Summary
- Reservoir Minerals' Bobija project is becoming increasingly interesting.
- The second batch of results is confirming the surprising first few holes, and Reservoir could be sitting on an important asset.
- I didn't anticipate this, as my entire investment thesis was developed around the Timok joint venture with Freeport.
Reservoir Minerals (OTCPK:RVRLF) has announced it has completed its drill program at the Bobija zinc-lead-silver-gold project in Serbia, Europe. As I already explained in my first update on Bobija, I was positively surprised to see economic mineralization in a first pass over a project. And again, the results of the "fresh" holes is surprisingly positive.
The intercepts are a bit narrower, but have a higher average grade - such as hole 4, which has a true width of 9.82 meters, but an average grade of almost 4.3% ZnPb, 1.58g/t gold and almost 2.7 ounces of silver per tonne of ore. But it's hole 7 which really got my attention, as the company intersected 9% ZnPb, 1.91 g/t gold and almost 4 ounces of silver per tonne of rock. I'm obviously very happy with the results of this short drill program (only 633 meters were drilled), and Reservoir's geologists think that this is a Sedimentary Exhalative project (MUTF:SEDEX). That's quite interesting, as several large zinc-lead systems are also SEDEX-systems (for instance, Red Dog in Alaska). A lot more work needs to be done, but I'm impressed with the results, as most holes have intersected an economic grade - especially the silver and gold content is a very nice kicker (keep in mind, the historical assays weren't tested on gold and silver).
Reservoir has had a busy summer as it continued its exploration efforts on no less than five projects (of those, one in a joint venture with Freeport McMoRan(NYSE:FCX)). Of the 4 projects it was exploring, one was quite disappointing (Nikolicevo), and Bobija seems to be the most exciting one, as I'm more impressed than I was with the results at Parlozi. Unfortunately, things will become quiet again, as all drill campaigns have ended, and this could be a good time for an updated in-depth article on Reservoir again to discuss the new situation after a year packed with exploration news.
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