Molycor Gold Corp (TSXV:MOR,OTC PINK:MLYFF,FWB:M1V) is a Vancouver-based acquisition, exploration and development company with a primary focus on magnesium, gold, silver and precious metals in North America. The company’s principal assets are its Tami-Mosi magnesium project in Nevada and its Beaverdell gold-silver-lead property in British Columbia.
- NI 43-101 inferred resource of 111 billion pounds magnesium
- Highly specialized consulting team
- Advancing development of vertically integrated facility
- Poised to provide long term domestic supply of magnesium
- Close to infrastructure: electricity, natural gas, and interstate highway and railway
Tami-Mosi Project – White Pine County, Nevada, United States
Molycor’s 100% owned Tami-Mosi project is a magnesium prospect comprised of 78 unpatented mining claims and 3 fractured claims that cover 1,637 acres. The project is located in the Schell Creek Range of White Pine County, Nevada, 6 miles southeast of Ely in the Tamberlaine District and 9.2 miles north of the Taylor silver mine.
In August 2011, Molycor announced an improved NI 43-101 inferred resource estimate at Tami-Mosi, with inferred resources of 412 million tonnes of dolomite at an average grade of 12.3% magnesium, at a 12% Mg cut-off grade, for a contained metal content of 111 billion pounds of Mg. The increased tonnage and grade over earlier estimates results from the acquisition of 13 claims as well as applying block modeling and surface sampling.
In September, Molycor filed the NI 43-101 Preliminary Economic Assessment report, completed in August, on SEDAR. The report suggests an economically attractive opportunity to produce 30,000 tonnes of 99.9% pure magnesium ingot annually for 30 years.
The dolomite discovery began when two historically productive properties in the Tamberlaine district combined to form Tami-Mosi, two northeast and northwest mineralized trending structures converged under a thin alluvial cover on the pediment. In late 2006, the Company carried out biogeochemical surveys and identified 4 potential gold bearing areas with a total strike length of over 2500 meters. A drill program was started late August 2008 intersecting a dolomite structure where assays were announced in March 2008 stating some higher grades of magnesium over 12% Mg.
The company sent out samples to Teck Cominco Global Discovery Labs (later confirmed by Hazen Research) to analyze a 30 ft. section for purity of the dolomite. Results returned a high purity form of dolomite that is virtually identical with the National Bureau of Standards (“NBS”), “Standard 88B”.
Molycor Gold Corp. has proposed that the dolomite would be mined from an open-sided dolomite quarry to be located near Ely, Nevada and transported 210 kilometers north to the processing site at the rate of approximately 800 tons per day. The 150-acre facility would be located near Wells, Nevada and situated adjacent to the interstate highway, mainline railway, natural gas and existing electrical infrastructures. Molycor proposes that it would be vertically-intergrated and contain a magnesium plant, a ferrosilicon plant and a power plant.
The magnesium plant is designed to produce 30,000 tons annually of 99.9% pure magnesium ingot. The ferrosilicon plant would produce 75% ferrosilicon and is included in the facility design for quality control and to reduce cost of a critical raw material for the magnesium reduction process. A proposed clean coal power plant utilizing coal gasification and energy recovery would generate 74.5 megawatts of dedicated power for the facility. Further to that, coal is proposed to be delivered to the facility via rail from the Powder River Coal Basin, minimizing raw material transportation. The expected power cost would be significantly lower than that of commercially available natural gas or electricity.
Beaverdell Property – Beaverdell, British Columbia, Canada
The Beaverdell Silver property is a silver, lead, and zinc prospect containing 27 mineral claims over 903 hectares 4 km southeast of Beaverdell, British Columbia and 0.5 km south of Teck Cominco’s historically productive Beaverdell Mine. The Beaverdell Mine produced almost continuously from 1913-1991, mining 1,321,140 tons that yielded 34,594,385 oz silver, 16,725 oz gold, 25,569,475 lb lead, 30,644,112 lb zinc, and 25,699 lb of copper. Molycor’s claims encompass the southern half of the Beaverdell silver rich veins.
The North Kokomo and Tiger veins outcrop in four 100 m sections for a total length of up to 500 meters, and the Duncan Bounty vein outcrops up to 1,000 meters. The property features 0.1 – 3.0 meter wide quartz sulphide veins that trend northwest, west, and northeast where 8,942 tons were intermittently-mined and shipped from 1906-1961 averaging 183 oz/ton silver, 8.67% zinc, 6.06% lead and 0.049 oz/ton gold.
In July, Molycor completed an exploration program at Beaverdell that focused on the North Kokomo-Tiger and Duncan Bounty veins, where high-grade samples from exploration in 2010 returned up to 61.98 oz/ton silver. The program consisted of 2,458 m of diamond drilling in 16 holes. Four of the holes targeted silver-lead-zinc-copper-gold bearing mineralization in the Duncan-Bounty quartz veins; the remaining holes targeted the Kokomo-Tiger zone. 1,771 samples, ranging from 0.3 – 2.5 meter interval lengths, were collected and reported significant silver values ranging from 20 g/ton to 93 g/ton Ag.
Uses for Magnesium
- Magnesium is the lightest of the light industrial metals
- Current uses of magnesium include: a multitude of alloys with aluminum, manganese, lithium, zinc, iron and steel, but it is most commonly alloyed with aluminum to produce a lighter and stronger alloy referred to as magnesiumaluminum.
