NMC Resources says three exploration holes at its Moland mine in South Korea have confirmed the existence of very high-grade molybdenite mineralization in the deposit’s west. The drill holes covered a total of 238 metres in the main zone extension between the 257 and 217 metre adit levels.
Highlights of the drill results include 0.75% molybdenum disulphide over 9 metres and 0.55% molybdenum disulphide over 5.8 metres, with further drilling planned to determine how far the mineralization extends.
These latest results expand on those from a deep drilling program announced three weeks ago with 0.26% molybdenum disulphide over 8 metres at one hole in porphyry type ore.
The Moland mine is about 170km southeast from the capital Seoul and has been in commercial production since April 2010.
NMC Resources increased production by 9% during the third quarter of 2011, producing 202.3 tonnes of molybdenum disulphide with a corresponding increase in mill head grade of 14.8%, to 0.31% from the previous quarter.
In November, NMC announced a substantial increase to the mineral resource at Moland, with and indicated 1.7 million tonnes of molybdenum disulphide @ 0.35%.
NMC president Do Hyung Kim, who was appointed to the position in November, said the company was very pleased to see the mineral resource more than double, even using a 40% higher cut-off grade than the previous resource estimate.
“KORES (Korea Resource Corporation) continues to sponsor our deep drilling exploration and we will notify the market of results when they are received," he said.
NMC owns two molybdenum assets: the producing Moland mine and the Boss Mountain Mine in British Columbia, Canada. The company says its assets are strategically located to supply the growing demand for molybdenum from the Asian markets.