On a day when markets around the world tumbled on news of a Bear Stearns (BSC-N) fire sale, Molycor Gold (MOR-V, MLYFF-O) managed to carve out some slim gains based on drill results from its operation in Nevada.
The company announced highlights of 11.4% magnesium over 165 metres, 12.1% magnesium over 67 metres and 10.7% magnesium over 81 metres.
The results are from the first phase of drilling at its Tami-Mosi gold property, roughly 10 km south of Ely, Nev. In all, 14 reverse-circulation holes were drilled for a total of 2,567 metres.
The Vancouver-based company says the strike length potential is over 2,500 metres and that it will be testing the metallurgy of the rock while looking into industrial applications for magnesium.
The most recent spot price for magnesium metal was US$2 per lb.
Increases in magnesium consumption have come mainly from its use in aluminum alloys and in the production of nodular iron.
Molycor shares gained a penny on the news and were trading for 20 at presstime, with a heavy three-day volume of roughly 3 million shares traded. Molycor has 61 million shares outstanding, with its stock trading in a 52-week range of 11-35.
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