Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (19423)	5/12/2008 11:01:32 AM
From: LoneClone	Respond to of 195138

BCM: Is the Shan Molybdenum Project BC's Next Money Spinner? By Jane Perry 09 May 2008 at 05:42 PM GMT-04:00 resourceinvestor.com VANCOUVER (ResourceInvestor.com) -- The markets are waking up to another field season and BCM Resources’ [TSX-V:B] investors have begun to smell the coffee. A spike in the stock price this week has focused on the company’s flagship Shan molybdenum project. Recent highlights from Phase I at Shan North, as per the company’s March 13th news release, include 0.08% molybdenum (Mo) over 22 metres including 0.15% Mo over 9.5 metres and 0.10% Mo over 14 metres - 9 out of 11 holes returned Mo mineralization. The company acquired the original Shan South claims in 2006. The project area consists of 3,645 acres (N) + 3933 acres (S) in total. Interest in the Shan group goes back to the 1930s, when explorers looking for gold first drove an adit on the property. Assays from that era show values of 0.42% Mo. The 1960s saw some shallow drilling and trenching, with more indications of molybdenum. A soil survey in the 1970s returned average values of >100 parts per million (ppm) Mo, up to 700 ppm. The geological setting on the Shan Group consists of granitic host rocks whose mineralization is generally associated with molybdenite-pyrite bearing quartz veins. There are suggestions of elevated silver as well; however, so far no silver grades have been reported by the company. Shan South The company’s current holdings at Shan South represent an area 16 times the size of the original parcel. Work completed to date includes three drill programs (41 holes, totalling 10,312 metres), two aeromag surveys, and extensive field work consisting of bedrock sampling and geochemical sampling. Bedrock sampling identified Mo mineralization throughout, with results of up to 0.80% Mo and commonly exceeding 0.05% Mo. The first two programs tested a 750 x 450 m area. The company’s website describes “values averaging up to 0.103% Mo over a length of 190 metres in hole LM-027. The interval included two higher grade sections grading 0.168% Mo over 26.9 m and 0.362% Mo over 14.5 metres. A higher grade section encountered in the final 15 metres of this hole had an average grade of 0.152% Mo.” That’s 3 pounds of moly per tonne! Phase 3 saw 5 holes totalling 1,080 metres drilled in what is known as the "Triangle Zone" near the old adit. Some surface high-grade mineralization has been noted here. Fieldwork this spring is focused on identifying targets for the upcoming drill program. The focus for this summer is to look for a continuation of the Las Margaritas Moly zone. Analysis of the aeromag suggests that an extension to the zone exists that has been split and offset due to faulting. Shan North The company has completed an aeromag survey over the entire property, as well as 11 holes (2,470 metres) of drilling on an anomalous zone known as Banana Lake. Drilling revealed widespread stockwork mineralization with local high-grade occurrences. Plans for this summer include additional work to better define follow-up targets for Phase 2 of drilling. BCM’s technical team plans to investigate other areas of interest that have been identified through analysis of aeromag data. Investment Outlook This one isn’t rocket science, dear readers; it’s a pretty straightforward play. Here’s why: * We’ve seen good grades on average so far. The company reports that 26 out of 36 holes run at least 0.1% Mo and 31 of the holes hit at least 0.06% Mo, with all holes intersecting visible molybdenum mineralization at Shan South. * Great location with developed infrastructure; usually a sticking point in Northern BC: o 20 kilometres north of Terrace; o Close to the transcontinental railway that leads to Prince Rupert’s deep water port; o Network of logging roads and proximity to the main highway; o Power line within 4 kilometres. * 100%-owned mining claims on all five projects; all focused in the same area. * The project bears the hallmark of Nick Carter - one of the best senior consultants in the province. Dr. Carter has spent most of his life working for the BC Ministry of Energy, Mines and Petroleum Resources, where he’s had a successful career. His particular focus is on copper-porphyry discoveries in BC, and he knows this area very well. * Timing is everything: Skeena, the last remaining sawmill at Terrace, went down in October, so the region has a major incentive to get a big mining project online to step into the vacuum left by the forest industry; * A streamlined play: the issue stands at only 14.9 million shares (fully diluted)- very tight compared to the vast majority of other juniors in the same price range; * Moly focus: Moly is trading at $32/lb. As the price of steel goes up, there is more incentive to use higher-quality steel which will last longer - hence, there’s no slowdown in sight for moly. * The Shan Group is at an advanced stage of exploration. This brings us to examine this week’s trading pattern: the stock has made two significant jumps this week on some healthy volume. When you consider that the market is waking up from its winter hibernation, it strikes me that we may be at the beginning of a positive trend. The recent climb suggests that we’re at a critical entrance point as we wait for this year’s field season to unfold.