PROJECTS
 The
porphyry system was partially explored during 1968-1970 by
exploration programs that included more than 2000 metres of
shallow drilling. The drill holes were located in the central
portion of a strong geochemical anomaly – an area that
measures 1400 metres in length and up to 300 metres in width.
The drill holes were shallow (mainly <50 metres depth)
and were widely spaced except within a segment of about 200
metres by 200 metres. Assays from eight diamond drill holes
within this segment indicated an average grade of 0.08% moly
and 0.07% copper for the portions of the core that were analysed
– about 50% of the total length of material cored. More
widely dispersed drill holes along the mineralized zone gave
comparable moly-copper indications. The deepest of these holes
(approx. 70 metres) intersected 6.1 metres at 0.11% Mo close
to the bottom of the hole. The deepest 14.3 metres in a nother
hole assayed 0.15% Mo and 0.19% Cu. It has been concluded
that the Mace prospect constitutes a valid exploration target,
with a potential for an open-pit moly-copper deposit.
The mineralized results above predates and therefore does
not conform to the more stringent reporting requirements of
NI 43-101 and should not be relied upon according to those
standards. Highbank has not yet done exploration work to verify
or clarify the historical estimates as a current mineral resource
and the Company is not treating the historical estimates as
a current mineral reserve or resource.
 Highbank
believes that the historical information provides a favourable
indication of the potential of these prospects and looks forward
to further developing these licenses.
Moly price information obtained from the U.S.
Geological Survey, Mineral Industry Surveys has shown an increase
of US$11.75/kg in 2003 to US$64.68/kg in 2007.
About Molybdenum
A growing global molybdenum (moly) supply gap
is driven by expanded use of the metal and increasing demand.
Known for its steel-strengthening and anticorrosive properties,
moly is used extensively in the production of both carbon
and stainless steel, which, in turn, are used in many and
varied industries, including oil and gas pipelines, nuclear
power plants, and infrastructure construction.
Demands for increasingly higher strength steel and higher
grades of stainless to withstand tough environments are upping
the moly content.
Moly is also used as a catalyst for applications such as
extracting oil from tar sands and lowering the sulphur content
of diesel to meet environmental standards for ultra-low sulphur
diesel (ULSD).
While demand is increasing, substantial amounts of new moly
production are not anticipated to come on stream before 2010,
and some will be delayed due to permitting, construction and
processing delays; consequently, this could keep the price
of molybdenum elevated over the long term. Molybdenum is already
considered a strategic resource in Korea, Japan and China.
It is a metal whose time has come.
Source: Report on Mining
– Summer 2008 pg. 22-23
Graph: www.imoa.info/moly_uses/molybdenum_uses.html
Molybdenum is a crucial alloy component
of steel, and the metal's price has traditionally shown a
close correlation with the performance of the global economy.
Although investment on world-wide construction projects has
weakened recently, there is sufficient residual demand for
steel and molybdenum to make the latter one of the more attractive
commodities at the moment.
However, almost 60% of molybdenum is produced as a by-product
of mining for other metals - most commonly copper. Only 40%
is produced by primary molybdenum operations, with two-thirds
of this coming from China and the Commonwealth of Independent
States.
Source: www.2020series.com/molybdenum
So What Is “Moly” and Why
Should I Care?
Molybdenum is a metallic element used to add strength and
super corrosion resistance to stainless steel in certain high-end
applications, most of which are in the energy sector. Large
oil pipelines use molybdenum because stainless steel laced
with the metal has a much greater ability to withstand cold.
And without moly? Pfaffenberger provides an example:
“Last year there was a story of problems with pipe on
Alaska’s North Slope —they realized they hadn’t
added enough moly, and now, after only 20 years, the pipe’s
in trouble. With more moly, it could have lasted another 20
or 25 years. So now old pipe is being replaced with new moly
pipe, but yet more is needed for general pipeline expansion.
With its present economy, for example, China has only about
10% of the pipelines it should have.”
Another application for molybdenum is in the desulphurization
of heavy oils, like those found in Alberta’s tar sands.
“New crude oils being produced are all getting heavier
in sulphur content,” explains Pfaffenberger, “so
we know this demand will grow. Even today, it is necessary
to drill deeper to get at gas and heavy oil; moly is needed
in the drill bits and pipes to go that deep. If we’re
going to have enough oil to meet future demand, we’re
going to need molybdenum for drill bits, pipes, desulphurization
— and we’d better find more of it, because there’s
already a world shortfall of about 30 million pounds per year.”
Source:
www.hume-media.com/content/upload/08-mar.pdf
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