On January 17, 2008, Columbia Yukon released the assays from six additional holes drilled in its 2007 exploration program in a News Release titled ‘Columbia Yukon Discovers New High Grade Moly Zone…Including 344 feet averaging 0.245% MoS2.’ The results from drill holes ST07-50 and ST07-51 are of particular interest and provide further evidence of a high grade zone within the ‘Storie’ Property molybdenum deposit that is illustrated in more detail below.
To date, assay results for 31 of the 76 holes drilled in 2007 have been reported. Results for 45 holes are pending and will be released as they become available. The results for ST07-50 and ST07-51 are given in the table below with earlier reported results for previously drilled holes that appear to identify a higher grade zone. By comparison, the NI 43-101 compliant Mineral Resource estimate, as prepared by Watts Griffis & McOuat and announced on July 5, 2007, was 101.6 million tonnes of 0.067% Mo (or 0.112% MoS2) inferred mineral resource.
The table below provides background information on the specific holes and assay results that point to a higher grade zone. The map that follows indicates the location of each hole in the order shown in the table.
|
HOLE Number |
FROM
(metres) |
TO
(metres) |
INTERVAL
(metres) |
INTERVAL
(feet)* |
Mo
(%) |
MoS2
(%)** |
|
ST06-02 |
192 |
336 |
144 |
472 |
0.084 |
0.140 |
|
ST07-40 |
42 |
191 |
149 |
488 |
0.051 |
0.085 |
|
including |
42 |
153 |
111 |
364 |
0.053 |
0.088 |
|
And |
165 |
191 |
26 |
85 |
0.060 |
0.100 |
|
And |
260 |
446 |
186 |
610 |
0.075 |
0.125 |
|
including |
260 |
362 |
102 |
334 |
0.090 |
0.150 |
|
And |
389 |
446 |
57 |
187 |
0.076 |
0.127 |
|
ST07-38 |
87 |
195 |
108 |
354 |
0.094 |
0.157 |
|
including |
87 |
126 |
39 |
128 |
0.102 |
0.170 |
|
including |
150 |
195 |
45 |
137 |
0.120 |
0.200 |
|
ST06-01 |
122 |
287 |
165 |
541 |
0.080 |
0.133 |
|
ST07-36 |
87 |
195 |
108 |
354 |
0.094 |
0.157 |
|
ST06-05 |
117 |
276 |
159 |
522 |
0.104 |
0.173 |
|
ST06-04 |
201 |
330 |
130 |
426 |
0.092 |
0.153 |
|
ST06-08 |
33 |
219 |
186 |
610 |
0.098 |
0.163 |
|
ST07-45 |
82 |
319 |
237 |
777 |
0.106 |
0.177 |
|
ST07-51 |
35 |
251 |
216 |
708 |
0.107 |
0.178 |
|
including |
77 |
251 |
174 |
571 |
0.112 |
0.187 |
|
including |
146 |
251 |
105 |
344 |
0.147 |
0.245 |
|
ST06-10 |
24 |
165 |
141 |
462 |
0.081 |
0.135 |
|
ST06-03 |
162 |
297 |
135 |
443 |
0.087 |
0.145 |
|
ST07-50 |
17 |
288 |
271 |
889 |
0.070 |
0.117 |
|
including |
83 |
206 |
123 |
403 |
0.114 |
0.189 |
|
ST06-07 |
87 |
171 |
84 |
276 |
0.080 |
0.133 |
*conversion factor: 1 metre = 3.28 feet ** conversion factor 1% MoS
2
= 0.5999 % Mo
The map on the following page shows the location of these holes on the Storie Property and appears to indicate a higher grade zone approximately 200 - 300 metres in width and over 400 metres in length running south to north along the western edge of the NI 43-101 compliant initial resource area. As the higher grade zone covers approximately half of the initial resource area, Columbia Yukon believes that these results may have a favourable impact on the next round of resource calculations expected this spring.
The area in red illustrates the possible size and location of the high grade zone. It should be noted that some historical data from holes drilled by Shell in 1979 and 1980 are also indicated within this area. There are also several holes that were drilled in 2007 that remain to be reported, which may provide additional evidence of a high grade zone.
At this point in time, the Company is planning a significant exploration program for 2008. Planning is underway for proposed holes to be drilled to the west of the NI 43-101 resource deposit with the goal of extending the high grade zone and/or the total resource. The proposed drill program will include holes to be targeted to the south and east of the deposit to test each side of the X-fault and the easterly extent of the initial resource area.
A higher grade zone may be an important factor if the Storie Property goes into production. The ability to mine a high grade zone in the early years of production can have a significant impact on the net present value and may greatly reduce the capital payback period.
This is a summary only and, accordingly, we refer you to the Company’s news release of January 17, 2008 and the Company website at www.columbiayukon.com for more complete information and details.
Prepared by Ted Ohashi, CFA (604)-922-2030
Reviewed by John Kowalchuk (604)-922-2030
January 24, 2008
