Canadian junior Pistol Bay stock just went ballistic and here’s why

Shares Pistol Bay Mining Inc. (TSX-V: PST) were up more than 45% on Tuesday mid-morning after the company announced that joint venture partner Rio Tinto will start drilling at its “C Blocks” uranium properties in Saskatchewan’s Athabasca Basin.

In 2014, the Vancouver-based junior optioned the C5 Property, along with the C4 and C6 claims to Rio Tinto, which has already earned a 75% interest in the assets, located close to Cameco’s McArthur River mine — the world’s largest producing uranium mine.

Last year, Rio announced its intention to exercise its further option to acquire 100% interest in the assets by paying Cdn$5 million by December 2019.

Source: Google Finance.

So far, the mining giant has drilled 12 holes for a total of 6,104 m on the C5 Property, and completed gravity and DC resistivity surveys.

Meanwhile, Pistol Bay will focus its efforts in advancing its Dixie zinc-copper-gold properties in Ontario, Canada, which it bought in October last year.

The acquisition, combined with the already optioned Dixie and Dixie 3 Properties, made the Canadian junior the dominant landholder in the Confederation Lake Greenstone Belt, a 7,050 hectares-area in the area southeast of Red Lake.

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