Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Pitchstone Exploration Ltd. (TSX VENTURE:PXP) –
Pitchstone Exploration Ltd. (“Pitchstone”) has finalized plans for summer exploration activities in the eastern Athabasca Basin, Saskatchewan. Work will include 2,250 meters of diamond drilling at Gumboot and Johnston Lake, plus 2,000 meters of diamond drilling at Wolverine. Additionally, Pitchstone has recently staked three new claims in the eastern Athabasca Basin.
Gumboot
Drilling at Gumboot will continue to follow the north-south zone of intense alteration and sporadic mineralization initially discovered in 2009. The zone is open along strike in both directions. The northernmost hole (GB-23) was drilled in February of this year and intersected 0.3 meters of 0.53% U3O8, 1.92% Ni, 0.80% Co and 21.8 g/t Ag approximately three meters below the sub-Athabasca unconformity. The interval included 0.1 meters of 1.47% U3O8, 2.45% Ni, 1.61% Co and 49 g/t Ag (see March 21, 2011 news release). Mineralization in GB-23 is associated with intense sandstone alteration characterized by zones of massive clay, quartz dissolution, bleaching and tilted blocks. Basement rocks are faulted, graphitic, pelitic gneiss. Approximately 1,550 meters of drilling are planned at Gumboot during the summer exploration season. Gumboot is 100% owned by Pitchstone.
Johnston Lake
One 700 meter drill hole is also planned at Johnston Lake to follow up on mineralization intersected in JL-25R during the winter 2011 drilling program (see April 18, 2011 news release). JL-25R intersected 0.1 meter of 0.13% U3O8 associated with a major fault zone 60 meters below the sub-Athabasca unconformity. A 21 meter offset in the unconformity at this location indicates favorable post-Athabasca faulting. Pitchstone has earned a 49% interest in Johnston Lake from Denison Mines Corp. (“Denison”) and is proceeding with a second stage earn-in to 75%.
Wolverine
Work at Wolverine will consist of 2,000 meters of diamond drilling to follow up on basement-hosted mineralization discovered in 2010 (see August 18, 2010 news release). Drill hole WL-01 intersected 0.25% U3O8 over 0.1 meter within a large interval of hematitic fault breccia 70 meters beneath the sub-Athabasca unconformity. Wolverine was optioned to Japan Oil, Gas and Metals National Corporation (“JOGMEC”) in 2009. All exploration on Wolverine is being funded by JOGMEC.
New Claims
Pitchstone has staked three new claims (S-112160, S-112161, and S-112281) totaling 5,650 hectares in the eastern Athabasca Basin area since April of this year. S-112160 is located 27 kilometers due east of the Cigar Lake mine and has been named the Packrat property. It was staked to cover an area of interpreted intersecting faults that is coincident with a prominent magnetic low near the Collins Bay thrust fault. Packrat is 100% owned by Pitchstone.
S-112161 adjoins the Marten property and covers two zones of alteration and uranium mineralization previously drilled by other operators. It will be subject to the terms of Pitchstone’s option agreement with JOGMEC.
The third claim, S-112281, is contiguous with both Gumboot and Johnston Lake properties and will form part of the Johnston Lake project. The claim covers a four kilometer portion of the Gumboot/Johnston Lake conductor system not previously held by Pitchstone or Denison. Exploration on S-112281 will be carried out under the terms of the option/joint venture agreement with Denison.
Steven J. Blower, P.Geo., President and CEO of Pitchstone, is the Qualified Person for the purposes of NI 43-101 with respect to the technical information in this news release. Sample preparation and analyses were done by SRC Geoanalytical Laboratories, Saskatoon. A partial digestion with fluorimetric analysis was used for initial uranium determinations, and then all samples containing greater than 100 ppm uranium were re-analyzed with ICP. Pitchstone utilizes internally and externally submitted standard reference materials for quality assurance and quality control of the sample preparation and analyses. There is insufficient information to estimate the true thickness of the intersections.
About Pitchstone
Pitchstone is exploring for uranium in three proven districts in Canada and Namibia. The property portfolio features 12 projects in the eastern Athabasca Basin, Saskatchewan, four of which are 100% owned. In addition, there is a joint venture on two projects in Namibia and three joint venture projects in the Hornby Bay Basin, Nunavut. Pitchstone benefits from the collaboration of a unique group of geologists with extensive uranium exploration and production experience.
