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Overview of Potential Primary Molybdenum Producers

A few lower-ranking atomic number 42 developers were brought to our focus during our research in the metallic element bazaar finished the knightly six months. Not all were incorporated in this overview. We reviewed respectively and are reportage them alphabetically, not reported to their virtues.

Adanac

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The principal project of the Adanac Molybdenum Corporation (AUAYF) is a low level bulk metal sedimentation situated less than 100 miles southeasterly of Whitehorse in Canada's Yukon Territory. Since the untimely 1970s, the Ruby Creek geographical area has shown vow of, but with the sole purpose of an humanities (Non 43-101 obedient) assets of more than than 100 million loads near an intermediate status of 0.16 proportion MoS2. The Adanac website boasts of 220 cardinal pounds of Molybdenum, but no mining has understood spot since a 1971 viability tale was submitted on the place.

Various production companies have planned excavation and edge trading operations on the property, together with Kerr Adison, Climax Molybdenum of BC, Placer Development Ltd and the innovative Adanac Mining and Exploration people. In a May 2005 NI 43-101 report, using a cut-off grade of greater than 0.10 per centum moly, the establishment reported a plumbed and indicated assets of 24.2 million pounds of moly.

Adanac Chairman Larry Reaugh optimistically reported in an interrogatory on January 17th, "I would computation that location betwixt 12 and 15 cardinal pounds of moly a yr would be produced from that mine for the most basic v age. The ensemble is hoping for a significant other to put up about $400 a million to convey this undertaking into manufacture. Adanac offers a imitate of its bankable feasibilities on the band website.

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In an email from Ken Reser, a notably respected molybdenum commentator, we were told Larry Reaugh has discussed the company's Ruby Creek project with at slightest five key corporations, which Reser rumored have approached Reaugh roughly conveyance the labor online. Several newsletters have praised this company's pains. Reser besides consults for Adanac. He likewise told us the Ruby Creek labor is a stumpy spell distant from permitting.

Blue Pearl Mining

The Blue Pearl Mining (BLEFF) institution bills itself as "The World's Largest Publicly Traded Pure Molybdenum Producer" on its website. No render speechless location. In December, the firm was allotted by Standard & Poor's/Toronto Stock Exchange Composit Index to secure its list of marketplace benchmark companies. The Index accounts for almost 70 proportionality of the souk writing for companies timetabled on the TSX.

This foregone Wednesday, Blue Pearl redoubled its amount produced estimates over and done with the subsequent cardinal old age. By 2009, the establishment hopes to raise 29 a million pounds of atomic number 42. Late ending year, Blue Pearl bought Idaho's Thompson Creek moly mine, a 75-percent seasoning in British Columbia's Endako excavation and the Langeloth Metallurgical Complex in Pennsylvania. This supplemented the company's Davidson metal deposit, which it as well hopes to fall into place in the past the decade ends.

Idaho's Thompson Creek excavation is expectable to give out more 148 a million pounds of molybdenum completed its ten-year excavation existence at an intermediate operational price of US$3.68/pound. Of faddy pizzazz to us is the company's cookery dimensions of 35 cardinal pounds at the metallurgical interlinking in Pennsylvania, which converts the concentrates to metal compound. It houses six multiple-hearth roasters needful for the paraphrase manoeuvre. As the institution approaches the 29 million-pound industry level, remaining near-term metallic element producers may call for to face elsewhere to someone their concentrates.

In a recent interview, the company's enforcement chairman Ian McDonald said, "We deliberation the fee of moly looks superb here for the close time period or two at slightest - likely long - because there's been an under-investment in the moly enterprise for the later 20 eld." We couldn't hold much beside Mr. McDonald, who is nobody's comic.

Idaho General Mines

According to the company's website, Idaho General Mines Inc. (GMO) "plans to become a highest international metallic element maker with the commencing of mining of Mount Hope in 2009. Idaho General holds the Mount Hope Project in crucial Nevada which contains one of the biggest molybdenum-porphyry deposits in the world, a almost one-billion ton ore physical structure that will food just about 1.3 billion pounds of retrievable mo during its 53-year lifetime. A feasibleness survey has been complete and the jut out over is now presently existence permitted for operations in Nevada."

This is belike the greatest metallic element geographic region on our radar. We have wondered concluded the range of miscellaneous email exchanges near the ground forces of Idaho General Mines proponents (and possibly promoters) whether this geographical region is too big. So far, it has held up to investigating. In an email swap next to David Michaud, a metallurgical mortal beside whom we habitually confer with (and who is likewise a method authority for United Bolero, a minor atomic number 42 exploration people), we compete devil's human.

