Tenajons emerging molybdenum identity

The recent boom in the molybdenum market has not been lost on Tenajon Resources (TJS-V, TJRUF-O).

While the company had touted its B.C. gold projects in the past, its been news from its molybdenum plays that have garnered the most interest on the market.

An increase to its resource estimate at its Ajax molybdenum project in northwestern B.C. coincided nicely with news in early March that Sprott Securities was planning a new investment tool for investors to partake in molybdenum companies and the commodity itself.

Word of the creation of the Sprott Molybdenum Participation (MLY-T) helped to set companies with significant molybdenum deposits on fire, with many making record market gains.

Tenajons resource update came on March 5 and it announced it had moved 38.8 million tonnes of 0.064% molybdenum for 56.4 million lbs. of molybdenum into its indicated resource category. It also announced an increase in its inferred resource by 30% to 448.78 million tonnes grading 0.063% molybdenum.

The estimate was done using a cutoff grade of 0.04% molybdenum.

Tenajon has a 100% interest in Ajax, and describes it as one of the largest undeveloped molybdenum deposits in North America. The deposit remains open at depth.

A 3,500 metre drill program is scheduled to start in June which Tenajon will use to try to define near surface high-grade zones for a possible open pit mine.

The ore is currently defined as occurring in a circular zone measuring 650 by 600 metres in diameter and it extends from surface to an elevation of about 1,050 metres and a depth of more than 1,000 metres.

The company is also in the midst of a preliminary metallurgical study.

Recognizing its growing stature as a molybdenum play the company announced the acquisition of the Moly Brook molybdenum property in Newfoundland on April 10.

Moly Brook is an early stage exploration project that is described as a porphyry style deposit. The company plans to drill at the site later this year. Past drilling returned highlights of 221 metres grading 0.059% molybdenum.

As for its gold projects: in mid-March, the company updated its resource estimate at its Kansas gold project also in northwestern B.C.

Tenajon has a 40% interest in the Kansas claim, while the remaining 60% is split equally between Pinnacle Mines (PNL-V) and Mountain Boy Minerals (MTB-V, MBYMF-O). Pinnacle and Mountain Boy can earn a 70% interest in the project by delivering a feasibility study.

Measured and indicated resources at Kansas now stand at 7.2 million tonnes grading 1.53 grams gold and 9.99 grams silver for roughly 355,000 oz. of gold and 2.3 million oz. of silver.

Inferred resources are estimated to be 10.2 million tonnes grading 2.14 grams gold and 5.57 grams silver for 707,000 oz. of gold and 1.8 million oz. of silver.

Tenajon shares have gained over 400% or 73 since trading in the low 20 range at the beginning of March. At press time its shares were trading for 94. The company has roughly 43 million shares outstanding.