buffetology : Blue Pearl Long NEWS
2006-04-12 18:54 ET - News Release
Mr. Ian McDonald reports
BLUE PEARL REPORTS GRADES UP TO 0.797% MOS2 FROM DAVIDSON DRILLING; OLD DRILL RECORD ANALYSIS REVEALS POTENTIAL EXTENSION ZONE
Blue Pearl Mining Ltd. today released results from three additional drill holes on the Lower zone of the Davidson molybdenum project near Smithers, B.C. The company also reports that, having completed an analysis of exploration drill records from the 1970s, several more encouraging intercepts have been identified in a zone extending between the Main deposit and the Lower zone.
"I'm delighted with both the recent drilling and the assays from the old records, which were located in the course of a systematic review of records. The results to date indicate that the Davidson project is evolving into one of the world's most important molybdenum resources. The true significance of this information will take some time to evaluate and will require more drilling," said Blue Pearl chairman and chief executive officer, Ian McDonald.
The highlight of the current drill program was hole 174, which included a 12.2-metre intersection grading 0.797 per cent MoS2. Results from the three holes were as follows:
DAVIDSON DRILL RESULTS
Depth Width Grade
From To %MoS2
Hole 171 253.0 307.9 54.9 0.153
incl. 253.0 277.4 24.4 0.200
Hole 173 234.7 237.7 3.0 0.766
and 253.0 310.9 57.9 0.191
incl. 274.3 289.5 15.2 0.286
Hole 174 280.4 335.3 54.9 0.310
incl. 289.6 317.0 27.4 0.480
incl. 292.6 304.8 12.2 0.797
The top of the Lower zone is approximately 250 metres below the level of the existing underground workings of the Main deposit, and the bottom of the Lower deposit is about 75 metres above the elevation of a proposed new portal.
Results from the Lower zone are not included in the mineral resource noted below for the Main deposit of the Davidson project. In the next stage of the exploration program, Blue Pearl plans to extend the underground workings another 50 metres and establish new drill stations to test for molybdenum mineralization in the Lower zone to the south and north. As previously reported, this zone appears to be shallow dipping and the drill intercepts appear to be representative of approximate true thicknesses. A total of 14 holes have been drilled on the Lower zone in this program and results have now been reported for 10 of them. The company is awaiting results from the four remaining holes.
The drill employed in exploring the Lower zone has been moved out of the underground workings to begin drilling a geotechnical hole for the Lower adit, after which it will return underground to resume the exploration program. A second rig is completing an infill drilling program in the high-grade portion of the Main deposit currently the subject of a feasibility study.
During the current program, hole 169 (39.6 metres of 0.47 per cent MoS2, as previously reported), also cut a separate 15-metre intersection grading 0.5 per cent tungsten. The intercept is located 15 metres above the Lower zone, and the true width is unknown at this time. The tungsten mineralization appears to be contained in wolframite, an iron manganese tungstate. Both the Main deposit and the Lower zone contain low-grade tungsten values, mainly as sheelite, another tungsten mineral. Tungsten currently trades at approximately $9 (U.S.) per pound.
The Extension zone
The recent review of records from Climax Molybdenum's historic program indicates the possibility of a mineralized zone potentially connecting the Main deposit and the Lower zone. This potential Extension zone is approximately 200 metres to the northwest of current drilling. The following previously unpublished results were recorded by Climax in the 1970s:
EXTENSION ZONE DRILL RESULTS
Depth Width Grade
From To %MoS2
Hole 47 125.0 179.9 54.9 0.237
incl. 125.0 161.6 36.6 0.277
Hole 49 73.1 204.2 131.1 0.243
incl. 94.5 204.2 109.7 0.260
incl. 155.5 201.2 45.7 0.287
Hole 51 158.5 228.6 70.1 0.207
Hole 107 182.9 228.6 45.7 0.43
Hole 108 161.5 207.2 45.7 0.39
incl. 161.5 192.0 30.5 0.48
Hole 110 185.9 240.8 54.9 0.14
and 265.2 271.3 6.1 1.09
Hole 111 176.8 262.1 85.3 0.41
Hole 113 204.2 249.9 45.7 0.21
Hole 117 173.7 192.0 18.3 0.313
Hole 132 146.3 219.5 73.2 0.293
incl. 158.5 192.0 33.5 0.393
True widths in the zone intersected by Climax drilling have yet to be determined. One other Climax drill hole, No. 72, intersected 45.4 metres grading 0.303 per cent MoS2 between 227.3 metres and 272.7 metres. More detailed geological information is required, but the company currently postulates this hole may intersect the Lower zone rather than the Extension zone.
Blue Pearl is in possession of all the historic drill core; however, no reassays have been conducted at this time. The company is reviewing the assay data from the 1970s and will determine how best to interpret the results. The assays were done at Climax Molybdenum's labs.
Based on a technical report compliant with National Instrument 43-101 and filed on SEDAR, and using a cut-off grade of 0.2 per cent MoS2, the Main deposit is estimated to contain a measured and indicated mineral resource of 83 million tons grading 0.295 per cent MoS2 representing 293.5 million pounds of molybdenum. (The measured category is 5.4 million tons grading 0.309 per cent MOS2 and the indicated category is 77.6 million tons grading 0.294 per cent MOS2; please refer to the company's news in Stockwatch of March 3, 2005.) With regard to this mineral resource estimate, Gary Giroux, PEng, is the independent qualified person in accordance with National Instrument 43-101, and has read and approved this news release.
Engineering consultant Hatch is in the midst of a study to determine the feasibility of mining a high-grade portion of the Davidson deposit and shipping ore to Endako's molybdenum mine approximately 200 kilometres southeast of Smithers. As previously announced in late February, Blue Pearl has signed a memorandum of understanding with Endako Mines for construction of a 2,000-tonne-per-day milling circuit to process Davidson ore at Endako.
Sampling, assaying and quality control
Samples are taken as half of the split core. Acme Analytical Laboratories Ltd. of Vancouver, B.C., Canada, is being used for sample preparation and assaying. Acme Analytical uses industry standard procedures. Core samples were crushed to pass a 10-mesh-size sieve, a 200-to-250-gram split was then pulverized to have no greater than 95 per cent passing a 200-mesh-sized sieve to produce a homogenized subsample.
Internal quality-control programs include the use of blanks, duplicates, internal standards, certified standards and internal check assaying. External check assays will be routinely performed at Chemex Laboratories of North Vancouver, B.C., with check samples submitted independently by the company.
Jim Hutter, PGeo, a consultant to the company, is the qualified person on this exploration program as defined by National Instrument 43-101. The drilling program is being conducted under the supervision of Mr. Hutter, who has read and approved this news release. Mr. Hutter also oversees evaluation of the 1970s results.