Columbia Yukon Explorations continues to expand the known mineralised zone at its Storie project in northern British Columbia. Assays from three new holes drilled well west of the indicated resource area within the deposit yielded good grades and substantial intersections.
At hole ST08-110, 250 metres west of the indicated resource, the company encountered a 342-metre interval averaging 0.064 percent molybdenum. At ST08-111, a further 100 metres to the west, a 365-metre intersection averaged 0.041 percent molybdenum. Drill hole ST08-112, 450 metres to the west of the indicated resource, produced a 264-metre interval averaging 0.033 percent molybdenum.
Objective's view:
We believe the latest results are encouraging, especially in light of higher-grade zones within these results, which yielded molybdenum assays above 0.10 percent. The company will require additional drilling to adequately assess how much of mineralisation to the west of the existing resource can be upgraded to a mineral resource.
Columbia Yukon incurred nearly C$3m in exploration expenses during its first quarter and a similar level of expenditure through the summer and early fall would leave the company potentially facing a new raise at potentially unfavourable share prices no later than early next year. We therefore expect Columbia Yukon to balance its expenditures carefully against the desire to advance the Storie project quickly. We view these developments as supporting our base-case and optimistic valuations, although admittedly in a very pessimistic market.
