RE: news todayActually the news sounded pretty good. Holes 35 and 36 were drilled behind the face of the existing open pit and they intersected high grade mineralization in both holes. Hole 40 was drilled from hole 13 at 70 degree angle and entersected significant molybdenum and low copper values. Hole 41 confirmed that the grade was consistent between holes 5 and 6. With the drilling complete of the known mineralization they are doing a resource calculation. Chlumsky, Armbrust and Meyer LLC, Denver have been hired to prepare a report that conforms to 43-101 standards and they will include their estimate of mineral resources. Metallurgical testwork is also being done By Robert Sandefur and Fred Barnard of VGM with Resource Development Inc of Denver. These steps are usually what companies do to Acquire Permits ( with a fully compliant resource estimate) and Prove the Economic Feasibility of the Project. Since this site was formerly a producing molycopper project there is information from previous operators. They will now better be able to define the resources that can be exploited. Since it is not considered compliant with NI43-101 they have are trying to confirming a deposit of more than six million tonnes, grading an average of 0.86 percent copper, 0.16 percent molybdenum and 0.135 percent tungsten oxide.
There is already a paved road in place with only a few km of gravel road. Hydro line was under construction nearby. Mexico Mike visited the mine and wrote an article on it in Investor's Digest dated 3 Nov 06.
He says there is a "strong, tested management team that is advancing a solid project, with a high probability of defining a large, high-grade resource."
He also said that the overall awareness level among investors for VGM is probably very low, right now, in respect to the potential this little co has to offer. Due in part to a limited scope of active promotion at the current time. DMike also says that there are few options available for those seeking exposure to primary molybdenum producers. he sees higher shareprice multiples for this type of company. The shares may rapidly appreciate to a level above $1
Sounds pretty good for the company!!! What do you think?