PISTOL BAY

The Pistol Bay Gold Project in Nunavut Territory, Canada consists of 677.55 square kilometres of mineral rights covering a 50 kilometre strike length of a 2 kilometre wide zone known as the Pistol Bay Corridor, which contains numerous gold occurrences. The initial claims were acquired through an option agreement dated December 2, 2010 and four campaigns of claim staking and permitting have been completed since then. Field operations commenced in April 2011 and two drilling seasons have been completed.

Location of the Pistol Bay in Nunavut, Canada

When the Pistol Bay Project was acquired in late 2010, the exploration concept was that a group of gold occurrences near the Hamlet of Whale Cove, seemed to line up in a west-trending cluster, parallel to the westerly, linear trend of the Meliadine gold deposits 80 kilometres to the north, which are on the opposite side of a sterile, granitic gneiss block, and that the “Pistol Bay Trend” was a mirror image of the Meliadine Trend. After two field seasons, the work by Northquest has validated the hypothesis.

Magnetic anomaly map illustrating the Meliadine and Pistol Bay gold trends,  the two trends appear to be mirror images on either side of a block of granitic gneiss

Previous work

The only notable previous work completed in the area of the property was completed by INCO in the period 1983 to 1989. INCO discovered the Harpoon, Tommy, Cooey, Vickers, and Defender gold occurrences and drilled 16 holes at the Vickers Target and another 15 shallow drill holes at other targets in the general area. Other companies discovered the Pistol Porphyry and Mauser Group of gold occurrences.

Work Completed by Northquest Ltd.

In 2011, Northquest completed an initial airborne magnetometer survey of the property (fixed wing, 200 metre line spacing), broad-based reconnaissance geological surveys, and  2,514 metres of drilling in 17 drill holes. The Sako, Beretta, and Bazooka gold occurrences were discovered by Northquest Ltd. in 2011. 

Gold occurrences and magnetic anomalies (TMI) of the Pistol Bay Project

Gold occurrences and magnetic anomalies (Vertical Gradient) of the Pistol Bay Project

Local infrastructure and location of gold occurrences of the Pistol Bay Project

The targets that were tested by drilling were the Pistol Porphyry, Cooey, and Sako occurrences. The best results in 2011 include 2.44 ppm gold over 7.0 metres at the Pistol Porphyry Target, 2.00 ppm gold over 6.17 metres at the Sako Target, and 5.11 ppm gold over 1.00 metre at the Cooey Target.  It was determined that follow up drilling was only required at the Sako Target. The breakdown of drilling in 2011 is set out below.

In 2012, the Company focussed mostly on drilling and completed 4,580 metres of diamond drilling in 22 drill holes. Follow-up drilling was completed at the Sako Target, and the initial drill holes were completed at the Bazooka and Vickers Targets. The best results included 1.76 ppm gold over 15.53 metres at the Sako Target, 2.10 ppm gold over 11.17 metres at the Bazooka Target, and 8.23 ppm gold over 156.48 metres at the Vickers Target. It was determined that additional drilling was required at each of those targets. The breakdown of drilling in 2012 is set out below.

At the end of the drilling season in October, 2012, the Company completed a high resolution airborne magnetometer survey (helicopter-towed, 50 m line spacing), over the Pistol Bay Corridor. The purpose of the survey is to provide more detailed context of the setting of the known gold occurrences and to provide the background data to search for more drilling targets in the Pistol Bay Corridor.

The total exploration expenditures (excluding acquisition and staking costs) as at the end of 2012, are $4.9 million dollars. The Company has obtained economically interesting drilling results at three widely spaced targets (Sako, Vickers, and Bazooka), which occur over a 20 kilometre long strike length of the Pistol Bay Corridor. It is the opinion of management that these early and relatively inexpensive results demonstrate that the Pistol Bay Corridor is a highly prospective mineralized trend and that the rocks in the trend are permissive for a district of gold deposits.   

Summary of Future Exploration Plans for the Pistol Bay Project

Vickers Target

With the exception of one drilling section at the Vickers Target, where we feel that the drill hole density is adequate, it is anticipated that additional drilling will be completed on many of the sections with the objective of further evaluating the size, shape, and grade of the Vickers Target. An IP/resistivity survey is planned for 2013 to provide critical information on the nature and distribution of the Vickers main zone and the local environment. That survey may provide additional drilling targets in the intrusion and footwall environment and direction in locating additional drill holes in the main zone. At the V2 Zone, 200 metres south of the main zone, gold bearing outcrops of the intrusion are the same as those at the main zone. The first drill holes will be competed at the V2 Zone in 2013.

Sako Target

The Sako Target has had seven, widely-spaced drill holes (1,087 metres) with highlight intersections 50 metres apart of 2.00 grams gold per tonne over 6.17 metres in drill hole PB-11-13 and 1.76 grams gold per tonne over 15.53 metres in PB-12-02. Moreover, gold-bearing rocks have been intersected in drill holes over a strike length of 600 metres. An interpretation is that gold concentrations increase towards the east, hence, drilling is planned east of PB-12-02. Moreover, an IP/resistivity survey is planned for 2013, which may provide further direction on the placement of additional exploration holes at the target.

Bazooka Target

At the Bazooka Target, four drill holes (526 metres) were drilled in 2012. PB-12-04 intersected 2.10 grams gold per tonne over 11.17 metres, and the other three widely-spaced drill holes did not intersect the target rocks. Additional drilling is required in the vicinity of PB-12-04 in order to determine the attitude of the mineralized iron formation and to follow the mineralized zone along strike.

Mauser Group

The Mauser Group of gold occurrences was acquired by staking in October 2012. Not much is known about the gold occurrences. Government summary reports indicate that several companies have worked on the gold occurrences since the 1970’s. The gold occurrences are described as a northeast-trending, gold-bearing, quartz-carbonate vein system that is hosted in diorite, basalt, and conglomerate, with a strike length of 2.5 kilometres. Some of the historical grab samples reportedly contain visible gold and contain up to 47.00 ppm gold. A priority for 2013 is to examine and validate this target area and complete the initial drilling, if warranted. The Mauser Group is very prospective because it fits perfectly within the Pistol Bay Corridor, and is associated with a northeast cross structure, which is the same structural setting as the Vickers and Bazooka Targets.

Other Targets

Much of the property is covered by glacial moraine. We expect that new exploration targets in concealed areas, with attributes similar to the known targets, will be generated through the analysis of the high resolution airborne magnetometer survey data. New targets derived from that analysis will be explored in 2013.