Roca rallies on Max underground drilling

Vancouver – Underground drilling by Roca Mines (ROK-V, ROCAF-O) at its Max molybdenum mine, located 60 km southeast of Revelstoke, B.C., hints at the depth expansion potential of known mineralization in the deposit.

With five holes completed from a single collar set up in the active workings, hole MX07-01 cut 186 metres of 0.45% MoS₂ (0.27% molybdenum) in the lower portion of the Max deposit and included higher-grade sections of up to 12.2 metres at 1.13% MoS₂ (0.68% molybdenum). True width is estimated to be about 65% of the drilled interval.

Roca say the intercept is from an area of the deposit previously assigned a low-grade due to limited drilling. Additionally, significant molybdenite was encountered throughout the remainder of the hole MX07-01, extending mineralization to depth.

Shipments of molybdenite concentrate output from the Max mine commenced last December following its initial two months of production. Roca is ramping up operations at the underground mine toward its processing capacity of 1,000 tonnes per day.

Under its permitted phase-one underground mine plan, the first few years of operations will be focused on a measured and indicated resource of 280,000 tonnes grading 1.95% MoS₂ (based on a 1.0% MoS₂ cut-off grade) hosted in the central HG zone.

Mineralization at Max occurs in a pipe-like deposit associated with granodiorite intrusives. Molybdenite occurs mostly within quartz stockworks but also as disseminations in the intrusive.

Using a lower 0.1% MoS₂ cut-off grade, 42.9 million measured and indicated tonnes grading 0.2% MoS₂ are reviewed at the deposit.

Max was previously evaluated by a Newmont Mining (NMC-T, NEM-N) and Esso Minerals joint venture in the late-1970s and early-1980s, including some underground development. However weak molybdenum price and market outlook prompted the pair to suspended operations in 1982.

Roca shares were buoyed on the wide molybdenum intercept, gaining 39 in February 8th trading to close at $2.99 per share. The company posts a $239-million market capitalization based on its 79.6-million shares outstanding with the stock showing a 52-week trading range of $1.31-$3.98.