VANCOUVER, British Columbia, March 06, 2023 (GLOBE NEWSWIRE) — BC Moly Ltd. (“BC Moly” or the “Company”) (NEX: BM.H) is pleased to announce that it has filed a technical report, in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), to update the mineral resource estimate on its 100% owned Storie Molybdenum Deposit (the “Technical Report”). The Technical Report entitled “NI 43-101 Resources Estimate for the Storie Deposit” and dated March 3, 2023 (effective October 28, 2022) has been prepared for the Company by Sue Bird, P. Eng. of Moose Mountain Technical Services, an independent Qualified Person (as such term is defined in NI 43-101). The Technical Report is available under the Company’s profile at www.sedar.com.
The Company also announces that it has received final approval for its graduation to the TSX Venture Exchange (the “TSXV”) from the NEX board of the TSXV pursuant to the application previously disclosed in the Company’s news release dated February 10, 2022 (the “Reactivation”). The Reactivation will become effective at market open on March 7, 2023, when the Company’s listing will transfer from NEX to the TSXV. Also effective at the opening of trading on March 7, 2023, the trading symbol for the Company will change from BM.H to BM.
NI 43-101 Highlights Include:
- Measured & Indicated resource of 241.6M lb Molybdenum (“Mo”) within 157.4M tonnes grading 0.07% Mo at a 0.035% Mo cut-off
- Inferred resource of 23.4M lb Mo within 15.5M tonnes 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
- The property is road accessible and covers an area of 1,506 hectares
- Additional details on the project to be provided in due course
“We are quite pleased with the significant increase in the mineral resource estimate. The updated resource demonstrates the quality of the historic work performed and the expansion potential of the deposit, which is road accessible in the Liard Mining Division in British Columbia. The recent demand and price for molybdenum has increased substantially and the Storie deposit is well situated with good size, grade and potential for further expansion,” stated Jerry Wang, Chief Financial Officer of BC Moly.
The following table presents a summary of the 2023 estimate in all Mineral Resource categories:
|Classification||Cut-off – Mo%||Tonnage (ktonnes)||Mo (%)||Metal (Mlbs)|
|Measured + Indicated||0.03||181,858||0.065||259.1|
- 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.
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 at a restated Mo price of $US18/lb and 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 and potentially the resource at depth. The west of the deposit undrilled and remains open at depth. The property consists of four mineral tenures owned 100% by BC Moly in an area covering 1,506 hectares.
The Storie deposit is located 15 km (by paved road) west of Highway 37 within the Liard Mining Division, 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.
Shareholders are not required to exchange their share certificates or take any other action in connection with the Reactivation, as there will be no change in the CUSIP for the common shares.
The graduation from the NEX to the TSXV marks a significant milestone in the growth and development of BC Moly and reflects the Company’s strong financial performance and commitment to expanding its business operations. The TSXV provides BC Moly with increased visibility, credibility, and access to a broader pool of investors, allowing the Company to drive growth and maximize shareholder value.
The Company is please to announce the appointment of Adam Fishman as a director of the Company and a member of the Company’s audit committee (the “Audit Committee”) effective March 3, 2023. Mr. Fishman will replace Adam Parsons on the Audit Committee.
Mr. Fishman is a practicing securities lawyer primarily focused on the cannabis, life sciences, blockchain, natural resources, technology and financial services sectors. In his private practice, he has developed extensive experience representing both private and publicly traded companies, underwriters and dealers in both private and public offerings of debt and equity securities, mergers, and acquisitions. Mr. Fishman also regularly assists clients in on-going reporting, corporate governance and compliance with stock exchange policies and securities regulations. Prior to receiving his J.D. from Queen’s University, Mr. Fishman completed a Bachelor of Management and Organizational Studies degree from Western University, majoring in finance and administration.
Release of Escrowed Funds
Further to the Company’s press releases dated April 13, 2022 and September 2, 2022, in connection with the Reactivation, the Company has satisfied the outstanding conditions for the release of the remaining escrowed funds (the “Escrowed Funds”) and conversion of the outstanding subscription receipts (the “Subscription Receipts”) from the Company’s Subscription Receipt offering (the “Offering”). In connection with the foregoing, the Company has converted the remaining 3,031,818 Subscription Receipts, which were sold at a price of $0.165 per Subscription Receipt, into common shares in the capital of the Company (“Common Shares”) and Common Share purchase warrants and released a total of $500,520 Escrowed Funds (plus interest, if any, earned thereon) to the Company.
The Offering consisted of the issuance of 3,910,606 conventional unit subscription receipts (“Conventional Unit Subscription Receipts”), and 2,150,000 flow-through unit subscription receipts (“Flow-Through Unit Subscription Receipts”. Each Conventional Unit comprised one Common Share and one Common Share purchase warrant (each, a “Underlying Warrant”), with each Underlying Warrant exercisable for the purchase of one Common Share at a price of $0.22 per Common Share for a period of five years. Each Flow-Through Unit comprised one Common Share, which qualifies as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “Flow-Through Share”) and one Underlying Warrant.
The Company intends to use the proceeds for “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) and general corporate purposes.
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.
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.
BC Moly Ltd.
Chief Financial Officer and Director
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV)
the adequacy or
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release include but are not limited to: the Company utilizing the use of proceeds as outlined herein; the development and expansion plans, economic potential and growth targets of the Company’s Storie property; the expansion and growth of the Company and its operations; and the potential benefits of a listing on the TSXV, including increased visibility, credibility, access to a broader pool of investors.
Forward-looking statements are based on certain assumptions regarding the Company, including: expected growth; results of operations and performance; continued approval of the Company’s activities by the relevant governmental and/or regulatory authorities; industry trends;
actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned; political and industry market conditions will be favourable; the market for molybdenum will continue to strengthen; the TSXV will provide increased visibility, credibility, access to a broader pool of investors to the Company; and the Company will utilize the use of proceeds as outlined herein. 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.
Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; income tax and regulatory matters; competition; the Company not utilizing the use of proceeds as outlined herein; actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will not yield expected results; the market for molybdenum will decrease; the TSXV will not provide increased visibility, credibility, access to a broader pool of investors to the Company; and other risks. 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 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. This news release has been approved by the board of directors of the Company. Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and elsewhere in the Company’s public filings and material change reports, which are and will be available on SEDAR.