Market's downswing spills over to moly

By Leia Michele Toovey- Exclusive to Moly Investing News

Molybdenum exploration has been on fast track this year, as a shortage in supply and an increase in demand have pushed prices of the alloying metal up. 

Until recently, moly has held stable despite all the challenges on Wall Street. As of late, the big market hits spilled over into moly with concentrate prices in China dipping down to US$526 per tonne compared to the US$540 per tonne it has been oscillating about for months.

Company news

In Australia, Zamia Gold (ASX.ZGM), a mining exploration company searching for molybdenum in central Queensland says it has found molybdenum grades 10 times the average levels. Technical director Sam Lees reports, “Within the high-grade zone we’ve found that we had some very, very high-grade molybdenum veins. We’ve had up to 7,000 parts per million, which is 0.7 of a per cent. So it’s a very high grade, about 10 times the average grade you’d expect in a molybdenum mine.”

Thompson Creek Metal’s (TSX: TCM) shares took an upswing Thursday morning after the company announced a new repurchase program. The moly producer is purchasing for cancellation up to 10 per cent of the company’s outstanding public float, which represents 12,300,000 shares. Shares in the company had dropped up to 4 per cent, but after the news of the buyback rallied them back up to $12.08.

 Western Troy Capital Resources’ (TSX:WRY) VP of Exploration, Wayne Holmstead, visited the Galloway Molybdenum Prospect 200 kilometers east of Montreal in Southeastern Quebec. His visit enabled him to confirm the company’s past statement that the project has the potential to host significant mineralization. The basis of the assessment is the molybdenum mineralization as indicated by historic stream and soil sampling

 Bard Ventures Ltd. (TSX: CBS)  Has received results from the much anticipated BD-08-35 drill hole on its Lone Pine Molybdenum Property. A company spokesperson claims that the drilling results compare favorably to those of major players such as Thompson Creek Metals Company Inc., General Moly, Inc. and Roca Mines Inc. Bard’s President, Eugene Beukman responded to the results by saying “we can now move forward to finalizing the resource estimate in our NI 43-101 report.” The property is located approximately 15 kilometers north-northwest of Houston, BC, and is situated in the Omineca Mining Division. Final assay results have been received and interpreted from drill holes BD-08-35 and BD-08-36. Bard is earning a 100 per cent interest in the property under the terms of an option agreement.

Kimpar Resources Inc. has received National Instrument compliant resource estimate for their Vortex Property. Kimpar resources is working on a deal with GA Capital Corp (GAC), which if completed, is expected to constitute GAC’s qualifying transaction for purposes of Policy 2.4 of the TSX Venture Exchange Corporate Finance Manual. The Vortex Property consists of 122 claims for a total of 3,811 hectares, the equivalent of 38.1sq. km. The Sullipek copper deposit, located within the Vortex Property, had past exploration activity during the late 1950s to the early 1970s. Historic exploration was completed by the Sullivan Mining Group, as well as by other companies, including Noranda Inc. (owner of the Gaspe Copper Mine located 30 kilometers to the east).

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