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Blue Pearl on fast track
By Thom Barker
Jun 29 2006
Every hole Blue Pearl digs is coming up moly.
Assay results from the latest round of drilling at the local mining company's Davidson deposit on Hudson Bay Mountain have returned the highest molybdenum concentrations to date.
Blue Pearl COO Ken Collison called it "good news" but not surprising.
"That's what you would expect," he said. "This is a high grade deposit, that's what makes it attractive and economic for an underground operation."
Of particular interest are two holes that measured 1.9 and 1.2 per cent concentration over 15-metre cross-sections that the company describes as "mineable widths."
"We are very encouraged by this latest round of drilling which further establishes the continuity and high-grade nature of the deposit," said Ian McDonald, Blue Pearl chairman and CEO.
Despite the announcement, Blue Pearl stock prices remained relatively stable, perhaps because of the continuing softness in the price of molybdenum, which now stands at approximately $26 per pound in U.S. funds, down from a high of $40-$50 a year ago.
That isn't worrying Collison, however.
"It's a good project at $10 a pound," he said.
He admitted nothing is certain in the metal business, he is confident the price won't fall off the map.
"Anything can happen, but there are enough big projects out there," Collison said, referring to a number of major pipeline projects.
The critical thing, he said, is striking while the iron is hot. To Blue Pearl's advantage is how close they may be to production.
McDonald said he expects their feasibility study to be completed in September and mine development to start early in 2007.
Collison said it typically takes between six and 12 months to go from mine development to production.
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