Zamia Metals (ASX: ZGM) has hit more extensive molybdenum outside of the current resource at the Anthony project in Queensland.
The highlight was a 171 metre continuous sulphide intersection assaying 558 parts per million (ppm) molybdenum, including 21 metres at 1025ppm molybdenum, and an additional 6 metre and two 3 metre intersections above 1000ppm molybdenum.
A diamond twin hole also assayed 48 metres at 920ppm molybdenum, including 36 metres at 1168ppm molybdenum.
Importantly, these latest results will help boost an upgraded resource at Anthony, which currently has an JORC Inferred resource of; 130Mt averaging 400ppm molybdenum at a 0.02% cut-off grade.
This resource includes; 15Mt averaging 730ppm molybdenum at a 0.05% cut-off grade, with the study carried out by Hellman & Schofield.
Anthony is strategically located with excellent infrastructure, near the towns of Clermont, Emerald and Moranbah, with a sealed road to the site and close proximity to port.
Zamia has already developed a path to production plan, which includes a Scoping Study to be completed in mid-2011, which will lead into a Definitive Feasibility Study to be completed in mid-2012.
Construction can then be undertaken in 2013 at the project, with production in 2014.
The economics of any future Anthony development would be enhanced if Zamia is able to develop a process that extracts a saleable molybdenum compound from the oxide resource.
This would be such that it recovers part or all of the cost of removing the oxide molybdenum overburden, as required for sulphide molybdenum mining and processing.
To evaluate this scenario, Zamia has already initiated metallurgical research on the oxide mineralisation as part of the current Scoping Study for a molybdenum mining and processing operation.
Drilling continues at the site, including twin holes, with more results expected shortly.