Truth about GMO

Overview potential primary molybdenum Producers

A some junior molybdenum developers were for our attention during our research in the molybdenum market in the past six months. Not all were in this overview. We have each and are reporting them alphabetically, not by their merits.

Adanac

The most important project of the Adanac Molybdenum Corporation (AUAYF) is a low grade bulk molybdenum deposit is located less than 100 kilometers southeast of Whitehorse in Canada's Yukon Territory. Since the early 1970s, the Ruby Creek property has shown promise, but a historical (not 43-101 compliant) resource of more than 100 million tons with a grade point average of 0.16 percent MoS2. The site offers 220 1971 Adanac feasibility report on property.

Various mining companies have proposed mining and milling operations on the land, including Kerr Adison, Climax Molybdenum BC Placer Development Ltd. and the original Adanac Mining and Exploration . In a May 2005 report NI 43-101, with a cut-off grade of more than 0.10 percent molybdenum, the company reported a measured and indicated resource of 24.2 million pounds moly.

Adanac Chairman Larry Reaugh optimistic reports in an interview on 17 January "I would estimate that somewhere between 12 and 15 million pounds of molybdenum one years would, to me that for the first five years. The company hopes for a partner, by up to 400 million US dollars to this project in the production. Adanac provides a copy of its bankable feasibility on the company website.

In an e-mail from Ken reservoir, a highly respected commentator molybdenum, we were told Larry Reaugh discussed, the company Ruby Creek Project with at least five large corporations, the reservoir reported Did Reaugh on the project online. newsletter Several have praised the efforts of these companies. reservoir also consults for Adanac. He told us the Ruby Creek Project is a short time away from permitting.

Blue Pearl Mining

The Blue Pearl Mining (BLEFF ) Company bills itself as "The World's Largest Publicly traded pure molybdenum producer" on its website. No surprise there. In December, the company was Standard & Poor's /Toronto Stock Exchange Composite Index, the List of market benchmark companies. The index accounts for about 70 percent of the market capitalization of companies in the TSX.

This last Wednesday, Blue Pearl increased its production estimates in the next three years. Till 2009, the company plans to produce 29 million pounds of molybdenum . at the end of last year, Blue Pearl bought Idaho Thompson Creek molybdenum mine, a 75-percent interest in British Columbia's Endako mine and the Langeloth Metallurgical Complex in Pennsylvania. This complements the company Davidson molybdenum deposit, which he also hopes to develop before the decade ends.

Idaho 's Thompson Creek Mine is expected to be around 148 million pounds of molybdenum more During the ten year mine life at an average operating cost of US $ 3.68/pound. Of particular interest to us is the roasting capacity of 35 million pounds in the metallurgical complex in Pennsylvania, which converts focused on the molybdenum oxide. It houses six multiple-hearth toasters required for the changeover. how the company is approaching the 29-million-pound production, in the vicinity of other manufacturers-molybdenum May need to look elsewhere to convert concentrates.

In a recent interview, the company CEO Ian McDonald said: "We believe the price of molybdenum Looks good from here for the next two years or at least - probably more - because it is a below-molybdenum investment in the company for the last 20 years. "We could not agree more with Mr. McDonald, no one deceive .

Idaho General Mines

According on the company's website, Idaho General Mines Inc. (GMOs)" plans to become one of the world's leading manufacturers molybdenum with the start of mining at Mount Hope in 2009. Idaho General holds the Mount Hope Project in Nevada, which contains one of the central graten molybdenum porphyry deposits in the world, a nearly one billion ton ore body to produce about 1.3 billion pounds of recoverable molybdenum during its 53-year-old life. A feasibility study is completed and the project is now being allowed for the operations in Nevada. "

This is probably the grate molybdenum property on our radar. We have asked in the course of the various e-mail exchanges with the army of Idaho General Mines supporters (and possibly carrier), whether this property is too big. Date, they up to scrutiny. In an e-mail exchange with David Michaud, a metallurgical engineer, with whom we consult regularly (and who is also a technical consultant for United Bolero, a smaller molybdenum exploration companies), we played advocate .

