Darnley Bay Resources Ltd. has negotiated an option to acquire a 100-per-cent interest in a large molybdenum property located near Smithers, B.C. The estimate was undertaken by independent consultants Jim Cuttle, PGeo, and Gary Giroux, PEng. Since the last resource estimate on the property in 2007 (also by Mr. Giroux), a previous operator drilled 23 additional holes and these have been incorporated into the new resource estimate.
Total drilling on the property to date is 72,815 metres in 218 drill holes, dating back to the 1950s. All of the drill core has been securely stored and is available to Darnley Bay. Giroux and Cuttle estimate the following measured and indicated resources (M&I) at a 0.20-per-cent- and 0.28-per-cent-molybdenum-disulphide cut-off:
- 90.08 million tonnes grading 0.286 per cent MoS2 and 0.034 per cent tungsten trioxide — 0.20 per cent MoS2 cut-off (340.5 million pounds Mo, 67.53 million pounds WO3);
- 34.42 million tonnes grading 0.374 per cent MoS2 and 0.036 per cent WO3 — 0.28 per cent MoS2 cut-off (170.14 million pounds Mo and 27.32 million pounds WO3).
The mineral resource estimate represents significant increases in measured and indicated (M&I) resources of molybdenum and tungsten over those of the previous mineral resource estimates for the Davidson project:
- An increase of 18 per cent or 52.9 million pounds of molybdenum (Mo) to 340.5 million pounds in the measured and indicated categories using the 0.20-per-cent-MoS2 cut-off;
- An increase of 9.43 million pounds of tungsten since the 2005 estimate using the same 0.20-per-cent-MoS2 cut-off.
The report recommends that a preliminary economic assessment be commissioned to determine the cost of producing molybdenum and tungsten from the Davidson property. Two cut-offs are highlighted based on two possible underground mining scenarios. A 0.20-per-cent-MoS2 cut-off might correspond to a bulk-mining approach with on-site processing facilities while a cut-off of 0.28 per cent MoS2 might reflect a more selective direct shipping alternative of hauling ore to another mill for processing.