BCM Resources Placement
BCM Resources Corporation (TSX VENTURE:B) has announced a non-brokered private placement financing for proceeds of up to C$1,200,000 by issuance of up to 3,000,000 million common shares priced at $0.40 per common share.
Proceeds will be used to resume diamond drilling exploration work at the Company’s Shan South molybdenum (Mo) discovery and for general working capital purposes.
The 100%-owned Shan South property has significant potential for near-surface Mo mineralization. Geochemical work has identified anomalous Mo values over a 2 x 4 km area and rock samples collected from within this area have returned grades of up to 0.88% Mo. Two separate aeromagnetic surveys have identified a number of anomalous features that may be indicative of Mo mineralization.
To date the Company has conducted approximately 10,000 metres of diamond-drilling to test the Las Margaritas, Camp, and Triangle zones on the Shan South property. Significant intercepts were encountered in all three zones and all holes drilled to date at the Las Margaritas and Camp Zones have encountered visible molybdenum mineralization. All but five of the thirty-six holes completed to date at these two zones contained sample intervals with values of at least 0.06% Mo.
Most of the previous drilling tested the Las Margaritas discovery zone, which lies near the centre of the 2 by 4 km mineralized area.
Significant drill intercepts from the Las Margaritas zone include the following:
- Hole # 1 - 59.65 metres with an average grade of 0.118% Mo, including 20.8 metres of 0.189% Mo. Mineralization started at approx. 18 metres below surface.
- Hole # 7 - 122.8 metres with an average grade of 0.107% Mo, including 36.6 metres of 0.183% Mo. Mineralization started approx. 29 metres below surface.
- Hole # 27 - 190.6 metres with an average grade of 0.103% Mo, including 106.1 metres with an average grade of 0.119% Mo (111.4-217.5 metres depth). This hole bottomed in excellent grade molybdenum 250 metres below surface (true depth), 17.35 metres, with an average grade of 0.155% Mo.
The Mo mineralization identified to date is open in all directions and to depth. Of particular interest is a 1930s vintage underground adit, the portal of which lies approx.1500m northeast of the Las Margaritas discovery zone and about 500 metres vertically below. Historical records of previous work in this adit (circa 1935, predating NI 43-101) report numerous quartz veins with visible molybdenum and containing assay values of up to 0.42% Mo. In 2007, rock samples collected by Company geologists from dumps adjacent to the adit portal returned assay values of up to 0.29% Mo.
A key advantage of the Shan South property is its excellent access to infrastructure. Alongside the eastern flank of the property are a major highway (Hwy 16), waterway and transcontinental railway with direct rail access to the nearby deepwater ports of Kitimat (80 km) and Prince Rupert (163 km). A network of logging roads connecting to Hwy 16 run throughout the property area and high-powered transmission lines are within 4 km. A skilled work-force is readily available in nearby Terrace, a community which welcomes mineral exploration and mine development.
Certain insiders and affiliates may be participating in the private placement. As a part of this participation there will be a cross of shares.
The private placement is subject to regulatory approval and all common shares issued will be subject to a four-month hold period from the date of issuance. Finder’s fees may be payable in connection with this transaction.
BCM Resources Corp. is a Vancouver-based mineral exploration company, dedicated to advancing its Shan South molybdenum discovery into an economic deposit. Additionally, the Company has a significant land package of 100% owned mineral claims comprising another five, highly-prospective, molybdenum and other base & precious metals exploration properties located near Terrace, B.C.
Posted March 18, 2011
