EV Resources (ASX: EVR) says the “exceptional” molybdenum grades recorded at its Parag project in Peru will make a significant contribution to the operation’s economics as a key by-product of potential copper production.
The company recently wrapped up a comprehensive review of molybdenum grades recorded in both previous and a freshly-completed drill campaign, with impressive results including up to 0.62 per cent molybdenum.
Management says its latest results have led to a re-evaluation of its exploration strategy, with a new focus on molybdenum as a by-product. It adds that prices for the metal have climbed to US$21.89 (AU$32.99) per pound or US$48,259 (AU$72,733.5) per tonne.
Following analysis of historic data from 76 holes covering 18,170m, EV Resources returned the peak grade within an 89.4m hit from just 6.5m that also returned 0.39 per copper. A second historic hole also delivered positive results, with a 72m section going 0.26 per cent copper and 0.36 per cent molybdenum from surface.
The company decided to acquire Parag based on the project’s historic drilling and its alluring molybdenum by-product grades. Management says its near-surface molybdenum grades at Parag are comparable to the highest-grade pure molybdenum mines in the world, including the Henderson and Climax mines operated by major copper producer Freeport McMoran in Colorado.
With each hole drilled, and as prices rise, we are more excited about the project. We are also acutely aware that the future of the copper industry depends on by-product contributions to supplement the steady decline in grades of copper. Parag is well positioned with its copper-molybdenum potential to accelerate towards a maiden resource and feasibility studies. EV Resources managing director Hugh Callaghan
The company also completed a 7-hole campaign at the site earlier this year, with assays from its first four holes delivering consistent grades from near surface. Highlights from a 1980m program show a 348m intercept at 0.4 per cent copper and 0.2 per cent molybdenum from just 3.2m including an impressive 24m hit grading 0.81 per cent copper and 0.43 per cent molybdenum.
A second hole returned a 258m section going 0.4 per cent copper and 0.14 per cent molybdenum from only 1m including 58m reading a solid 0.9 per cent copper and 0.3 per cent molybdenum from 23m. The assays revealed incredibly consistent molybdenum results across a 130m hit at 0.3 per cent from just 1m.
The Parag project takes in some 1399 hectares about 145km north of the Peruvian capital of Lima. Management says drilling, mapping and sampling have established mineralisation at the operation in breccia and porphyry through a 1200m strike and a typical width of up to 500m. In addition to positive copper and molybdenum results, assays have also shown a handful of gold and silver credits in the majority of holes drilled.
The company says about 90 per cent of molybdenum is produced as a by-product of copper and contributes to the industry dominance of Chilean, Peruvian and American copper miners. It says the Climax and Henderson mines host molybdenum grades of between 0.15 and 0.18 per cent, compared to 0.02 per cent up to 0.63 per cent discovered so far at Parag.
With impressive molybdenum grades, in addition to consistent copper levels starting so close to surface, EV Resources says it will fast-track exploration, with plans on delivering a resource estimate for its intriguing Peruvian project.
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