"Rhenium is a sleeper"
Wallbridge Mining Company research and analysis
Date: 6 April 2010
Contributed by eResearch
The Board of Directors of Wallbridge Mining Company Limited has approved a plan that would result in Wallbridge distributing to shareholders a dividend comprising special warrants exchangeable into common shares of a new company Miocene Metals Limited.
Miocene Metals was created to acquire all of Wallbridge’s B.C. porphyry copper-gold-molybdenum properties (seven properties covering 1,322.01 hectares). Wallbridge modelled the transaction after its successful spin-out of the Company’s Minnesota properties into Duluth Metals Limited in 2005.
Under the terms of the plan, shareholders of Wallbridge will receive a dividend-in-kind of one special warrant of Miocene Metals for every six common shares of Wallbridge held as of the close of business on April 23, 2010. Following this transaction, Miocene Metals will acquire from Wallbridge all of its B.C. properties in exchange for Miocene Metals common shares.
COMMENT: As a stand-alone entity, Miocene Metals will more easily be able to fund the advancement of the B.C. properties. This presents to shareholders a direct investment in an entire belt of Miocene-age intrusions, with historically little or no systematic exploration. While the current focus appears to be on the copper-gold-molybdenum mineralization, we believe that the potential for a significant rhenium discovery may be a „sleeper‟.
Rhenium is used in high temperature, turbine engine components (70%); as a petroleum reforming catalyst (20%); in applications such as filaments in high temperature lamps, and as an electrical contact material due to its high melting point, good wear resistance and ability to withstand corrosion.
As we outlined in our Bulletin of March 23, 2010, “There is currently a significant market for rhenium in the United States alone. Currently there are only five mines producing the mineral in the U.S., with estimated production of 7,600 kg in 2009 and usage of 33,000 (imports therefore make up 79%). The price per kilogram has steadily increased from $1,070 in 2005 to $2,400 in 2009. (Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2010.)”