BC Moly Ltd. (“
BC Moly” or the
“
Company”) (TSX.V: BM) is pleased to provide an
update on its 100% owned Storie Molybdenum Deposit located in
Northern British Columbia (the “
Storie Deposit”)
as further outlined in the technical report entitled “NI 43-101
Resources Estimate for the Storie Deposit” and dated March 3, 2023
(effective October 28, 2022), prepared by Sue Bird, P. Eng., an
independent Qualified Person (as such term is defined in National
Instrument 43-101 – Standards of Disclosure for Mineral Projects),
which updates the mineral resource estimate on the Storie Deposit
(the “
Technical Report”).
“We are very excited with the recently released
updated mineral resource estimate on the Storie Deposit. Since
first discovered in 1959, the Storie Deposit has been effectively
advanced in the past few decades to grow into one of British
Columbia’s largest molybdenum deposits today, further evidenced
with the recent 27% increase in Measured and Indicated resources.
With molybdenum prices approaching all time highs due to
diminishing supply, the Company is in a strong position with its
100% owned Storie Deposit which contains significant defined
molybdenum resources and the further potential to expand, supported
by an experienced management team with a track record of success,”
stated Jerry Wang, Chief Financial Officer of the Company.
Storie Molybdenum Deposit Highlights
Include:
- The Storie Deposit is comprised of
four mineral tenures 100% owned by the Company and covers an area
of 1,506 hectares
- Measured & Indicated resource
of 241.6Mlb Molybdenum (“Mo”) within 157.4Mtonnes
grading 0.07% Mo at a 0.035% Mo cut-off
- Inferred resource of 23.4Mlb Mo
within 15.5Mtonnes grading 0.069% Mo at a 0.035% Mo cut-off
- 27% increase in Measured &
Indicated resource compared to the previous 2014 resource
estimate
- Remains open along strike and down
dip to the west
- Road and airstrip accessible,
located 6km southwest from the Town of Cassiar in Northern British
Columbia
- 55,000+ metres of historical
diamond drilling since first discovered in 1959
- Maps and 3-D models of the project
can be found at: https://bcmoly.com/maps-1
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/369c0d12-3485-458b-a52d-67bf4d8a9213
https://www.globenewswire.com/NewsRoom/AttachmentNg/d8b05b36-3178-4bd1-aa6f-9d9371750505
https://www.globenewswire.com/NewsRoom/AttachmentNg/1a094fe0-4626-4f3b-bc42-76e0e2a4d991
2023 Updated Mineral Resource
Estimate
The updated mineral resource for the Storie
Deposit comprises near-surface Measured and Indicated resources of
241.6M lbs Mo grading 0.07% Mo at a 0.035% Mo cut-off and Inferred
resources of 23.4M lbs Mo grading 0.069% Mo at a 0.035% Mo cut-off
using a restated Mo price of US$18/lb to define the resource. The
deposit remains open along strike and down-dip in the west. The
updated mineral resource represents a 27% increase in Measured
& Indicated resource from the previous 2013 resource estimate
and increase in grade from 0.068% Mo to 0.07%. Additional drilling
opportunities available to extend mineralization along strike and
at depth. The west of the deposit remains undrilled and is also
open at depth. The property consists of four mineral tenures owned
100% by BC Moly in an area covering 1,506 hectares.
A summary of the resource at various cutoff is
provided in the table below. The effective date of the resource
estimate is October 28, 2022. The Qualified Person is of the
opinion that issues relating to all relevant technical and economic
factors likely to influence the prospect of economic extraction can
be resolved with further work. These factors may include
environmental permitting, infrastructure, sociopolitical, marketing
and other relevant factors.
