Arizona-based Phelps Dodge (NYSE) has dropped its option on the Stillwater strategic metals joint venture in Montana with Australian company Boulder Gold. Phelps Dodge had to decide by Jan. 15, whether to exercise an option requiring it to pay the company US$150,000 plus monthly payments of US$24,000 while spending $2 million on exploration.
But a spokesman for the Arizona company said preliminary results haven’t been encouraging enough (in Phelps Dodge’s opinion) to warrant such expenditures.
Located near Manville Corp’s Stillwater platinum-palladium mine, the Boulder joint venture recently yielded a 3.5-ft. intersection averaging 0.43 oz. platinum group metals and 0.20 oz. rhodium per ton. Another 3-ft. intersection averaged 2.1 oz. palladium group metals and 0.26 oz. rhodium.
In a press release, Boulder Gold says it was surprised by Phelps Dodge’s decision since it believes the results from drilling in 1990 are encouraging in light of the recent high price of rhodium, a byproduct of platinum.
Boulder says it is seeking a new joint venture partner before continuing exploration on the Stillwater property.
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