Canadian mineral exploration company Pistol Bay Mining has signed an option agreement with Zimtu Capital and MPH Consulting, to acquire 100% stake in the Portland graphite property.

The advanced-stage project, situated between Kingston and Ottawa in southeastern Ontario comprises lands covering about 429ha.

Work on the property by previous operator Victoria Graphite, identified a historical probable reserve of 295,000t of graphite at a grade slightly above 6%.

Graphite mineralization was discovered in three zones – D-zone, G-zone and I-zone – over a total strike length of 1700m.

Metallurgical testing undertaken on a 34t sample of material from the D-zone in 1989 indicated recoveries of 87 to 95% of the graphite.

Pistol Bay Mining president and director Charles Desjardins stated that the Portland Graphite project is a high-quality undeveloped graphite deposit strategically located near infrastructure in southeastern Ontario.

"The Property has excellent potential to host a large-flake graphite resource with low development costs," Desjardins added.

"The Company’s goal is to advance the project to a production decision as quickly as possible."

The company is also planning to begin a detailed helicopter EM/magnetic survey over the property to define the known graphite zones, and to identify new drill targets outside the main zones.