Classification |
Cut-off – Mo% |
Tonnage (ktonnes) |
Mo (%) |
Metal (Mlbs) |
Measured |
0.03 |
65,273 |
0.068 |
97.1 |
0.035 |
57,695 |
0.072 |
91.7 |
0.04 |
50,831 |
0.077 |
86.1 |
0.05 |
38,912 |
0.087 |
74.3 |
0.075 |
20,337 |
0.110 |
49.2 |
Indicated |
0.03 |
116,585 |
0.063 |
161.9 |
0.035 |
99,670 |
0.068 |
149.9 |
0.04 |
84,779 |
0.074 |
137.6 |
0.05 |
62,427 |
0.084 |
115.5 |
0.075 |
29,618 |
0.110 |
71.5 |
Measured + Indicated |
0.03 |
181,858 |
0.065 |
259.1 |
0.035 |
157,365 |
0.070 |
241.6 |
0.04 |
135,610 |
0.075 |
223.6 |
0.05 |
101,339 |
0.085 |
189.8 |
0.075 |
49,955 |
0.110 |
120.7 |
Inferred |
0.03 |
18,898 |
0.062 |
25.9 |
0.035 |
15,472 |
0.069 |
23.4 |
0.04 |
13,099 |
0.074 |
21.5 |
0.05 |
9,588 |
0.085 |
18.0 |
0.075 |
4,365 |
0.115 |
11.0 |
Notes:
- Resources are reported using the
2014 CIM Definition Standards and were estimated in accordance with
the CIM 2019 Best Practices Guidelines.
- Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
- The Mineral Resource has been
confined by a “reasonable prospects of eventual economic
extraction” pit using the following assumptions:
- Mo price of US$18/lb at an exchange
rate of 0.75:1 ($US/$CDN);
- 84% metallurgical recovery, Offsite
costs of CDN$0.8/lb, Payables of 99%, Royalties of 2.5%;
- Mining costs of
CDN$1.75/tonne;
- Processing Costs of CDN$12/tonne
and general and administrative of CDN$2.00/tonne processed;
and
- Pit slopes of 45 degrees.
- The resulting Net Smelter Returns
(“NSR”) equation is: NSR (CDN$) = 84%*Mo
Grade*22.366$CDN/lb.
- The bulk density used is variable
with an average value of 2.6.
- Numbers may not add due to
rounding.
About Molybdenum
Molybdenum is a critical metal used primarily in
steel alloys, and enhances strength, hardenability, weldability,
toughness, temperature strength, and corrosion resistance when
added to steel and cast iron. Molybdenum was named one of six
critical minerals that will be used in the green energy transition
to a low-carbon future and 119% demand increase is estimated for
molybdenum through 2050 under IRENA REmap scenario from energy
technologies only (World Bank, 2020). International Energy Agency
(2021) estimates a 290% demand increase for molybdenum through 2040
under the Sustainable Development Scenario for renewables. Based on
data from the International Molybdenum Association and the European
Commission Steel Report, the world produced around 576 million
pounds of molybdenum in 2021, with the largest reserves located in
China, USA and Chile.
Location
The Storie Deposit is located 20km west of
Highway 37 within the Liard Mining Division (Figure 1), which
provides access to Watson Lake, Yukon, to the north and Dease Lake
and Stewart, British Columbia, to the south. The property is
located 6 km southwest of the Town of Cassiar, British Columbia.
Cassiar is 540 km from the tidewater at Stewart, B.C., 125 km north
of Dease Lake, B.C., and 137 km from the Alaska Highway west of
Watson Lake, Yukon Territory.
Accessibility
Cassiar is connected to Highway 37 by a 15 km
macadamized paved road. Highway 37, a two-lane paved road in very
good condition, provides access to the Alaska Highway (120 km from
the Cassiar cut-off), Watson Lake, Yukon (143 km), and Dease Lake,
British Columbia. Watson Lake (population about 1,500, including
the Liard First Nation) is the nearest commercial centre. The
closest major centre for supplies is Whitehorse, Yukon.
A 1,200 m long gravel airstrip is located three
kilometres from Cassiar. It is now used infrequently but is in good
condition. Charter aircraft are available from Whitehorse. Casual
helicopter service is available from Dease Lake, Watson Lake and
Whitehorse.
