Quadra Mining Bids for Greenland Moly Deposit

Quadra Mining, which owns and operates the Robinson copper-gold mine in Nevada, USA, has made an all-share offer valued at about $34.5 million for International Molybdenum Plc (Inter- Moly), a Canadian junior company that owns the Malmbjerg molybdenum project in eastern Greenland. The Malmjberg deposit has an NI 43-101-compliant resource of 212 million mt, grading 0.12% molybdenum.

InterMoly studies to date contemplate development of a 25,000-mt/d, yearround, open-pit mining operation at the Malmbjerg deposit. The feed grade to the process plant during the initial six years of operation is estimated at 0.15% molybdenum. The plant would produce approximately 20,000 mt/y of high-grade (54%-56% Mo) concentrate, with a low impurity content that is very desirable for steelmaking. A suitable site for the process plant, infrastructure, and tailings facility has been identified 12 km downhill from the mine. Concentrates would be transported 75 km by truck across gentle terrain to a port facility for shipment to markets.

Quadra President and CEO Paul Blythe said, “We see the Malmbjerg project as a good fit in our strategic plan of becoming a multi-asset base metals producer. It is a significant, advanced-stage primary molybdenum project, having already been drilled off by InterMoly to the point where a substantial resource base has been defined.

“Quadra’s skill sets are the financing, development, and operation of base metals projects, and if we are successful in our acquisition, we see these as being immediately applicable to moving the Malmbjerg project forward. The acquisition would provide exposure to what we anticipate will be a strong molybdenum market going forward and would be part of Quadra’s strategy of changing the company’s profile through commodity and geographical diversification.”.