Columbia Yukon Explorations obtained encouraging assay and metallurgical results from its Storie molybdenum project in northern British Columbia. The results continue to demonstrate the company’s potential to economically exploit the Storie deposit.
Assays from the latest five holes all indicated substantial molybdenum intervals. Intervals ranged from 144 metres to 294 metres, with molybdenum grades ranging from 0.057 percent to 0.081 percent. These results are especially encouraging, as all five holes are beyond the limits of the previously defined deposit.
Columbia Yukon retained SGS Mineral Services to investigate options for molybdenum recovery from the Storie ore. Initial results are promising. SGS concluded that saleable concentrate can be produced through a simple and traditional process, using proven methods. Further, no significant processing problems are anticipated. The final concentrate graded at 54 percent molybdenum, with a 69-percent molybdenum recovery, with “locked cycle” recoveries as high as 87 percent. SGS is now processing a larger sample, which should significantly improve locked cycle recoveries.
Objective's view:
The latest assays suggest the company may be able to substantially increase its mineral resource estimate. Further, indications continue to point to the presence of a higher-grade zone running through the deposit. The initial SGS testing suggests there will be no unpleasant metallurgical surprises and concentrate grades and recoveries will be in line with our estimates. We view the latest results as encouraging and supportive of our base-case and optimistic valuations of Columbia Yukon.
