Vancouver – An updated resource estimate on New Cantech Ventures‘ (NCV-V, NCTVF-O) Lucky Ship molybdenum deposit, located 65 km southwest of Houston in west-central British Columbia, shows a 133% increase in contained metal.
An indicated resource of 29.1 million tonnes grading 0.09% molybdenum (58 million pounds of contained molybdenum) was tabled using a 0.06% molybdenum cut-off grade.
The Lucky Ship estimate is based on more than 9,000 metres of core drilling in 47 holes conducted by New Cantech since mid-2005, in addition to data from Amax Exploration’s 1964-to-1968 drilling program (11,000 metres in 23 holes).
Mineralization at Lucky Ship is associated with a multi-stage intrusive-breccia complex of porphyritic granites and quartz porphyry. Molybdenite occurs in quartz vein stockworks and as disseminations.
New Cantech looks to develop a potential 5,000 tonne-per-day open pit operation at the deposit. Initial molybdenum flotation tests indicate recoveries of over 90% can be attained using a coarse grind.
The company recently entered into an agreement with the Korean company Palm Clean Energy, granting the Seoul-based firm an option to purchase 60% of Lucky Ship. To earn its interest, Palm Clean Energy is required to place to project into continuous operation and fully finance the joint venture with New Cantech repaying its 40% portion from production cash flow.
New Cantech rallied almost 20% on the resource boost to close up 15 at 93 per share on strong volume. With 44.2 million shares outstanding, the company posts a $41-million market capitalization.
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