Vancouver — Another wide molybdenum-mineralized drill intercept from the Shan project, near Terrace, B.C., boosted investor interest in BCM Resources (B-V), rallying the company’s shares 14% in recent trading.
Hole 27 has so far cut 190.6 metres (from 111.8 metres down-hole depth) grading 0.103% molybdenum, including a 14.5-metre, deep interval (from 288 metres) of 0.362% molybdenum. Assays are pending for the remaining 110 metres of the hole.
BCM sees its deeper, phase-two drilling effort starting to indicate a shallowly dipping mineralized zone at Shan, noting, however, that the latest drilling has intersected the zone at an oblique angle and so true widths will be shorter than apparent widths.
The program is testing the depth extension of earlier drilling that intersected near-surface mineralization of 59.7 metres grading 0.118% molybdenum and 112.8 metres of 0.107% molybdenum in holes 1 and 7, respectively.
BCM’s first round of drilling in late 2006 saw a 3,550-metre program with all 20 holes hitting significant moly mineralization. The company says that alteration and mineralization encountered during drilling fits a “Climax-type” molybdenum mineralization model, with indication of argillic-propylitic alteration peripheral to a quartz-sericite halo.
Moly mineralization occurs in quartz-pyrite-hematite-molybdenum veins systems and as disseminations in the host granodiorite and associated volcanic intrusives. Quartz veining ranges from a few centimetres in width up to more than a metre, mostly along north-northeast and east-southeast orientations.
The project has seen previous exploration: a drill program in 1967 on its northeastern portion cut mineralized intervals in a half-dozen holes; and a minor program by Rio Tinto (RTP-N, RIO-L) saw four lines of induced polarization and a pair of drill holes completed.
Additionally, an adit was developed on the Shan project during the mid-1930s.
BCM recently closed a $4-million private-placement financing to fund exploration at Shan. The company also holds three other moly projects in the Terrace region: Molybdenum Creek, Lorne and Alder Creek.
The company listed on the TSX Venture board in October 2006 following its initial public offering.
Shares of BCM closed up 15 at $1.20 apiece on the latest Shan drill results. Based on its 11.5 million shares outstanding, the company posts a $13.8-million market capitalization.
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