Tenajon emerging as moly play

The recent boom in the molybdenum market has not gone unnoticed by Tenajon Resources (TJS-V, TJRUF-O).

While the company had touted its B.C. gold projects in the past, it’s been news from its molybdenum plays that have garnered the most interest on the market.

An increase in the resource estimate at its Ajax moly project, in northwestern B.C., coincided nicely with news in early March that Sprott Securities was planning a new investment tool for investors to partake in molybdenum companies and the commodity itself.

Word of the creation of Sprott Molybdenum Participation (mly-t, smpcf-o) helped to set companies with significant molybdenum deposits on fire, with many making record market gains.

Tenajon’s resource update came on March 5; it announced it had moved 38.8 million tonnes of 0.064% molybdenum, or 56.4 million lbs. moly, into its indicated resource category and an increase in its inferred resource by 30% to 448.78 million tonnes grading 0.063% moly.

The estimate was calculated using a cutoff grade of 0.04% moly.

Tenajon has a 100% interest in Ajax, and describes it as one of the largest undeveloped molybdenum deposits in North America. The deposit remains open at depth.

A 3,500-metre drill program, scheduled to start in June, will be used to define near-surface high-grade zones for a possible open-pit mine.

The mineralization is currently described as occurring in a circular zone measuring 650 by 600 metres in diameter and extending from surface to an elevation of about 1,050 metres and a depth of more than 1,000 metres.

Tenajon is also in the midst of a preliminary metallurgical study.

Recognizing its growing stature as a molybdenum play, the company announced the acquisition of the Moly Brook molybdenum property, in Newfoundland, on April 10.

Moly Brook is an early stage exploration project; the company plans to drill the porphyry style deposit later this year. Past drilling returned highlights of 221 metres grading 0.059% molybdenum.

As for Tenajon’s gold projects: in mid-March, the company updated the resource estimate at its Kansas gold project, also in northwestern B.C.

Tenajon has a 40% interest in the Kansas claim, while the remaining 60% is split equally between Pinnacle Mines (PNL-V, PNMLF-O) and Mountain Boy Minerals (MTB-V, MBYMF-O). Pinnacle and Mountain Boy can earn a 70% interest in the project by delivering a feasibility study.

Measured and indicated resources at Kansas now stand at 7.2 million tonnes grading 1.53 grams gold and 9.99 grams silver for roughly 355,000 oz. gold and 2.3 million oz. silver.

Inferred resources are estimated at 10.2 million tonnes grading 2.14 grams gold and 5.57 grams silver for 707,000 oz. gold and 1.8 million oz. silver.

Tenajon shares have gained more than 400% or 73 since trading in the low 20-range at the beginning of March. At presstime, its shares were trading at 94. The company has 43 million shares outstanding.