Molybdenum’s rise spurs interest in Nevada property

The rise in the price of molybdenum to more than US$15 per lb. from the US$3 level is prompting Eureka Resources (VSE) to re-examine its Mindora property in southwestern Nevada.

Following a drop in the price in early 1982, the property was worked mainly for its heap-leach potential as regards known gold-silver mineralization. A near-surface resource of about 1 million tons was identified at a grade of 0.037 oz. gold and 1.8 oz. silver per ton.

Situated in Mineral Cty., the property is known to contain a large, low-grade moly deposit. However, only limited assaying was carried out and no resource figure is available.

Previous work indicates a moly grade in the order of 0.11%, and Eureka President John (Jack) O’Neill sees potential for a resource of more than 50 million tons.

John Kerr, a director, says the company is considering drilling four deep (1,000-ft.) holes to test the deposit. Eureka, which has 6.2 million shares outstanding and $100,000 in working capital, plans to raise $300,000-500,000 to fund the work.