VANCOUVER, Feb. 27, 2013 /CNW/ - Zimtu Capital Corp. (TSXv: ZC; FSE:
ZCT1) (the "Company" or "Zimtu") is pleased to announce that the
Company and one of its prospecting partners have signed an agreement
with Pistol Bay Mining Inc. (TSXv: PST) ("Pistol Bay") whereby Pistol
Bay can earn a 100%-interest in the advanced stage Portland Graphite
Property located in southern Ontario.
Portland Graphite Property, Ontario:
The Portland Graphite Property (the "Property") is situated 1.6 km north
of Highway 15 between Kingston and Ottawa. It is road-accessible and
consists of private lands covering approximately 429 hectares, located
5.5 km northeast of the community of Portland, Ontario. Power and water
are available on-site and rail access is nearby.
Graphite on the Property is hosted primarily in Precambrian marbles of
the Grenville Province. Ontario government geologists reported in the
1960s that the graphite occurs as disseminated flakes averaging 1/8
inch in diameter. Work on the Property by previous operator Victoria
Graphite Inc., including 73 drill holes (5,884m), identified graphite
mineralization in three zones (D-zone, G-zone and I-zone) over a total
strike length of 1700m. Mineralization dips at approximately 70 degrees
to the west. In general, the zones are characterized by broad envelopes
of lower-grade graphite mineralization with widths up to 75m, within
which are zones of higher grade material, to >10% graphitic carbon
("Cg"), based on the diamond drilling by Victoria Graphite in the late
Victoria Graphite also carried out test mining and milling utilizing a
100 tonne per day pilot plant in the early 1990s. Results of this test
milling work are not available to the Company at this time. The mill
building is still present and represents a potentially significant
asset to Pistol Bay in terms of the ongoing development of the
A historical "probable reserve" of 295,000 tonnes grading "slightly
above 6% graphite" was delineated on the property. This estimate is a
historical estimate prepared by R.A. Elliot for Victoria Graphite in
1989. Although it appears to have been done in a professional manner by
the standards of the time, it does not conform to the standards of NI
43-101. The category "probable reserve" appears to conform most
closely to the currently accepted category of "Inferred Mineral
Resource". A program of re-logging, resampling and re-assaying of drill
core would be required to bring the estimate up to 43-101 compliance. A
qualified person has not done sufficient work to classify the
historical estimate as a current mineral resource or mineral reserve.
Pistol Bay is not treating the historical estimate as a current mineral
resource or mineral reserve.
In terms of the quality of the graphite material, metallurgical testing
on a 34 tonne sample of material from the D-zone was carried out in
1989 by Lakefield Research Ltd on behalf of Victoria Graphite. This
work indicated recoveries of 87 to 95% of the graphite for material
ground to -10 mesh. Flotation concentrates grading 80 to 85% Cg were
produced which could be upgraded to 91-93% Cg by heavy liquid
separation. Of particular note, this work indicated a coarse flake (+48
mesh or 0.325mm) content of 66% in the concentrate (Ontario Geological
Survey, Open File Report 5729, 1990).
A detailed helicopter EM/magnetic survey over the Property is planned by
Pistol Bay in order to establish geologic controls on mineralization,
to better define the known graphite zones, and to identify new drill
targets outside of the main zones. Trenching and diamond core drilling
will support the development of an initial NI 43-101 compliant
resource. Resource definition and exploration work will be complemented
with metallurgical test-work.
For its participation in the transaction, Zimtu will receive cash/share
payments from Pistol Bay as follows: (i) 1,000,000 common shares on
acceptance by the TSX Venture Exchange ("TSXv"); (ii) $75,000 cash 6
months from the date of TSXv acceptance (iii) 750,000 common shares 12
months from the date of TSXv acceptance; (iv) 1,000,000 common shares
24 months from the date of TSXv acceptance. Zimtu will also receive a
1,000,000 common share break fee should Pistol Bay not make certain
option payments to the underlying landowners or if the agreement is
terminated prior to TSXv acceptance. Zimtu's prospecting partner will
receive cash/share consideration equal to that of Zimtu.
The optioned claims were acquired by the Company and its partner by
option from private landowners. Zimtu, along with its prospecting
partners, continue to evaluate and acquire prospective resource
properties to make available for sale or joint venture. As part of the
Company's business, Zimtu provides mineral property advisory services
and helps to connect companies with mineral properties of interest.
Technical information in this news release has been reviewed by William
Brereton P. Eng of MPH Consulting Limited, Toronto, and a Qualified
Person under the definition of National Instrument 43-101.
About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and grows natural resource
companies thereby providing a way for shareholders to indirectly
participate and profit in the public company building process. The
Company also provides mineral property advisory services helping to
connect companies to properties of interest.
Zimtu Capital trades on the TSX Venture Exchange under the symbol "ZC"
and the Frankfurt Stock Exchange under the symbol "ZCT1."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Statements in this document which are not purely historical are
forward-looking statements, including any statements regarding beliefs,
plans, expectations or intentions regarding the future.
Forward-looking statements in this news release include that Pistol Bay
can earn a 100%-interest in the Portland Graphite Property; that in
consideration for its interest, Zimtu will receive staged cash/share
payments from Pistol Bay, that Zimtu will also receive a 1,000,000
common share break fee should Pistol Bay not make certain underlying
option payments or if the agreement is terminated prior to TSXv
acceptance; that Zimtu's partner will receive cash and share
consideration equal to that of Zimtu; that a detailed helicopter
EM/magnetic survey over the Property is planned by Pistol Bay in order
to establish geologic controls on mineralization, to better define the
known graphite zones, and to identify new drill targets outside of the
main zones; that trenching and diamond core drilling by Pistol Bay will
support the development of an initial NI 43-101 compliant resource;
that resource definition and exploration work by Pistol Bay will be
complemented with metallurgical test-work; and that Zimtu with the
support of its prospecting partners will continue to evaluate and
acquire prospective resource properties to make available for sale or
It is important to note that actual outcomes and the Company's actual
results could differ materially from those in such forward-looking
statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental,
environmental and technological factors that may affect the Company's
operations, markets, products and prices. Readers should refer to the
risk disclosures outlined in the Company's Management Discussion and
Analysis of its audited financial statements filed with the British
Columbia Securities Commission.
SOURCE: Zimtu Capital Corp.
For further information:
For more information please visit the corporate website at http://www.zimtu.com or contact:
Toll Free: 1.877.377.6222