TTM Resources Inc.

TTM Resources Inc.

March 06, 2007 12:20 ET

TTM Resources Stands Out In Dull Market With Handsome Molybdenum Intersection


March 05, 2007 article as reported by Charles Wyatt

Very good timing by Crichy Clarke, Chief Executive of Canadian listed TTM Resources, to announce a 198 metre intersection grading 0.132% molybdenum at the Chu moly project in British Columbia just as delegates were getting ready to migrate to Toronto for the annual PDAC. This is a good result and it hit the wires on a bad week, so the rise in share price of just over 60 per cent to C$0.53 certainly stood out. This intersection was included with analytical analyses and confirmatory molybdenum assay results for four diamond drill holes from the Phase I drill program - 8 holes totalling 3,500 metres - at this project. These results continue to demonstrate the viability of the molybdenum-rich mineralized zone known from historical drilling on the property in the late 1970s and early 1980s.

The Chu project is located in central British Columbia about 145 kms south west of Prince George. The infrastructure in terms of power, paved highway and rail and water is excellent and the area in which the 8,410 property sits has been ravaged by the mountain pine beetle so few environmental problems are anticipated. Chu is also fortunate in that it is only 85 kms southeast of the Endako molybdenum mine operated by Blue Pearl Mining. Blue Pearl Mining is the world's fifth-largest producer of primary molybdenum with operations in North America. Only last October the company bought the Thompson Creek open-pit molybdenum mine and mill in Idaho, the Endako open-pit mine, mill and roasting facility, and a metallurgical roasting facility in Langeloth, Pennsylvania. Blue Pearl is also developing a high-grade underground molybdenum mine near Smithers in British Columbia.

Mark Wilson, Vice President of Sales and Marketing, has been giving a talk on the outlook for molybdenum as part of PDAC. The essence of his talk is likely to be that demand for molybdenum has been growing at an annual rate of 5 per cent in recent years so needs about 20 million lbs of new production/year to meet this demand. It is therefore an ideal time for anyone with a promising molybdenum project, and even better if it is close to a mill and roasting facility. Experts seem convinced that the molybdenum market is heading for a squeeze with China becoming a net importer by 2010. At the same time the switch in Chile to high grading mines in 2004 and 5 led to a fall in production last year of between 12 and 14 per cent. Steels and cast iron comprise the single biggest slice of demand for molybdenum, but it is also used in lubricants, superalloys, nickel based alloys, chemicals and electronics. Steels with a relatively high moly content are used in oil and gas pipelines and around 116,000 kilometres of these pipelines are due to be built over the next seven years.

One of the holes being reported by TTM was a 250 metre step out from historical hole 81-7 and it encountered molybdenum mineralization in five narrow intervals at the selvage of quartz-sulphide veins and as randomly oriented narrow molybdenite-bearing veinlets and stringers. Three intervals exceeding 0.1% molybdenum were intersected, demonstrating the persistence of the veining to the northwest and the potential for relatively high molybdenum grades on the property. Another hole stepped back 110 metres to the southeast to seek continuity of the stockwork zone and infill drill to the northwest of 81-7. A third hole was drilled to a depth of 584.3 metres and encountered three significant fault structures at 160.5 metres, 400.0 metres and 457.0 metres. The faults suggest the presence of a block faulted section which could also have acted to localize molybdenum mineralization.

This was the hole which returned a spectacular interval of 198.96 metres of 0.132% molybdenum between 78.33 - 277.29 metres. Included are three intervals of grades greater than 0.150% molybdenum over individual downhole intervals greater than 14 metres. Although the values and widths returned from this hole may not be representative of those for the overall zone, it is important in that it demonstrates the high grade potential. All four of the holes helped to extend the known strike length and demonstrated the persistence of the molybdenum-bearing veins to the northwest. This last hole also confirmed that there was no barren granidiorite plug to the southeast of known mineralization so another step-out will be drilled in that direction to seek the next strike extension.

Crichy Clarke and the TTM crew have been very encouraged by these drilling results which have helped to expand the size and overall grade of the stockwork zone. They are therefore increasing the original programme from 3,500 metres to 5,000 metres, so will be drilling for some weeks to come. They acknowledge that more work is required to understand the complex vein genesis and the relationship of molybdenum grade to orientation. At the moment molybdenum grade appears to be intimately associated with density of veining and spatial occurrence of the three main vein types. It will clearly be worth keeping an eye on subsequent announcements.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • TTM Resources Inc.
    W.K. Crichy Clarke
    President & CEO
    (604) 685-5851 or Toll Free: 1-888-685-5851
    TTM Resources Inc.
    Tom Brady
    (604) 685-5851 or Toll Free: 1-888-685-5851
    (604) 685-7349 (FAX)
    Small Cap Invest Ltd. - Europe
    Alexander Friedrich
    49 (0) 69-24 24 93 49
    49 (0) 12 12 544 71 04 62 (FAX)