The east side of the Storie Deposit was
accessible by four-wheel drive vehicles from the Cassiar airstrip,
on a 5-km loose surface road but is currently cut-off just before
the drillhole collars due to a recent wash-out. During the winter
months, access could be maintained by daily bulldozing to clear
deep accumulations of drifting snow. According to BC Moly, drifts
of 6 m and more were encountered at higher elevations as late as
June during the 2007 and 2008 field seasons; under such conditions,
a backhoe might be necessary.
Exploration History
Since discovered in 1959, the property has seen
various exploration work performed by various past owners and claim
holders. This work comprised of, but is not limited to: geological,
soil geochemical and geophysical surveys, IP and magnetometer
surveys, geological mapping, rock sampling and prospecting, data
verification and technical studies, trenching, BQ and BX diameter
drilling, RAB drilling and diamond drilling.
Since acquiring the Storie property in 2006, the
Company has performed extensive exploration on the deposit,
including LiDAR surveys, geophysical and geographic surveys, IP
surveys, geological mapping, geochemical soil sampling, Trimble GPS
surveys, metallurgical studies, aerial photographic surveys on
regional wildlife habitat and environmental details, HD magnetic
sensor surveys, and 145 diamond drill holes totalling 48,972m.
Since 1978, the property has seen 176 total
diamond drillholes (Figure 2) over 56,789m with 96% of total drill
hole length assayed. Any previous drilling has not been included in
the drillhole database used for modelling (Figure 3) of the Storie
deposit. A summary of total drilling done since 1978 is provided
below:
Year |
Company |
No. ofDrillholes |
No. ofAssays |
Total AssayLength (m) |
Total Drill HoleLength (m) |
%Assayed |
1979 |
Shell Canada Inc. |
10 |
809 |
2,432 |
2,432 |
100 |
% |
1980 |
Shell Canada Inc. |
21 |
1,728 |
5,266 |
5,385 |
98 |
% |
2006 |
BC Moly |
20 |
1,621 |
4,838 |
4,958 |
98 |
% |
2007 |
BC Moly |
75 |
7,907 |
22,675 |
23,050 |
98 |
% |
2008 |
BC Moly |
49 |
9,211 |
19,315 |
20,663 |
93 |
% |
2010 |
BC Moly |
1 |
61 |
121 |
300 |
40 |
% |
Total |
|
176 |
21,337 |
54,647 |
56,789 |
96 |
% |
Deposit Type
The Storie Deposit is a low-fluorine porphyry
molybdenum type, where intrusive rocks generally contain <0.1%
F. Other examples in British Columbia include the Endako Mine, Boss
Mountain, Kitsault, Ruby Creek, Carmi (Kettle River), Bell Moly,
Red Bird, Trout Lake (MAX) and Chu. Deposits are low-grade but
large and amenable to bulk mining methods.
The characteristic features of porphyry systems,
whether they are enriched in copper, molybdenum, or other metals,
are: (1) mineralization occurs in stockworks of quartz veinlets and
fractures, veins and vein sets, and breccia, as well as
disseminations in the intrusive rocks and surrounding country
rocks; and (2) an extensive hydrothermal alteration system. In
low-fluorine molybdenum porphyries, alteration consists of a core
zone of potassic, and silicic alteration characterized by
K-feldspar, biotite, quartz and, occasionally, anhydrite. A
commonly pervasive and extensive zone of phyllic alteration (mainly
of quartz, sericite, and carbonate) typically surrounds the
potassic-silicic core. Propylitic (mainly chlorite and epidote)
alteration may extend for hundreds of metres beyond the inner
alteration zones. Irregularly distributed zones of argillic
alteration, where present, are characterized by clay minerals such
as kaolinite, and are usually overprinted on the other types of
alteration.
Low-fluorine molybdenum deposits are generally
set in high-level to subvolcanic felsic intrusive centres.
Genetically related, commonly porphyritic intrusive rocks range
from granodiorite to granite and their fine-grained equivalents.
