MOLYBDENUM MINING: Production at MAX mine suspended

BRITISH COLUMBIA - Low head grades and slumping molybdenum prices have forced the suspension of work at Roca Mines' MAX moly mine near Revelstoke. Head grades for the previous quarter were at the breakeven point for an operation of 500 t/d and current molybdenum oxide prices of US$14 per pound.

The company said other zones within the deposit may provide better grades, but these are outside existing mining and development. Management and consultants intend to consider various alternatives that will eventually allow the mine to expand to 1,000 t/d.

Roca Mines says it management remains enthusiastic about the resource at the MAX mine, but development activity has ceased and the remaining 725L stope material will be processed by the end of October 2011.

Please see www.RocaMines.com.