Vancouver — Believing it has the potential to host a sizable molybdenum deposit, Tenajon Resources (TJS-V, TJRUF-O) has struck a deal to acquire the Moly Brook property on the southern coast of Newfoundland.
Tenajon is paying a syndicate of owners $20,000 plus 350,000 shares for a 100% stake in the 6.75-sq.-km property, which is located about 2.5 km from the hamlet of Grey River.
News of the acquisition sent Tenajon shares up 8 to 79 in early trading on the TSX Venture Exchange.
Tenajon is part of the Northair Goup of companies that was founded by Donald McLeod, and is already exploring for gold and molybdenum in northern British Columbia.
Bruce McLeod, Tenajon’s CEO, said confidence in the Moly Brook project is based on previous drilling by now-defunct Royal Oak Mines, which discovered molybdenum at Moly Brook while exploring for gold in 1995.
On the basis of just four drill holes, Tenajon said Royal Oak was satisfied that it had discovered a significant porphyry-style molybdenum deposit.
Highlights include hole FC95-01, which returned a 221-metre intercept grading 0.059%, including a 66-metre interval of 0.09% molybdenum.
However, due to the low price of molybdenum at the time, and Royal Oak’s deteriorating financial position, it was forced to discontinue exploration in eastern Canada shortly after the discovery was made.
“We anticipate drilling at Moly Brook to commence later this year after a brief period of data compilation and logistical planning,” McLeod said.
The four holes were drilled within a 1,100 by 450-metre area of outcropping mineralization, and spaced about 150 metres apart in a north-south direction and at shallow angles. Previous drilling indicates that the mineralization remains open in all directions, the company said.
The Moly Brook property will be subject to a 2% net smelter return royalty, of which 1.5% can be purchased by Tenajon for $1.5 million. A finder’s fee of $2,000 and 35,000 shares will be issued in respect to the Moly Brook acquisition, the company said.
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