Multiple stages of intrusion are common, and the mineralized
subvolcanic intrusive rocks may grade into or intrude tuffs or
other extrusive volcanic rocks or sedimentary rocks which may also
be mineralized. Deposits vary in shape from an inverted cup, to
roughly cylindrical, to highly irregular. They are typically
hundreds of metres across and range from tens to hundreds of metres
in vertical extent. Molybdenite (MoS2) is the principal economic
mineral, with subordinate chalcopyrite, scheelite and galena.
Low-fluorine molybdenum porphyry mineralization is often associated
with silver-lead-zinc veins or molybdenum-bearing skarns.
Geology
The Storie property is in the vicinity of three
main domains: 1) the Cassiar Terrane; 2) Paleozoic to Mesozoic
rocks of the Sylvester Allochthon; and 3) to the west, the mid-
Cretaceous Cassiar Stock, a 7 km x 33 km body along the eastern
margin of the regional mid-Cretaceous Cassiar Batholith. The
deposit is located within the Cassiar Stock, a discrete, 33 km x 7
km intrusion emplaced along the eastern margin of the Cassiar
Batholith.
About BC
Moly:
BC Moly is a Canadian mineral exploration
company focused on the development of its Storie Molybdenum
deposit. The property is situated about 6 km southwest of Cassiar,
British Columbia. Cassiar is located 15 km (by paved road) west of
Highway 37 which provides access to Watson Lake, Yukon, to the
north and Dease Lake and Stewart, British Columbia, to the south.
The deposit contains a Measured and Indicated resource of 157.4
million tonnes grading 0.07% Mo at a 0.035% Mo cut-off with 241.6
million pounds Mo within an optimized open pit shell and an
Inferred resource of 15.5 million tonnes grading 0.069% Mo at a
0.035% Mo cut-off with 23.4 million pounds Mo(1).
(1) See the Company’s technical report
entitled “NI 43-101 Resources Estimate for the Storie Deposit,”
dated March 3, 2023 (effective October 28, 2022) prepared by Sue
Bird, P.Eng., available under the Company’s profile at
www.sedar.com.
Qualified Person
Sue Bird, P.Eng., principal of Moose Mountain
Technical Services is a Qualified Person and has reviewed and
approved the contents of this news release.
Additional
Information
David D’Onofrio BC Moly Ltd.Chief Executive Officer and Director
416.643.3880bcmoly.com
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Statements
Certain information in this news release
constitutes forward-looking statements under applicable securities
laws. All statements, other than statements of historical fact, are
forward-looking statements and are based on expectations, estimates
and projections as at the date of this news release. Any statement
that involves discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often but not always using phrases
such as "expects", or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", “proposed”,
"budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could", "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be deemed to be
forward-looking statements. Forward-looking statements in this news
release include but are not limited to: the Company’s objectives,
goals and exploration activities conducted and proposed to be
conducted at the Company’s properties; future exploration plans,
including drilling opportunities; relevant technical and economic
factors, such as environmental permitting, infrastructure,
sociopolitical, marketing and other relevant factors influencing
the prospect of economic extraction; and the future use of and
demand for molybdenum.
