Shares of Reservoir Minerals (TSX.V: RMC) gained 6% during Monday’s market session after releasing initial results from its recently commenced drill program at the Timok Project in eastern Serbia.
The joint venture with Freeport McMoran requires Freeport to fully fund the project through feasibility in exchange for a 75% interest. To date Freeport has earned a 55% interest.
Monday’s results were reported from the Cukaru Peki target.
Highlighted results from the first five holes included 166 meters of 6.65% copper and 7.75 g/t gold in drill hole FMTC-1341 as well as 128.7 meters of 5.76% copper and 4.42 g/t gold in hole FMTC-1344. The copper equivalents (CuEq) equaled 11.29% and 8.41%, respectively.
“Drilling at Cukaru Peki continues to return spectacular high grade copper and gold values from high sulphidation mineralization,” said Reservoir President and CEO Dr. Simon Ingram. “We are optimistic that the high grade mineralization may be of sufficient volume and grade to support an underground mining operation while further exploration is carried out on the underlying larger porphyry style mineralization.”
To date the company has reported results from 17 core holes while an additional 19 holes remain pending. The Cukaru Peki target has been delineated as high sulphidation epithermal zone occurring within a larger porphyry-style deposit.
The Timok Project is located within the Timok Magmatic Complex of eastern Serbia. The Reservoir-Freeport joint venture has acquired exploration licenses to an area covering 245 kilometers.
Added Dr. Ingram: “We believe that the discovery at Cukaru Peki demonstrates the potential for additional blind discoveries within the Timok Magmatic Complex and may lead to a renaissance in copper and gold production in Serbia.”
Shares of Reservoir are traded on the TSX Venture under the ticker symbol RMC. The company has 42 million shares outstanding and holds a market cap of $205 million as of Monday’s close. Shares are trading near the top of their 52-week range of $5.33 per share.
