VANCOUVER — Underground drilling at Roca Mines’ (ROK-V, ROCAF-O) Max molybdenum mine, 60 km southeast of Revelstoke, B.C., hints at the depth expansion potential of the deposit.
With five holes completed from a single collar set up in the active workings, hole MX07-01 cut 186 metres of 0.45% MoS2 (0.27% molybdenum) in the lower portion of the Max deposit and included higher-grade sections of up to 12.2 metres at 1.13% MoS2(0.68% molybdenum). True width is estimated at about 65% of the drilled interval.
Roca says the intercept is from an area of the deposit previously assigned a low grade due to limited drilling.
Significant molybdenite was also encountered throughout the remainder of the hole, extending mineralization to depth.
Shipments of molybdenite concentrate from the Max mine began in December, following two months of initial production. Roca is ramping up operations at the underground mine toward its processing capacity of 1,000 tonnes per day.
Under its permitted first phase underground mine plan, the first few years of operations will focus on a measured and indicated resource of 280,000 tonnes grading 1.95% MoS2(based on a 1% MoS2cut- off grade), hosted in the central HG zone.
Mineralization at Max occurs in a pipe-like deposit associated with granodiorite intrusives. Molybdenite occurs mostly within quartz stockworks, but also as disseminations in the intrusive.
Using a lower 0.1% MoS2 cutoff grade, the measured and indicated resource at the deposit rises to 42.9 million tonnes grading 0.2% MoS2.
Max was previously evaluated by a joint venture of Newmont Mining (NMC-T, NEM-N) and Esso Minerals in the late 1970s and early 1980s, including some underground development. However, weak molybdenum price and market outlook prompted the pair to suspend operations in 1982.
Roca shares rose 39 on the intercept, closing at $2.99 per share. The company posts a $239-million market capitalization based on its 79.6 million shares outstanding, with the stock showing a 52-week trading range of $1.31-3.98.
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