- Many new uses for magnesium including magnesium batteries as a lithium alternate, liquid batteries coupled with solar energy storage techniques, automotive
- applications including car bodies, engines and parts, electronic devices and in the aviation industry.
- Widely used in construction in Asia as a fire, mold, and water repellent substitute for both cement, and gypsum board
- Third most commonly used engineering metal after steel and aluminum. High strength to weight ratio and lightweight (one-third less than the weight of aluminum).
- Magnesium is abundant in the earth’s crust, but deposits with high grades are not easily found.
Ed Lee – President & Director
President & Director for Molycor, Mr. Ed Lee is also a Director of Goldrea Resources Corp. and a Director and Executive Vice President of corporate development for Adanac Molybdenum Corp.
Mr. Lee is an entrepreneur in private business in northern British Columbia, and also has 11 years of experience in the assistance of financing and corporate development of public companies.
Larry Reaugh – Chief Executive Officer
Director of Molycor since April 18, 1994, President from April 18, 1994 to May 2, 2005, CEO from April 18, 1994 and Chairman from May 2, 2005, Mr. Reaugh has forty-eight years’ experience in the mining industry with the past thirty-one years directly involved in mineral exploration with junior resource companies. Mr. Reaugh is credited with several producing mines and has raised more than 300 million dollars for exploration and development of mining properties.
Goldrea Resources Corp. – President, Director & Chief Executive Officer from March 12, 1981 to present.
American Manganese Inc. (formerly Rocher Deboule Minerals Corp.) – President and Chief Executive Officer from February 13, 1998 to present.
Dr. William Pfaffenberger – Director
A Director for Molycor, Dr. Pfaffenberger is President and CEO of Torch River Resources, having joined that company in April 2006. He is a retired professor of mathematics, serving in the Mathematics and Statistics Dept at the University of Victoria for 38 years. Bill served as a Member of the Board of Governors, was Chair of his department and served as Chair of the Board of Pension Trustees for 11 years overseeing a fund of over $400 million.
In addition to serving as director of Molycor he also serves as a director of three other public companies: Goldrea Resources Corporation, Sola Resource Corporation, and Torch River Resources Ltd. He is also President of the private minerals company, Fundamental Resources Corporation.
Dr. David Madill – Director
Director for Molycor, Dr. David Madill is a medical doctor in private practice and has 15 years of experience serving as a director and in financing of the company.
Mr. Dan Koyich – Director
Director for Molycor, Mr. Dan Koyich has been involved as a director of public companies since 1997. Most recently he was a Director of Adanac Molybdenum Corp., and is now Vice-President, Corporate Development for Adanac.
As president of his private corporation, JeanDan Management Ltd. since 1977, he has gained extensive experience in consulting services regarding investor relations, business administration and financing for publicly listed companies. Mr. Koyich is a valuable addition to the board.
Teresa Piorun – Corporate Secretary
Corporate Secretary for Molycor, Ms. Teresa Piorun has been with the group of companies for twenty years. Ms. Piorun is a senior corporate officer with wide-ranging responsibilities, serving as a focal point for communication with the board of directors, senior management and the company’s shareholders, and occupies a key role in the administration of critical corporate matters. She is the confidant and advisor to the Chief Executive Officer and other members of senior management, particularly on corporate governance affairs.
Kenneth Wright - Chief Financial Officer
Chief Financial Officer for Molycor, Mr. Kenneth Wright brings to the company over 37 years of accounting experience, with the last eighteen years as an associate with BDO Dunwoody LLP. His extensive experience has seen him serve as Coordinating Board Member for C.G.A. courses with the University of Caledonia and past auditor of the Okanagan Chapter of the C.G.A. Association of British Columbia.
Bob Brown- Advisor and Director
Mr. Brown brings with him over fifty years of industry experience in both ferrous and non-ferrous materials including twenty years in the technical management areas of light metal foundries and reduction plants. He has consulted to major international magnesium companies to assist in evaluation, planning, design, marketing and trouble shoots new operations. He has held various positions throughout the many stages and departments of magnesium production and operations.
Mr. Brown is the publisher of “Magnesium Monthly Review” since 1971 and a contributing editor and columnist for “Light Metals Age” and “Australian Journal of Mining” with over twenty five publications. He has served as Executive Secretary for the International Magnesium Association (IMA) and participated in world panels.
James C. Sever- Chief Operating Officer
James Sever is president of Alpha Omega Engineering Inc. of Spokane, Washington with over thirty years’ experience in non-ferrous metals, chemical, industrial and operational management. He was employed for ten years by Alcoa and Northwest Alloys Inc. as Technical Operations Manager for the Addy Magnesium plant located near Spokane, Washington.
He was responsible for doubling both the magnesium production and the reduction plant capacity without additional capital investment; reducing repair and maintenance costs by 8% on a plant wide basis; maintaining a return on asset of 16% plus over a 3 year period; resurrecting Team management; setting safety records for departments under his management; implementing quality principles in controls and capability; implementing “SIPOC” (a model based on Suppliers, Inputs, Process, Outputs and Customers) a tool used in a 6 sigma process control and a Statistical Process control that included an Evolutionary Operation analysis system. From 1982 – 1987 Mr. Sever was internally moved up to Superintendent of Clarification/Filtration at the Alcan/Arco/Aughinish Alumina facility located in Limerick, Ireland.