Pine Point Mining (ZINC.V), the new name of Darnley Bay Resources (DBL.V) has released an exploration update on its Pine Point zinc project in Canada’s Northwest Territories. The company is still completing a drill program there to expand the known mineralization and zinc resource at the project.
The recently released results were focusing on the L65 open pit zone, which had the lowest average grade of all open pits included in the PEA mine plan, and this first batch of 38 (of the 56 completed) drill holes was aimed at increasing the confidence in the L65 resource and perhaps add more tonnes to the resource estimate. The assay results are very encouraging, with 2.8 meters at 6.56% ZnPb, 10.2 meters at 5.09% ZnPb as well as shorter but higher grade intercepts such as 1.83 meters (true width)and at 23.03% ZnPb and 2.34 meters containing 9.71% Zinc-Lead.
As the average grade of the L65 deposit was just 1.95% zinc and 0.70% Lead for a 2.65% zinc-lead grade, the encountered assay results will very likely result in a larger resource at a higher average grade. Although no less than 111 holes have now already been completed on the property, Pine Point will only release an updated resource estimate in 2018 as it’s waiting for the winter to set in to drill the swampier areas of the open pit and mineralization. This winter drill program (following up on the ‘open’ zones) will very likely be completed in the first quarter of next year, which could lead to an updated resource calculation by the summer of next year.
Pine Point has also arranged a non-brokered private placement to raise C$2M by selling 8 million units at C$0.25 per unit. Each unit consists of one share and half a warrant which entitles the warrant owner to exchange one warrant and 35 cents for a new share within the first two years after closing the placement. The Lundin family will purchase half of the placement, increasing the stake of Zebra Holdings and Investments to 16.38% on a ‘partially diluted basis’.