Wildcat Resources Ltd. (Canada)

[echarter]

$ Return would be more than noted in the website. (Ore in $ pre ton). On the other hand, while gold and copper credits are there, copper can also form a penalty in a Moly con. Copper can be depressed in flotation cheaply, however, and then re-activated I believe. Many mines have that "problem" and deal with it.

The downside of the deposits we are looking at, is that they are "poddy" and do not amount to high tonnage for this reason. On the other hand, the known type of mineralization where it has been mined occurs over a fair distance laterally. They would not be largest mines in the world.

Another downside is that this type of mineralization is even more nuggety than gold and does not respond well to drilling. It must be correlated with bulk sampling to establish grade. This model was developed at one of the two deposits we have in one area.

 
 Three upsides could exist.  
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One is that modern geophysics has not been done comprehensively and this mineralization responds to that.

Secondly, previous testing was only only to very shallow depths, so doubling present tonnage or tripling it is probable right away. (drilling depth of small core (AQ) at max was no more than 250 feet and most often less than 150). Larger core drilled deeper would get better results. Tripling tonnage on one deposit could mean that the deposit should be tested for feasibility. Small scale, but values may exceed 200 million, perhaps justifying at least 15 million in investment.

Thirdly, known mineralization is frequently 30 or more feet wide, so it should suit bulk underground mining, which is low low cost.

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A fourth possible upside is that there is dormant milling potential in the area, which could be investigated for the possibility of reactivation at some cost saving.

A fifth point to realize is that many thousands of tons of this mineral was mill tested on bother properties and concentrates made. The grade of concentrates and ore as well as its metallurgy has been well established.

All in all, it could be speculated that a few million tons of mineable mineralization might be there with deeper drilling and more lateral work. A million and half in drilling could be done in there. We would hope to get some tons per dollar, hopefully at one to one or better. Bulk sampling and trial mining of accessible ore right now could be done as well. (There is an adit to the ore at present on one property.)

Finally it must be realized that these deposits became interesting after many years of lying fallow, with no exploration, after the price of Moly has risen to record highs. It is obvious that the character and economics of the deposits has to have dramatically changed. Phelps Dodge, one of the largest suppliers of Moly in the world, says that Moly will maintain price for a few years to come.

There is a third deposit we are looking at, which is in another area, and different. It was an old Moly-Bismuth mine, which had problems with separation of talc and Moly so they left the medium grade and low grade behind. It may be that there is now a process to separate the good mineral from the waste economically. This could spell reactivation. There is also the possibility of finding more mineral in the area.

EC<:-}