York Harbour Reports Bonanza Grade Copper in Newfoundland
York Harbour Metals (YORK-C) is one of those companies that has been around for ten years but until recently didn't seem to show any real direction. Just over a year ago that all changed when the company did an incredible deal in Newfoundland on a former mine dating back to 1893 mining a VMS deposit of copper, zinc and cobalt.
The company executed an option a year ago on the York Harbour mine consisting of five mineral licenses and 156 mineral claims with a total land position of 3,900 ha. The deal called for them to pay $95,000 in cash and to issue 1,485,566 shares and to spend $3 million in exploration over a two year period to earn 100% ownership of the project subject to a 2% NSR.
Some bright spark in the company realized that VMS deposits (also known as black smokers) tend to occur in clusters. Prior operators had conducted slightly over 19,000 meters of drilling and had 2,134 meters of underground drifts. The historical results revealed eleven different lenses of sulphide mineralization.
Starting in July York Harbour conducted a short 1,222 metre phase 1 drill program and released acceptable results in January. A week later the company announced an additional phase of drilling consisting of 22 drill holes with a total of 4,000 metres of diamond drilling.
Assays from this last drill program began to show up a month ago with some outstanding results such as 25 metres of 2.7% copper, 9.0% zinc, 17.78 g/t Ag and 164 g/t cobalt. The company just released the real bonanza grade holes on March 28th. The market loved the numbers.
(Click on images to enlarge)
Hole YH21-24 showed 5.25% copper, incredible 436.5 g/t cobalt and 8.97 g/t Ag with 0.801% zinc. While the chart above reflects an in the ground value of $566 USD to the tonne, it does not reflect the additional $36 USD for twelve ounces of cobalt.
Hole 21-22 showed an even more incredible 5.26 metre intercept of 2.84% copper, 31.96% zinc and 42.09 g/t Ag worth $1630 USD to the tonne.
The company has just over ten million warrants outstanding with prices varying from $.40 to a high of $.75 per warrant. When those are fully subscribed they will bring in an additional $7.2 million. With the price of the shares at $1.29 there will be a lot of investors exercising their warrants so I don’t see money for drilling as being any problem for YORK.
While York Harbour is an advertiser, I must confess I totally missed this one until management reminded me to look at the drill results they put out on Monday. They were outstanding and I got caught out at the airport when my ship finally arrived at the port. I own no shares, alas. So I’m a little biased but not a lot biased. Do your own due diligence but the company certainly seems to be on to something good.
York Harbour Metals