The Shan occurrence is located west of the Skeena River about 23 kilometres northeast of Terrace.
Volcanics of probable Triassic age are cut by quartz diorite of the Cretaceous to Tertiary Coast Plutonic Complex. Molybdenite occurs as flakes and disseminations within a 75 by 35 metre zone of altered and fractured quartz diorite. Alteration minerals include kaolinite and sericite. Quartz veins are present but are unmineralized. Scattered malachite was observed in three areas.
About 900 metres to the southwest are quartz veins with molybdenite and pyrite within unaltered quartz diorite.
Historical data dating from the 1930s show exploration work conducted as follows (http://www.bcmresources.com):
1930s: Adit dug into the side of Shan South Ridge, exploration focus was on gold. Narrow quartz veins of visible molybdenum were reported and with assays values of up to 0.42 per cent molybdenum.
1960s: Narrow diameter, shallow holes drilled, shallow trenches dug, with more indications of molybdenum.
1970s: Soil survey conducted using auger with values commonly in the 100s of parts per million molybdenum and up to 700 parts per million.
Since BCM Resources Corp. acquired 100 per cent of the original Shan South claims, (comprising 1386 acres) in early 2006, the Company has substantially increased its land position surrounding the original molybdenum discovery and conducted extensive exploration work. In 2008, the total area at Shan South comprised 3933 acres.
The Company has conducted several field exploration programs including two aeromagnetic surveys; 26 line kilometres, 200 metre spacing over the original Shan South claims and 1110 line kilometres, 100 metre spacing encompassing Shan South, Shan North and McRae claims. It has also completed three diamond drill programs comprising 41 holes, totalling 10,312 metres. Bedrock sampling on the Shan South property, which covered a 1000 by 500 metre northeast-trending area, identified molybdenum mineralization throughout the area. Results ranged up to 0.80 per cent molybdenum and commonly exceeded 0.05 per cent molybdenum (http://www.bcmresources.com).
The Phase 1 drill program, consisting of 20 holes totalling 3550 metres, was designed to test near-surface mineralization discovered in a preceding mapping/sampling exploration program. Seventeen of the 20 holes drilled tested a new zone of mineralization (Las Margaritas zone) not explored by previous drilling. The remaining three holes were located in the Camp zone which received limited drilling in the 1960s. The results of the Phase 1 program are highly encouraging. The newly recognized Las Margaritas zone remains open in all directions. Compilation of historic data including underground work in the 1930s suggests that mineralization may extend for at least 500 metres to the north and to depths of 500 metres below the surface of the Las Margaritas zone.
The Phase 2 drill program of 17 holes totalling 5682 metres was designed to expand and deepen the coverage as well as build on the Phase 1 results. The drillholes completed in the first two programs tested a 750 by 450 metre area near the top of the ridge. Drill core samples returned values averaging up to 0.103 per cent molybdenum over a length of 190 metres in hole LM-027. The interval included two higher grade sections grading 0.168 per cent molybdenum over 26.9 metres and 0.362 per cent molybdenum over 14.5 metres. A higher grade section intersected in the final 15 metres of this hole had an average grade of 0.152 per cent molybdenum. Twenty-six of the 36 holes contained intervals with grades of at least 0.1 per cent molybdenum and thirty-one of the holes included samples with grades of at least 0.06 per cent molybdenum. All of the drillholes intersected visible molybdenum mineralization and all included intervals above 0.01 per cent molybdenum (http://www.bcmresources.com). Seventeen of the twenty holes drilled tested a new zone of mineralization (Las Margaritas Zone) not explored by previous drilling
The Phase 3 drill program at Shan South tested a 500 by 500 metre area north and down-slope from previous drilling. Five holes totalling 1080 metres were completed. This area (referred to as the "Triangle Zone") is in the vicinity of the historical adit. A pattern of scattered high-grade mineralization similar to that at the nearby Camp zone was observed.
