United Bolero moves to mine Bald Butte (January 02, 2006)

Vancouver — United Bolero Development (UNB-V, UBDVF-O) is beginning mining operations on its Bald Butte molybdenum deposit located in southwestern Montana.

Initial ore shipments are expected in mid-December with the rock being hauled to the Contact flotation mill in Phillipsburgh upon finalization of haul road construction. Mill capacity is expected to be about 1,000 tonnes per day in early 2006.

The Bald Butte deposit hosts molybdenite in quartz vein stockworks and is located adjacent to Montana’s historic Marysville gold mining district.

Previous exploration in the area was conducted by Amax, and later, Gulf Mineral Resources, with Gulf undertaking a feasibility study in the early 1980s. Gulf designed an open-pit model (with a 0.06% molybdenum cutoff grade) containing 131 million tonnes of mineralized material grading 0.077% molybdenum using a 2:1 stripping ratio. The historic resource estimate is not National Instrument 43-101 compliant.

United Bolero is earning an interest of up to 100% in Bald Butte for staged annual payments that are capped at $5 million (inclusive of royalties). The project is subject to a 3% net smelter royalty.

The company also holds an option on the Cannivan Gulch molybdenum project in Montana. The calc-alkaline stockwork hosted deposit was discovered and staked by Cyprus in 1968, which subsequently conducted extensive exploration including over 27,000 metres of drilling and an 800-metre adit. A 1982 feasibility study reviewed about 270 million tonnes of mineralized material grading 0.06% molybdenum (0.1% MoS2) using a 0.05% MoS2 cutoff grade and a 0.9:1 stripping ratio.

With molybdenum prices remaining strong, recently fetching US$30.50 per lb., the potential revenue stream for the junior ignited investor interest and nudged up its share value by 12%, or 3, to close at 29 on high volume following the announcement.