MPH Ventures has signed a formal agreement with Rio Algom, a wholly-owned subsidiary of BHP Billiton, and with Goldcorp, for the acquisition by the company of 93.45% of the outstanding shares of Pidgeon Molybdenum Mines Ltd (PMML). PMML holds a 100% interest in 210 ha of mining claims under the name ‘Pidgeon Molybdenum Deposit’. The Pidgeon deposit is accessible through the #1 Trans Canada Highway and is approximately 50 km east from the city of Dryden, District of Kenora, Northwestern Ontario. In addition to the accessibility of the property by road, it also has power lines running though its entire length, and is within 8 km of the nearest rail link.
MPH says “historic drilling demonstrates excellent potential for a significant large scale and high-grade molybdenum deposit. The system remains open in all directions.”
Work on the property for molybdenum dates back to 1946 with diamond drilling carried out in the 1950s, 1960s, and 1970s. Several historical resource estimates, produced in the 1950s through to the late 1980s, have been prepared on the Pigeon deposit that include reports by T. Bottrill for BHP Billiton (September 17, 1979) and consulting engineering firm Strathcona Mineral Services for BHP Billiton (July 16, 1980). These reports are the most recent and extensive on the deposit and are believed to be the most reliable. The most recent reports indicate the contained tonnage in the mineralized zone varies from Strathcona’s report of 9,000,000 t drill indicated at 0.096% Mo to as much as Bottrill’s report of 55,000,000 t inferred with grades of 0.081% Mo. Both reports used a cutoff grade of 0.04% Mo. The tonnage varies depending on the parameters used and the assumptions made with respect to molybdenum grades, limits of the mineralization, and geometry of the mineralized body. The historic estimates were based on a total of 76 variably spaced diamond drill holes completed on the property.
The company has not yet completed the work necessary to verify the classification of the mineral resource estimates and since the resource estimates are historical in nature and predate and are non-compliant with NI 43-101 standards, the estimates should not be relied upon. In conjunction with Wardrop Engineering, MPH Ventures has initiated a technical report to confirm the historic data and plans to initiate a fill-in diamond drill program to provide sufficient reliable information to complete a NI 43-101 compliant resource estimate. This diamond drill program will commence immediately upon receiving the necessary recommendations from Wardrop Engineering.
The Pidgeon mineralization is contained within what has been referred to as a ‘mineralized shell’. This shell has a strike length of 1,500 m and an average true thickness of 30 m and dips 45o to the south. The bulk of the known deposit is within 100 m of surface. The property covers an elongated granodiorite that has intruded metavolcanic rocks. The granodiorite trends almost east west and forms the core of an anticline. Molybdenum mineralization occurs within the granodiorite along the contact with the metavolcanic rocks. Molybdenum mineralization is associated with abundant aplitic sills that intrude the outer margins of the granodiorite.
The simple geology with 30 m widths and shallow dips indicate potential for development as an open pit mine. Only a portion of the prospective geology on the property has been adequately tested. “Based on the preliminary geologic interpretation of the Pidgeon Molybdenum Deposit, the Company believes there is real potential of increasing the tonnage significantly”, stated 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.”