“All the evidence is there, someone had to come in and do the work.”
This statement by Managing Director Noel Ong is one that could sum up the entirety of Taiton Resources.
The bet that its flagship Highway held an overlooked mineralised system is the pitch that got Taiton on the boards in December of last year, and the Company has wasted no time showing that its bet on Highway was a safe one.
Just a few weeks ago, mapping and sampling programs have shown more evidence of a large magmatic-hydrothermal system with potential molybdenum-silver mineralisation and the Company has just followed up on that find, with rock chip assays returning molybdenum and silver grades of 1300 ppm and 27 ppm silver respectively from the Projects Merino Porphyry Prospect.
Results from the rock chip sampling program point to Climax-type molybdenum porphyry, in reference to the world-class Climax Molybdenum Mine, the largest molybdenum deposit in the world, having produced nearly a million tons of molybdenum over 100 years.
And in an industry where excitement can be a hollow word, Noel Ong’s is palpable when it comes to the Highway Project.
“We believe there is a mineral system there that has been overlooked and it’s kind of the area where people thought there is much happening, the is focus for the gold in Gawler and the IOCG in that Olympic domain,” Ong said.
“If we are correct, we have opened up a new province there and the geology and everything else points to a fertile system, the value of that is that we’ve opened up a potential elephant country there.”
The timing for this find couldn’t have been better, with molybdenum currently tearing up the market since it skyrocketed in mid-January, currently trading at US$90 per kilo.
“Molybdenum has had a long history of not doing a hell of a lot. If it were short-lived it would have dissipated by now, and for it to do what it did at the start of the year and jump forty per cent and sitting now at an all-time of 90 dollars per kilo.”
And it’s looking like he may be right, with molybdenum expected to crack the hundred dollar mark to trade at just under US$110/kg in twelve months’ time.
“The whole concept is that when you find a molybdenum deposit they tend to be very big, and historical drilling there is telling us there’s 12m of 600+ BPM, the geology being an active hydrothermal area we’ve shown them in our rock chips showing the texture.”
“Anytime you have a supply deficit issue like a mine closing down, the lag time for a mine to come back is measured in years and some of the bigger ones in decades. If I’m going to make a crystal ball statement it makes me feel like it could be sustained.”
T88’s Australian Stock Exchange-listed share price is currently trading at 22c (8.41 am UTC+ 8 hours).
Further information regarding the announcement can be found online Taiton’s investor hub.