Michaud devil, which closely with the United Bolero property, said the metallurgy for its Bald Butte molybdenum property in Montana, "At a flotation feed dimensions of approximately 135 μ m K80, the liberation of molybdenite, if in two dimensions, was 56 percent. Compared to similar ores being processed world, this level of liberation is sufficient so successful IPO recovery of most of molybdenite bearing particles in a rougher concentrate. There is some evidence from studies of mineral fragmentation, which suggests that even grosser Flotation Feed coatings could be used to a much molybdenite liberation of the same level, and therefore very similar metallurgical performances. "

He added:" Liberated molybdenite grains were 91 percent recorded in the final. About 11 percent of molybdenite with binary composite materials were captured - predictable these composite materials contain significant amounts of molybdenite, probably accounting for increased their floatability. "

When we questioned him about Idaho General Property, Michaud gave preliminary thumbs-up that says," I do not believe that GMOs (ticker symbol of the company on the American Stock Exchange) is much different. "He explained that between closeology Montana, where Bald Butte, Idaho, and would probably take over, metallurgic. The first question concerns the Michaud had 'grind Grae", which is not found on the company's website and in our preliminary Research. would Further investigation studying the drill cores. He said: "No drilling samples no DNA." What is fair. in a recent e-mail from someone knowledge of the property and its chemistry, which he grew up was a conversion plant. us He wrote: "Other measures have insurmountable logistics and environmental tires to overcome Mt. Hope is located 65 miles to a rail head and suggests that his own factory conversion, so - which is not held hostage by outsourcing conversion. "

This is the sticky point for us in terms of Idaho General. Z Time Mt Hope the ambitious project comes online, the Climax Molybdenum Mine is also back online. If Idaho General Proposes annually mines along the lines of 35 million pounds, and Climax mines 20 to 30 million pounds per year, where is the fried Idaho General molybdenum concentrates and convert these molybdenum oxide. permit a Technical roasters in the United States, we said, could fool the errand. empty, as one put it, "Hell will freeze over first." Mt Hope is big and the company has begun the process allows. It would be interesting to fast forward to 2009 or 2010 and find out how the project was advanced.

Roca Mines Inc.

Quietly, Roca Mines (ROCAF) moves forward in the direction to a small molybdenum producer. a hiccup in their plans of molybdenum ore in British Columbia's MAX deposit and begin to sell, as previously announced, was delayed by a few months. Company cited weather-related problems during the construction of the plant tailings. On a positive note, the company plans to expand capacity for the 1000 tpd.

In crunching the numbers to determine the value of the rock for the MAX deposit, Michaud concludes: "It is rich. "Depending on how the figures were calculated, this deposit could be worth between US $ 561/tonne US $ 660/tonne. The cost of operations could be as low as $ 71/tonne to a higher level. Estimated recovery could between 85 and 90 percent, depending on how the start-up mine plays. at an altitude of 1000 tpd milling, representing approximately 35000 pounds per day from Molybdenum sulfide concentrate, or over 20000 pounds of molybdenum oxide per day.

Bluntly said if Roca delivers on its plan, the sale of 3 million pounds in 2007 contained molybdenum, molybdenum, and the price hovers in the $ 25/pound level, the company is to quickly build its treasury. We spoke with Scott Broughton during our audio series Last week, which helps provide a better plans.

Conclusion

Molybdenum this company could probably too early in creating the kind of excitement found with the uranium price madness and the explosion of junior uranium companies 2006. There may be some in this year Living in the molybdenum sector. Most mining analysts predict a slow drifting in the molybdenum price during the period 2007 to 2010. Some analysts are the same, cautious in the uranium price outlook before Cameco Corp. announced severe floods in Office of northern Saskatchewan Cigar Lake uranium mine in the Athabasca region. Since then, the uranium price indicates the potential for additional hysteria, in this new year. molybdenum not, at least not yet, with the overwhelming supply imbalance between supply and demand . However, the current price level induce the further exploration and development of previously explored properties, and especially those who are greater degree of deposit delineation of the earlier, but short-molybdenum boom.

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