Platinova gets moly play

Following recent price increases in the molybdenum market, Platinova A/S (TSE) has acquired the Malmbjerg deposit in Greenland.

The deposit is 20 km from deep tidewater on the east coast at 72 north latitude. A broad valley extends inland from the coast towards the deposit, and an airstrip capable of handling large aircraft has been established in the same area.

The Malmbjerg was extensively explored from 1954 to 1979, during which period 23,000 metres of diamond drilling were completed in 147 holes. Three underground headings totalling 1,300 metres were also driven through the deposit, providing underground drill stations and access for the extraction of bulk samples.

This work established a resource of 150 million tonnes grading 0.23% moly, based on a cutoff grade of 0.16%.

The deposit has remained dormant since 1979, following the collapse of the moly market at that time. The metal, which is extensively used as an alloying agent in the steel industry, has seen a strong price recovery in the past year, trading recently in the US$15-per-lb. range.

Platinova plans to review the existing data regarding reserves and engineering so as to estimate capital and operating costs for the deposit prior to seeking a suitable partner for the project.

Elsewhere in Greenland, shipping plans are being formulated for a March 25 start of a 15,000-metre drill program on Platinova’s wholly owned zinc project in northeastern Greenland.