Roca commences moly production at Max

Vancouver – Molybdenite concentrate output has begun at Roca Mines‘ (ROK-V, ROCAF-O) Max mine located 60 km southeast of Revelstoke, B.C.

Roca will optimize operations over the next few months while throughput at its 1,000-tonne-per-day capacity mill is ramped up.

Under its permitted phase-one underground mine plan, the initial few years of operations will be focused on the 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.

Operations are expected to produce a 95% MoS₂ concentrate.

Mineralization at Max occurs in a pipe-like deposit and is associated with granodiorite intrusives. The 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 Max.

The deposit 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 a weak molybdenum price and market outlook prompted the pair to suspended operations in 1982.

Roca states future expansion of operations at Max will be based on molybdenum prices.

Molybdenum recently trades at the US$32 per lb. level after spending most of 2006 around the US$25-range. Price for the metal rallied significantly in 2004 from about US$5.00 per lb. to reach US$40 by mid-2005.

Molybdenum is principally used as a hardening and anti-corrosion alloy in stainless and specialty steels.

Roca shares posted a 13 gain on the production news, closing at $3.53 in October 30th trading. The molybdenum producer posts a $281-million market capitalization based on its 79.6-million shares outstanding with the stock showing a 52-week trading range of $1.12-$3.83.