More about Moly-Desgagné
Property Moly-Desgagné
Fieldex Exploration Inc. has entered an option agreement with Mr. Larry Desgagné to acquire a 100% interest in 76 mining claims comprising the Desgagné-Moly Property covering more than 3,365 hectares (33.65 sq. km) in the Chapais region.Geological setting of the moly-showing
The molydenite showing exhibits a shear zone which contains sericite, chlorite, muscovite, pyrite and molydenite of 1.0 to 2.5 metres wide. The zone surrounds a fine-grained, sugary whitish quartz showing concentrations of disseminated and stringers of millimetric grained size molydenite. Laboratory certificates indicate historical values from rock and saw samplings grading up to 7, 95 % Mo along a length of 30 cm. However, all these historical values are not yet re-verified under the complete norms of Canadian NI 43-101 by Fieldex Exploration Inc.
Molybdenum usage
Molybdenum (Mo) is a metallic element used principally as an alloying agent for steel, cast iron, and super alloys. Its usage allows the metals to be successfully resistant to high stress, expanded temperature ranges, and highly corrosive environments. Furthermore, molybdenum finds significant usage as a refractory metal in numerous chemical applications, including catalysts, lubricants, and pigments.[i] The molybdenum oxide price is actually worth $17.60 per pound compare to $4.60 per pound for the copper (www.kitcometals.com).
Employed in buildings and bridges, pipes and power plants, cars and computers, paints and plastics, it is also a key element in the construction of desalination plants, a technology used to purifying drinking water. According to a note of the metals and mining team at Desjardins Securities sent to its clients in 2010 "as the usage of desalination plants becomes an increasingly common practice, molybdenum demand from the stainless steel sector can only increase".[ii]
The option agreement
In order to earn a 100% interest, Fieldex must pay $110,000 and issue 300,000 common shares to Mr. Desgagné, and incurs $150,000 in exploration expenditures on the property. The property is subject to a 1.5% royalty in favour of Mr. Desgagné. Fieldex can acquire 1% of the royalty from Mr. Desgagné for a cash payment of $500,000.
[i]USGS, "U.S. Geological Survey, Mineral Commodity Summaries", January 2011
[ii]Lam, Eric, "Molybdenum key ingredient in fresh water production", Financial Post.com, June 10, 2010, http://business.financialpost.com/2010/06/09/molybdenum-key-ingredient-in-fresh-water-production/