Pistol Bay Acquires Nevada Vanadium Project.

 

Vancouver, B.C. – April 10, 2019: Pistol Bay Mining Inc. (TSX-V - PST; Frankfurt - OQS2, OTC/Pink Sheet symbol SLTFF) (“Pistol Bay” or the “Company’) wishes to announce that it has acquired a Vanadium project totaling 980 acres in Clark County, Nevada

Pistol Bay Mining Inc has signed an agreement with arm's-length third parties to acquire, subject to TSX Venture Exchange approval, a 980 acre land package covering two properties known as the Vanadium Claims Group (VCG) project. The VCG project is located in Clark County, Nevada; a historical mining district with 34 reported occurrences of vanadium mineralization. Vanadium is a strategic mineral critical to steel strengthening and utility scale battery technology.

The mining district was mapped by the USGS in the 1920’s.  The USGS report makes the following comment “Vanadates are uncommonly widespread in the district” and that significant concentrations of vanadium were shipped from the district in the form of mine concentrates and bulk shipments. The USGS report also mentions a number of other references to vanadium mineralization in the district:

a) concentrates reported to contain 15% V2O5

b) 3.75% V205 over 2.3m,

c) 3m wide zone estimated to run up to 10% V2O5

The USGS described the styles of mineralization within the district and recorded a significant number of vanadium occurrences containing vanadinite, descloizite, cuprodescloizite, psittacinite and other unnamed vanadium minerals.

The USGS reported that a number of outcrops from within the two areas covered by the VCG project contained vanadium mineralization and that shipments of vanadium mineralization were made from one of the areas now covered by the VCG project.

Charles Desjardins, President & CEO of Pistol Bay stated that “We are excited to make this acquisition as it provides the Company exposure to the District Scale Potential of the area for high grade Vanadium mineralization, low cost exploration as well as potential for significant by-product credits ( lead, zinc, silver) from related mineralization in a district that not been systematically explored for vanadium”.

Vanadium Deposits and Target Grades

The most important vanadium bearing minerals are vanadinite (19% V2O5), descloizite (22% V2O5), cuprodescloizite (17-22% V2O5), carnotite (20% V2O5), roscoelite (21-29% V2O5), and patronite (17-29% V2O5).

The vanadium mineralization exposed within the VCG project belongs to the Exogenic type vanadium deposits characterized by typically higher grade (2-10% V2O5) mineralization; the vanadium minerals descloizite, cuprodescloizite and vanadinite and occur in oxidation zones of lead-zinc and copper mineralization.

Details on the Vanadium  Project

Claims Group #1:

Measures approximately 1.6 km by 1.0 km covering a number of reported vanadium showing exposed in outcrop and in old mine workings. The USGS report states: “One mine (located within the claim group) however did ship 14 tons of material to the American Vanadium Company.” Information on the vanadium content of the shipment is not available.

Claims Group #2:

Covers an area measuring approximately 1.6 km by 1.0 km with reported vanadium mineralization and a significant number of old workings. No exploration has been completed on the two groups.

Overview: The two groups of mineral claims are located in the Goodsprings Mining District, Clark County Nevada. This area was mapped and information on all the mineral showings located in the district was compiled and recorded by the USGS publication “Ore Deposits Of the Goodsprings Nevada, 1931, D.F. Hewett.

Vanadium minerals recognized in the district include; vanadinite, descloizite, cuprodescolizite, psittacinite and other unnamed vanadium minerals. Hewett reported 34 occurrences of vanadium mineralization occur throughout the District and stated that “Vanadates are uncommonly widespread in the district”.

Vanadium concentrations are reported in mine concentrates, bulk shipments and outcrops. No reference to exploration for vanadium mineralization were noted. It appears that the Goodsprings District has not been systematically explored for Vanadium mineralization.

Logisticts: Access to the properties is excellent using dirt roads and trails. Fuel, lodging and material are available with 20 kms of the properties. The properties are within a 30minute drive from Las Vegas, Nevada

Claims: GS 32-40:

Claim data is set out below:

Geology: These claims surround the former producing Springer Mine and Tiffin Mine and are underlain by Mississippian/Pennsylvanian age Monte Cristo Limestone, Birdsprings Limestone and outliers of Miocene age andesite/latite/rhyolite flows. Late north trending mica Lamprophyres dikes cross cut the limestone units.

The property covers the extension of the Sultan Thrust fault that dips to the south. The property is also host to several north-south trending west dipping faults.

Mineralization: The property covers an area that measures approximately 1.6 kms by 1.0 km and could be expanded to cover 3.0 kms by 2.0 kms based on host rocks and reported vanadate mineralization.

Past production: The Singer and Tiffin mines were former small scale lead-zinc producers (+/- 1,000 tons ore shipped, most likely hand cobbed) that operated in the 1920’s. These workings are held by patented claims and are surrounded by the GS 32-40 claim group

Terms of Acquisition

1.      The Vendor hereby agrees to sell and that Pistol Bay Mining Inc. agrees to purchase the Claims free and clear of all liens, charges, and encumbrances for and in consideration of  $15,000 USD  plus the sum of $150,000 USD upon exchange approval, and 8,000,000 fully paid and non-assessable common shares of Pistol Bay Mining Inc. (the “Purchase Price”).

2.      The Purchase Price is due and payable as follows:

(a)    A cash consideration of $15,000 USD paid on the date of execution of this Agreement.

(b)   $50,000 USD upon exchange approval.

(c)    $100,000 USD six months post exchange approval.

(d)   8,000,000 fully paid and non-assessable shares of Pistol Bay Mining Inc.on the five days following the date this agreement is accepted for filing by the TSX Venture Exchange (the date of acceptance being the “Effective Date”); and

(e)    A 2% Net Milling Returns Royalty on the Properties (the “Royalty”); including the right of Pistol Bay Mining Inc. to purchase one and one half (1.5%) of the Royalty at any time for USD $1,000,000.

The technical information in this news release was prepared and/or reviewed by Glen Macdonald, Ph.D., P.Geo., a Qualified Person as defined in National Instrument 43-101.



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