American CuMo Mining Boosts CuMo Resource Estimate by 19.6 Percent

American CuMo Mining‘s (TSXV:MLY) share price was up an impressive 36.36 percent, at $0.075, on Wednesday morning following the release of an updated resource estimate for the company’s CuMo porphyry moly-copper–silver deposit in Idaho. 
The updated resource estimate confirms that CuMo is the world’s largest unmined, open-pit moly deposit, as well as one of the world’s largest silver deposits.
CuMo is now estimated to hold a measured and indicated resource of 2,524.5 million tons containing 2,391.1 million pounds of moly oxide, 1,594.2 million pounds of moly, 3,957.9 million pounds of copper, 179.1 million ounces of silver and 196.6 million pounds of tungsten.
Meanwhile, the inferred resource for the project now sits at 3,373.6 million tons containing 2,426.9 million pounds of moly oxide, 1,617.9 million pounds of moly, 3,845.9 million pounds of copper, 189.9 million ounces of silver and 216.6 million pounds of tungsten.
All of those numbers were derived using long-term metals prices of $10 moly oxide, $15 moly, $3 copper, $12.50 silver and $15 tungsten. Overall, the updated resource estimate points to a 19.6-percent increase in tons, plus a 21.4-percent rise in ounces of silver, a 17.4-percent bump in pounds of copper, a 10.5-percent uptick in pounds of moly oxide and a 19.5-percent jump in pounds of tungsten.

Speaking to the Investing News Network, Shaun Dykes, president and CEO of American CuMo, was positive on the news, noting, “the most important thing … is the fact that we’ve got an increase in the measured and indicated categories.” That’s key because the company is hoping to put out a feasibility study for CuMo in the next two to three years, and “those are the categories that you need to do prefeasibility and feasibility calculations.”
Dykes believes the timing of that feasibility study will end up being perfect. Essentially, he said, copper and moly prices are low right now, but in the next few years that likely won’t be the case.
“I think basically … we’re in the bottom of a metals cycle. I’m not sure when we’ll start to come out of it, but it’s getting closer,” he said. Looking specifically at copper, he noted that various analysts are “predicting shortfalls … in about two to three years’ time,” adding, “bottom line … I see the price maybe staying flat for a period of time, and then come 2018, when the market starts to pick up … that’s when you’ll see the copper price rise.”
Looking at moly, Dykes was similarly optimistic, noting that he sees the metal’s price going back up in the next three to five years, achieving a long-term price of $15. He sees demand for the metal rising from infrastructure development, particularly “if the US embarks like it should on an infrastructure rebuild project.”
Moving forward, American CuMo plans to start drilling again at CuMo in mid-September. Its aim will be to “further delineate the mineralized zones and to convert the large part of the inferred resource to measured and indicated.” As mentioned, looking longer term, the company plans to complete a feasibility study for the project in the next few years. It also intends to pursue a listing on a major international stock exchange.
In closing, Dykes emphasized that the company “is rising through the ashes of all the past history,” alluding to the fact that American CuMo recently wrapped up legal cases with former management. “This is a big project, and the previous management didn’t know how to handle it,” he said. “But it’s worth fighting over, and that’s what we’ve done … this resource is really the start of the next phase.”
American CuMo’s share price ended Wednesday at $0.065, down slightly from its earlier high, but still up 18.18 percent. Year-to-date it’s seen a 36.36-percent gain.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 
Editorial Disclosure: American CuMo Mining is a client of the Investing News Network. This article is not paid-for content. 
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