Michaud, who is very much acquainted with near United Bolero's property, explained the metallurgy for their Bald Butte moly geographic region in Montana, "At a floatation feed size of in the region of 135µm K80, the release of the molybdenite, when assessed in two dimensions, was 56 percentage. When compared to of the same kind ores now individual prepared worldwide, this plane of unrestraint is ample to let successful flotation seizure of furthermost of the molybdenite stance particles into a rougher reduce. There is a number of proof from stuff fragmentation studies, which suggests that not moving coarser physical phenomenon feed sizings could be used to complete untold the self molybdenite release levels; and hence, highly matching metallurgical performances."

He added, "Liberated grains of molybdenite were 91 proportion captured into the vital concentrate. Approximately 11 proportionality of the molybdenite bearing positional representation system composites were captured - predictably these composites restrained fundamental amounts of molybdenite, probably accounting for their enhanced floatability."

When we questioned him more or less Idaho General's property, Michaud gave the conditional thumbs up, stating, "I don't deliberation GMO (company's pump simile on the American Stock Exchange) will be by a long way contradictory." He explained the closeology relating Montana, wherever Bald Butte is located, and Idaho would likely carry over, metallurgically muttering. The one query Michaud had taken up the 'grind size," which was not saved on the company's website and in our exploratory research. Further examination would need poring over the tool cores. He said, "No tool samples, no DNA." Which is carnival.
In a new email from causal agency learned nearly the wealth and its chemistry, he brought up was a paraphrase processing plant. He wrote to us, "Other trading operations have impossible supply and biological science basketball game to overcome, Mt. Hope is placed 65 miles to a guardrail skipper and proposes to have its own conversion plant, therefore - its dedicate yourself to is not held hostage by outsourced changeover."

This is the gluey factor for us near wonder to Idaho General. By the circumstance the would-be Mt. Hope project comes online, the Climax metal mine may as well be forthcoming spinal column online. If Idaho General proposes to annually excavation on the lines of 35 a million pounds, and Climax mines 20 to 30 million pounds annually, where will Idaho General roast the moly concentrates and someone these to metal compound. Permitting a roaster in the United States, we have been told, could be a fool's trip. As one wag put it, "Hell will cooling complete initial." Mt. Hope is big, and the enterprise has begun the permitting manoeuvre. It would be absorbing to fast forward to 2009 or 2010 and breakthrough out how the task has been advanced.

Roca Mines Inc.

Quietly, Roca Mines (ROCAF) is moving fore toward seemly a small atomic number 42 firm. A symptom in their campaign to mill the moly ore at British Columbia's MAX sedimentation and switch on selling it, as had once been announced, was held up by a few months. The establishment cited weather-related worries during the construction of their tailings artifact. On a bubbly note, the camaraderie strategy increasing factory dimensions to 1,000 tpd.

In crunching the book of numbers to establish the merit of the stone for the MAX deposit, Michaud concluded, "It's prosperous." Depending upon how the book were calculated, this sludge could be assessment involving US$561/tonne to US$660/tonne. Cost of operations could be as low as $71/tonne to a highly developed stratum. Estimated salvage could run between 85 and 90 per centum depending on how this start-up hole in the ground show business out. On a edge horizontal of 1000 tpd, this equates to in the order of 35,000 pounds per day of moly sulphide concentrate, or roughly 20,000 pounds of mo chemical compound per day.

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Bluntly said, if Roca delivers on its design of merchandising 3 million pounds of restrained molybdenum in 2007, and the moly asking price hovers at the $25/pound level, the joint venture stand to chop-chop put up its reserves. We interviewed Scott Broughton during our Audio Series this old week, which helps endow a greater of this company's policy.

Conclusion

Molybdenum may perhaps probable be unfortunate in creating the category of exhilaration recovered beside the uranium damage hysteria and the gust of junior metallic element companies of 2006. There may be both existence this twelvemonth in the moly plane figure. Most mining analysts are statement a slow-moving unsettled in the metallic element rate terminated the course of study of the 2007 to 2010 spell. Some are the selfsame analysts who were chary in the uranium damage outlook formerly Cameco Corp declared wicked swollen at the company's northern Saskatchewan Cigar Lake metallic element excavation in the Athabasca constituency. Since then, the metallic element cost shows the latent for auxiliary craze coming into this New Year. Molybdenum does not, at lowest not yet, pass with it the irresistible endow/demand inconsistency. However, the relevant cost levels corrupt the more expedition and movement of antecedently explored properties and even more those which have stronger degrees of sedimentation delineation from the earlier, but fugacious atomic number 42 roaring.

COPYRIGHT (C) 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

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