The report is said to be based upon an independent estimate from SRK Consulting of Lakewood, Colorado, a mining consulting firm that specializes in such estimates.
The news is said to put Molycorp’s reserves up at 18.4 million short tons of rare earth ore (at an ore grade of 7.98% and a cut-off grade of 5%) versus a prior 2010 estimate of proven and probable reserves of 13.6 million short tons. The data is showing that a cut-off grade of 5% used by SRK far exceeds the head-grades of most other known rare earth projects around the world.
Molycorp further noted, “SRK now estimates that the proven and probable component of Molycorp’s ore body contains approximately 2.94 billion pounds (1.3 million metric tons) of contained rare earth oxide (REO) equivalent. This compares to the previous estimate of 2.24 billion pounds of contained REO product (1.02 million metric tons).”
Shares of Molycorp ar enow up about 1.5% at $33.69 ahead of the opening bell and the 52-week trading range is $23.05 to $79.16.
JON C. OGG
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