MPH Ventures Corp. has signed an agreement with Rio Algom Ltd, a wholly-owned subsidiary of BHP Billiton Ltd., and with Goldcorp Inc., for the acquisition of 93 percent of the outstanding shares of northern Ontarios Pidgeon Molybdenum Mines Ltd. for Canadian $906,500 (U.S. $856,000). Separately, the U.S. Department of Energy will provide up to $491,000 for research by Argonne National Laboratory into use of very small particles of molybdenum disulfide as a lubricant additive for motor oils.
Based in Vancouver, British Columbia, MPH agreed to purchase all existing shares held by BHP Billiton and Goldcorp for the sums of Canadian $701,507 and Canadian $205,000 respectively.
Pidgeon holds a 100 percent interest in 210 hectares of mining claims under the name, Pidgeon Molybdenum Deposit. The deposit is accessible through Trans Canada Highway 1 and is about 50 kilometers east of the city of Dryden, District of Kenora, northwestern Ontario. In addition to access by road, the property has power lines running through its entire length, and is within 8 kilometers of the nearest rail link.
Molybdenum is used as a solid lubricant, a lubricant and grease additive, a catalyst in petroleum refining and in the steel and stainless industries, where it is an important additive for strength and corrosion resistance. Recently another company drilling for molybdenum, MetalCorp, said the price of molybdenum oxide has gone from $3 per pound to $30 per pound over the last two years due to strong demand and short supply.
Work on the Pidgeon property for molybdenum dates back to 1946, with diamond drilling carried out in the 1950s, 1960s and 1970s. According to MPH Ventures, the simple geology of the molybdenum deposit mineralization on the site, with 30 meter widths and shallow dips, indicate potential for development as an open pit mine.
Based on the preliminary geologic interpretation of the Pidgeon Molybdenum Deposit, the company believes there is real potential of increasing the tonnage significantly, said Jim Pettit, president of MPH Ventures. Upon completion of a technical report by Wardrop Engineering, the company will initiate a drill program to confirm existing historical information, expand upon the known zone, and to test new targets.
Lube Report last week reported on MetalCorps plans to start drilling at its Playter molybdenum-silver project on the western end of its Big Lake property in northern Ontario.
The U.S. Department of Energy will provide up to $491,000 for research by Argonne National Laboratory in Argonne, Ill. into use of very small particles of molybdenum disulfide as a lubricant additive for motor oils. The energy department funding will go to the energy systems division of Argonne National Laboratory. Scientists from the University of Arkansas, Caterpillar and nanoMech LLC will also help to develop and test the new molybdenum disulfide additive. According to Argonne, Caterpillar will make an investment similar to that of the Department of Energy.