EV Resources (ASX:EVR) is considering the optimal funding arrangements for the next phase of drilling at Parag and is continuing discussions with molybdenum roasters in the Americas.
The company has had several approaches from molybdenum roasters within the US and the Americas, indicating an interest to source molybdenum concentrates from Parag.
It says the recent opening of the large bulk terminal at the new Chancay port, a two-hour drive from Parag, will be helpful for the export of copper and molybdenum concentrates.
EV Resources says it has been asked by a number of shareholders to clarify the implications for the Parag copper-molybdenum project of export restriction placed by China on certain molybdenum products.
Molybdenum is mined at about 76 projects globally, of which 40 are based in China. Most production is dominated by China (53%), with Peru (16%), Chile (15%), and the US (12%) other main regions to mine the silver-grey refractory metal.
It is primarily used to strengthen and harden steel alloys, making them more resistant to heat and corrosion. It is also used in lubricants, pigments, and as a catalyst in the petroleum industry.
The US and other Western countries are expected to place more reliance on sourcing molybdenum from producers within the Americas, which EV Resources says positions Parag favourably for supply of molybdenum concentrates to roasters within the US and Latin America.
Managing Director Hugh Callaghan says the Parag copper-molybdenum-silver porphyry project (EVR:70%) has so far drilled numerous lengthy intersections from surface of copper and molybdenum mineralisation.
“It was inevitable that molybdenum would sooner or later be subject to export restrictions from China, and as mines around the world age and deepen and grades deplete, it appears molybdenum will become a metal that takes on a strategic significance,” says Callaghan.
“Parag has remarkable byproduct molybdenum grades higher than most primary molybdenum mines and projects which offers a compelling economic support to the economics of this copper project.”
EV Resources invested in Parag in 2023 based on 76 historical drill holes which proved a copper-molybdenum-silver porphyry discovery, and subsequently drilled a further 1,980m in seven diamond holes in early 2024.
According to the US Geological Survey’s Mineral commodity summaries 2024, identified resources of molybdenum worldwide total about 23.04 million tonnes.
Yet only seven operations are currently primary mines – in the others it’s a byproduct of copper. Only two active primary moly mines currently operate outside of China – both in Colorado, US, reflecting declining Western output.
Of the nearly 700 copper mines around the world just 60 reportedly also produce moly.
Some 90% of Western molybdenum supply is a byproduct of copper production and grades generally range in the 0.01% to 0.25% molybdenum level, according to CPM Group.
The World Bank forecasts demand for the metal from the renewables sector in 2030 may reach 12% of the current global production, meaning more primary mines will need to come online.
Write to Adam Orlando at Mining.com.au
Images: EV Resources
