More BC moly for Torch River

In a deal that would add a second molybdenum property to Torch River Resources’ (TCR-V, TORVF-O) portfolio, the junior has signed a preliminary option to buy a 100% interest in the past-producing Mount Copeland property, 30 km northwest of Revelstoke, B.C.

Terms of the deal, which has to be approved by the Calgary, Alta.-based junior’s shareholders, include payment of $465,000, 1.6 million Torch shares and a two-phase, $600,000 exploration program on the property.

The vendors include Torch River president, CEO and director William Pfaffenberger and Andris Kikauka, Torch River’s qualified person under National Instrument 43-101 and a consultant to the company. They own equal stakes in Mount Copeland along with John Kalmet and former Torch consultant Grant Anderson.

Torch chairman Donald Snyder, and two other independent Torch directors negotiated the deal on the company’s behalf.

Chief financial officer Barry Pearson says the directors were very conscious of being fair to shareholders in negotiating the agreement.

“Certainly being fair to shareholders was front and centre in everything that was done,” he says. “The cost to Torch is very minimal in the first year and because there is the ability to do some general checking — make sure the property has great value before you proceed in putting any more investment in — they’ve mitigated any potential risk or cost to Torch River, yet opened the door to what they believe to be a tremendous opportunity.”

Only $15,000 was paid to the vendors on signing, with 300,000 shares to be issued after regulatory and shareholder approvals; the rest of the payments are scheduled between 2008 and 2011.

More than 2.6 million lbs. of molybdenum were produced at the Mount Copeland mine from almost 170,000 tonnes of ore between 1970 and 1973. Underground mining exploited a high-grade body hosting 163,340 tonnes grading 1.83% MoS2 (1.1% moly).

Mineral reserves have not been established for the property, but there is a known strike length of 1 km where molybdenum and tungsten mineralization occurs as sub-parallel bands 1-10 metres wide. Previous mining was on the Glacier zone, a fold hinge about 100 by 70 metres and up to 3 metres thick.

The company is planning to explore the property, which lies within the Proterozoic Shuswap metamorphic complex, for more high-grade mineralization with an exploration program likely starting in September. The rocks have been metamorphosed and have undergone three stages of deformation. According to a January 2007 technical report completed for Torch River, molybdenite is hosted in lenses of syenite pegmatite or syenite aplite on the property.

Under the option agreement, phase-one exploration, which will take place this year at a cost of about $100,000, includes preliminary geological mapping, induced-polarization and magnetometer geophysics and litho-geochemical sampling. Phase-two exploration, to be completed by the end of 2009 at a cost of around $500,000, will include diamond drilling, further geological mapping, hand trenching and rock-chip sampling.

Torch River is also earning a 100% interest in the Red Bird moly property, near Houston, B.C. Red Bird contains an inferred resource of 107.9 million lbs. molybdenum at a 0.03% moly cutoff, and also hosts rhenium. A 7-hole drill program in 2006 returned grades of 0.047% moly and 0.074% copper over 138.6 metres, or 0.057% moly equivalent, starting from 4 metres below surface; and 255 metres of 0.046% moly and 0.041% copper, or 0.05% moly equivalent, starting at 6 metres.

Summer 2007 exploration, consisting of another 7-8 holes, will focus on an unexplored western extension, discovered last year.

Torch River shares traded recently at 70 in a 52-week range of 13-91.