Morgain outlines molybdenite zone

Molybdenite has been discovered on the Cuatro Hermanos property in Mexico’s Sonora state.

Morgain Minerals (VSE) reports that the steeply dipping zone is 250 ft. long and 80 ft. wide.

Assay results from trenching and sampling averaged 0.7% moly, while a higher-grade zone, 20 ft. in width, returned 1-1.3%. A 1,000-ft. drill program will test the area.

Metallurgical tests are under way and the company is investigating the possibility of using a nearby flotation mill capable of producing 100 tons per day.

Geological reserves at Cuatro Hermanos total 223 million tons grading 0.43% copper and 0.038% moly, while an oxide reserve is estimated at 2.9 million tons grading 0.49% copper. The moly discovery occurs on the western boundary of the property.

Morgain has arranged a private placement of 750,000 units at 15 cents per unit. Each unit consists of one common share and one warrant, subject to a 12-month holding period. A warrant entitles the holder to one treasury common share at 20 cents for one year.