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Columbia Yukon Explorations (CYU.V) - encouragement new assays
Comment by Objective Capital , Oct 29, 2008
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Columbia Yukon has several new assays that add encouragement to its Storie molybdenum project in northern British Columbia. Four of the six new assays are from holes that targeted the area west of the defined indicated mineral resource. One assay is from an infill drill hole and the sixth is an exploration hole drilled south of the deposit.
Drill hole ST08-118, drilled 100 metres west of the indicated resource, returned 0.117 percent molybdenum over a 150-metre interval, contained at depth within a 371.3-metre zone that averaged 0.07 percent molybdenum. Hole ST08-116 produced 0.075 percent molybdenum over an interval of 268 metres. That zone contained a 100-metre interval averaging 0.113 percent molybdenum. Hole ST-08-113, also drilled 150 metres west of the indicated resource, yielded 0.063 percent molybdenum over a 171-metre interval.
Farther afield, drill hole ST-08-115 tested an area 350 metres west of the indicted resource. It intersected a 10-metre interval averaging 0.26 percent molybdenum, and a deeper, 81-metre interval that averaged 0.041 percent molybdenum.
The exploratory hole, ST08-122, drilled 100 metres south of the deposit, encountered 164 metres of mineralisation averaging 0.033 percent molybdenum. Contained within that zone was a 10-metre interval averaging 0.15 percent molybdenum.
The infill hole returned 0.069 percent molybdenum over a 267-metre interval, including a 140-metre zone averaging 0.0092 percent molybdenum.
In other developments, Columbia Yukon is granting an option to Black Panther Mining Corp that would allow that company to earn a 60-per-cent interest in the 1506 property, a base metals prospect in Labrador. To earn the interest in the property, which was not one of Columbia Yukon’s core projects, Black Panther must spend C$0.5m on exploration over a two-year period.
Objective's view:
Columbia Yukon drilled 49 holes in its 2008 programme and assays from 27 of these tests are still outstanding. The results from the 22 tests completed to date continue to show substantial mineralisation lying in the area west of the previously defined resource. Further, significant higher-grade zones exist within the deposit and these appear to be present in the western extension. As well, the exploratory hole to the south yields additional promise.
Based on these results, we believe the company will be able to substantially increase the deposit dimensions, which could translate into a significant increase in the tonnage and perhaps the grade of the existing NI 43-101-compliant mineral resource.
Our model envisaged a significant increase in available tonnage and a modest increase in grade. Accordingly, we believe the latest assays continue to support our base-case and optimistic valuation for Storie and Columbia Yukon, an encouraging conclusion in these pessimistic times.
