EV Resources (ASX:EVR) has concluded a review of molybdenum grades assayed to date at its flagship Parag copper-molybdenum project in Huaura province in Peru.
The grades recorded include expansive intersections of mineralisation from surface, which led to a re-evaluation of the exploration and the commissioning of analysis of molybdenum as a byproduct.
EV Resources recently released the results of four holes from its recent seven-hole program at Parag, all of which have assayed high molybdenum. The company says the results are also consistent with the historical drilling at the project.
About 90% of the world’s molybdenum is produced as a byproduct of copper production and grades generally range in the 0.01-0.25% Mo level. In this context, Parag to date is demonstrating grades of at least 0.10% and up to 0.62%.
EV Resources says this reflects the unusual nature of a belt of intrusive structures in which Parag lies, which has attracted several major mining groups whose land positions surround Parag.
The grades of the six drilled breccias at Parag (with four undrilled structures planned for the 2025-26 drilling program) suggest that fast-tracking exploration to a resource estimate on this zone while exploring for the longer term porphyry, is an important strategic priority for EV Resources.
Historic drilling over 76 holes (18,170m), and EVR’s recent seven-hole (1,980m) drilling campaign has confirmed that the grades of molybdenum from close to surface at Parag are exceptional and are comparable to the highest grade pure molybdenum mines in the world.
The company says the “exciting and inextricable” economics of copper and molybdenum so close to surface at Parag position it as a project with “excellent prospects” as copper and molybdenum prices rise against a backdrop of depleting grades, ageing mines, and long lead times for new supply.
EV Resources will continue to focus closely on molybdenum as a byproduct in its drilling campaign, and has started to talk to molybdenum roasters, which buy molybdenum sulphide concentrates.
The Henderson and Climax mines, located in Colorado, US are operated by Freeport McMoran, a major copper producer focused on copper in the Americas.
EV Resources Managing Director Hugh Callaghan says the company acquired Parag based on the project’s historic drilling and extraordinary molybdenum byproduct grades.
“With each hole drilled, and as prices rise, we are more excited about the project. We are also acutely aware that the future of the copper industry depends on by-product contributions to supplement the steady decline in grades of copper,” Callaghan says.
“Parag is well positioned with its copper-molybdenum potential to accelerate towards a maiden resource and feasibility studies.”
Molybdenum mined in 76 countries and 40 are in China with Peru (16%), Chile (15%), and the US (12%) the other main countries with molybdenum mines.
Molybdenum is mostly a byproduct of copper mining and there are only a handful of primary molybdenum operations in the world. There are just two active primary moly mines outside of China – both in Colorado in the US.
Around 70% of the world’s copper comes from porphyry projects. Most market analysts agree that global copper grades are declining, and so too are molybdenum grades as major copper operations have mined the higher grade parts of their orebodies.
EV Resources says the importance of byproduct credits becomes ever more critical to the economics of new copper projects, and yet molybdenum production from major Western sources has also been falling for some years.
Economic copper porphyries all need higher grade mineralisation close to surface to rapidly repay the capital and infrastructure cost and Parag demonstrably has that from the shallow drilling to date, the company reports.
“This is why we invested in Parag – the high-grade breccia zone is the critical difference that can make a porphyry system economic. Importantly for a junior, this zone offers high grade shallow mineralisation for a standalone mine of a scale suitable for a junior – and gives us time to search for a strategic partner for the longer term porphyry project.
This has profound implications for the economics of the copper industry and explains why EVR has deep conviction over the Parag project. Molybdenum pricing and outlook molybdenum prices have risen in 2024, to US$21.89/lb (US$48,259/tonne) at 24 May 2024 against a backdrop of depleting grades and supply in the industry, and steady demand growth. This upward trend has been evident since 2017.”
Write to Adam Orlando at Mining.com.au
Images: EV Resources
