page 5
Molybdenum mineralization has been
found under a 700m x 800m magnetic
anomoly
Mineralization begins at surface, to
1,000 feet of depth.
Gold Hill Magnetic anomoly
source: Company reports
The red and blue outlined area in the above image represents magnetic high
and magnetic low readings respectively, within the main 700m by 800m target
area. The grades in the early holes have been on the low side compared to
what some molybdenum exploration companies have recently been touting,
but the magnitude of the target, and the fact that the mineralization occurs
essentially from surface down to at least1,000 feet may improve the
economics of the project. While the average grade from the 2007 drill
program was relatively low, it was not that far off of the commercial grades
from Moly Mines’ Spinifex Ridge molybdenum project in Western Australia,
which contains a Measured + Indicated resource of 650 million tonnes of
0.045% Mo, using a cut-off grade of 0.02% Mo. According to Moly Mines, the
pre-tax NPV of the project (at August 2007 commodity prices, and an 8.5%
discount rate) is A$3.4 billion.
The Company’s has completed its 2008 ten-hole, 7,664 foot drill program,
following up on last year’s five-hole program. The 2008 program has been
investigating the continuation of high grade mineralization seen in some of
last year’s showings, and expanding the potential resource to the north and
northeast, beyond the magnetic signature shown above. MAX has also drilled
through the overburden at Gold Hill, encountering mineralization not
previously seen at the surface. The Company has noted significant visible
mineralization in the majority of the holes, though the first assay results from
this year’s program are expected in November.
Clancy Wendt, the Company’s Vice-President Exploration, has theorized that
Gold Hill is a major porphyry system which may be down-dipped to the west.
The drilling from this year has tested outside of the magnetic signature
pictured above, and has encountered molybdenum consistent with Mr.
Wendt’s theory.
Sorry I could not figure out how to copy and paste the image of the Gold Hill Magnetic anomoly.
Please do your due diligence
Cheers