Shan moly intercept buoys BCM Resources

Vancouver – Another wide molybdenum mineralized drill intercept from the Shan project near Terrace, British Columbia has boosted investor interest in BCM Resources (B-V), rallying the companys shares 14% in May 31st trading.

Hole 27 has so far cut 190.6 metres (from 111.8-metres down hole depth) grading 0.103% molybdenum including a 14.5-metre deep interval (from 288 metres) of 0.362% molybdenum. Assays are pending for the remaining 110 metres of the hole.

BCM sees its initial deeper Phase 2 drilling effort starting to indicate a shallowly dipping mineralized zone at Shan, noting however that the latest drilling has intersected the zone at an oblique angle.

The program is testing the depth extent of earlier drilling that intersected near surface mineralization of 59.7 meters grading 0.118% molybdenum and 112.8 meters of 0.107% molybdenum in holes 1 and 7 respectively.

BCMs first round of drilling in late-2006 saw a 3,550-metre program with all 20 holes hitting significant moly mineralization. Data from Phase 1 has plotted analogous to upper levels of a Climax-type model of mineralization, with indication of argillic-propylitic alteration peripheral to a quartz-sericite halo.

Moly mineralization occurs in quartz-pyrite-hematite-molybdenum veins systems and as disseminations in the host granodiorite and associated volcanic intrusives. Quartz veining ranges from a few centimeters in width up to more than one metre mostly along north-northeast and east-southeast orientations.

The project has seen previous exploration: a drill program in 1967 on its northeastern portion cut mineralized intervals in a half-dozen holes; and a minor program by Rio Tinto (RTP-N, RIO-L) saw the major completing four lines of induced polarization and a pair of drill holes.

Additionally, an adit was developed on the Shan project during the mid-1930s.

BCM recently closed a $4-million private placement financing to fund its exploration of Shan. The company also holds three other moly projects in the Terrace region: Molybdenum Creek, Lorne and Alder Creek.

The company listed on the TSX Venture board in October 2006 following its initial public offering.

Shares of BCM closed up 15 at $1.20 apiece on the latest Shan drill results. Based on its 11.5-million shares outstanding, the company posts a $13.8-million market capitalization.