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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