McVicar goes shopping

Armed with around $2.8 million from a recent private placement, McVicar Resources (MCV-V, MCVRF-O) has picked up a group of Chinese gold and molybdenum properties.

The first deal saw McVicar agree to spend $1 million exploring three molybdenum properties in the Yanbian district of Jilin province. The work would give the junior an initial 70% interest, with further spending rewarded with an increased stake.

The Shibadougou, Dongsheng, and Xinhe properties cover some 46 sq. km on the margin of the Sino-Korean tectonic plate. The land package lies in the eastern portion of a large porphyry copper-molybdenum belt. The area is already home to three known moly deposits. One of these has been mined for copper, lead, and zinc; the focus is now shifting to molybdenum.

McVicar plans to follow up on existing soil geochemical anomalies with an induced-polarization survey. Drilling of selected targets will follow.

Meanwhile, in West Henan province, a deal with Xingang Yitong Mining paves the way for McVicar to take an initial 51% stake in the Dahemian gold property for around $180,000. Yitong will retain a 1% net smelter royalty.

McVicar plans to immediately investigate old mine workings on the 3.9-sq.-km property. The project centres on a breccia zone hosted by granite in an Archean greenstone belt. Artisanal miners previously exploited six breccia zones at surface, with grades of around 5-7 grams gold per tonne in thin veins running up to 500 metres long. McVicar says one thick vein up to 50 metres wide contains gold values up to 1 gram.

McVicar can boost its stake to 90% by spending $1 million over three years.

The nearly 2.8 million units in the private placement include one share plus half a share warrant; each full warrant is good for another share at $1.50 apiece for two years.

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