These forward-looking statements are based on
certain assumptions and estimates of management of the Company at
the time such statements were made, including: the Company’s
ability to attract and retain qualified members of management to
grow the Company’s business and its operations; the Company’s
ability to raise any necessary additional capital on reasonable
terms to advance exploration and development of the Company’s
mineral properties; the Company’s ability to effectively manage
unanticipated costs and expenses; the Company retaining and
supplementing its board of directors and management, or otherwise
engaging consultants and advisors having knowledge of the
industries (or segments thereof) within which the Company may from
time to time participate; current and future members of management
abiding by the Company’s business objectives and strategies from
time to time established by the Company; the Company’s ability to
generate cash flow from operations; the Company’s ability to
successfully compete in the mining industry; future prices and
demand for molybdenum; the timing and results of exploration and
drilling programs; general business and economic conditions; the
Company’s ability to procure equipment and operating supplies in
sufficient quantities and on a timely basis; the accuracy of
budgeted exploration and development costs and expenditures; future
currency exchange rates and interest rates; operating conditions
being favourable such that the Company is able to operate in a
safe, efficient and effective manner; the Company’s ability to
attract and retain skilled personnel; political and regulatory
stability; the receipt of governmental, regulatory and third-party
approvals, licenses and permits on favourable terms; obtaining
required renewals for existing approvals, licenses and permits on
favourable terms; requirements under applicable laws; sustained
labour stability; stability in financial and capital goods markets;
results of operations and performance; industry trends; actual
results of exploration, resource goals, metallurgical testing,
economic studies and development activities will continue to be
positive and proceed as planned; the market for molybdenum will
continue to strengthen; the Company maintaining the Storie
property; the Company having sufficient funds to meet its
administrative overhead expenses for the next twelve months; and
the TSXV will provide increased visibility, credibility, access to
a broader pool of investors to the Company. While the Company
considers these assumptions to be reasonable, based on information
currently available, they may prove to be incorrect. Readers are
cautioned not to place undue reliance on forward-looking
statements.
Actual future results may differ materially as
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, without
limitation: risks associated with general economic conditions;
adverse industry events; income tax and regulatory matters; the
Company not utilizing the use of proceeds to expand its operations;
the Company’s inability to find a commercially viable deposit at
any of its mineral properties; additional financing may not be
available to the Company when required or, if available, the terms
of such financing may not be favourable to the Company;
fluctuations in demand of molybdenum; the Company may not be able
to identify, negotiate or finance any future acquisitions
successfully, or to integrate such acquisitions with its current
business; the Company’s exploration activities are dependent upon
the grant of appropriate licenses, concessions, leases, permits and
regulatory consents, which may be withdrawn or not granted; the
Company’s operations could be adversely affected by possible future
government legislation, policies and controls or by changes in
applicable laws and regulations; there is no guarantee that title
to the properties in which the Company has a material interest will
not be challenged or impugned; the Company faces various risks
associated with mining exploration that are not insurable or may be
the subject of insurance which is not commercially feasible for the
Company; social and environmental activism can negatively impact
exploration, development and mining activities; the success of the
Company is largely dependent on the performance of its directors
and officers; the Company and/or its directors and officers may be
subject to a variety of legal proceedings, the results of which may
have a material adverse effect on the Company’s business; the
Company may be adversely affected if potential conflicts of
interests involving its directors and officers are not resolved in
favour of the Company; dilution from future equity financing could
negatively impact holders of the Company’s securities; failure to
adequately meet infrastructure requirements could have a material
adverse effect on the Company’s business; failure to identify any
additional mineral resources or significant mineralization; the
preliminary nature of metallurgical test results; uncertainties
relating to the availability and costs of funding any exploration
programs on the Company’s properties; risks and hazards associated
with the business of mineral exploration, development and mining
(including environmental hazards, industrial accidents, unusual or
unexpected formations pressures, cave-ins and flooding); employee
relations; relationships with and claims by local communities and
indigenous populations; availability of increasing costs associated
with mining inputs and labour; the speculative nature of mineral
exploration and development; geological factors; actual results of
current and future explorations; ongoing uncertainties relating to
the COVID-19 pandemic; and those factors described under the
heading "Risks and Uncertainties" in the Company's management’s
discussion and analysis dated December 30, 2022, available under
the Company’s profile on SEDAR. Readers are cautioned that the
foregoing list is not exhaustive. Readers are further cautioned not
to place undue reliance on forward-looking statements as there can
be no assurance that the plans, intentions or expectations upon
which they are placed will occur. Such information, although
considered reasonable by management at the time of preparation, may
prove to be incorrect and actual results may differ materially from
those anticipated. Forward-looking statements contained in this
news release are expressly qualified by this cautionary statement
and reflect our expectations as of the date hereof, and thus are
subject to change thereafter. The Company does not undertake to
release publicly any revisions for updating any voluntary
forward-looking statements, except as required by law.
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