraded to 91-93% Cg by heavy liquid separation. Of particular note, this work indicated a coarse flake (+48 mesh or 0.325mm) content of 66% in the concentrate-according to the Ontario Geological Survey, Open File Report 5729, recorded in 1990.
Technical information in this news release has been prepared and/or reviewed by William Brereton, P.Eng., a Qualified Person as defined in NI43-101.
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.
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.
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